In a region where consumers are still mostly concerned with obtaining the latest products and services at prices they can afford, some argue that the public is not yet ready or looking for companies that adopt Corporate Social Responsibility (CSR). As opponents of CSR in the region make their cases, however, companies across the Middle East are “emptying the bank” by spending heavily on sponsorships and other philanthropic activities in an attempt to appear socially responsible.
The rise in regional CSR activities can be attributed to the unprecedented need to polish corporate images tarnished during years of monopoly in various sectors and industries. While in the West most companies have had over a century to overcome their past reputations as “meatpackers” and “greedy industrialists,” Middle Eastern corporations are only just emerging from an era of monopoly and entering a new age of privatization and competition, when image matters and consumers can always choose another brand or product if they do not agree with the company’s practices. Moreover, as family businesses grow and flourish, they are becoming more institutionalized and adopt international best practices in order to compete with other regional and global players.
These various factors have led to the proliferation of corporate sponsorships of various events and causes, including environmental and public awareness campaigns and health issues, as well as widespread charitable donations. CSR activities are announced daily in press releases and on news websites, allowing them to circulate throughout the Arab world. Yet, despite the investment made in these initiatives, companies are failing to reap the true benefits of their CSR efforts in terms of image building and reputation management.
There are many reasons that CSR has failed to make a stronger impact on brand image in the region. The first is that socially responsible programs should be undertaken as part of an overarching theme that an organization can truly “own” — relating all of their CSR communication and initiatives to it — rather than being random events taking place as a “one time thing” soon to be forgotten by stakeholders, as they cannot be associated with a particular brand.
In order to truly “own” a CSR theme or cause, the chosen theme must be specific to the industry, region and company, taking into consideration the characteristics and constraints of each, and hence effectively communicating and establishing the link between the company and the cause it has adopted.
Verizon and Vodafone, for example, have championed the causes of waste management and health within the context of the telecom industry, recycling mobile phone equipment and taking measures to reduce the radiation emitted from their base stations. This form of CSR also helps these companies reach out to their stakeholders in Europe and the US as concern grows in those regions over the environment and the safety of mobile phone use. Starbucks and Nestlé, on the other hand, highlight their social responsibility in terms of fairly compensating suppliers and sourcing supplies that are both nutritious and produced in an environmentally friendly and sustainable way.
Similarly, in the Middle East, companies should choose CSR themes that not only fit their line of business, but also take into consideration the cultural character of the region and its inherent religious and societal values. Owning and communicating CSR activities that are in line with the region’s culture will resound with the local population and positively impact the overall brand, bringing it closer to its stakeholders. The CSR initiatives chosen, such as some environmental initiatives, often appear to the public as though they are merely ideas plucked from the West and tailored to gain international approval, rather than programs undertaken to meet the priorities and needs of the local population. This can create indifference to the brand as it remains disconnected from its customers rather than an integral part of their community.
Moreover, even though companies have engaged in CSR activities that attempt to address societal issues such as gaps in education, health care and other social services, this has been done sporadically with many organizations championing similar causes, preventing any company in particular from being associated to one theme or another.
The second reason that CSR activities have not made a true impact on the perception of brands in the region is that these efforts need to be translated internally, through sending consistent messages to employees and making the shift from a superficial approach to part of the organization’s corporate culture. By integrating messages about the company’s social responsibility into its vision, mission and values, employees’ sense of belonging will be strengthened, allowing them to become ambassadors of these ideals.
In order for a company to both “own” a CSR theme and communicate it successfully to external and internal audiences, CSR must be one building block in a holistic communication strategy, in line with the company or brand’s positioning and “DNA.”
Once a coherent and comprehensive CSR strategy is adopted and communicated on, it will lead to a stronger reputation and brand image, which in turn means better sales and customer loyalty, as well as greater investor confidence and even higher profits. On the internal level, employee engagement in the strategy can allow companies to better retain their people, by creating a cohesive corporate culture as well as a deeper sense of belonging and pride in the organization. This not only results in lower turnover of key talent but even increases productivity. In fact, the outcome of the successful communication of CSR is as far reaching as decreasing regulatory oversight, by improving a company’s favorable image with regulators as transparent and trustworthy.
In truth, the Middle East needs socially responsible corporations, perhaps even more than other regions, as organizations that effectively communicate their responsibility towards their stakeholders and communities can overcome the skepticism of the public towards large companies. By pulling down this barrier of misperception and negativity between them and their audiences, organizations’ promotional and other messages will get across more clearly, due to an increased degree of trust between the company and the consumer.
The “trust bank” that is created can be drawn upon whenever the organization inevitably faces a crisis and is replenished every time it communicates its commitment to its stakeholders and its loyalty to its corporate values, including CSR.
As such, regional corporations must take on CSR from a new perspective, making it a core part of their companies’ brand building and putting the current shy and indirect approach to CSR communication behind them. By changing the regional mindset, companies can fill and sustain the trust banks they have with their stakeholders, creating long-lasting brand value.
Nohad Mouawad Strategic Communication Consultancy (S2C)
