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Executive Summary
Corporate social responsibility encourages organizations and investors to conduct their operations in a principled way. Thus, corporate social responsibility enhances the image and growth potentials of business investments. However, the term social responsibility portrays different meanings across borders. This paper seeks to discuss corporate social responsibility from the Western and Islamic perspective. The paper will evaluate the CSR of three organizations from an Islamic perspective. The three UAE organizations include the Dubai Police, Ministry of Health and Prevention, and Sharjah Book Authority. The significant rise in CSR opportunity, variations, effect on business, and its partners have conveyed CSR to the motivation of each organization.
The research data was collected using interviewing method. This paper proposes a cross-case examination as a system for mining existing contextual investigations so that information from cases can be utilized for extensive purposes. It was obvious that the national course directs the sort of exercises led by organizations and influences their operations. The study revealed major classes of activities adopted by organizations in the UAE. It was found that Islamic perspective on CSR did not affect the customers choice of investment because of their commitment in these exercises. In contrast, CSR from the Western perspective is progressively a humanistic approach as opposed to a religious practice. Social duty of business from a conventional view is to generate profit for the investors using reasonable marketing strategies, fair pricing, and quality service. CSR from an Islamic view is a religious practice in accordance with the Shariah law. Based on the analysis, Islamic and conventional CSR are similar in humanitarian services but different the reason for implementation.
Introduction
Corporate social responsibility (CSR) is a wide term used to portray an organizations endeavors to enhance the society (Abou-Youssef et al. 2015). These organizations enjoy CSR through public image enhancement, media coverage, employee satisfaction, and investors capital. Organizations that exhibit their sense of duty regarding different causes are seen as humanitarian service providers. An enterprises image depends on its CSR and public perceptions (Abou-Youssef et al. 2015). Consequently, investors and customers feel great shopping at establishments that assist the society through their CSR initiatives. Thus, organizations can enhance their public image by supporting charities through financial gifts, volunteer scheme, services, and solid associations (Abou-Youssef et al. 2015). It makes no difference what an organization is doing to improve the ecosystem if no one knows about it. Media coverage provides a balanced information concerning projects implemented by corporate organizations (Gaither & Al-Kandari 2014).
Employees prefer working in organizations that has a good public image. A survey revealed that workers who are pleased with their organizations social duty are connected with their occupation (Gaither & Al-Kandari 2014). When organizations demonstrate that they are committed to the society through corporate giving, they keep skilled and efficient employees. Consequently, investors will work with organizations that use and manage their investments to empower the society. When organizations give cash to philanthropic associations and support their representatives to volunteer their services, they show to financial specialists, they do not mind the benefits (Gaither & Al-Kandari 2014). Rather, they demonstrate that they have an enthusiasm for the environment. Thus, corporate social responsibility enhances the image and growth potentials of business investments. However, the term social responsibility portrays different meanings across borders. This paper seeks to discuss corporate social responsibility from the Western and Islamic perspective. The paper will evaluate the CSR of three organizations from an Islamic perspective. The three UAE organizations include the Dubai Police, Ministry of Health and Prevention, and Sharjah Book Authority.
The Dubai Police
The Dubai Police Force was created in June 1956, with headquarters in Naif Fort . The Dubai Police utilizes the most astounding measures in conducting its obligations, capacities, and operations. As a result, the organization uses the institutional execution pointers, tactical planning, and the management of humans and financial assets. The organization conducts its operations using a streamlined strategy, group management, inventive activities, individual brilliance, and cooperation.
The institution uses social advance technologies to share and transfer information, DNA testing of criminal records and fingerprints. The operations are built on shared values of the rule of law and equality. Thus, their strategic plan includes security, equity, economic, and social freedom. The Dubai Police mission is to improve social welfare by giving extensive, inventive, and reasonable social insurance benefits according to global standards. Consequently, the organization conducts its activities as a controller for social insurance through an advanced and coordinated administrative framework. The private sector plays an essential part in advancing corporate social responsibility. Through vital advancement, organizations are expected to imbibe the benefits of giving, philanthropy, and volunteering in the UAE. The private sector collaborate with government agencies to help generous activities, including human alleviation, locally and foreign aid, and all-inclusive empowerment, which solidifies the countrys image as one of the worlds aid donors.
