Understanding corporate social responsibility in Lebanese family-owned businesses

Abstract

There have always been companies which, on their own initiative, have fostered values which lead them to act responsibly with their workers, clients, and society as a whole; what we call Corporate Social Responsibility (CSR). In the 21st century, organizations are actively pursuing CSR initiatives based around values of long term planning, sustainability, reputation and ethics. These social roles a corporation is expected to play have a strong impact on the company and its external environment. Family businesses in general are found to be socially responsible and careful at addressing social concerns. Their practice of CSR is incorporated in the firm’s culture due to the family aspect in the business. The reasons underlying their tendency to behave responsibly range from their public image and reputation, the family name, their ethical and moral duty, relationships with stakeholders, external pressure and competition, exploitation of profits and using it as a PR and marketing tool. In the Lebanese context, family businesses are found to be philanthropic in nature, practicing genuine CSR rather than following a strategic CSR objective integrated in the firm’s mission and vision. This project will highlight the main drivers for Lebanese family businesses to act corporately socially responsible by gaining insights in the forms and manifestations of their current implementation of CSR practices. Recommendations will then be underlined with the purpose to improve CSR practice in family businesses in Lebanon.