How Qatari Corporations are Engaging in CSR Practices

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. 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 emphasis on CSR by the Qatari companies is also the focus of the Qatari government to enforce CSR by companies that operate in Qatar.
The targeted companies were identified from different sectors. The study relied on quota sampling and identified companies from 11 sectors in Qatar, as shown in figure 1. In particular, the study relied on Companies list from the CSR Qatar records. Overall, the sample consist of a total of 100 companies.
A questionnaire was developed in order to gather data from the targeted companies. It was then pre-tested by academics who are expert in the CSR field and was modified according to their feedback. Companies were then contacted via telephone by trained research assistant to solicit their cooperation and to verify key informants for this study. The questionnaire targeted senior managers (mainly the senior manager who is responsible of CSRactivities) whohave an intimate knowledge of the company`s CSR initiates. Through initial telephone contacts, we received 75 initial agreement to participate in the study. Then, the questionnaire link was sent to them via email. In the last stage, respondents were contacted again via a phone call in order to follow up with them and to make sure that they have completed the questionnaire. Of the 75 who agreed to participate, 54 respondents actually completed the questionnaire, and 50 usable questionnaires were obtained. The overall response rate, after eliminating incomplete responses, was 50%.
Measures
External/Internal Drivers of CSR
This section explores the perceptions of senior managers of internal and external drivers of CSR, which may influence the adoption of CSR in the selected companies in Qatar.In this part of the questionnaire, which measures the drivers that influence CSR adoption, the five-point Likert scale is designed in the percentage for importance of the drivers. Items from 1 to 7 are measuring the internal organizational drivers/ obstacles of the CSR adoption in the selected companies in Qatar (which includes; CSR team, raising profile, competition, global competitiveness, experience and knowledge, staff capacity, and staff skills). Items from 8 to 11 are measuring the external organizational drivers/ obstacles of the CSR adoption in the selected companies in Qatar (which includes; Global acceptance and adoption,high competence by other local companies, CSR practicing level by local companies, and the external pressure by local and global companies).


Communication of CSR
The level of communication for the company`s CSR initiatives was measured using four items. Respondents were asked to respond to 5 scale items, which measures the level of CSR initiatives communication in the company. The five-point Likert scale was adopted from previous work (Ballou et al, 2012). The items can be found in Table 3.

Findings and Analysis
Actual Sample Structure (Firmographics)
Figure (1) indicates the distribution of companies by sector. It shows that the most sector being investigated is the Telecommunication (18%), followed by transportation sector (14%) and utilities and services (14%).
Figure (1): Companies by Sector

Figure (2) shows the distribution of companies based on industry type. Majority of the sample belongs to the service sector; 76%. The Qatari economy relies heavily on the service sector as it represents the country's second-largest economic sector and is steadily growing.





Figure (2): Distribution of Companies based on Industry Type

Table (1) provides some information about company profiles and backgrounds. As can be seen from table 1, more than half of the companies are large sized that employs more than 500 employees. Moreover, about 30% of the sampled companies are publicly held, and the remaining are privately held 26%, joint venture 16%, and others 16%.
Table 1: Participated Companies

Number of Full Time Employees
Frequency
Percent
Type of Ownership
Frequency
Percent

Less than 100 employees
9
18.0
Private
13
26.0

From 100 to less than 300 employees
5
10.0
Public
15
30.0

From 200 employees to less than 500 employees
4
8.0
Joint Venture
8
16.0

500 employees and more
26
52.0
Others
8
16.0

Not identified*
6
12.0
Not identified*
6
12.0

Total
50
100.0
Total
50
100.0

Note: not identified data refers to completed responses received but respondents did not provide the company`s descriptive information.




CSR Drivers
Internal Drivers
External Drivers Conceptual Framework

Communication of CSR Activities
CSR Activities



Model Testing
At first, respondents were asked to indicate their level of agreement with respect to internal and external drivers that could influence effective adoption of CSR activities in their companies. The results indicated that many drivers could enhance the implementation of CSR activities in Qatari companies. Concerning internal factors, respondents agreed that CSR adds value to the company. In particular, about 86% agreed that CSR can help their company raise its profile (Mean = 4.32) and that 74% of the respondents believe that CSR can improve the global competiveness of their company (Mean = 4.12). In addition, about 68% agree/strongly agree that their company is keeping ahead of competition due to CSR practices (Mean = 4.02), as can be seen in table (2). Because of this, companies are willing to implement CSR activities.
Internal drivers seemed to be more important to companies compared to external drivers. For example, respondents agreed that their company employs a CSR team that help in implementing CSR activities (Mean = 4.2, about 74% agree/strongly agree). Also, having adequate experience and knowledge (Mean = 4.3), providing staff the capacity to deal with CSR (Mean = 4.2), and having training programs to improve staff skills in CSR (Mean = 3.92)
Table (2): Drivers For CSR Implementation