The Ministry of Health and Prevention
The Ministry of Health and Prevention was created in 1970, with headquarter in Dubai. The health institution implements, coordinates, control and manage health care policies across the country. In accordance with international health standards and practices, the health ministry collaborates with the private sector initiative program to bring quality health care delivery. In line with its mandate, the ministry has reported the dispatch of the Giving Clinics, which will give complimentary restorative counsels and services. These services and counsels will be in all health facilities associated with the ministry.
The health awareness program aligns with the objectives of the Time of Giving activity and it reveals the Ministrys policy to advance quality health care delivery in the UAE and maintain the extensive health benefits in a healthy environment.
In accordance with its corporate social responsibility, the ministry established a volunteer scheme. Volunteers will be members in the Giving Clinic , with numerous openings and motivations planning to instill the value of volunteering, improving solidarity, cooperation, and collaboration.
The volunteer scheme includes individuals, private institutions, and foundations. In line with its CSR framework, awareness programs on social initiatives, patriotism, and civic duties are conducted across the country. The objective is to entrench the value of charity and philanthropy in the UAE. Consequently, the mutual obligation regarding these activities will be on the general population, private sector, and on people who can amplify their potential through combined and joint endeavors.
Sharjah Book Authority
Sharjah Book Authority (SBA) is a literacy empowerment organization in the UAE. The organization was launched in 2014. SBA incorporates improving interest in imaginative ventures, constructing a stage for culture and learning exchange between UAE students and scholars, featuring the significance of books in the interactive media world, and supporting childrens education. Sharjah Book Authority is additionally entrusted with gathering memorable records and antiquities from the UAE, the Arab World, and to protect them by utilizing the most recent innovation and strategies. Moreover, the SBA coordinates, manages, and stores information on distributing, printing, interpretations, libraries, and other related exercises, and in addition aiding research for instruments and innovation.
Literature Review on CSR and Islamic CSR
Islam believes that there is a single God in this world (Abou-Youssef et al. 2015). Islam gives an arrangement of rules that have a coordinate effect on all parts of human life, including the improvement of social and monetary exercises (Abou-Youssef et al. 2015). The number of inhabitants as adherents of Islam is estimated to increase by 27.4% in 2050 (Abou-Youssef et al. 2015). Thus, it demonstrates that the significance of Islam is expanding globally. The investigation of CSR in Islam follows the direction and counsel of Al-Quran and Sunnah (Gaither & Al-Kandari 2014).
Previous studies have discussed diverse considerations concerning CSR and Islam. Thus, the premise of CSR in Islam is gotten from the teachings of Taqwa (Gaither & Al-Kandari 2014), and Tawhid (Gaither & Al-Kandari 2014), which is built on four moral adages. The moral values are solidarity, harmony, free giving, and obligation (Mohammed, 2013). Secondly, the teachings of Khalifah (Jusoh, Ibrahim & Napiah 2015) of spiritual responsibility, standards of good practice, and prohibiting sin (Jusoh, Ibrahim & Napiah 2015). The meaning of CSR in Islam is that each individual is responsible to give and do good other than having confidence and honoring Allah (God), keeping in mind the goal to accomplish Al-Falah (achievement in this world and the great beyond) from Allah and abstain from being rejected.
Conventional Corporate Social Responsibility
Corporate social responsibility gained relevance in the 20th century with a move from researchers to global foundations, government, and consultancies (Gaither & Al-Kandari 2014). The legitimacy for CSR emerges from the request that business enterprises are to act dependably in the utilization of assets and evaluate its activities on the society, or they will react, or be made to react by investors, partners, or the law (Darrag & E-Bassiouny 2013). Consequently, the financial crisis shook shareholders view and requested firms to be more transparent, straightforward and have better responsibility records. The significant rise in CSR opportunity, variations, effect on business, and its partners have conveyed CSR to the motivation of each organization. Hou and Li (2014) emphasized that corporate social and ecological responsibility appears to be moving from the edges to the standards of corporate action, with prominent acknowledgment of an immediate and inevitable connection between corporate service, obligation, and workable development (Hou & Li 2014).
