**7.2. Qatar**

Due to the Qatari corporate ownership structures that are mainly dominated by the government or a number of families, corporations do not have incentives to disclose socially responsible information. These powerful and wealthy Qatari families can directly request information from management, and therefore companies do not tend to voluntarily disclose information about their corporate citizenship and social responsibility, as civil society pressure groups do not exist [25]. On the other hand, religious pressure groups exist and therefore companies tend to meet their requests through improving the living standards of employees and through charity or philanthropy [25].

promotion and awareness as well as social welfare projects. On the other hand, Omani government CSR initiatives are still shy; apart from setting a socio-economic governmental plan that requires tri-sector collaboration, more emphasis on structured CSR regulations would help its promotion. The state of Kuwait does not provide any type of support for CSR in the country. Indeed, structural obstacles hinder its application, such as a feeble legal system, poor

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

http://dx.doi.org/10.5772/intechopen.79035

139

In terms of Religion-CSR logics, the Islamic tradition of *Zakat* is salient across all GCC countries and has transformed to an institutional annual philanthropy tax. In Saudi Arabia, this tax is legally mandated and collected by the government every year. This is not the case in other GCC countries. In some cases, corporations tend to go beyond this tradition, and incorporate a broader view of Islamic social responsibility in their business operations, as seen in UAE and Oman. Moreover, religious pressure groups exist and enhance CSR disclosure of companies in pursuit of higher investments, as evident in Qatar. However, these practices are usually fragmented and unorganized; although they have set a fertile ground for CSR development as companies view social responsibilities as significant religious obligations, a structured and strategic approach that builds on these religion-CSR logics would enhance their application

In terms of market-CSR logic interface, western market values have proliferated in Saudi Arabia, UAE and Qatar and have manifested in economic and business priorities through CSR practices in these countries. Moreover, a negative market-CSR logic prevails where the market dynamic has created opportunistic attitudes causing negative externalities on society and the environment; this is evident in UAE markets where some corporations' monopoly positions lead to negative CSR expressions. Similar obstacles exist in the Kuwaiti market that is dominated by major shareholders; this has led to low accountability and responsibility standards. In Saudi Arabia however, an economic and market oriented CSR approach has transformed into a political rationale and priority in light of the emergence of the Arab Spring. Corporation-CSR logics prevail in GCC countries under two main paradigms, either prioritizing economic profits or integrating local developmental challenges. The former is evident in Saudi Arabia where large companies with higher financial liquidity tend to invest more in CSR practices, in UAE where companies pursue long-term success, and in Qatar where corporate image and financial gains are prioritized. On the other hand, developmental corporation-CSR logics exist in some companies in Saudi Arabia, the UAE, and in the oil and gas sector

Lastly, three family-CSR logics have been detected in the GCC literature. Companies follow the traditional familial values of helping family members and in-groups that is salient in the region; For instance, the UAE family-owned companies exhibit the collectivist social politics, and this has led to the 'CSR as philanthropy' understanding. Another Family-CSR logic is through the impact of familial values on business practices where the managers practice CSR in accordance with their personal beliefs; in Saudi Arabia, there is a positive association between higher CSR disclosure and family ownership where family owned companies tend to apply a broad view of Islamic values for social responsibility in their business operations, going beyond the annual *Zakat* tax. A third and negative family-CSR logic is salient in Qatar

human and worker rights, lack of accountability and nepotism.

and effectiveness in contributing to local sustainable development.

in Oman.

Although it is highly international, Qatar still preserves Islamic and in-group values that are evident through its relationship with expatriates. It has been criticized by international organizations due to concerns about human and labor rights; the nationalities of expatriates determine their social status and treatment within the Qatari society [23]. This is in fact prevalent throughout GCC countries in general, and needs to be addressed through CSR programs targeted at nationals and minority groups to enhance social cohesion.

#### **7.3. Kuwait and UAE**

Similar to Qatar, ownership in Kuwait is concentrated with either families or governments, and corporations have a lack of proper disclosure of information [28]. Ownership structures create agency issues for corporations in Kuwait, where the process of appointing board members and audit committees is prejudiced by large shareholders and nepotism [28].

The cultural attitudes and familial ties in UAE follow a collectivist philosophy that views social welfare and relationships in a philanthropic fashion [36]. Although governmental efforts to promote global standards of CSR are highly prevalent in UAE, CSR is still viewed in a philanthropic manner and at times merely as a religious requirement [36].

*Most of the companies in the GCC are family owned and they view CSR in a philanthropic manner. Yet, some family owned businesses tend to go beyond what is required by law (Zakat tax), and apply a broader Islamic view on business operations.*
