Corporate Social Responsibility (CSR) is globally one of the most promising means to pave the way for a better future for both nature and the humankind. It encompasses voluntary activities that companies undertake to accomplish social and economic goals, embracing and promoting a positive impact on the ecosystem the company operates in. CSR Initiatives Preparation organizations help companies in conducting and organizing CSR activities.
If you are planning to start a CSR Initiatives Preparation company in Dubai or the rest of the UAE, here’s all you need to know…
What Is CSR?
Corporate Social Responsibility (CSR) includes the voluntary measures carried out by a company to complement its business activities with initiatives that promote social and environmental welfare. CSR is a formal means to recognize and acknowledge the social responsibility of business. CSR may be broadly categorized into the following 4 types:
1. Environmental Sustainability
This may include initiatives to reduce pollution, promote the use of renewable energy resources and checking the emission of greenhouse gases. As environmental awareness is increasing, companies that care for nature can demonstrate their goodwill while also benefiting the environment as a whole.
This includes activities for welfare for the humankind in general, like donating to charities, financing education programs or carrying out awareness drives. Many firms choose to donate directly for causes like disaster relief, human rights, afforestation, etc.
3. Economic Responsibility
Economic responsibility in CSR refers to carrying out of operations that boost the long-term growth of a business along with promoting the sustainable practices. An example of this could be installation of a new facility to reduce toxic emissions.
4. Company Diversity and Labour Practices
This includes providing ethical labour practices and norms in one’s workplace, like shunning child labour, promoting equal pay for equal work, etc., for one’s employees, clients as well as suppliers.
CSR in the UAE
The CSR Law in the UAE imposes reporting requirements on contributions made to CSR activities. It also sets incentives for socially responsible companies contributing to CSR initiatives. The law applies to commercial companies and companies owned wholly or partially by federal/local government, and is voluntary for free zone companies, sole proprietorships and professional organizations. While contributing to CSR is voluntary, filing a CSR return is mandatory for all businesses in the UAE which fall within the above scope.
The following activities are counted as CSR in the UAE:
- Switching to environmentally friendly policies for manufacturing and operations
- Contributing to social welfare
- Advancing the cause of innovation or scientific research
- Promoting social responsibility and providing opportunities for community initiatives and voluntary programs
CSR is one of the 6 pillars of the Year of Giving strategies announced to endorse the culture of giving in the UAE.
What Should Companies Do?
The CSR Law calls for certain changes and refinements to be made in the way companies operate in the UAE. This should prompt firms and organizations in the UAE to:
- Review their current contributions to social/environmental causes, and evaluate as to how these fit in with the CSR Law
- Register on the CSR platform of the UAE, if applicable
- Maintain a record of the CSR initiatives undertaken for timely disclosures of the same
How a CSR-Initiatives-Preparation Organization Can Help
A CSR-Initiatives-Preparation company acts as a partner for businesses in carrying out their CSR and sustainability strategies, thus promoting a sense of giving back in the corporate sector. Such a company’s role can range anywhere from planning and executing CSR initiatives to acting as a strategic CSR partner.
Are you planning to start a CSR-Initiatives-Preparation company or simply want to conduct a CSR event in Dubai or the rest of the UAE? We at Commitbiz can help. We are well-versed with the CSR laws and conventions in the UAE, and can suggest the most apt model for your company. With us beside you, you can rest assured that you would be giving back to the society in the most sustainable way. Contact us today to know more.