From left: Sheikh Saleh Kamel, president of Jeddah Chamber of Commerce and Industry;  Jeddah Governor Prince Mishal Bin Majed;  and Ahmad Al-Hamdan, chairman of the Corporate Social Responsibility Center at the JCCI, during the opening of the 3rd edition of Saudi Social Responsibility Forum for Companies at Park Hyatt Hotel here Tuesday.

Fatima Muhammad

Saudi Gazette



JEDDAH – The government sector should set rules regarding corporate social responsibility (CSR) that all companies should adhere to, Sheikh Saleh Kamel, president of Jeddah Chamber of Commerce and Industry, said during the opening of the 3rd edition of Saudi Social Responsibility Forum for Companies at Park Hyatt Hotel here Tuesday.



He noted that first forum witnessed setting up of SR100 million endowment fund with contributions from several businessmen and companies to carry out social responsibility programs.



Last year the forum announced a CSR competition, he noted, saying that “we hope this year we will have another initiative that advance CSR. Let’s come all together to set new procedures to provide social responsibility and to enhance different programs in this regard.”



Kamel further said “zakah is part of social responsibility even if it is obligatory under Shariah. Our businessmen are generous and our culture stresses on social care and attention, hence these programs are present in our country.”



Kamel said that the forum is a pulpit to launch Kingdom-wide initiatives aimed at spurring social and economic development.



Kamel urged the concerned ministry to extend their support in working out social responsibility document for companies so that the companies can implement its provisions effectively.



On his part, Adnan Mandura, secretary general of JCCI, announced names of companies that won the Social Responsibility Prize for this year.



A number of prominent businessmen also signed a special endowment document for small enterprises and productive families. “The second forum, held last year, witnessed launching of a Saudi Social Responsibility Prize as part of enhancing awareness about undertaking social responsibility programs by the private companies.”



Wadee Kabli, an economy professor at King Abdul Aziz University,however believes that zakah cannot be spent in corporate social responsibility programs. he explained zakah is obligatory, while CSR is optional, he elaborated that only scholars can settle such issues. “Companies cannot be forced to do social responsibility programs, while companies have to pay zakah. Companies have to be encouraged and the society has to insist and put pressure on companies to play a social role.”



Asked if companies should be asked to allocate a percentage of their budget to CSR programs, Kabli believed that as these programs should come as initiatives such percentage cannot be set. He told Saudi Gazette “there is a minimum percentage for zakah of 2.5 percent (which) the government can increase, however it is not possible to allocate a percentage for CSR programs.”



According to Kabli, companies can produce new ways for social responsibility that include training locals and providing them with health insurance and accommodation allowance, “by providing education, healthcare, and accommodation companies are then providing more than just a salary and by that, they are contributing to society,” he said.



Companies in the Kingdom “do not still understand the concept behind CSR programs, they are still thinking of it as charity and donation,” said Ahmad Al-Hamdan, the chairman of the corporate social responsibility center at the JCCI.



He added that “we are working on promoting the concept between companies by introducing them to new CSR programs and also by allocating a prize for companies providing such programs.”



Al-Hamdan called on launching a national dialogue on CSR. He added that this forum held for the third year is a platform for all companies and individuals interested in CSR programs. He added that by having more cooperation, more can be achieved through these CSR programs. “CSR can play a major role in economy and contribute to pressing local issues.”



Faysal Abou Zaki, deputy CEO of Al-Iktissad Wal-Amal Group,  organizer of the third CSR Forum, said that this year they will have various sessions and specialized workshops that will discuss in-depth CSR programs offered by private companies. He added that it is essential to benefit from the foreign experiences. He added that Saudi companies are now providing their own CSR programs that are not a copy of other’s programs. Local programs, he said, provide a local taste that meets the Saudi tradition and culture.

On behalf of Makkah Emir Prince Khaled Al-Faisal, Jeddah Governor Prince Mishal Bin Majed opened the 3rd edition of Saudi Social Responsibility Forum for Companies Tuesday. More than 500 delegates representing various companies, establishments and agencies are taking part in the event.