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It's time companies gave back to society

Community responsibility is a moral necessity that must be taken up by corporates. It is good to give back to the societies they operate in and generate revenues from.
However, such initiatives are lacking in the UAE. Practices such as corporate social responsibility (CSR) necessitate a clear legal framework that works towards setting a process for community service. What's surprising is that many of the multinational companies operating in the UAE are inactive on this front. That's despite the fact that most of their branch offices in Europe and the US offer excellent community services. Some of these companies, interestingly, are even top leaders in CSR activities.
This is not criticism against these companies. In fact, the reason for non-compliance could be lack of an obvious road map for an organised process. Besides, many companies are not aware of how to direct their budgets to serve the community in a better way.
CSR activities should be given priority and plans should be in place for an effective implementation. Just making donations or contributions to one charitable society or another doesn't count as a plan. Companies should come up with effective processes towards helping the people of the society.
The UAE leadership has, in fact, given directives to dedicate this year as the year of giving. Several brainstorming sessions have been held to organise the process of community responsibility. But these ideas need to materialise and have to be put in place. Only a law can streamline the community service proportionally.
In addition to this, a wide and clear plan must be made public on how companies can spend on pertinent programmes such as education, health, social affairs, and housing. This is what actually happens in other developed countries. The aim should be to make the society capable of existing on the services offered by such companies. And these services should be tangible so that it can be felt by the people of the state, just as it is in countries that have vast experience in such services.
Certain parameters have to be in place to make known these services; companies should list their social initiatives each year so that residents can identify those that care for them.
It is a company's responsibility to give a part of its profits back to society. In fact, this will only help improve the reputation of the company, which again will be a good marketing strategy.
It was shocking to learn that a local company proudly announced recently that it reserves one per cent of its revenues for community service. This is a very poor share and it will do well for the company to lie low about it, for all it will receive would be negative publicity.
As per a proposal made by experts, who took part in the brainstorming sessions, the minimum recommended share is three per cent. The companies operating in the UAE should keep in mind that the society has given them a lot until they started yielding results. In fact, it is still serving the company. Hence it is every company's responsibility to give back.
We are all partners in serving the nation. It is our responsibility that the favour must be returned, but based on clear-cut laws and regulations. However, small and medium enterprises should not be affected by the practice. Transparency is the key, especially after a clear mechanism is laid down.      
-malzarooni@khaleejtimes.com