Nevertheless, the expansion in CSR practice and reputation has brought a few challenges in its meaning and created suspicion (Hou & Li 2014). Jusoh, Ibrahim and Napiah (2014) believes there are purposes for firms to act mindfully without lawful prerequisites, such as, marketing, strategic operations, and selfless driven inspirations. This corresponds with Imam and Kpodar (2013) hypothesis of CSR that expresses three sorts of corporate social responsibility, which include moral, philanthropy, and strategic operations. Ethical social responsibility is the interest for firms to safeguard the environment from its operations (Khan 2013). Philanthropic social responsibility is connected with consciousness and charitable perspective (Khan 2013). Strategic operation is enforced when a firm connects with CSR-related exercises that achieve a few business objectives. Although CSR is deliberate, organizations and investors will take part in social responsibility exercises to the degree they see valuable for its objectives (Mallin, Farag & Ow-Yong 2014). Thus, organizations similar to people, do not continuously show adequate good or social conduct. There are four legends associated with CSR implementation.
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Organizations can convey short and long-term social benefits
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The moral buyer will drive change
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There will be a focused competition among organizations concerning CSR implementation
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Nations will contend to have the best moral practices
Corporate Social Responsibility from an Islamic Perspective
The connection between business movement and the society is viewed as normal in Islamic social orders and the standards of implementation are implanted in the qualities described above. Thus, the goal of CSR in Islamic organizations is the same. Consequently, the reasoning that guides their exercises is cherished in the Shariah statutes that require them to work honorably, ethically and in a socially dependable way (Imam & Kpodar 2013). CSR as characterized above is a duty of Islamic institutions (Imam & Kpodar 2013). It is important to note that two objectives are enshrined in Islamic perspective. Thus, organizations must meet monetary and social objectives. Any revenue driven corporation that meets the first is coming short on the other. It is critical to emphasize that Islamic organizations are not beneficial; however, it is immoral for the administrators of these foundations to maximize profit and ignore social commitments (Nor, Rahim & Senik 2016). It is important to reach a balance (Aladl) between the two and equity (adalah) is enforced (Nor, Rahim & Senik 2016). It is also important to note that government and non-profit organizations (NGO) work for the society. They contribute cash for community development and prevent issues from the society. As a result, they conduct their activities for culture, education, quality living, and income of individuals.
The Islamic banking framework includes social ramification and has a unique trademark based on its philosophies (Imam & Kpodar 2013). In practicing and conducting its operations, Islamic banks evaluate the social suggestions that might be realized from its activities. Profit generation is not the prime component in assessing the execution of Islamic banks, since they need to coordinate social targets that would serve the interests of the community and help accomplish their part in the circle of social certification (Mallin, Farag & Ow-Yong 2014). Social objectives form an indistinguishable component of the Islamic financial framework that cannot be ignored. Cross-examinations have been conducted to test the correlation between Islamic CSR and Freemans hypothesis. The outcome shows the investors and shareholders are paid based on their stakes in the organization (Mallin, Farag & Ow-Yong 2014). The motivation behind this separation emerges from the notion that it is unfair to treat group investors the same since they are influenced contrastingly if there should be a huge loss in profit. Thus, the separation can be summarized below.
