Conceptualization of CSR Among Muslim Consumers in Dubai: Evolving from Philanthropy to Ethical and Economic Orientations

Abstract

Many existing studies postulate that in developing economies philanthropy tends to dominate in the CSR orientation delivered by organizations and expected by local populations. To assess this in the emerging economy of Dubai in the United Arab Emirates, we conducted a preliminary investigation of how locals are responding to the growing number of CSR initiatives that are being implemented in the Emirate. Moreover, given that scholars have argued that Islamic principles of philanthropy should guide CSR initiatives in Muslim countries, we also consider if our Emirati respondents connect CSR with Islamic philanthropy. Results from our survey of 267 local Muslim consumers in Dubai indicate that CSR is not typically equated with philanthropy. In addition, respondents displayed an appreciation of the economic benefits that CSR can generate. The implication is that organizations in Dubai no longer need to base their CSR on the platform of Islamic philanthropy as many scholars have argued. Our findings are significant for the wider Gulf region in that they suggest that in wealthy emerging nations, CSR may not be predominantly interpreted as the corporate philanthropy which is needed in poorer developing economies for the provision of infrastructure, schools, hospitals, and housing, and which in some Muslim contexts is also implemented because of local religious values.

Principles of Islamic Finance and Principles of Corporate Social Responsibility: What Convergence?

“…Recent studies on CSR made by Islamic finance institutions focused their research on customer perception related to CSR [33][34][35] and its principles in terms of practicability, measuring its outcomes [36][37][38][39].…”

Researching Corporate Social Responsibility in the Middle East: The Current State and Future Directions

“…The CSR pyramid proposed by Carroll (, ) identifies four key responsibilities to society: economic, legal, ethical, and discretionary/philanthropic. In the CSR literature, this framework has been the most widely cited (Goby & Nickerson, ). While evaluating the value of Carroll's pyramid in a European context, Matten and Crane (: 51) reveal that ‘All levels of CSR play a role in Europe, but they have different significance, and furthermore are interlinked in a somewhat different manner.’ Given the very different economic and social contexts in developing countries, Visser () suggests that Carroll's ideas be adapted by reordering some of the implied priorities.…”

“…In the ME, the philanthropic‐based CSR adopted by local businesses is rooted in religious motivations (Jamali & Neville, ). However, Goby and Nickerson () oppose this view and argue that CSR in the UAE is driven by instrumental motives, not religious beliefs. It is also worth mentioning that Goby and Nickerson do not find any link between CSR and Islamic Philanthropy (also known as Zakat).…”

“…The degree to which these dimensions are prioritised may vary within different global regions and as such, broad generalisations as to what is or what is not responsible are quite problematic. Several scholars (Jamali et al, ; Jamali & Sidani, ; Goby & Nickerson, ) have called for greater CSR research in ME countries. As much of the body of work on CSR gained in other regions cannot be easily generalised to the ME, the cultural, economic, political, and particularly religious distinctiveness of this region makes it worthy of distinctive attention.…”

“…Current studies pertaining to CSR in the ME focus on a wide range of subjects such as the role of stakeholders (Jamali, ) and institutions (Jamali & Neville, ), the conceptualisation of CSR (Goby & Nickerson, ), the motivations for adopting CSR (Abdelrehim et al, ) and the potential impact of CSR on society (Jamali & Mirshak, ). Existing review articles in the field of CSR (Peloza & Shang, ) have tended to review specific research questions.…”