Corporate Social Responsibility and Sustainability in Kuwait
Incorporating Corporate Social Responsibility (CSR) should be a step that every organization in Kuwait should make. CSR helps the organization increase its customers as well as maintain clients’ loyalty. It is necessary for the organization to have priorities and consider the available resources it has so that it may be able to satisfy its needs and that of other involved parties. The outcomes it wants to achieve should be the driver for CSR. Consequently, it is also essential for the organization to consider different results. CSR has a broader impact other than the social roles on the organization. It paves the way for goals that involve both the global and the local communities (Zhang et al., 2017). The strategy is based on the value of philanthropism and volunteering, enabling the organization to have a good image that portrays its behavior to the environment and society. Social responsibility analysis involves the internal and external parties. The internal parties consist of human capital investments, activities that conserve the environment, employees, and health and safety. The external factors include communities, supplies, enterprise operation, business partners, media, and competitors.
Sustainability has dramatically expanded, thereby attracting the attention of many researchers and business organizations. This has made it associated with CSR because of its significance. Sustainability is the ability of the organization or society to continue with its operations without affecting the environment quality (Zhang et al., 2017). This means that organizations in Kuwait have to operate without creating problems for the environment. It is a crucial thing that most organization and society wants to have. However, it requires maximum input as it requires change on the organizational operations, which may adversely affect its performance at the initial point.
CSR Practices
CSR practices make it possible to have long-term gain and efficient operations as the company uses the necessary tools to meet the stakeholders’ requirements. The CSR practices are categorized into four major areas: environmental efforts, philanthropy, ethical labor practices, and volunteering. First, environmental efforts involve practices that enable the organization to maintain its operation and the society (Majerník et al., 2021). The environmental responsibility that Kuwait organizations can practice includes general waste management, use of recyclable plastic, reducing pollution, water consumption, reduction of greenhouse gas emissions (Majerník et al., 2021). Furthermore, they can increase sustainable resources reliance on renewable energy and mitigate adverse environmental effects through tree planting and research funding.
Second, philanthropy comprises the social responsibility that the organization takes to the community. This includes services and products that the organization gives to social causes, community programs, and charity works (Majerník et al., 2021). Third, ethical labor practices encompass ethics that the organization practices in treating its employees ethically and fairly. Other ethical activities that the organization can practice include setting a higher minimum wage, which is different from the federal minimum wage (Majerník et al., 2021). They can also set limitations on products purchases where the organizations cannot purchase products that have been made through child labor or slavery. This includes the laws that organizations put in place to maintain the dignity of their employees (Majerník et al., 2021). Last, volunteering involves the organization’s activities through participation that does not profit. The organization supports these activities by expressing concern for specific issues and social causes.
Significance of CSR Practices
Society
CSR practices have enormous significance to society because of the nature of the practices. First, it creates a close relationship between corporations and society. Through corporate social responsibility practices, the organization’s presence in society is perceived further than a place specifically designed for employment and other production activities (Rioux & Vaillancourt, 2020). Through this, the organization and the community interact harmoniously as society perceives the organization as a social figure vital for the development of the community. Secondly, it helps the society get talents which is a significant factor for society development (Rioux & Vaillancourt, 2020). An organization with a reputable CSR can use this strength to its advantage and benefit society. This is used when the organization has to fortify its appeal making it an appealing employer through value proposition. As employees view the organization’s commitments in the social areas as positive, they also improve their performance because of the positive attitude developed by the company activity. This makes the employees realize that the organization values the clients and responds quickly to solve problems.
Furthermore, the employees’ confidence with the organization management also increases. This is because employees perceive the organization as socially responsible (Rioux & Vaillancourt, 2020). For instance, an organization where the senior manager participates in CSR and has new ideas of how the organization’s operation has to manage will have most employees supporting the ideal, thereby becoming loyal to the organization. Furthermore, the perception of the employees regarding the organization also has an impact on society as this determines how society will view them.
Third, it is significant in transferring technology between society and the organization. This is significant when the organization operates at a global level. Such organizations have assets in many countries with a central location that manages the operation of other company sectors (Rioux & Vaillancourt, 2020). The technology transfer is based on the flow of technology shared between the organization and society. Furthermore, the flow of human resources is also significant as it helps society grow its human capital. The organization usually becomes concerned with the society on which its operations are based, enabling them to make choices that positively impact society.
Fourth, CSR creates interdependence between the organization and the community. This interconnection is significant as it is suitable for creating sustainable development in society. The organization sets up projects that consider the society’s sustainability goals leading to sustainable development projects (Rioux & Vaillancourt, 2020). Fifth, CSR plays a crucial role in gathering essential data for the public organization function. Some organizations deal with security products and services to help society fight certain crimes. This is made possible by the organization’s initiative to prevent crime or identify vulnerable areas. Sixth, CSR helps attain corporate sustainability goals (Rioux & Vaillancourt, 2020). Currently, many organizations are taking social roles with the name corporate sustainability. This brought the need for the corporate sustainability framework, which identifies the organization’s social, economic, and environmental objectives (Rioux & Vaillancourt, 2020). These developed practices are significant in determining the ethical standards that the organization practices, thereby promoting economic development. Additionally, it enables the company to focus on the quality of life of its employees, their family members, the community, and society.