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Category 1. Those who are influenced by the achievement and disappointment of the business (shareholders, investors, and employees)
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Category 2. The individuals who are influenced by the achievement and disappointment of the business and its activities (providers, clients, and government)
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Category 3. The individuals liable to the externalities of the business (ecosystem and the society)
In the event that an organization enjoys haram exercises, a Muslim financial specialist or the organization should not use the income. In extreme situations, Islamic investors have two choices, either to force the organization to adjust its exercises to meet the requests of both shareholders and Shariah, or sell the investment of this rebellious organization and put resources into business that act in accordance with Islamic screening criteria (Mallin, Farag & Ow-Yong 2014)
Qualitative specialists gather information in an environment or places under examination. Interview incorporates the voices of the members, the reflexivity of the specialist, an explanation, and elucidation of the issue, which broadens the research or flags a call for action. This exploration is a gathering of perceptions of CSR in Dubai as observed by three case studies, which are investigated utilizing interviews with senior employees of the organization.
Qualitative interviews are open-structured designs that help researchers ask respondents Methodology
about the certainties of an issue and in addition their suppositions about events. They are helpful because they endeavor to comprehend things that cannot be monitored, for example, events that occurred previously, the implications individuals encounters and operations (Teherani et al. 2015). By conversing with those engaged with the advancement and usage of CSR system, or investors influenced by CSR, it would be conceivable to comprehend its concept from various angles and get knowledge into the implications attributed to it at an individual level. These positive viewpoints are the explanations for using interview as a strategy for gathering information in this research. The responses were examined using thematic analysis, which characterize a qualitative strategy for recognizing, examining, and revealing forms (themes) within the sample (Teherani et al. 2015).
Research Approach
The examination will depend on gathering, evaluating, and translating information by perception. The qualitative research approach alludes to the implications, ideas, definitions, qualities, illustrations, images, and depictions of variables. It likewise incorporates closeness to the respondents or to the source of the information (Teherani et al. 2015). Thematic analysis is an adaptive information design utilized to produce themes from an interview. This approach is adaptable because there is no particular research configuration associated with thematic analysis. It can be used for contextual investigations, phenomenology, subjective analysis, and narrative evaluation (Teherani et al. 2015). This design is ideal for both amateur and skilled analysts because of its application; however, it is sufficiently thorough to produce important discoveries from the information. Cross-case analysis is an examination technique that encourages the correlation of shared characteristics and distinction in occasions, exercises, and procedures. This paper proposes a cross-case examination as a system for mining existing contextual investigations so that information from cases can be utilized for extensive purposes. To prepare the case analysis, the paper presents the creation of a novel database.
Findings
This area will discuss the discoveries of the research using the information from the interviews with chiefs accountable for CSR and their representatives. The organizations used for the interview include the Dubai Police, Ministry of Health and Prevention, and Sharjah Book Authority. The themes in this thematic analysis include corporate social responsibility, understanding and definition, CSR perception and practices in the UAE.
Corporate Social Responsibility, Understanding, and Definition
Respondents were asked to explain what they understand about corporate social responsibility. The point was to test the level of CSR mindfulness among participants and additionally research whether they know if the organization is compliant. This question was discussed in the interview with the chiefs to perceive what CSR means. All interviewees specified that CSR mean offering back to society by utilizing diverse words with the same clarification. The supervisor in Sharjah Book Authority said CSR can be defined in the Sharjah Book Authority within the scope of voluntary work or work for free to activate the role of youth by giving them awareness sessions in the importance of initiatives and work passionately and provide help without charge. In addition to investing leisure time, exploiting energies and building relationships that serve all parties . The manager in the Ministry of Health and Prevention answered similar question. The manager described CSR as a group of health initiatives and services provided by the Ministry of Health and Prevention to all society groups to promote the health of the individual to enjoy a healthy environment and better lifestyle . The senior executive from Dubai Police described CSR as an active participant in initiatives and activities aimed at socializing and benefiting the community .
It is important to note that all the respondents showed an extraordinary conviction that corporate social responsibility is not a choice but a social commitment. The response proves that corporate social responsibility is rooted in Islamic doctrine and can be easily implemented by corporate organizations in the UAE (Platonova 2013).
CSR Perception and Practices in the UAE
This theme was discussed in the interview to understand the implementation of CSR practices in the UAE. The responses gave an insight on the current methodologies and practices.
