Transcript The Importance of CSR in Saudi Arabia May 29, 2012

The Importance of CSR
in Saudi Arabia
May 29, 2012
Addressing
KSA
concerns
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CSR
What is Corporate Social Responsibility (CSR)?
Improving
brand and
business
performance
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
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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
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
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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
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Why are we talking about CSR?
Among consumers around the world…
• 70% are willing to pay a premium on products from a responsible
company
• 75% of those who read about a company’s sustainability agenda on
its website are more likely to purchase products or services from
that company
• 36% have researched a 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
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Why are we talking about CSR?
Among CEOs around the world…
• 96% believe that sustainability issues should be fully
integrated into 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
policies that promote financially, socially,
and environmentally sustainable growth
• 64% see sustainability as an important
part of their strategies for product and
service innovation
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Why are we talking about CSR?
Among investors around the world…
• According to one study, physical and financial accountable assets comprise
less than 20% of the true value of the average firm
• 32% of global Bloomberg Terminal users are searching for 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
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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
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What issues in the Kingdom can CSR address?
Safety
Entrepreneur
-ship
Health
Women in the
workforce
Environme
nt
Training and
development
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Saudizatio
n
Economic
diversificat
ion
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 consistent
with the goals of CSR
• Saudi companies are already more engaged
in social issues than what is actually reported
or disclosed in public information
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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.
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Thank
You