Corporate philanthropy and corporate social responsibility in the Arab Gulf -

Abstract

Although corporate social responsibility (CSR) has its origins in the West, companies in the developing world are increasingly seeking to implement their own forms of CSR. In the Middle East, past research has shown that the social engagement of many companies is often based on social and religious tenants, and exhibits elements characteristic of philanthropy. This study closely examines social engagement in the twenty largest publicly traded companies in the Arab Gulf, in order to determine if such engagement can best be qualified as CSR or philanthropy. In order to do so, this study develops a series of indicators, and collects and analyzes the relevant publicly available data. Using the results, two scores are obtained for each company’s social engagement, one indicating its tendency toward CSR and the second indicating its tendency toward corporate philanthropy. The study finds that, among the companies sampled, social engagement in the Arab Gulf can globally be qualified as a mix of CSR and philanthropy, with a tendency toward CSR. Nevertheless, key examples remain of a sharp dichotomy between the two phenomena, and certain findings point to key differences across countries, sectors, and stakeholder groups.