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‘We do all kind of foresight<br />

studies to make sense of<br />

consumer sentiments and<br />

public interest and anticipation<br />

of environmental issues in the<br />

European and US operations.<br />

But not here.’<br />

because they do not believe the Government will tighten the demands.<br />

Only one company touches upon the possibility that with increased<br />

understanding, today’s accepted products can turn into tomorrow's<br />

liabilities - but does not think that it would happen to their company.<br />

Some see the opportunity, but this is not in the form of improving the<br />

environmental profile of their products and services, but rather selling<br />

products and services to companies that can help them to meet<br />

regulatory demands.<br />

Our observation on this is that companies appear not to engage in a<br />

serious analysis of the social context and how it will drive/impact<br />

competitiveness. They may be aware of these issues but as long as<br />

there are no serious efforts to systematically engage in assessment<br />

with the internal context this will not result in strategy formulation.<br />

Because of that, many of the issues that are seen by global companies<br />

are not even considered here. This, we think, will put Saudi companies<br />

in a reactive position.<br />

Organising For CSR<br />

Companies’ efforts to institutionalise CSR are often assessed in terms<br />

of polices, responsibilities, communication and internal adjustments in<br />

the organisation. We explored some of these issues with executives.<br />

Our questions generated some quantitative indicators but they do not<br />

offer a qualitative assessment of capabilities within Saudi companies to<br />

take on a leadership role in CSR. The internal processes are often not<br />

disclosed or discussed.<br />

On the presence of policies, company responses to these questions<br />

revealed that 69% of the companies among the study sample did not<br />

have any form of environmental, CSR or ethical policies. Only three of<br />

the companies interviewed, or 10% of the sample, have formal versions<br />

of environmental, CSR and ethical policies which are communicated<br />

both internally and externally. While two companies (6%) have both<br />

environmental and ethical policies, one company (3%) has reported to<br />

have both a CSR and ethical policy (Distribution in side figure).<br />

However, it<br />

should be noted<br />

that, although<br />

their numbers<br />

are highly<br />

limited, some<br />

companies<br />

have<br />

programmes,<br />

procedures,<br />

Policies Guiding CSR Engagement<br />

None<br />

Ethical Policy<br />

Policy under Development<br />

CSR & Ethical Policy<br />

Environment & Ethical Policy<br />

Environment Policy<br />

All Policies<br />

33 <strong>Tamkeen</strong> 2007

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