CSR and Environment
CSR has a significant role in protecting the environment, and there are many companies globally that have employed the strategy and have reduced their negative impact on the environment (Shahzad et al., 2020). This is achieved because the companies believed in the coexistence between financial and environmental performance. Enabling the attitude is significant as it drives the employee value proposition, promoting their performance.
Economic Growth
There is no country that has developed without having economic growth. The relationship between economic growth and development shows the significance of CSR, especially in developing countries and developed countries (Inekwe et al., 2020). It encourages investment in a country, promoting economic development. CSR promotes sustainability because of the developmental projects that are initiated.
CSR and Sustainable Development in Kuwait
Social Pillar
Society’s core values include developing employee care, support on charitable events, human capital development, a ban on child labor, support and valuation of the human rights in place of work, and health and safety. The social area has two main sections that allow the organization to carry out other activities that promote sustainability in the Kuwaiti economy. The first section is the internal organizational environment where the employees perform their day-to-day operations (Chwiłkowska-Kubala et al., 2021). A working environment where the employees are motivated frequently promotes their loyalty and efficiency. These employees have a significant role in promoting the company’s long-term success. It is the organization’s role to ensure that the employees have high quality and are qualified for the positions (Chwiłkowska-Kubala et al., 2021). This section also focuses on the identification of socially responsible activities. Therefore, it is essential for the organization to identify the activities that benefit their employees and improve their efficiency and performance.
The second section is based on the local community that the organization operates. The organization has to focus on gaining society’s trust by solving the problems that impact the locals (Chwiłkowska-Kubala et al., 2021). The company should also eliminate its negative effects through its active participation. The organization has to maintain a good relationship with the stakeholders to gain their trust, which is crucial in solidifying the company’s competitive advantage.
Economic Pillar
CSR implementation requires substantial financial resources that are sufficient because it is costly. It requires suitable management practices to enable the organization to operate on sustainability. The document used in this section includes the principles of open conduct, relations specifications among the investors, consumer and supplier, code of ethics, organization conduct, and intellectual property protection (Chwiłkowska-Kubala et al., 2021). Many organizations utilize the internet and annual reports to present their CSR operations.
Furthermore, other activities include using suitable methods to approach clients, developing transparent organizational behavior, good relations with the stakeholders, and offering quality products. These activities are implemented in various ways, such as satisfaction surveys, product quality assessments, and handling of complaints effectively. The organization’s transparency is assessed by the frequent publication of their financial and financial data that focuses on informing the society and environment regarding the economic and social responsibility situations (Chwiłkowska-Kubala et al., 2021). The organization has to prove its responsibility through compliance with terms and conditions. Comparing the organization’s information with others is also significant in handling their economic and managerial approaches that impact society significantly. It is, therefore, necessary that the organization implement CSR at individual levels, which will then expand to its activities and processes.
Environmental Pillar
This area focuses on lowering the organization’s impact on the environment, organic production, creation of green policy, green services and products, organic production, and protection of natural resources. Furthermore, other factors such as waste reduction, use of sustainable energy, waste separation, and recycling of waste products lower the cost of managing such products (Chwiłkowska-Kubala et al., 2021). The organizations should emphasize the identification of sustainable business activities, which will help create a sustainable environment. The company has monitored the legal requirements as they are crucial in identifying sustainable environmental aspects. The green business priority is to develop opportunities to help the organization compete effectively (Chwiłkowska-Kubala et al., 2021). The company has to set up environmental goals and objectives at every level of its operations. Additionally, they have to monitor their progress and make suitable prevention and correction measures to handle the negative outcomes. Thus, it is crucial for the organization to train its employees on the significance of maintaining the environment.
Political Pillar
This emphasizes the significance of democratic governance on the organization’s activities through public deliberation and their role in self-regulation and provision of public goods and services that will aid in filling the gaps left by the government. This focuses on the assumption that the organizations are responsible for the action that leads to structural injustices and benefits (Maier, 2021). It focuses on developing sustainable measures that will enable the firms to avoid activities that make them socially irresponsible. Political CSR enables organizations to research effective methods to help them face such challenges.
The political CSR covers the responsibility of the organization that has a political dimension. This extends beyond the traditional organization citizenship and includes activities that were previously thought of as the government’s responsibility. Through the political CSR, the organization takes the role of interventionist and state-like role (Maier, 2021). Political CSR plays a role intended and unintended role in spheres that are distinct from the business. It is significant in the formulation of the political structure and goods which have a significant interest in the global society. This CSR focuses on the role of business organizations in the political area as they influence the social, political, and civil rights of the community and the society at large. Globalization has a significant impact on the organization’s operations (Maier, 2021). Companies that operate on the multinational level have to make a transformation of the institutions, morals, and practices (Maier, 2021). Currently, governance includes state and non-state parties, which incorporate business organizations. This makes the organization that practices CSR help the government handle issues such as developments and economic growth.
