**2. Methodology**

The Middle East is a region in South-West Asia containing around 25 nations comprising highly heterogeneous and diverse contexts. It is also referred to as Middle East and North Africa (MENA) region and includes Arab and non-Arab nations. It is divided to multiple subregions and these include Mashriq which comprises countries to the East of Egypt, Maghreb which includes countries to the West of Egypt, and the GCC which includes all Arab States on the Persian Gulf except Iraq. GCC is not only a geographical categorization but also an intergovernmental economic and political union between Saudi Arabia, United Arab Emirates (UAE), Bahrain, Oman, Qatar, and Kuwait. The GCC countries have the highest Human Development Index (HDI) in the region and are categorized by the UNDP as very high HDI countries [8]. The six countries of interest have the highest published content on CSR and their key country and economic indicators are outlined below in **Table 2**.

The Middle East contains diverse nations, each having a unique set of institutional order logics. As previously mentioned, these institutional orders consist of state, market, corporate, religion and family, and each has a particular function. Although some development challenges are shared among countries in the region such as gender equality or worker rights, however other socioeconomic factors remain rather diverse. Therefore, we expect to see in

each country a specific amalgamation of logics that shapes a unique CSR arena including discourses and practices for CSR. The GCC region for instance collectively has almost half of the oil reserves in the world and 65.5% of the OPEC total [12]. They also have the highest per capita carbon emissions, which makes them liable to more environmental challenges than

**Qatar Saudi** 

Population (million), 2016 [10] 2.6 32.3 9.3 1.4 4.1 4.4 GDP per capita (USD), 2016 [10] 59,324 20,029 37,622 22,579 27,359 14,982 GDP growth (annual %), 2016 [10] 2.2 1.7 3.0 2.9 3.5 2.2

Institutions 5.6 5.0 5.9 5.0 4.0 5.0 Public institutions 5.8 5.0 6.0 5.0 4.1 5.0 Infrastructure 5.8 5.2 6.3 5.1 4.3 4.9 Macroeconomic environment 5.8 4.9 5.6 4.0 5.6 4.7

Higher education and training 5.0 4.9 5.0 5.0 3.9 4.4 Goods market efficiency 5.2 4.6 5.6 5.0 4.2 4.5 Labor market efficiency 4.9 4.1 5.2 4.6 3.6 3.5 Financial market Development 4.7 4.2 4.8 4.3 4.1 4.2 Technological readiness 5.4 4.9 5.8 5.6 4.3 4.5 Market size 4.4 5.4 4.9 3.3 4.4 4.1

Business sophistication 5.0 4.5 5.3 4.5 4.0 4.0 Innovation 4.7 3.7 4.6 3.6 3.0 3.3

**Human Development Index (HDI), 2015**

GDP (PPP) as a share (%) of world total,

**Global Competitiveness Index (GCI)** 

**Subindex A**: Basic Requirements (Rank

Health and primary education (Rank 1–7),

**Subindex B**: Efficiency Enhancers (Rank

**Subindex C**: Innovation and sophistication

Corruption perception index (Rank out of

**Table 2.** Key GCC development and economic metrics [9–11].

factors (Rank 1–7), 2015 [11]

168), 2015 [9]

[8]

2016 [11]

**(Rank 1–7), 2015** [11]

1–7), 2015 [11]

2015 [11]

1–7), 2015 [11]

**Arabia**

**UAE Bahrain Kuwait Oman**

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**0.856 0.847 0.840 0.824 0.800 0.796**

Adaptations of CSR in the Context of Globalization the Case of the GCC

0.28 1.46 0.56 0.06 0.25 0.15

**5.1 4.8 5.3 4.5 4.4 4.3**

5.9 5.3 6.0 5.1 4.9 5.1

6.2 6.0 6.3 6.2 5.6 5.9

**4.9 4.7 5.2 4.6 4.1 4.2**

**4.9 4.1 4.9 4.0 3.5 3.6**

31 62 24 70 75 64


**Table 2.** Key GCC development and economic metrics [9–11].

This book chapter will focus on a particular context in the Middle East, the Gulf Cooperation Council (GCC). Business activities are embedded in Middle Eastern history as the region has a strategic geographical positioning for trade across three continents. The current Middle Eastern business arena has witnessed a proliferation of CSR practices due to globalization and global sharing of best practices. The translation and adaptation of western assumptive CSR logics was also driven by social media attention, awareness and education in the area of CSR, and greater local demands for accountability and sustainable development [1]. Businesses are now accountable not only for their economic performance but also for their social responsibility and corporate citizenship as these concepts become more embedded in mainstream

