In order for Corporate Social Responsibility (CSR) to be effective, the corporate world believes that CSR should wholly support the business objectives of the companies involved. Without doing so, CSR — from the private sector’s perspective — will not function properly. One of the chief goals the corporate world always aims for when looking into CSR is if they can financially gain from their participation. Obviously, when thinking of being socially responsible companies are perpetually looking to please their shareholders, employees, suppliers, regulars, etc. This occurs through promoting the brand and its products and thus exposing the company to the public. Being socially responsible is the quintessential tool for companies to use in order to benefit from the ‘win-win’ equation that CSR offers.
Corporate frustrations
Companies in the region are looking for an extreme makeover in the structure of CSR. Mostly, they are searching for long-term sustainability. The corporate world is frustrated with civil society, as they feel that NGOs, civil society organizations (CSOs), and non-profits in general do not work within a set structure when collaborating with them on CSR initiatives. There is undoubtedly a need to enhance the communication channel between the CSOs and private sector. Everyone is coveting for a mutual understanding between the two parties, but the companies cautiously emphasize that they do not want mere matchmaking events where the corporate world and civil society socialize and sip espressos. Companies and civil society must take collective action while making amendments to their methods and action plans, in order to find a sustainable and long-lasting middle ground.
In terms of how well the private sector feels that the civil society uses their funds is a topic of much controversy. Some business leaders interviewed for this report opined that a lot of NGOs in Lebanon are “just a hoax”, as they simply “gather money and use it for their own purposes,” reflecting the general corporate frustration that civil society does not take the funds meant for CSR seriously. Nadine Abi Saab, head of communications at Bank Audi, echoed this view by summarizing that today’s relationship status between the corporate world and civil society is one where “civil society looks at private institutions as mere fund providers, while corporations are still hanging on to maximizing their commercial exposure through any project.”
Abi Saab believes that “serious budget allocations based on long-term commitments are our real challenges today. To shift to this level, private commercial institutions in Lebanon and the region should feel convinced that the time has come to start orienting their market towards a new kind of communication, converting part of their traditional communications budget to CSR.”
The corporate world throughout the Levant undeniably holds dissenting views about how the public sector uses their funds and how they perceive private entities in general. As explained by Abi Saab, serious alterations must be made for civil society and the private sector to enhance the process and communication levels between them. Both sides must work towards the common goal and realize that everyone can benefit from this ‘win-win’ formula.
Role of governments
Some companies in the Levant feel that governments do not play any role in CSR, while others see them as either supporters or inhibitors of CSR’s progress in the region. According to Imad Fakhoury, CEO of the Aqaba Development Corporation (ADC), the Jordanian government makes “every effort to involve the local communities in Aqaba in the decision-making process, by implementing development projects that enhance living conditions of residents of Aqaba.” Rashwan Miknas, CEO of McDonald’s Lebanon, thinks that the government should “determine who is legitimate and who is not,” amongs the CSOs in order for companies to really know who they are potentially working with and giving money to. Similarly, Nada Tawil, head of group communication at Byblos Bank, finds that “governments have a governing role to play in facilitating, sponsoring, and making sure the legislation is there.”
At the other end of the spectrum, some corporate individuals feel that governments “should not have anything to do with CSR,” as noted by Ramez Farag, the corporate communication and reputation manager at Procter & Gamble. Seeing that this social responsibility is corporate, Farag believes that “corporations should take this responsibility and initiate the work in this area.” But, he added, if governments interfere at all, it should be through promoting the concept of CSR across the region. Promotion and awareness are key, and surely the governments of the Middle East can and should back this kind of effort.
Money, money, money
Companies with proper CSR departments are undoubtedly better structured to take on the task. Those who wholeheartedly and structurally participate in CSR tend to have a specific budget allocation towards such initiatives. Having a distinct internal section for CSR also gives room for figuring out how and who to give funds to — a lot of companies (especially banks and big MNCs) conduct their own market research in order to invest in what they think are the best initiatives for themselves.
Usually, the funds invested in CSR are a small percentage of the company’s annual sales. A common trend — and mistake — of companies in the Levant is when they do not possess a specific department strictly designed for CSR. A significant number of companies in the Middle East do not know how to allocate their funds, specifically because most of are not endowed with bona fide CSR committees. Hence, what a lot of them do is throw small bits of money at civil society and call it a day. But, on the flipside, a lot of companies that do not have a distinct CSR budget still manage to participate in their own way. DHL, for example, does not have a CSR budget but uses funds from its advertising or travel budgets. Following a recurrent trend in the Levant, DHL — like many of its competitors — simply invests in areas they define as important and care to do. DHL and others may want to learn from those holding defined CSR departments.
ADC, for example, takes a percentage of its profits and then allocates it “towards supporting the local community, and based on the budget, the CSR department selects the most significant projects and programs to be implemented throughout the year,” explained CEO Imad Fakhoury. Tania Rizk Nacouz, head of the communications division at Banque Libano-Francaise, noted that her bank has a special budget that “is strictly allocated to CSR.” Annually, BLF assigns “hundreds of thousands of dollars” to CSR, and to make sure funds are distributed wisely the bank has put the communications division in charge of all CSR related issues.
Corporate aspirations
The corporate world is indubitably seeking regional awareness of CSR. Most maintain that without awareness and comprehension of what being socially responsible means, nothing can get done. Though they criticize the civil society for not being totally ‘in the know’, it should be noted that the companies as well lack a common understanding of CSR. From either spectrum, there is a pressing need for both sides to have a universal concept of CSR.
Additionally, many would like to see CSR take on a “more structured shape,” as Tawil observed. Nacouz specifically wants “an increase in multi-stakeholder partnerships in the region, namely that various actors from civil society, the public and private sectors, as well as the media, team up to achieve a common, social goal.” Richard Francis, the business development manager Eastern Mediterranean at Schneider Electric, would like for CSR to grow in the future, and for companies to become “more and more aware of their role as social responsibility.” Abi Saab highlighted the fundamental issue faced by the region today: “CSR will mature only when both parties will regard each other as partners in win-win projects where NGOs will be realizing their raison d’être. Corporations will be winning peoples’ hearts — and consequently bigger market share — and society would definitely be the biggest winner, with such motivated parties working on solving problems.” The corporate world is humble about what their intentions are, yet rather candid when stating they must reap financial benefits from any project in which they get involved. According to the private sector, it is high time that CSOs get their act together by working with corporations not only to assist in educating communities across the Middle East, but also to lay the basic foundations of CSR for both parties.
In brief, the corporate world is seeking positive change in CSR. How long this will take to come about, no one can say, but it definitely needs time to sufficiently evolve. Also, the private sector, for the most part, only dives into CSR if it can reap positive, fruitful financial benefits. Heavily criticizing civil society, the corporate world is well aware of the widening abyss between itself and CSOs. In order for CSR to genuinely develop, the Levant is in dire need for a change from both sides. Companies feel that civil society should see them more as partners than just as cash cows. But, until collective efforts are made and both parties put disdains aside, no progress will be made and CSR in the Levant will stay unmoved — with much potential, but lacking structure and significant motivation.