CSR Execution
Respondents were asked to discuss the implementation of CSR strategies in their respective organizations. The respondents all concurred that corporate social responsibility is a critical aspect in the UAE. They explained that giving was an Islamic rite; therefore, it is easier to create CSR strategies in non-profit organizations.
It is intriguing that respondents affirmed the existence of CSR strategy in the organization due to the conviction it adds to the wellbeing of the business. This affirmation is consistent with previous survey on strategic corporate social responsibility (Rahman & Bukair 2013). The author emphasized that corporate social responsibility is strategic when shareholders and investors return to the community because it is religious (Rahman & Bukair 2013).
CSR Implementation in Organizations
Respondents were asked how they implemented CSR in their organizations. The senior executive from Dubai Police explained, There is a direct relationship between Dubai Police strategy on three main pillars, the most important of which is the communitys happiness and based on it as strategic indicator measures the percentage of the societys happiness for Dubai Police. This strategy includes a community responsibility strategy that focuses on implementing community initiatives and activities, while providing a permanent working environment for it . Consequently, the coordinating manager with the Ministry of Health and Prevention said To promote community health through the provision of comprehensive and innovative health services with fairness and global standards and to perform regulatory and preventive role in the health sector among UAE Emirates. Yes, there is a link between the Ministrys strategy and the CSR strategy in terms of health care delivery . The respondent from Sharjah Book Authority said, Our strategy is to exploit youth and encourage their role in the organizational events. The love of work and time management is an essential link between the strategy of the Authority and the CSR . Based on the analysis, CSR is a norm in most organizations. They perform the Haram duties as established in Islam.
Challenges of CSR Practice
The respondents were asked to identify challenges they faced during implementation. The responses varied because of product service, organizational operation, and the community. Based on this analysis, one can suggest that CSR implementation depends on the objective and service of the organization. The respondent from Sharjah Book Authority said, The main challenge is to spread the culture of volunteering and awareness of voluntary work, which is not limited to humanitarian and charitable work, but also includes a sense of belonging, responsibility, and free testing of professional work . However, the participant from Dubai Police listed four factors that affected its implementation. The factors include poor data capture of the communities, ineffective communication channel, poor collaboration between government agencies and the private sector. However, the senior executive of the Ministry of Health and Prevention said, The challenges are many, but the most important is the lack of acceptance of the elderly people to the concept of the need for doing periodic examinations to reduce some chronic symptoms and these periodic examinations of the elderly in the country consider one initiative that have been developed to encourage them .
CSR Practices
The leaders were requested to indicate the social obligations in their organization. Respondents mentioned education, and health initiative. Their responses were summarized using three themes, which include philanthropy, corporate governance, and community service.
Community Service
Education campaign and health care schemes were carried out in different locations. The health ministry provided health care givers at all clinics associated with the organization. The Sharjah Book Authority conducted a book fair to educate children on the importance of the library.
Philanthropy
All the organizations dealt with generous tasks as part of their CSR exercises and were focused on apportioning gifts and time for magnanimous projects. The health respondent said There are several ways in which senior leadership in the Ministry encourages the support for CSR, including: Health campaigns were aimed to detect the disease cases throughout the country and consider free. Charitable clinics where non-citizens patients are treated free. Payment is made for patients from low-income groups . Sharjah Book Authority personnel explained, Volunteers are supported in the Authority by highlighting them through different media channels. Giving the opportunity of training and acquisition of functional expertise in areas of authority, which include media, marketing, protocol, administrative, office and administrative work, and accounting .
Corporate Governance
The respondents explained how they carry out their duties in accordance with international standards and regulation.
