Special Report: CSR

The world has never been in greater need of aid. How has the pandemic impacted the way individuals and companies give back?

The Covid-19 pandemic has changed life as we know it. With the death rate and case count growing by the day across the world, it has taken a heavy toll on healthcare systems. It has also devastated economies, forced companies to shut down and pushed some of the most vulnerable people on the planet into extremely tough circumstances. The situation has triggered the need for massive amounts of funds to assist countries struggling to deal with the pandemic, as well as communities that have been hit the hardest. The first iteration of the World Health Organization’s (WHO) strategic preparedness and response plan called for a total resource requirement of $675m, of which $61.5m were for activities covering the period of February to April 2020. “As this outbreak evolves, funding needs are likely to increase,”

of RSG Group, who contributed Dhs1m; and two Emirati children, aged eight and seven, who contributed Dhs1,000.

“There is definitely the requirement for giving back when people are facing a pandemic, especially in the area of healthcare,” states Dr Azad Moopen, founder chairman and managing director of Aster DM Healthcare. In late March, the healthcare provider rolled out a free teleconsultation service across its Medcare, Aster Hospital and Aster Clinic facilities in the UAE, allowing patients to remotely consult qualified doctors for all their ailments.

“Despite the challenge of making losses, many companies have volunteered to spend money for supporting various initiatives to fight the Covid-19 pandemic even though they are not statutorily required to do so. It is important that corporates and business houses earmark a part of their reserves for corporate social responsibility (CSR) funding,” adds Moopen.

But while there is always a “noble intention” to continue giving back to the city through CSR activities, the amount of funding will depend on the person or company’s current capacity and feasibility, explains Ajay Sobhraj, founder and chairman of Finja Jewellery.

The Dubai-based Indian businessman recently donated a fully-equipped building in Jumeirah Lake Towers to the UAE authorities for quarantine patients. The 77,000 sq. ft property can accommodate upto 400 people.

Nourah Shuaibi, general manager at Eltizam Asset Management Group, agrees that not all corporations are in a position to give equally since some industries are hit harder than others.

“What is important is that companies focus on what they can provide which will create that positive impact on society – whether it is repurposing production lines for manufacturing health protection equipment, or sports venues opening their doors to become makeshift hospitals. On a smaller scale, it is important for all companies to provide support to selected individuals, those infected and their families, the front liners and heroes and people whose livelihood has been affected by the crisis.

“During challenging times such as the current pandemic, the needs of CSR’s traditional target impact areas only increase.

“What is important is that companies focus on what they can provide to society”

Covid-19 has impacted everyone in developed and developing countries alike. The disease does not discriminate as evidenced by the growing number of infected people belonging to very different segments of society,” she says.

“As scientists, health experts, and government leaders continue to look for an effective way to contain the disease, every one of us has the responsibility to contribute to minimising the impact of the crisis. It is our moral duty to assist those who are in distress, and in challenging times it is important that corporations dig deep and ensure cost-cutting measures do not negatively impact CSR initiatives as much as is possible.”

Shuaibi adds: “The Covid-19 crisis is a time for corporations to shine and show their concern for others.”

Growing importance

Outside of the current situation, many of the GCC states have emerged as front runners when it comes to offering humanitarian assistance. In December it was revealed that the UAE distributed more than Dhs28.6bn in international aid in 2018, exceeding the recommendations from the United Nations for the sixth consecutive year.

While the UN urges donor countries to contribute aid worth at least 0.7 per cent of their gross national income (GNI), the UAE’s proportion of aid amounted to 0.93 per cent of its GNI. In 2017, the country also emerged as the world’s largest donor of development aid relative to national income, having donated 1.31 per cent of its GNI, according to the Organisation for Economic Co-operation and Development (OECD).

“The UAE has long exerted significant efforts to support friendly nations,” said Reem Al Hashimy, minister of State for International Co-operation. “Whether through development projects or response to disasters, the UAE aims to do this in a manner that bolsters prosperity and stability, while alleviating suffering in recipient countries. Giving and co-operation is our instrument to making a better world.”

The UAE’s humanitarian assistance programme is also focused on the 17 UN Sustainable Development Goals (SDGs), which include eliminating poverty and hunger, ensuring good health and well-being, providing quality education and achieving gender equality, among others.

In line with the country’s initiatives, corporates in the UAE should also align their CSR spends to the UN SDGs, opines Shravan Charya, founder and CEO of charity crowdfunding platform SocioLadder.

“It is our moral duty to assist those who are in distress, and in challenging times it is important that corporations dig deep and ensure cost-cutting measures do not negatively impact CSR initiatives as much as is possible”

New initiatives

The CSR concept has now become an integral part of most businesses that are viewed as industry leaders – whether regional or global. “It is a necessary part of a company’s DNA, a part of the soul of that company as it takes on socially relevant causes that enable companies to make a difference and contribute to something bigger than day to day business. Corporations focusing solely on profits are becoming a thing of the past, as such practices fail to sustain corporate performance long term,” states Shuaibi from Eltizam.