07/06/2009
Hana Al-Mu'aybid, a member of the Young Businesswomen's Committee affirmed the importance of social responsibility for successful businesses in a speech that she delivered recently at Asharqia Chamber's Businesswomen's Center. She said that entrepreneurs should have a role in community service and participate in various areas apart from regular "charity". She pointed out that there have been a number positive results achieved by large companies because of such commitment, including increased profits and improved relationships with customers.
Al-Mu'aybid said that Saudi businesses have not been as socially responsible as they should be... Pointing out that according to a report from a major company only a small number of companies have linked economic activities and sustainable development. The report showed that the private sector contributes 51 percent of national income, while 86 percent provide job opportunities. This means that a strong partnership between the private and public sectors is required to increase levels of social responsibility.
Al-Mu'aybid also mentioned a study of 1200 managers of international companies which found that only 53 percent of companies around the world have sustainable development plans or plans that focus on internal relations.
Successful companies believe that business development strategies in the future should be based on customer preferences and that profitability is linked to sustainable development. 57 percent of managers believe that the benefits of development planning outweigh the costs, and that it actually helps to reduce costs in the long run. The study also and found that companies worth the most in the stock market are those that attached the most importance to social responsibility, while those worth less in the stock market gave less attention to social responsibility.
Al-Mu'aybid added that networking with the community and contributing to social responsibility increased companies' ability to maintain customers, increase profits, control corporate reputation, improve product quality, and attract highly qualified employees, thereby improving relations with the government sector.
She stressed the importance of distinguishing between the concepts of social responsibility and "charity", because the latter creates a "culture of dependence" whereas social responsibility creates a culture of empowerment that helps community members develop their abilities.
