Question

Mention TWO profitable business in the country Oman which apply corporate social responsibility and explains how important the activities provided by those businesses from a managerial accounting perspective

Answer 1

Answer :

Corporate Social Responsibility :

The CSR also known as Corporate Social Responsibility is corporations’ initiative to protect the environment as well as social welfare. Corporate social liability is something more than a business trend. The companies that want to stay relevant to new generations and who want to help people in need around the world will benefit from embracing CSR. Simultaneously, it helps in increasing their own revenue and efficiency.

Shell Oman :

Shell Oman has put in place an annual social investment budget and has developed a strategy that targets a wide range of initiatives to drive social awareness and contribute to the well-being of the local community focusing on the following strategic themes; Road Safety, Environment and Community Development.

Shell Oman plans and executes projects and runs facilities to create lasting social benefits by focusing on local talent development, using local suppliers and contractors and setting a good example through business practices and ethics as well as maintaining high standards of health, safety, security and environment driven by respect for people and the core values of honesty and integrity which are embedded in the Shell General Business Principles for over 30 years.

Apart from the targeted strategic social investment initiatives planned at the beginning of every year, Shell Oman keeps a window open for a dialogue with the Omani community in terms of social investment through Donations & Sponsorships budget to address the requests received from various organisations, charities and entities in Oman. This approach allows the Company to build on its strategic long-term relationship with its stakeholders in the public and private sector as well as non-government organisations and youth charity groups.

If you belong to an entity that supports the above mentioned efforts, and you are seeking support to carry on the activities that will help benefit the society, Shell Oman is willing to look into your request submitted through the Donation & Sponsorship Application Form in order to provide the appropriate help and support. Kindly note, applications which do not comply with our terms and conditions shall be disregarded.

It encompasses the following areas:

• construction of water treatment plants to provide clean water supplies for local communities;
• provision of a new health centre as well as a maternity ward (to address the issue of mothers dying at childbirth or from complications related to it);
• provision of ‘smart classrooms’ to 12 schools nation-wide;
• supply of four mobile laboratories in south Oman;
• provision of sunshades to 12 schools all over Oman to facilitate outside play during the hot summer;
• support for the Al Noor Association for the Blind in a major project aimed at restoring sight to blind Omani children;
• purchase of 24 special seats for children by the Early Intervention Association;
• two separate training programmes to improve communities’ economic self-sufficiency – support for the Ministry of Manpower’s supply of ‘training for employment’ programmes, and support for the Ministry of Social Development’s special training in the production and marketing of milk products;
• assistance to the Ministry of Fisheries to improve beaching areas for fishing boats;
• drilling of a water supply well for a local golf course;
• payment for the installation of street lighting thereby improving communities’ lifestyle and safety;
• support of the second stage of the Central Oman Palaeolithic survey;
• support of a project to minimize litter along the Muscat coastline.

Al Barami Group Oman :

Corporate Social Responsibility Shared responsibility and generosity for the society have long been part of the Omani tradition. The tradition continues at Al Barami, where corporate social responsibility is etched in the organisational DNA. It is therefore no surprise that at Al Barami, we continuously think of ways to direct wealth from successful business endeavours towards societal development. Our responsibility doesn’t end with mere thinking. Al Barami commits resources and effort. To ensure that CSR remains an ongoing activity and receives maximum attention, we set up the Al Barami Foundation, earmarking a portion of Al Barami Limited’s net profit every year for the social and philanthropic activities of Al Barami Foundation. With a wide range of socio-economic and educational initiatives, Al Barami Foundation touches the lives of the unheard and unserved.

It encompasses the following areas :

• Create, maintain and support need-based and region-specific services to the poor and needy in the areas of:
• Housing
• Healthcare
• Education
• Training
• Undertake rural and community development projects

Theoretical / Managerial Implications :

This study adds to the body of literature on CSR theory, in particular its international understanding. There is still need for a standardised definition of the concept that businesses in society could focus on making profit, paying taxes, and providing employment, all these in ways that set higher ethical standards, going beyond what is required by law”. The results of this exploratory research study show that Omani society, including Omanis and resident expatriates, expect corporations to provide ‘safe products/services’, appropriately treat employees, provide ‘reliable products/services’, behave ethically, and be ‘committed to social responsibility’ above all else out of sixteen attributes depicting an ideal socially responsible company. These are not generally core CSR aspects, but relate more to corporate sustainability as often defined by transnational and multinational corporations (MNCs). Practitioners can plan their CSR strategies to reflect these findings.

Conclusion :

Oman is an Islamic country where philanthropy is expected, in particular during the Holy Month of Ramadan. The Telecommunications and Banking sectors in Oman embark on charity drives individually or in partnership with other citizens, also corporate ones, during Ramadan prior to the Eid celebrations to collect and donate to the less privileged in society, in particular children. Some small and medium enterprises (SMEs) voluntarily practice philanthropy alongside more core CSR activities, but not systematically as part of an integrated primarily corporate-benefitting strategy. This evidence also aligns with findings on the CSR philosophy and practices of small and medium enterprises in some transitional economies. There is a need to increase the level of awareness of and the practice of CSR beyond mostly seasonal non-strategic charitable donations via the education of the greater business community in Oman. Future research can focus on exploring the small and medium enterprise sectors as well as service industry sectors such as telecommunications and banking.