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The Importance of CSR in Saudi Arabia

The Importance of CSR in Saudi Arabia. May 29, 2012. What is Corporate Social Responsibility (CSR)?. CSR. 2. Why are we talking about CSR?. In KSA…. 62%. believe CSR “facilitates the development of a stronger relationship between customers and the organization”.

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The Importance of CSR in Saudi Arabia

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  1. The Importance of CSR in Saudi Arabia May 29, 2012

  2. What is Corporate Social Responsibility (CSR)? CSR 2

  3. Why are we talking about CSR? In KSA… 62% believe CSR “facilitates the development of a stronger relationship between customers and the organization” Source: National Commercial Bank Study on Perceptions of Corporate Social Responsibility across the Kingdom of Saudi Arabia 3

  4. Why are we talking about CSR? In KSA… 56% believe CSR attracts new investors. Source: National Commercial Bank Study on Perceptions of Corporate Social Responsibility across the Kingdom of Saudi Arabia 4

  5. Why are we talking about CSR? In KSA… 60% feel that organizations involved in CSR are able to motivate their qualified workforce to give their best to the organization. Source: National Commercial Bank Study on Perceptions of Corporate Social Responsibility across the Kingdom of Saudi Arabia 5

  6. Why are we talking about CSR? In KSA… More than 50% of customers agree that [CSR involvement] could lead to stronger loyalty. Source: National Commercial Bank Study on Perceptions of Corporate Social Responsibility across the Kingdom of Saudi Arabia 6

  7. Why are we talking about CSR? Among consumers around the world… • 70% are willing to pay apremiumon products from a responsible company • 75% of those who readabout a company’s sustainability agenda on its website are more likely to purchaseproducts or services from that company • 36% have researcheda company's business practices or support of issues • 94% think companies must analyze and evolve their business practices to make their impact as positive as possible • 56% have boycotted a company for irresponsible practices 7

  8. Why are we talking about CSR? Among CEOs around the world… • 96% believe that sustainability issues should be fully integratedinto the strategy and operations of a company • 93% say that sustainability will be critical to the future success of their companies • 72% said they would actively support policiesthat promote financially, socially, and environmentally sustainable growth • 64% see sustainabilityas an important part of their strategies for product and service innovation 8

  9. Why are we talking about CSR? Among investors around the world… • According to one study, physical and financial accountable assets comprise less than20%of the true value of the average firm • 32% of global Bloomberg Terminal users are searchingfor data on a company’s “ESG Disclosure” • 18% of global Bloomberg Terminal users are searching for data on a company’s “Governance Disclosure” “There is a large market interest in the level of a company’s degree of transparency around ESG performance and policies…[this] might be the result of investors using ESG disclosure quality as a proxy for management quality” - Eccles, R., Krzus, M., Serafeim, G., “Market Interest in Nonfinancial Information,” Harvard Business School Working Paper, Sept. 2011 9

  10. CSR in the region and in KSA • In the region • MENA is going through transformative times. This means it is time for new solutions to social, economic, and environmental challenges. • In the KSA: • Continued prosperity despite global economic troubles • Many companies share a common vision and goals for the Kingdom • Increased interest in addressing social and economic needs 10

  11. What issues in the Kingdom can CSR address? Safety Entrepreneur-ship Health Women in the workforce Environment Saudization Economic diversification Training and development 11

  12. The Role of Saudi Businesses • 5 Saudi companies are listed in the latest Financial Times list of the 500 largest corporations in the world. • Saudi Arabian Market is the biggest in the Arab world and ranks among the top 10 emerging markets • Saudi private sector provided 86% of the jobs in 2001 • Cultural and religious orientation that is consistentwith the goals of CSR • Saudi companies are already more engagedin social issues than what is actually reportedor disclosed in public information 12

  13. What is SAGIA’s role in CSR? • SAGIA facilitated the creation of the Saudi Responsible Competitiveness Index to drive competitiveness through the business community. • They joined hands with two prestigious partners, The King Khalid Foundation and AccountAbility, the global leader in CSR research to create the Saudi RCI • Saudi RCI assessed how companies in the Kingdom are creating responsible business practices to build competitive advantage while supporting social development and building enduring economic competitiveness for the Kingdom. 13

  14. Thank You

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