JEDDAH, 23 November 2006 — It is a known fact that the main objective of businesses is to make profit. That is why many have the misconception that business concerns and social concerns are incompatible. Advocates of corporate social responsibility (CSR) are working hard to prove the alternate, and so far, they have been successful.

Corporate social responsibility is a concept which proposes that corporations take full responsibility for their economic, social and environmental impacts on society. It is a voluntary action that benefits both the interests of the corporation and the wider society. Companies do not only adhere to minimum legal requirements but go beyond them. CSR is thus suggesting commercial companies play an active role to ensure all stakeholders, stockholders, employees, consumers, the general public and so on, are taken care of by measuring the potential economic, social and environmental impacts of their decisions.

This concept is catching on quickly both in the West and Middle East. Tamkeen, a Development and Management Consulting Firm in Jeddah, has already taken CSR as their cause. Like many others, Tamkeen believes in the importance of continuing commitment by businesses to behave ethically and contribute economically.

The Gulf Cooperation Council (GCC) is currently witnessing great economic diversifications and expansions. In fields such as construction, energy, telecommunications and finance, business is booming. The Saudi Arabian government recognizes this and is taking action to ensure that economic prosperity moves hand in hand with social development.

The Long-Term Strategy 2025 outlined by the Ministry of Economy and Planning hopes to see “the Saudi economy in 2025 (to) be a more diversified, prosperous, private-sector driven economy, providing rewarding job opportunities, quality education, excellent health care and necessary skills to ensure the well-being of all citizens while safeguarding Islamic values and the Kingdom’s cultural heritage.”

“CSR is a win-win situation for society and businesses,” says Asya AlaSheikh, the president of Tamkeen Consult.

“The Saudi model of CSR must focus its efforts in human development. We are going through an economic boom, and it is only rational to use our current resources and invest it back in our society,” she added.

AlaSheikh believes that there is no excuse for corporations and government to ignore the current needs of our communities. Like many CSR advocates, she sees great opportunities being created for the private sector and society at large. The ministry identified four main concerns for Saudi Arabia, they are, the problem with the future employment generation, the need for poverty reduction, improvement in the quality of life, and the achievement of sustainable development. Tackling these problems is not going to be easy. CSR advocates believe that this responsibility, even though it is a governmental concern, should fall onto everyone’s shoulders and that includes the private sector.

When used correctly, CSR is beneficial to both the company and society. Specialized CSR consulting firms such as Tamkeen can help companies gain a competitive advantage by demonstrating that they are interested and invested in society. Through such advantages companies can then improve their access to capital, enhance their brand image, increase their sales, reduce their costs and gain full loyalty from employees while improving society.

CSR advocates within Saudi Arabia believe there are many driving motivations as to why Saudi companies should adopt a CSR policy. With the vision of an increase in foreign direct investment and an increase of international companies entering the Kingdom having a more advance, stable and developed work force and society will make Saudi Arabia a more appealing destination for business. CSR also presents another helping hand in the quest to improve the quality of life of the work force, their families, as well as of the local community and society at large.

The question then remains, are more companies in the Kingdom willing to address a socially responsible policy or are they going to continue to be profit hungry machines and how will government agencies work to realize this partnership?