How Qatari Corporations Are Engaging in CSR Practices Research Paper

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The Role of Organizational Drivers and Communication on the Adoption of CSR Activities

Abstract

Today, corporate social responsibility (CSR) practices are becoming increasingly commonplace, and a majority of Fortune 500 corporations as well as small- to medium-sized enterprises are implementing these activities to promote their public image and improve their corporate reputations. Despite these trends, there remains a dearth of timely and relevant studies concerning what types of CSR practices are most effective in achieving organizational goals and how best to communicate information concerning investments in different CSR activities .The purpose of this final component of a three-part study is identify potential internal and external drivers for CSR initiatives as well as the level of communication for CSR initiatives in Qatari companies. In addition, a special section concerning corporate citizenship has also been included as a valuable supplement to the study.

Keywords: Corporate social responsibility, corporate citizenship, CSR, greenwashing, Qatar

Introduction

Significance of study

Despite the increased importance given to CSR activities in organizations across the globe, little is known about the effectiveness of CSR initiatives employed by organizations. In particular, different stakeholders need to receive information about company`s spending on different CSR activities and the effectiveness of the CSR activities employed. This requires proper communication for CSR reporting.

Objective of study

This study comes as part of a series of studies conducted on the Qatari context, particularly companies that operate in Qatar and that consider sustainability issues as part of its strategic aims (CSR Report, 2016). In particular, the first phase focuses on providing proper operationalization for corporate social responsibility (CSR) activities that are implemented by Qatari companies. In the second phase, the strategic integration of CSR in Qatari companies was examined. The current study, the third phase of this research project, concentrates on identifying possible drivers for CSR initiatives as well as focusing on describing the level of communication for CSR initiatives in Qatari companies. Furthermore, a special section related to corporate citizenship has been added as an important supplement to the study.

Review of the Literature

There are number of definitions of Corporate Social Responsibility (CSR) available that typically focus on different factors that should be included in these initiatives (Verschoor, 2009). A concise definition provided by The Financial Times states that CSR “is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders” (Definition of corporate social responsibility, 2017, para. 1). This definition is congruent with the consumers’ perspective of CSR as well, with the most important factors driving adoption of these practices including: (a) corporations need to be committed to their employees; (b) corporations need to be committed to the public and communities and overall society; (c) corporations have a responsibility to provide quality products; and (d) corporations have a responsibility to the environment (Verschoor, 2009). The respective internal and external drivers and obstacles of CSR are discussed below followed by a discussion of the role of CSR communication in achieving organizational goals.

Drivers of CSR

Internal Organizational Drivers

One of the overarching obstacles to successful CSR initiatives is the mindset of some corporate’s leaders concerning the utility of these efforts. Until fairly recently, many corporate leaders viewed CSR initiatives as so much greenwashing intended only to minimally satisfy the expectations of shareholders and other stakeholders. Increasingly, however, many corporate leaders are recognizing that CSR initiatives that are aligned with organizational goals can provide significant returns on these investments. For instance, Ballou, Casey, Grenier and Heitgerp (2012) emphasized that, “If organizations think about sustainability initiatives in the same manner as their core business decisions, such initiatives cannot only be a source of competitive advantage and long-term value for shareholders, but also be highly valued by an organization’s multiple stakeholders” (p. 268). Beyond these intangibles, though, other drivers of CSR initiatives include their ability to directly contribute to a corporation’s profitability (Carrasco &Buendía-Martínez, 2016). To facilitate the process, some corporations have created CSR teams to identify opportunities and implement appropriate initiatives; others, however, have implemented CSR strategies organization-wide in less obvious but still significant ways. For example, Brooks (2010) reports that, “Some [corporations] have set up a substantial CSR teamwhile others have embraced CSR in a more subtle and pervasive way. The latter have changed their values as a result and require all activities to reflect these new values” (p. 12).

External Organizational Drivers

In countries around the world, increasing numbers of companies of all sizes and types have implemented CSR as a philosophy that has proven benefits, and it is becoming increasingly important for corporations to pursue these types of initiatives as well in order to remain competitive.

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Consequently, CSR just makes good business sense during an era of rapid globalization. In this regard, Abra and Khurshid (2016) emphasize that, “Globalization has rapidly changed the conduct of international business in response to key factors, such as depletion or shortage of resources, economic recessions, disruptive innovation, environmental pollution, and society's expectations of the corporate world” (p. 80). Although resources are typically always in short supply, societal expectations concerning the proper conduct of businesses in particular have changed in fundamental ways in recent years, and consumers are becoming astute judges of how well companies engage in these activities. When consumers perceive the organizations they patronize as contributing back to the communities, country, and global environment in which they compete, they naturally feel better about themselves and the companies.

As noted in the introduction, although CSR lacks definitional clarify, Frecea (2015) suggests that “giving back to the community” in substantive ways represents the core of tenets of CSR in an otherwise highly globalized marketplace. For example, Abra and Khurshid (2016) define CSR as “a situation where the firm goes beyond compliance and engages in actions that appear to further some social good, beyond the interests of the firm and that which is required by law" (p. 80). Because many consumers may be unaware of the CSR practices in place at the companies they do business with, it is not surprising that another external driver is need to actively communicate what, how and why companies are engaging in frequently expensive CSR initiatives (Liou, 2018). A danger exists to a corporation’s public image, though, when enterprises spend more on advertising the good deeds they do than they spend on the good deeds themselves, and consumers are also acutely aware of such so-called “greenwashing techniques” (Funitha & Yuhanis, 2016).

Other drivers that have been identified in the growing body of scholarship concerning CSR practices include the need to align CSR practices with companies’ operational processes. In this regard, Frecea advises that, “Some international organizations have [adopted] a concept [that] includes non-financial responsibilities in their operational process. This valuable approach is based on the voluntary CSR character and facilitates the connection between corporations and society to generate an increased social welfare” (2015, p. 36). Regardless of the type or level of CSR programs that are in place or planned, however, achieving optimal outcomes requires an organization-wide communication plan to ensure that all executives and employees understand the importance of these initiatives and the rationale behind them as discussed below.



The Role of CSR Communication (Communicate CSR more effectively to stakeholders)

The role of CSR communication is to promote buy-in on the part of all stakeholders, most especially the organization’s human resources. In the past, many corporations have used mainstream media such as print media and television as communication channels to promote their CSR initiatives, but these types of practices are increasingly viewed as self-promotional and inappropriate. In this regard, Kesavan and Bernacchi (2013) emphasize that, “Evidence shows these types of CSR communication efforts through traditional channels are seen as being less than credible. The message is clear that CSR messages, no matter how valuable and credible, are not being properly conveyed via conventional media” (p. 59). Indeed, even if a corporation donates hundreds of thousands of dollars to community-based initiatives, they will not benefit from these investments if they spend tens of millions of dollars bragging about it. Some superior and highly cost-effective alternatives are available for CSR communication, though, including most especially social media platforms such as Twitter and Facebook where consumers can share their experiences and views about a corporation’s CSR activities in a moderated forum. Empirical observations, word of mouth and personal testimonials are increasingly viewed as more credible than the greenwashing efforts used by many corporations today (Kesevan & Bernacchi, 2013).



Methodology

Sampling and Data Collection

As more and more companies in Qatar are engaged in corporate social responsibility activities (CSR Report, 2015), this study targeted Qatari companies to identify the main drivers for implementing CSR and to examine the level of CSR communication to stakeholders.This increased….....

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