State State institutional order refers to the governance structure of a nation where regulations, policies, and

Market Market institutional order constitutes the compartmentalization and pricing of human activity in

Corporate Corporate institutional order forms a hierarchal structure organizing a set of skills and knowledge to

Religion The institutional order of religion forms the dominant moral values, belief systems and world view.

Family Family institutional order refers to the relationships formed between family members.

The Middle East is a region in South-West Asia containing around 25 nations comprising highly heterogeneous and diverse contexts. It is also referred to as Middle East and North Africa (MENA) region and includes Arab and non-Arab nations. It is divided to multiple subregions and these include Mashriq which comprises countries to the East of Egypt, Maghreb which includes countries to the West of Egypt, and the GCC which includes all Arab States on the Persian Gulf except Iraq. GCC is not only a geographical categorization but also an intergovernmental economic and political union between Saudi Arabia, United Arab Emirates (UAE), Bahrain, Oman, Qatar, and Kuwait. The GCC countries have the highest Human Development Index (HDI) in the region and are categorized by the UNDP as very high HDI countries [8]. The six countries of interest have the highest published content on CSR and their

The Middle East contains diverse nations, each having a unique set of institutional order logics. As previously mentioned, these institutional orders consist of state, market, corporate, religion and family, and each has a particular function. Although some development challenges are shared among countries in the region such as gender equality or worker rights, however other socioeconomic factors remain rather diverse. Therefore, we expect to see in

key country and economic indicators are outlined below in **Table 2**.

business practices across the region.

**Institutional orders and their functions**

126 Globalization

decisions are made on a national level.

be used as a facilitator for neo-liberal market economics.

**Table 1.** Institutional orders of state, market, corporate, religion, and family [6].

neo-liberal market economics.

**2. Methodology**

each country a specific amalgamation of logics that shapes a unique CSR arena including discourses and practices for CSR. The GCC region for instance collectively has almost half of the oil reserves in the world and 65.5% of the OPEC total [12]. They also have the highest per capita carbon emissions, which makes them liable to more environmental challenges than other parts of the Middle East. **Table 2** highlights some key indicators that help create a vision of each country's development and socio-economic context that will guide the analysis. The information gives an overview of the institutional realities of each nation. As outlined, GCC has been successful in advancing their development metrics as compared to other countries in the region. Saudi Arabia has the highest population of 32.3 million and occupies the biggest surface area of the peninsula. Qatar has a significantly higher GDP per capita than the other neighboring countries, followed by UAE, Kuwait, Bahrain, Saudi Arabia, and lastly Oman. However, in terms of total GDP, Saudi Arabia ranks the highest and accounts for 25% of the Arab World's GDP [13]. Moreover, Qatar ranks the highest on HDI of 0.856, followed by Saudi Arabia, UAE, Bahrain, Kuwait, and Oman.

religion (dominant moral values, belief systems and world view) to CSR practices; Section 5 looks into CSR-market logic which captures the compartmentalization and pricing of human activity in neo-liberal market economics; Section 6 discusses CSR from a corporate institutional order which is a hierarchal structure organizing and facilitating neo-liberal market economics and Section 7 will relate CSR to family ownership and family ties. Finally, Section 8 presents the discussion of the results with concluding remarks and recommendations.

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A recent report published by the Arab Forum for Environment and Development recognizing the transition to sustainable practices as a necessity for the region to secure a path towards a sustainable future [14]. The GCC governments seem to play an integral role in achieving the necessary goals set by the Arab Forum. CSR logics however have unique expressions in each national context. Although these contextual differences exist in highly developed nations, literature points to higher heterogeneity among emerging economies [15]. For example, even in a single country such as the UAE, differences are prevalent between the different emirates and how their economies are run [15]. This section will discuss the various State-CSR logics that have manifested in the GCC region in recent years, discerning between positive, neutral,

