Giving back to Society

Posted on October 4, 2007

Giving back to Society
By Robert Ditcham, Staff Reporter GULF NEWS Published: October 03, 2007, 23:52

Ask company employees about the importance of addressing global poverty, illiteracy, homelessness and environmental decay and most will say they care deeply.

Although they may do their bit, financial restraints and limited time may hinder their charitable efforts.

Their employer, on the other hand, has the financial muscle, brand status and human resources to tackle these issues head on. But is it actively engaging in corporate social responsibility (CSR) programmes?

In the UAE, the answer is more often than not a negative one. Brand analysts and companies say CSR in the UAE is in its infancy compared to North America, the Far East and Western Europe.

“Developed markets have been open for longer, commercial models and structures have been established, while consumers and pressure groups have grown in importance and in their ability to scrutinise and apply pressure to companies,” said Manal Shaheen, director, sales, marketing and customer service at real estate giant Nakheel.

However, she and many others say the UAE could be on the verge of embracing the global CSR phenomenon, with the recently-launched Dubai Cares campaign providing the much-needed catalyst.

At the time of going to press, nearly Dh700 million have been raised under the initiative, which will put one million children through primary education.

“Of course, there is still some way to go in this part of the world, but I believe that CSR will grow more rapidly than it did in those other regions because the momentum has built up, and lessons – both good and bad – have been learned,” Shaheen said.

As with any decision in the corporate world, there needs to be clear benefit to the firm itself. Why should companies invest in society at large when their primary concern should be their shareholders? After all, isn’t it the job of politicians to tackle society’s ills?

Obligation

According to CSR promoters, companies have a moral obligation to support society and the environment.

“We believe that CSR initiatives are a means for us to give something back to the society and the nation that has handed us everything to get us to where we are now,” said Princy Philip, manager for marketing and corporate communications at UAE property developer Memon Investments. “This fact makes it our moral responsibility to care for the unfortunate and provide for the unloved.”

Defining the business case for CSR is often more of a challenge. But, in a world where brand value and reputation are increasingly seen as a company’s most valuable assets, the pros are becoming more apparent to UAE chief executives.

According to an Ernst & Young survey in Europe, 94 per cent of company executives believe the development of a CSR strategy can deliver real business benefits.

“CSR is becoming more and more important in terms of building a strong corporate brand image, while companies are facing increasing pressure from their clients, customers and staff to be responsible corporate citizens,” said Hermann Behrens, the Dubai-based managing director of brand consultants Enterprise IG.

Behrens stressed that in the Gulf’s competitive job market, potential employees factor in a company’s CSR record when choosing their future job, selecting those that can make a positive impact on society.

According to the organisation CSR Europe, 78 per cent of employees would rather work for an ethical and reputable company than receive a higher salary.

CSR Europe argues that a “responsible attitude” towards society and the environment can make a business more competitive, more resilient to shocks, and more likely to attract and hold both consumers and the best employees.

Business sense
And in a world where socially responsible investment is growing, CSR can also attract investment and save businesses money in dealing with regulators, banks and insurers, the organisation adds. It says socially responsible investment accounts for nearly 13 per cent of the $16.3 trillion in investment assets under professional management in the US.

“The reason companies are taking the issue more seriously because it makes good business sense,” said Shaheen.

“Firstly, it has become clear recently that financial markets are factoring in some of the ‘sustainability’ issues into their valuations and decisions to invest or move their funds.

“Secondly, as customers get more savvy, it’s getting easier to compare the Good and the Bad. There is enormous value with your customers if they know you are one of the good guys and it’s no coincidence that people are prepared to pay a premium for this.”

But adopting CSR initiatives doesn’t always result in a rosy picture being painted of a company. Those that throw money at environmental causes and champion human rights, but also pollute the atmosphere and exploit their workers, will soon be found out, resulting in spectacular public relations disasters.

Behrens said good CSR is about a lot more than donating large sums to noble causes. A CSR campaign that engages the whole company in its ethos and gets its staff involved in charities or social work will have the best results, he said.

Shaheen said Nakheel is aware that CSR is much more than making “token gestures”.

“Although it’s quite normal for companies to make big statements, huge promises, or grand gestures, negative impressions can often be caused by what I’d call ‘tokenism’ – when companies obviously bolt-on campaigns or initiatives that are clearly superficial gestures and not integrated into the ethos of the company,” she said.

“I think that a lot of companies are on the journey from one to the other at the moment.”

The corporate sector’s swift response to the Dubai Cares campaign is among several examples of CSR being pursued in the UAE.

Memon Investments, a Dubai-based property developer and part of the international business conglomerate, the Memon Group of Companies, recently announced its participation in the ‘Safe & Sound’ campaign – BurJuman’s breast cancer awareness programme – as the official annual sponsor.

This will mark Memon Investments’ first CSR undertaking in the region.

Giant property developer Nakheel said it has established initiatives such as Bidaya, an educational and leadership programme aimed at discovering and nurturing the UAE’s next generation of leaders.

The programme offers university scholarships to outstanding male and female candidates from the country’s public high school system.

As one of its key CSR initiatives during 2007, Dubai Holding recently said it has pledged nearly Dh1.5 million to two organisations – the UAE Beit Al Khair and the Dubai Autism Centre.

Over the past two years, Dubai Holding has contributed more than Dh80 million in projects such as a facility for Zayed University and Dubai Education Council.

