Incentives for firms doing CSR activities
dubai — Businesses in Dubai are being urged to step up their social services activities in exchange for special incentives, such as considerable discounts on government fees.
During a roundtable discussion on Wednesday, Ahmad Abdul Kareem Julfar, director-general of the Community Development Authority (CDA) said these fees could be slashed by “up to 50 per cent” in the future. The incentive options are currently in discussion.
Before the year-end, the CDA will also launch an online portal where businesses can choose from a list of Corporate Social Responsibility (CSR) opportunities available.
Although the Ministry of Economy (MoE) clarified earlier this year that CSR is “voluntary for companies” here, Julfar said mandatory practice is something the CDA would like to encourage in the long-term.
“We are working with the ministry to update the laws on CSR. To avoid putting people off setting up businesses here, it is unlikely it will make CSR participation mandatory straight away. It will be more an advisory approach, with rewards being offered.”
However, from the CDA’s perspective, Julfar said it has “recommended that companies do contribute to CSR automatically”; a practice which is seen throughout India.
“Indian law requires companies to give two per cent of profits to charity. With the UAE a tax haven, I think introducing this kind of law here will be a beneficial way of paying back something to the country and community.”
At present, the CDA is working with the MoE to update these laws. Once they are finalised, the authority will play a big role in the implementation process, from measuring the quality of the initiatives, to establishing a clear criteria for companies looking at CSR options.
Although monetary contributions are encouraged and welcome from companies, Julfar said: “Money is good but participation is even better.” Speaking about the online portal which will act as a platform for companies looking to take their CSR participation forward, Julfar said once it is up and running, the portal will be regularly updated, offering new initiatives for companies to support. “We have created this portal to allow for complete transparency. It will also allow us to monitor what companies are doing.”
For those interested, his recommendation is that you focus on supporting “people of determination and people from low income families”.
kelly@khaleejtimes.com