**5.3. Qatar**

**5. Market-CSR logics**

134 Globalization

**5.1. Saudi Arabia**

Market-CSR interface creates various logics depending on the market dynamics of the specific context. International market integration greatly influences CSR logics and expressions. The local context has an even greater impact, for instance in case of monopolies or other peculiar ownership contexts. Moreover, the pursuit of market growth might produce operational

Despite the fact that Saudi Arabia is an Islamic state following Islamic law and practices, a study found that companies pursue CSR beyond charitable and philanthropic activities [32]. Indeed economic, environmental, and social pillars are addressed through CSR, marking a qualitative shift in the country. However, companies through these practices are in pursuit of higher economic value with higher profits and long-term success [32]. Therefore, it seems that although a developmental approach is prevalent in some companies in Saudi Arabia; the guiding principle is in line with economic priorities. Saudi Arabia has strong connections politically and economically to the west, and western market logics have manifested in the country [14]; It is emphasized by many authors that this particular Saudi CSR expression is inspired by western free-market economy influences, and plays a significant role in shaping

In light of the start of the Arab Spring, Saudi Arabia began to focus on driving CSR discourse forward and spreading awareness on the importance of CSR as a political strategy to meet the public's demand for sustainable local social and economic development. CSR became essential for enhancing social cohesion and solidifying the country's authority and political role in the region [33]. In this way, it has changed from being an economic activity to a political priority. Consequently, multiple governmental projects took place including generous philanthropic assistantship to low income groups in the Kingdom, as well as a housing development project where the government built half a million residential units for the needy [14]. This marks an evolution in CSR in the country moving away from western market logics

UAE is characterized with an internationally integrated market; in fact, only 20% of its population comprises nationals and local citizens and 80% constitute migrants from 100 different countries searching for work opportunities; although it is an oil and gas rich nation, the sector only contributes to 28% of its GDP [20]. Market logics in UAE are driven by high economic growth and international integration and competitiveness. This open market environment aiming for rapid economic growth may result in socially irresponsible behavior. Indeed, due to opportunistic attitudes permeating the UAE, business practices have been characterized with poor labor rights, low customer safety standards, unequal welfare distribution, and

negative externalities impacting society or the environment.

business practices and economic priorities [14, 32].

and into new applications rooted in socio-economic rationales.

**5.2. United Arab Emirates**

environmentally damaging activities [15].

Due to the high rate of economic development and international market integration, CSR in Qatar is growing exponentially as western-centric CSR is diffused to relevance in the local context [26]. Due to the high percentage of international firms in Qatar, CSR global standards and reporting are followed, especially in the energy sector [23]. The energy sector in Qatar however does not follow the same type of CSR disclosure seen in western energy sectors. It is expected that such an industry would be keener on disclosing socially responsible behavior regarding environmental challenges; however, this is not the case in the Qatari energy market, as a study revealed that the sector's highest emphasis through CSR reporting is related to human resources rather than an environmental theme [22].

On another note, the recent governmental privatization program is attempting to enhance local investments. A study revealed that post the implementation of this program, a high association between shareholder percentages and CSR reporting prevailed [25]. Management is attempting to assure current and potential private investors of the company's commitment to transparency and social responsibility through proper disclosure. Shareholders in Qatar prefer investing in socially responsible firms that prioritize social and environmental challenges [25].

#### **5.4. Oman and Kuwait**

The Omani market enjoys joint ventures and a majority natural resources sector. This has had a significant effect on shaping CSR expressions in the country, where they are found to be consistent with other emerging economies with similar characteristics [27]. The best type of CSR practiced in Oman is through philanthropy; this could be due the traditional charitable activities. However, it is argued that economies that are highly dependent on natural resources conform to 'CSR as philanthropy' philosophy [27].

Due to the economic structure in Kuwait where the market is dominated by major shareholders with a weak legal system, there exists a lack of accountability, proper shareholder rights, and transparent disclosure [28].

*As GCC markets became more open and engaged internationally due to globalization, western logics penetrated CSR practices that shifting the focus away from economic activity to political priority such as in Saudi Arabia and Qatar. In other countries, such as the UAE, the open market led to the inflow of foreigners looking for opportunities and this created a challenging factor facing social responsibility.*
