Corporate Social Responsibility and Public Governance: An Analysis of Their Interrelationships in GCC Countries

Abstract

In the six Gulf Cooperation Council (GCC) countries, liberal economic policies of the government have created an economic structure that is highly dependent on an expatriate workforce, thus marginalizing the citizens in terms of the economy and demography. This chapter deals with questions such as “If the profit motive of the private sector is leading to possible social crises in the GCC countries, what is the CSR of the private sector?” and “How are the six GGC governments positioned in influencing CSR?” With an overview of business and its social responsibility in the GCC countries, this chapter undertakes a case study of CSR in the UAE. It shows that social responsibility of business entities in the GCC countries is limited to complying with the corporate governance reporting regulations of the government. The chapter, however, concludes that because the economic and political power structures are entwined (being connected to the social and tribal systems), the GCC governments can influence the business community only through persuasion, not legislation. Therefore, it is unlikely that the character and extent of CSR in the GCC countries will change any time soon.