Cultural Pillar
Every nation has a culture that is unique and defined by values, beliefs, rituals, and spirituality. Similarly, organizations have a culture that they operate on in regard to the country’s culture that they carry out their business operations (Miska et al., 2018). Organizations that operate globally have their culture spread across regions (Castro-Gonzalez & Bande, 2019). However, in the country they operate, these organizations have to align themselves with the local community culture for the success of the company through CSR practices.
In Kuwait, there are numerous organizations that operate at a multinational level. This organization operates in various cultural backgrounds. However, Kuwait’s ethnic distribution is different than other nations, where ethnic distribution is dominated by most of the native residents. Therefore, it is necessary for the organizations to consider the cultural distributions when conducting their corporate social responsibility in these regions. It is crucial that the perception of the locals be taken into consideration to ensure the sustainability of the developmental projects as each culture has its perception of the social responsibility of the organizations (Miska et al., 2018). Learning how to manage the cultural differences equips the organization with suitable non-marketing agenda, which will bolster their performance in a distinct business environment. It is also necessary for the organization to identify that the cultural values form the basis for developing sustainable CSR strategies that will enable the company to have significant sustainable relations with all the stakeholders.
Challenges
Kuwait being an Islamic country, religious belief is a significant factor that impacts the performance of the organization towards CSR. There are many companies that perceive CSR as a philanthropic issue; thereby, they cannot implement it as a business strategy. It is a culture of Islamic religion to give out to the poor in the form of charity and Zakat (Alizadeh, 2022). This makes it impossible for the organization to distinguish between Zakat, charity, and CSR practices. However, the action of charity and Zakat tend to differ from CSR. CSR uses a profit-making strategy to enable the company to get recognized, thereby promoting its name.
On the other hand, Zakat is given out without any expectations on the return as it is done for God. This makes it be done without the knowledge of any third parties or society, hence not promoting the organization’s identification. Consequently, CSR requires media and public attention as its primary purpose is to promote its reputation (Alizadeh, 2022). This makes them share the stories of their welfare activities which is far much different than the values of the Islamic culture. This makes this program collide with the locals, as publicizing beneficial events is not encouraged.
CSR implementation is expensive, and it requires adequate finance and resources for its effective performance. CSR requires proper training of the employees and other staff considering that the organizations are based in Kuwait where Islamic values are deeply rooted; it requires a significant effort to change the perception of CSR goes beyond being an activity that exposes the goodness of the organization in promoting the needs and requirements of the society (Alizadeh, 2022). Other significant challenges that affect its implementation include the tension that results from the competition as CSR takes time to bring out the results.
Additionally, it requires a lot of backup from the government and other non-governmental organizations. The customers and investors provide an important figure in CSR implementation, which makes them a significant problem as this requires a change in the organization’s culture (Alizadeh, 2022). Implementing this program requires the organization to have an effective plan as it changes the business model in operation at the time of implementation. The organization leadership and management have to dedicate their time and efforts to handle the changes that the organization is making it difficult for the companies to accept its introduction.
Recommendations
The government of Kuwait should help these organizations through financial support and education that will help them incorporate CSR strategies into their business environment. This can be done by developing incentives that help run programs such as information dissemination, knowledge sharing between organizations, training programs, and infrastructure development. Furthermore, the government should focus on promoting the organization’s business environment that practices CSR, thereby encouraging other organizations to implement CSR into the organization.
At the organization level, they have to begin implementing these programs through ways that are easy to manage and make it possible for the organization to adopt the change without tempering the employees’ work performance because of the change. This is significant as Kuwait is an Islamic country making it essential for the organization to implement these practices in an organized approach without colliding with the views of the locals. This strategy can be implemented through the following easy steps. First, local community involvement is attained by participating in activities such as purchasing raw materials from the local community. Furthermore, other activities include participating in local events and community decisions. Second, the organization should volunteer in local activities such as helping school children. Other activities include participation in local care and help in serving meals and other significant items. This changes the perception of the organization in both the employees and the locals.
Third, the organization should make an effort to go green through simple steps such as unplugging electrical appliances whenever they are not being used, turning off lights in rooms that are not being used, and encouraging hibernation of the computer during breaks, making them consume less power. Furthermore, the organization can encourage recycling within the organization through incentives such as the team that has most of the recycling will have an early break at a particular time.
Fourth, the organization can implement alternative methods of transport that are environmentally friendly. These methods include incentives for the team that cycle and share transportation. The organization can encourage the significance of public transportation by purchasing railcards. Lastly, the organization should support the development of its employees. This includes personal and professional development such as training programs and allocation of time during the regular workday that employees focus on their personal goals.
References
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