“I used to see this area of corporate social responsibility as the last thing on my agenda 10 years ago, but now I agree that social and economic issues are intertwined. Corporate philanthropy — or corporate social responsibility — is becoming an even more important field for business. Today’s companies ought to invest in corporate social responsibility as part of their business strategy to become very competitive. In this corporate competitive context, the company’s social initiatives — or its philanthropy — can have a great impact on not only the local society but also the company.”
Thus said Michael Porter, management guru and probably the most listened to and respected by corporate boards and executives worldwide.
Corporate social responsibility in Saudi Arabia or any other part of the Gulf remains predominantly defined by philanthropy.
With preparations for the GCC Polo Cup 2005 in full swing and with regular ad campaigns for sponsorship of the same, it was inevitable that I began to ponder upon questions like, “Do we expect businesses to save the world?” “Why should big business conglomerates in Saudi Arabia and the rest of the Gulf come out to support an organization (BMG Foundation) in its effort to reach out to the less fortunate masses of society?.”
“Why did multinational corporations like Kingdom Holding Company, sponsor this event in 2003?” Why did other reputed companies like MEDGULF, NCB, Sadafco, Haji Hussein Ali Reza, MBC, Saudi British Bank, Saudi Arabian Airlines, Eirad Group of Companies, National Bank of Dubai, ......do the same? And not just once but for years together as is the case with Al Hamrani Group of Companies, who have been a regular sponsor of the event.
Was it because they wanted to be liked by the masses and gain a good reputation as a good corporate citizen? What about “brand enhancement”? — one of top management’s “pet projects”! That could be another reason considering the fact that the sponsoring companies have their “logos” and “banner’s” all over the field (the prestigious Guards Polo Club).
Or maybe, the exquisite and exclusive chance to shake hands with the Queen besides rubbing shoulders with Prince Charles, the Prince of Wales, and to have that splashed all over the media keeping in mind that the event involves huge media coverage such as MBC, Future TV, Orbit, LBC and other Pan-Arab media groups from the Middle East not forgetting CNN and Sky Sports from the U.K.
I think it goes way beyond the above. Prince Alwaleed ibn Talal is one of the most recognizable faces in the world, particularly in international business circles. Not to mention the fact that he is among the top 10 richest men in the world and as quoted by Business Week once called “the most important financial kingpin that you’ve never heard of.”
I don’t believe that he or Basil Al Ghalayini, chairman of the organizing committee of BMG Foundation or the heads of the above mentioned corporations who get their fair share of media attention on a regular basis owing to that business acumen, need to give thousands of pounds for publicity!
Corporate social responsibility, if properly understood is about sustainable wealth creation. It is about companies creating the maximum possible positive impact on society through their core activities and supporting these by wisely investing in people and communities.
In an age of growing criticism of the very nature and impact of business, such behavior is nothing more than clear sighted.
It is very easy to say that “we ought to be doing something good” and to feel that we should contribute to doing “the right thing” for society. No one will disagree with this noble ambition. For me, however, that is not the interesting question.
No matter what they say in public, when you get behind the scenes with CEOs and directors, they will ask you only one question, “Why should we invest in social initiatives?” We may all care deeply about saving the world but if we cannot answer this one, simple yet important question properly, we have a problem.
Smart businesses know that they cannot exist as little islands of wealth in the midst of an ocean of poverty and deprivation. Investing in the health of communities is essential to long term success.
Business is not separate from society and hence cannot stand apart from it. It is only crucial for businesses to identify how profitability and corporate responsibility go hand in hand bearing in mind the fact that — it is business that makes the economy and that money comes from business, not governments!