Internal Drivers for CSR Implementation
Mean
Std. Deviation

1.
CSR assists my company in raising its profile.
4.32
.768

2.
My company is keeping ahead of competition due to CSR practice in Qatar
4.02
.869

3.
CSR practice improves the global competitiveness of your company
4.12
.895

4.
My company has CSR team, which enables it to practice CSR in Qatar
4.20
.881

5.
My company has enough experience and knowledge related to CSR practice
4.30
.839

6.
My company’s management cares about providing staff with the capacity to deal with CSR
4.20
.782

7.
My company’s managers have programs to improve staff skills in CSR
3.92
.900

Average
4.12
.754

External Drivers for CSR Implementation
Mean
Std. Deviation

1.
Practicing CSR in global companies helps to adopt it locally by my company.
4.17
.723

2.
The high competence of other local companies encourages my company to adopt and practice CSR
4.07
.698

3.
The increase of CSR practicing level by local companies encourages my company to adopt CSR.
4.03
.760

4.
There is external pressure by local and global companies in the direction of practicing CSR by my company.
3.45
1.071

Average
3.93
.635


In addition to internal factors, external factors were identified. One of the most important factors as identified by respondents is the experience of global companies in CSR that drives local companies in Qatar to adopt it (80% agree/strongly agree on it). The competence of local companies in CSR (Mean = 4.07) and its practicing level by local companies (Mean = 4.03) are also considered vital. Finally, the external pressure by other companies to practice CSR is of less important (40% agree/strongly agree on it).
Finally, respondents were asked to state how CSR initiatives are communicated to different stakeholders. Respondents agreed that their companies communicate CSR initiatives to the board of directors (64% said they agree/strongly agree) and to external stakeholders (66% said they agree/strongly agree). With respect to proper communication channel, the results have shown that Qatari companies disseminate information about sustainability aspects via their websites (Mean = 3.95, 66% said they agree/strongly agree) and to a lesser extent, through a publicly available hardcopy (Mean = 3.74, 58% said they agree/strongly agree). Overall, the results showed that Qatari companies communicate CSR initiatives to different stakeholders to a moderate level (Mean = 3.95).
Table (3): CSR Initiatives Communication

Statement
Mean
Std. Deviation

1. The results of Sustainability Initiatives are communicated to the board of directors (BOD)
4.09
.978

2. The results of sustainability initiatives are communicated to external stakeholders
4.03
.823

3. The organization disseminates sustainability information via website
3.95
.920

4. The organization disseminates sustainability information via publically available hard copy
3.74
.983

Average
3.95
.791



Discussion
Although the above analysis indicates that internal drivers were regarded by most respondents as being more important compared to external drivers, the research was also consistent in showing that companies must remain responsive to changes in the marketplace concerning what types of CSR activities are most valued by consumers, and how existing and planned CSR activities should be communicated to all stakeholders.
Because growing numbers of companies are engaging in CSR practices, the question has changed from “should we also implement CSR practices” to “what types of CSR practices provide the best return on investments?” for most companies.
The primary research presented above can be viewed as a valuable snapshot of current practitioner views (many of them from major corporations) about the most salient internal and external drivers of CSR practices today. Moreover, companies of all sizes and types of finding new ways to make their CSR activities profitable, or at least economically sustainable through innovative strategies that eliminate waste at every opportunity and constantly scan the horizon to identify substantive changes in consumer perceptions about what types of CSR activities are viewed as most effective and meaningful.
Conclusion
The point will soon be reached when corporate social responsibility is no longer a luxury that is engaged in by only a handful of the biggest and most affluent corporations and will become a fundamental part of the operations of businesses of all sizes and types. In this environment, identifying opportunities to improve the manner in which CSR practices are communicated with both internal and external customers represents an especially important endeavor, and country-specific studies such as this one can help broaden and inform the global perspective on how Middle Eastern corporations are responding to these trends.



















Implication and Future study





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