Discussion
The thematic analysis revealed the relationship between Islamic doctrines and corporate social responsibility. While organizations created activities in line with their objectives, they carried out their operations under careful management. Thus, there is a correlation among the variables of operations. Board of directors and stakeholders played as vital role in CSR practices (Rahman & Bukair 2013). A survey conducted in a US steel company revealed that the CSR report reflected changes in the public arena (Rashid et al. 2013). Researchers believe organizations may engage in activities such as embracing vital CSR policies to improve their corporate integrity. A firms mission statement that supports CSR standards encourages the community to generate wealth. Culture influences moral qualities, which improves the firms disclosure standard. As a result, firms conduct activities that can be reported in its financial statement.
The board of council or office representative shows the CSR responsibility to investors and the society. In such organizations, the management guarantees that CSR is enshrined in the core policies of operations. They will probably see the significance of CSR by maintaining high standards to address social issues. This system is expected to persuade the association to execute practices to measure and report its CSR execution voluntarily. Thus, CSR strategy is a resource that signifies an illustrative factor for more noteworthy disclosure (Sairally 2013). Strategic alliance with private sectors, which is a standout amongst the most advanced methodologies, is similar as the conventional relationship, for example, charitable connections (Sairally 2013). Such alliance creates a solution-based scheme that improves the wellbeing of the society. Consequently, alliance between government and nonprofit organizations consolidates the qualities related to the monetary position of the government and the social influence of the NGO (Rashid et al. 2013). In conceptualizing strategic alliance with nonprofit organizations, it is observed that NGOs assume a vital part in monitoring and implementation CSR activities. It was proposed that attractive partnership might be enforced when shareholders adopt a strategic alliance in the collaborative relationship (Rashid et al. 2013).
There is adequate comprehension of CSR and its meaning among shareholders in this study. Based on the analysis, organizations are informed in characterizing their CSR activities. It was obvious that the national course directs the sort of exercises led by organizations and influences their operations. The study revealed major classes of activities adopted by organizations in the UAE. The CSR practices include training, medical services, and volunteer programs. However, other corporate activities such as shareholder relations, risk management, and strategic governance were not captured as components of CSR initiatives (Rashid et al. 2013).
These practices were viewed as a component of regulatory standards as opposed to being a piece of CSR. It is important to note that organizations practice CSR for different reasons, for example, reacting to the expanded requests of partners, brand marketing, social improvement, and community empowerment. Islam as a religion influences CSR activities in the UAE. For example, during religious festivities, conventional and Islamic organizations give to the society as a fundamental ritual. However, organizations lay emphasis on the meaning of CSR using Islamic perspectives. Thus, conventional corporations capture such events as a business standard, while Islamic institutions believe it is a religious doctrine (Tuhin 2014). It was found that Islamic perspective on CSR did not affect the customers choice of investment because of their commitment in these exercises. There is a general position that CSR in Islamic financial institutions is acknowledged. The writing likewise gives a view toward Islamic finance and CSR, particularly the Shariah, Islamic qualities, and its moral framework (Tuhin 2014). Thus, there are needs that cover CSR and because of the absence of quality research, numerous financial institutions may not be committed to society. The discovery is consistent with the findings in previous literatures that emphasized on the relationship between cultural heritage and CSR (Tuhin 2014).
Areas for Development
Government Responsibilities
Those in authorities should recognize the positive commitment of associations to improve the society. Consequently, government should search for approaches to urge associations to implement CSR by remunerating the best players and recognizing their endeavors on a national level. Although corporate social responsibility is a deliberate exercise, government should discover methods for creating and actualizing approaches that uphold CSR practices to advance business competition at a national level. This should be possible through the improvement of laws, directions, and consequences that will manage CSR activities by characterizing minimum benchmarks, mandatory community service, investment evaluation, and ecosystem program.
Consequently, a partnership between the legislature and private institutions to support CSR activities should be considered to manage social requests that cannot be met by the government alone. For example, medical service, youth empowerment, and business activities are areas that require private partnership. Strategic alliance with private sectors, which is a standout amongst the most advanced methodologies, is similar as the conventional relationship, for example, charitable connections (Ashman, 2001). Such alliance creates a solution-based scheme that improves the wellbeing of the society.
National Interest
Organizations should consider CSR practices that improve national interest. In Du
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