**3.1. Saudi Arabia**

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

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

Saudi Arabia, UAE, Bahrain, Kuwait, and Oman.

128 Globalization

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 partake in CSR initiatives [16].

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.

Moreover, other systemic attempts exist to institutionalize CSR in Saudi Arabia, namely through the Saudi Arabian General Investment Authority (SAGIA), established in 2000, with the aim of strengthening the economy and rendering it more competitive. SAGIA has made efforts to spread CSR awareness and encourage the private sector to participate through launching a measure, the Saudi Arabia Responsible Competitive Index (SARCI). The governmental initiative aims at monitoring and evaluating CSR strategies of leading companies through social, environmental, economic, management, and stakeholder participation metrics [16]. However, issues of human and labor rights, corruption, and environment are pressing international issues that are of concern to CSR global standards; and these concerns are not addressed by SARCI [19].

CSR Network audits and rewards CSR best practices in the country [21]. UAE governmental initiatives have yielded tangible results, evident through the increased awareness by consumers in the country, and specifically in Dubai and Abu Dhabi Emirates, where responsible

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

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Qatar is also a country rich in oil and gas with other booming sectors, with Qatar recently serving as the largest exporter of cement and steel [22]. It is a small country with the second highest migration rate and the first GDP per capita in the world [23]. The Qatari government has been according importance to accountability and transparency issues in the country, setting fertile ground for the disclosure of information, specifically related to socially responsible behavior [24]. This is an improvement as the country lacked any proper regulations for financial reporting and all information disclosed on company's annual reports was completely voluntary [25].

While financial reporting has improved in the past decade, CSR disclosure is still a voluntary practice in Qatar, and not enforced by law. Companies lack a broad scope of CSR disclosure that mostly focuses on human resources; state regulations by the Qatari Government would help enhance CSR activities and set clear environmental disclosure standards in line with global sustainability trends [22]. Due to its contextual dynamics, as a small country with relatively low population, Qatar has excelled in inclusive social welfare initiatives; apart from its high living standards, the country's contribution to global development has been pronounced. Through initiating semi-governmental institutions, Qatar has participated in national and international philanthropy and community outreach programs [23]. In 2015 the country put forth the Qatar National Vision 2030 setting clear sustainable development goals with economic, social, and environmental targets. To set a pathway for the 2030 targets, Qatar has emphasized the role of the private sector through an emphasis on CSR activities; a 2016 study on CSR practices in Qatar found that corporations are driven by the country's vision for a sustainable future which also sets a framework for CSR activities and targets [23]. To further promote CSR activities and disclosure, the government should apply legal regulations for private sector involvement based on international and professional standards and criteria [14, 26].

Oman is an emerging mixed market economy that also highly relies on the oil and gas sector with a salience of joint ventures with international corporations [27]. Private sector partners along with the civil society are expected to collaborate with the government to maintain national competitiveness and equality. The state has set local development targets through the national socio-economic development plan (Vision 2020), launched in 1996; these collaborations are also in line with national inclusion, where all sectors are expected to be involved

Kuwait has a large oil economy and therefore the recent oil production cuts have affected economic growth [10]. The government is attending to this issue through plans of economic diversification; a privatization plan was put in place to shift dependence from the oil and gas

business programs are concentrated [20].

**3.3. Qatar**

**3.4. Oman and Kuwait**

in steps for development planning [27].

#### **3.2. United Arab Emirates**

The UAE is a fast-developing country with a growing economy. It has large oil reserves particularly in the Abu Dhabi Emirate; this has enabled it to become a business and trade hub of the Middle East. Indeed, the oil sector currently only accounts for 28% of its GDP signaling a strong diverse economy [20]. Due to its economic strength and opportunity and its affluent sales prospects, MNCs consider the UAE economy as a gateway to enter the Middle Eastern market. In terms of CSR, the government of UAE has been encouraging business involvement in social responsibility and consumer awareness of their rights through various programs; such as activities for sustainable management focused on the importance of philanthropic initiatives to aid sustainable development [20]. Particularly, Dubai has championed emerging sustainability projects, specifically in construction and energy conservation.

Poverty reduction is a main concern for the government which has been tackled through food and housing projects and marriage funds. The Sheikh Zayed Housing Program and the Mohammed bin Rashid Housing Establishment are two examples of UAE-led philanthropic initiatives to aid citizen welfare, in addition to humanitarian initiatives that provide food for subsidized prices; in accordance to cultural attitudes, UAE also provides a marriage fund for low income citizens along with other programs such as healthcare and educational support [20]. Government funded CSR programs are also expanding internationally and deal with international development challenges; this is initiated by various programs such as Dubai Cares, which is the largest CSR initiative in the Middle East supporting social welfare in lowincome countries in fields of education, health, water and sanitation, and school infrastructure [20]. The government also encourages employees to participate and volunteer in social projects through an initiative called ENGAGE [21]. Other UAE-funded national and international initiatives support SMEs by promoting CG and raising awareness on issues of transparency, responsibilities of board directors, auditing, and sustainability practices [20, 21]. Lastly the Dubai Ethics Resource Centre specifically targets issues of CSR in the Gulf markets by planning forums and seminars in collaboration with business leaders and Gulf executives; their training sessions focus on improving knowledge of CSR targeted at professionals with the aim of enhancing CSR programs, strategies and infrastructures [21].

Along with providing CSR training sessions, the Center for Responsible Business in Dubai, provides assistance in CSR implementation and conducts audits to recognize responsible business behavior and rewards it with CSR labels; similarly, a UAE- funded project, the Arabia CSR Network audits and rewards CSR best practices in the country [21]. UAE governmental initiatives have yielded tangible results, evident through the increased awareness by consumers in the country, and specifically in Dubai and Abu Dhabi Emirates, where responsible business programs are concentrated [20].
