**6.4. Oman and Kuwait**

**6. Corporation**

136 Globalization

**6.1. Saudi Arabia**

**6.2. United Arab Emirates**

of how to implement these standards.

detailed information to convince investors [25].

**6.3. Qatar**

Corporation-CSR logics constitute of two main paradigms: Corporations pursuing CSR for the aim of higher profits and economic priorities; and corporations focusing on integrating

Companies in Saudi Arabia with CSR practices usually consider local development priorities in strategizing their CSR goals. However, due to the cultural context in the country, businesses and citizens view social responsibility and development as the primary goals of the state structure [18]. The fact that businesses in Saudi Arabia view CSR as voluntary stands in the way of the governmental plans to make CSR strategies the norm of doing business. Saudi Arabian corporations also showed a high correlation between improved CSR disclosure and board independence and firm size [13, 34], signifying that companies with higher financial liquidity and independent audits, are more willing to invest in a CSR strategy and disclosure. However, small and medium sized enterprises face structural challenges in integrating CSR into their business operations; such companies do not create high employment nor do they follow strategic developmental

approach to CSR, rather they merely stick to paying the annually ensued Zakat tax [14].

MNCs in the UAE tend to follow sustainability pathways through supporting society and the environment in their CSR practices; the majorities of these firms operate in free trade zones of the country [20]. In a study on CSR perceptions of UAE corporates in free trade zones revealed some linkage between CSR and business performance; most respondents believe in the high economic value that CSR produces such as reputational gains, higher profits, and long-term success [21]. Nonetheless, clearly targeted and structured CSR strategies are not salient in UAE; this is due to the lack of understanding of how CSR practices should be formulated and what constitutes an effective CSR strategy [21]. Despite the high awareness of the significance of CSR and importance of following international standards, firms do not have the knowledge

Despite the high international market integration in Qatar, corporations fall short on CSR practices as the main themes of CSR reporting are related to human resources and product development; the disclosure is mostly in a narrative format through the chairman's report which indicates that companies through CSR pursue higher profits and a corporate image and reputation as responsible corporate citizens rather than contributing to the enhancement of local sustainable development [22]. The highest amount of reporting is recorded in large companies [25, 35]; as they have higher financial resources to be able to apply CSR strategies, in addition to being more visible to the public eye and so need to maintain a responsible corporate image for long-term success [25]. Large companies are also more likely to secure funds from banks and other financial funding institutions and therefore they tend to disclose

local and global development challenges through CSR strategies.

The highest sector that practices strategic developmental CSR in Oman is the oil and gas sector as it is dominated by transnational corporations that work in joint venture contracts with the government. Corporations in this sector apply more systematic approaches to CSR integrating economic, social and environmental issues, as well as incorporating local traditions of philanthropy [27]. This is not the case with SMEs in Oman as they primarily follow religious obligations to philanthropy; although some integrate CSR in their core operations, that is usually not organized or systemic [27]. Despite the lack of governmental regulations for CG or CSR in Kuwait, strategic CSR is salient in some large companies in the country. Social responsibility in Kuwait is still underdeveloped, and requires more effort from governmental institutions and large companies to drive the practice forward [28].

*Companies in the GCC usually believe that social responsibility and development is the primary goal of the state and not mandatory for businesses. Yet, companies do practice CSR despite the lack of understanding of how CSR practices should be formulated and what constitutes an effective CSR strategy.*
