The importance of CSR in the private sector

In recent decades, there has been a shift in the way success is measured in corporate organizations due to developments in the general economic, political, and social climate. In traditional economic thought, the goal lies in achieving the highest level of profit at the lowest cost, without much regard to the social and environmental impact.
Now more than ever, companies are held accountable for their social and moral responsibilities and duty to the environment and society. The ends no longer justify the means, and profit can no longer be a corporation's sole consideration.  

What is CSR?

CSR stands for corporate social responsibility, a corporation's responsibility towards society. CSR takes on many forms. One example is respecting the environment and contributing to its preservation in sourcing materials and operations. Valuing human rights, whether by providing equal opportunities to different social groups or providing a fair wage and a safe working environment to all workers, is another. A third example is funding education and providing training opportunities for the next generations of the workforce. 

CSR in KSA

There are various examples of companies and institutions in the KSA that are fully committed to their corporate social responsibility. Let’s have a look at some of them:

• SABIC: SABIC supports women's empowerment by aiming to increase the number of women in the fields of science, technology, engineering, and mathematics. In 2019, it launched its scholarship program for Saudis to include female high school graduates, who now make up 30% of the program's grantees. This commitment to education is critical to ensuring that future female graduates are able to pursue higher education and employment opportunities in their chosen fields.

• Almarai: Almarai supports education and excellence through several initiatives such as the Almarai Prize for Scientific Creativity, the Almarai Award for Academic Excellence for General Education Students in the GCC, and the Almarai Veterinarian Award. 

• Al-Rajhi Bank: In partnership with the Ministry of Health, Al-Rajhi Bank established the Cardiac Catheterization Center within Al-Rass General Hospital, as well as Al-Rajhi Bank’s Center for Physiotherapy, Occupational Therapy, and Anti-smoking within Turaif General Hospital.

• SASREF: Owned by Saudi Aramco, SASREF has supported the Health Endowment Fund to combat the spread of the coronavirus (COVID-19), with 5 million Saudi riyals at the height of the pandemic.

• Saudi Aramco: Aramco supports knowledge development and literacy through its famous national reading competition "Iqra'a" as well as through the Ithra Creative Season "Tanween", which spans over 17 days and aims to raise the knowledge level in the fields of science, technology, engineering and mathematics through interactive and entertaining programmes. 

CSR is not a new phenomenon in the realm of business in the KSA. Giving back and charitable work are integral aspects of Arab and Muslim cultures, independent of external development. Whether it’s poverty, famine, or a global pandemic, the Kingdom has always taken an honorable position in the international community when it comes to humanitarian issues. Social responsibility in Saudi societies is well-established and deeply rooted.