Understanding Drivers, Barriers, and Benefits of Social Responsibility in Saudi Arabia Organizations

Abstract:

Private and public organizations are receiving more and more attention from numerous stakeholders for their social performance, which includes not only issues of how they treat their workers and communities where their operations are located, but increasingly they are asked about the social profile of their suppliers and how they treat their workers and communities in which they operate. The response of businesses and public organizations to this attention is diverse, ranging from developing internal policies and putting demands on suppliers, to philanthropy projects, working directly with suppliers on aspects of labour practices or engaging in activities ensuring human rights in supply chains. The problem, however, is that these efforts are undertaken by very few large companies, while the majority of organizations still have not started addressing social issues in their daily activities. The purpose of this study is to better understand the drivers, barriers and benefits for including social aspects into Saudi company’s practices. The study is based on a literature analysis and a collection and analysis of empirical data, through questionnaires, from Saudi public and private organizations regarding the drivers, barriers and benefits to incorporate social aspects into their activities and stimulate social improvements in their organization and in supply chain. This study will contribute to the body of knowledge in the area of CSR with particular interest on Saudi Arabia, as well as carry many implications for the industry and policy- makers in the government.