Corporate Social Responsibility (CSR) has become an important aspect of the business world. CSR initiatives allow companies to operate in ways that help tackle societal and environmental issues. Like in other parts of the world, Dubai also emphasises on CSR activities carried out by companies.
In the UAE, CSR activities have become an inseparable element of corporate governance as the concept is embedded in various legislations. We look at how corporate social responsibility in Dubai is shaping up.
What is Corporate Social Responsibility (CSR)?
Corporate Social Responsibility is a business concept that helps companies be accountable for economic, social, and environmental issues. The idea behind CSR is that a company operates in ways that enhance society rather than contribute negatively towards the environment.
What are the Types of CSR?
There are primarily four types of Corporate Social Responsibility. Let us take a look at them -
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Environmental Corporate Responsibility
An organisation’s commitment to implementing sustainable business practices is part of its environmental responsibility. It goes a long way in helping reduce pollution and conserve natural resources.
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Philanthropic Corporate Responsibility
The organization’s attempt to bring about positive change in the society makes up its philanthropic responsibility. They engage in social welfare activities such as helping out charities, sponsoring study programs, and spreading awareness about social issues.
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Economic Corporate Responsibility
Economic responsibility refers to the organisation’s commitment to support positive changes in society like promoting sustainable practices.
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Ethical Corporate Responsibility
The company’s commitment to operating the business in an ethical manner makes up its ethical responsibility. Fair trade practices, equal pay, and things like no discrimination based on race or gender basis form a part of this responsibility.
What is the Regulatory Framework for CSR in Dubai?
The UAE has prepared a regulatory framework to support CSR activities in the country. The laws concerning CSR are mentioned below -
- Federal Decree-Law No. 32/2021 on Commercial Companies (Decree Law)
- Cabinet Decision No. 2/2018 on the Corporate Social Responsibility (the CSR Rules)
- Cabinet Decision No.79/2022 concerning the controls of motivating commercial Companies to exercise their social responsibility
What falls under CSR Activities in Dubai?
There are a variety of activities which fall under CSR in Dubai. The goal of these activities is to address environmental, economic and social issues. Some of the popular CSR activities include -
- Organising community services, programs, etc.
- Donating to educational institutions, healthcare, NGOs, emergency aids, etc.
- Support educational institutions by providing grants, offering coaching programs, etc.
- Help in the development of good infrastructure to support local communities.
- Carrying out initiatives to minimise carbon footprint, preserve natural resources and rely on renewable resources.
How can a CSR Initiatives Preparation Organisation help Businesses?
The CSR Initiatives-Preparation company partners up with businesses to help them pursue their CSR and long-term viability plans. This allows businesses to expand and give back to the community. Basically, the CSR initiative-preparation company helps businesses plan and implement their CSR strategy.
If you wish to understand more about corporate social responsibility in Dubai or want to start a CSR initiative-preparation company in the UAE, don’t hesitate to contact us. Experts at Commitbiz are knowledgeable about CSR laws and will gladly assist you.
Which companies have to follow CSR laws in Dubai?
Legally registered commercial companies, branches of foreign companies operating in the country, and companies directly or indirectly owned by the federal government must follow CSR laws in Dubai.
How can companies develop a CSR strategy in Dubai?
Companies can develop a CSR strategy by conducting an analysis to identify key social and environmental issues. They can define goals, choose relevant initiatives, and establish metrics to measure progress.
How much does a company need to spend on CSR?
There is no mandated spending percentage for CSR in Dubai. However, companies are expected to demonstrate a good effort toward social responsibility. While some resources suggest allocating 1-5% of net profits for CSR activities, the exact percentage depends on the company's size and industry.
