Companies comply with UAE corporate social responsibility laws

Companies comply with UAE corporate social responsibility laws

When starting a company in Dubai there are many things to consider. Corporate Social Responsibility (CSR) is an area that often gets looked over. Companies that are registered in the United Arab Emirates ought to consider implementing a successful CSR policy within the workplace. For those companies that already have a CSR policy.

As we are approaching Eid al Adha, in the spirit of appreciation, giving, helping businesses, communities and others we take a closer look at CSR. We outline what CSR Law contains, and the obligations it will place on UAE businesses and new company setups.

Corporate Social Responsibility is how an organization contributes towards improving and adding value to society in some shape or form. Examples on CSR vary such as: donating money to charities and non-profit organizations, volunteering time or resources towards causes to putting into practice environmentally-friendly procedures at a place of work.

Nowadays consumers have even more access to information and more choice when deciding on the quality of goods and services. Many consumers are now placing increasing value on CSR and are holding organizations accountable for effecting social change along with business practices, beliefs and profits.

Some consumers will go as far as to stop purchasing goods or services from their preferred companies if they believe they’re not taking action for societal and environmental issues.

he UAE Council of Ministers published a new resolution – the CSR Law. The new resolution aims to develop organizational framework and guidelines for the management budget as part of their Social Responsibility Activities. CSR Law outlines reporting necessities for contributions to CSR activities and offerings, where it applies to certain UAE businesses on a compulsory basis, to those on a voluntary basis and offering a range of incentives to contribute to CSR initiatives.

CSR Law Objectives:

Create a governing structure for CSR contributions for the UAE

Record, monitor and direct CSR contributions in line with CSR initiatives

Offer incentives to UAE businesses that back and contribute to CSR practices in the UAE

Start the the Federal Social Responsibility Fund, a new body to be managed under the authority of the Ministry of Economy

Sanction the fund to encourage a culture of social responsibility by UAE businesses to CSR within the UAE.

Ministry of Economy has launched a website CSR UAE. The CSR framework will be delivered through the CSR Smart Platform. This is open to current businesses operating in the UAE and companies that are setting up a company in the UAE.

CSR Smart Platform brings all members or stakeholders that are involved in the sustainable development projects, program and development including establishments, businesses, non-profit organizations and Government agencies. Its main purpose is to circulate information on the strategy of government for development and related initiatives and coordinate the communication between the state and private sector entities. The CSR Smart Platform also grants corporations the control over their contributions to the CSR agenda by enabling them to:

Glance through current initiatives, programs and projects

Select their preferred activities

Suggest alternative development channels and concepts.

CSR law outlines the requirements for organizations to report their CSR contributions and activities. In the not too distant future these requirements could become mandatory and may involve reporting the appropriate disclosures in order for trade licenses to be renewed.

We therefore recommend that all UAE companies take the time to review their CSR policy and reporting procedures as this will be applicable to new company setups in Dubai and throughout the Emirates.

CSR has significant importance for businesses, non-profit organizations and employees. At the essence of CSR is teamwork: together everyone can achieve more and make a difference.