Saudi Arabia is a strong emerging economy; it has 20% of the world's proven oil reserves and is the largest oil exporter in the world [16]. Due to the recent downfalls in the oil economy, the government is attempting to diversify its national economy and is consequently encouraging and supporting the private sector in its significant role and participation in its vision [16]. CSR has caught traction in Saudi Arabia where large firms are displaying strategic views on CSR. CSR is a great facilitator and an important component in the government's desire to strengthen its relationship with the private sector and it has been encouraging companies to

It has been mentioned in the literature that there is a lack of legislation or an institutionalized system for CSR; this has resulted in fragmented efforts with a low level of overall strategic strength [17]. Governmental and legislative factors including high bureaucracy, labor laws, corruption, legal systems, and investment regulations are major challenges for CSR implementation [18]. The above factors point to negative state-CSR logics, where systematic efforts are needed to develop CSR in the Kingdom [17, 18]. On the other hand, positive state-CSR logics have emerged in Saudi Arabia. The government passed a legislative requirement through the 2006 Saudi corporate governance (CG) code, which requires firms to have an audit committee with at least three non-executive directors and at least a financial and accounting director; this code had a positive impact on CSR disclosure with a higher number of companies registered by research studies post its application [13]. However, it can be argued that this is a nonintentional CSR impact, where more direct legislative policies are required for promoting CSR.

**3. GCC CSR-state logics interface**

and negative State-CSR logics.

partake in CSR initiatives [16].

**3.1. Saudi Arabia**

In terms of their GCI ranks, UAE ranks the highest with 5.3, followed by Qatar, Saudi Arabia, Bahrain, Kuwait, and then Oman. The most problematic factors for doing business in Qatar are access to financing and restrictive labor regulations. The same holds true for Saudi Arabia whose global competitiveness remains fairly stable [11]. Qatar remains the second highest competitive economy in the Arab World but has receded on worldwide ranking from 18th to the 25th place mainly due to the drop-in oil and gas prices which has impacted its fiscal situation; yet Qatar is still strong in many areas including infrastructure of its facilities, and goods market economy [11]. The UAE scores highest in the Arab World for overall competitiveness however the problematic factors for doing business in UAE relate to high inflation and also access to financing; Bahrain scores fairly high on ease of doing business with a slight problematic factor pertaining to inefficient governmental bureaucracy [11]. Kuwait has the highest inefficiency in governmental bureaucracy and the highest corruption rate; and lastly, Oman ranks highest on restrictive labor regulations and has other problematic factors regarding inadequately educated workforce and insufficient governmental bureaucracy [11]. It is important to note that the figures used for this analysis date prior to the 2017 Qatar-Gulf crisis, when several countries in the Gulf, namely Saudi Arabia, UAE and Bahrain, in addition to Egypt cut off their diplomatic ties with Qatar and imposed an air, sea and land blockade.

Due to the diverse contexts presented above, we expect to encounter a diversity of CSR logics in GCC region reflecting the amalgam of western and local CSR-institutional logics and the translation of these logics in the context of the unique systems of meaning and local practices in each nation [6]. Global forces through the sharing of best practices regarding social responsibility of MNCs and local forces resulting from the unique social, cultural and historical dynamic are both significant factors affecting CSR translation in the region. To study the CSR logics in the GCC region, a folder was created for each country and journal articles, book chapters and review publications analyzing CSR practices, expressions, and connotations in each country were downloaded. Through content analysis, the information was extracted from statements that are collectively used to draw conclusions on each institutional order logics and their interface with CSR. The analysis is inductive in nature where extracted statements provide evidence in relation to the nature of institutional logics of each country and their amalgamation with western assumptive CSR logics, in order to draw conclusions in relation to salient CSR logics in each context. Each of the following sections of the chapter (3–7) discusses the institutional order-CSR logics interface: Section 3 discusses CSR logic at the state level where regulations, policies, and decisions are made on a national level; Section 4 relates religion (dominant moral values, belief systems and world view) to CSR practices; Section 5 looks into CSR-market logic which captures the compartmentalization and pricing of human activity in neo-liberal market economics; Section 6 discusses CSR from a corporate institutional order which is a hierarchal structure organizing and facilitating neo-liberal market economics and Section 7 will relate CSR to family ownership and family ties. Finally, Section 8 presents the discussion of the results with concluding remarks and recommendations.
