University of Vaasa - Vaasan yliopisto

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McWilliams and Siegel conducted an empirical study based on a framework of
supply and demand model and CSR. Their hypothesize that a firm’s level of CSR
will depend on its size, level of diversification, research and development,
advertising, government sales, consumer income, labor market conditions, and stage
in the industry life cycle (McWilliams & Siegel 2001). A study conducted in the US
modeled corporate investments in environmental research and development (R&D)
as investments in corporate social responsibility. The theory and the empirical study
support the hypothesis that socially responsible corporate investments in
environmental R&D increase with corporate self-interest in reducing pollution
caused by toxic emissions. Consequently, corporate environmental R&D investments
depend on both public policy and the structure of markets (Scott 2005).
CSR and Energy
A study in the Baltic States (Lithuania, Latvia, and Estonia) investigated the
problems and challenges of CSR in the energy sector revealing that the main barriers
to CSR development in the social sphere include: weak co-operation with
stakeholders; weak NGOs, insufficient care in competence and motivation of
personnel; low awareness of society about energy companies’ activities;
indebtedness of heat consumers, high energy prices comparing with low average
income of population reducing initiatives to pay higher price for green (renewable)
energy or white energy (saved) support for socially responsible business in energy
sector; and the lack of information and awareness. The indicators used to monitor
the sustainable development of the Baltic States include both sustainable and energy
development ones. The main sustainable development indicator used is the Human
Development Index (HDI) provides information on the main economic and social
trends of the country and represents economic and social dimensions of sustainable
development. The sustainable energy development indicators are increase in energy
efficiency expressed by energy intensity of GDP (primary energy/GDP, final
energy/GDP); and use of renewable energy sources can be expressed by share of
renewables in electricity generation, share of renewable in total primary energy
supply and in use of biofuels in transport (Streimikiene et al. 2009).
Environmental Challenges of Abu Dhabi, UAE
The United Arab Emirates (UAE) is located in the Middle East and in the eastern
part of the Arabian Peninsula. The land is largely hot, dry desert. The UAE consists
of the seven emirates. Abu Dhabi is by far the largest and controls 90 percent of all
oil and natural gas reserves in the UAE. The UAE federal government recognizes
that diversification of its economy plays a key role in maintaining growth. The other
main industrial activities in the country include construction, aluminum, chemicals
and plastics, metals and heavy equipment. According to the state of the environment
(SOE) report of Abu Dhabi (EAAD 2007), the main source of air pollution in the
country comes from the oil and gas industry followed by electricity and water
desalination production. Over 90% of the water consumed in the country comes
from desalinated water and this shows the coupling between energy and water.