“Even as we rapidly drive our business to cross new milestones, we regard it as our duty to share the responsibility of the general welfare of the community,” said Mohammad Al Gergawi, executive chairman of Dubai Holding.

Meanwhile, a golf team from oil and gas major BP decided to use its $1,000 prize money won in a golf tournament recently to pay for a facility for autistic children at the Future Centre in Abu Dhabi.

Multinational corporation Halliburton has also made donations to The Future Centre, which provides schooling for children with special needs, through its Halliburton International Fund.

Job Hopping!!

Posted on September 30, 2007

Mr. Gopalakrishnan succeeds Mr. Ratan Tata as Chairman of Tata Sons
Ltd., the holding company for many of the Tata Bluechips like Tata
Steel, Tata Motors, Tata Power, Tata Chemicals, Voltas, etc.,

Possibly he is the first non-Tata person to head the Tata Empire.

The grass isn’t always greener on the other side!!

Move from one job to another, but only for the right reasons. It’s yet
another day at office. As I logged on to the marketing and advertising
sites for the latest updates, as usual, I found the headlines
dominated by ‘who’s moving from one company to another after a
short stint’, and I wondered, why are so many people leaving one job
for another?

Is it passé now to work with just one company for a sufficiently long
period?

Whenever I ask this question to people who leave a company, the
answers I get are: “Oh, I am getting a 200% hike in salary”; “Well, I
am jumping three levels in my designation”; “Well, they are going to
send me abroad in six months”.

Then, I look around at all the people who are considered successful
today and who have reached the top – be it a media agency, an
advertising agency or a company. I find that most of these people are
the ones who have stuck to the company, ground their heels and worked
their way to the top. And, as I look around for people who changed
their jobs constantly, I find they have stagnated at some level, in
obscurity!

In this absolutely ruthless, dynamic and competitive environment,
there are still no short-cuts to success or to making money. The only
thing that continues to pay, as earlier, is loyalty and hard work.
Yes, it pays!

Sometimes, immediately, sometimes after a lot of time. But, it does
pay.

Does this mean that one should stick to an organization and wait for
that golden moment? Of course not. After a long stint, there always
comes a time for moving in most organizations, but it is important to
move for the right reasons, rather than superficial ones, like money,
designation or an overseas trip.

Remember, no company recruits for charity.

More often than not, when you are offered an unseemly hike in salary
or designation that is disproportionate to what that company offers it
current employees, there is always unseen bait attached.

The result? You will, in the long-term, have reached exactly the same
levels or maybe lower levels than what you would have in your current
company.

A lot of people leave an organization because they are “unhappy”. What
is this so-called-unhappiness? I have been working for donkey’s years
and there has never been a day when I am not unhappy about something
in my work environment-boss, rude colleague, fussy clients etc.

Unhappiness in a workplace, to a large extent, is transient.

If you look hard enough, there is always something to be unhappy
about.

But, more importantly, do I come to work to be “happy” in the truest
sense?

If I think hard, the answer is “No”. Happiness is something you find
with family, friends, may be a close circle of colleagues who have
become friends.

What you come to work for is to earn, build a reputation, satisfy your
ambitions, be appreciated for your work ethics, face challenges and
get the job done.

So, the next time you are tempted to move, ask yourself why you moving
and what are are you moving into.

Some questions are:

* Am I ready and capable of handling the new responsibility? If yes,
what could be the possible reasons my current company has not offered
me the same responsibility?

* Who are the people who currently handle this responsibility in the
current and new company? Am I as good as the best among them?

* As the new job offer has a different profile, why have I not given
the current company the option to offer me this profile?

* Why is the new company offering me the job? Do they want me for my
skills, or is there an ulterior motive?

An honest answer to these will eventually decide where you go in your
career- to the top of the pile in the long term (at the cost of
short-term blips) or to become another average employee who gets lost
with time in the wilderness?

“DESERVE BEFORE YOU DESIRE” – Dr. Gopalkrishnan, Chairman TATA Sons.

Give it a thought before signing up

Posted on September 29, 2007

Give it a thought before signing up
By Rania Oteify, Features Editor Published: September 28, 2007, 23:14

Please sign here, and here and there. Do you hear this request often? I guess you do if you are financially active, i.e. opening bank accounts, requesting credit cards or finance, or just filling forms.

But as common as it is, the request is usually alarming for me. It is not that I don’t sign my credit card slips with only a quick glance at the price, but in different contexts, I do require longer thinking periods which may extend to days. Why? Because a signature, in a way, formalises or legalises a document even in non-financial situations. I don’t see the argument that you signed a document without reading it standing in a court of law. So, be patient when you’re asked to sign and think of the consequences.

Face value

In many banks, whether local or international, there are common practices which fall in a grey area, and can get you in trouble. One of them is asking clients to sign blank cheques to secure loans and credit cards.

You may be right when you think: “This is a reputable bank with thousands of clients, international branches and much bigger business than mine. Who am I to ask them to change a policy?” But you can always ask, and if they don’t accommodate your request, you’ve the option of walking out of the deal. But if you decided to go along with the trust line that the bank isn’t in the business of tricking people, try to keep it to the absolute minimum. After all, remember that your signature on a blank cheque will grant you credit now, but in case of default, the bank can fill this cheque with the outstanding amount and penalties in addition to the accumulated interest.

Sign now, fix it later

Everyday, we sign documents which may not be as serious as financial ones but they are still sort of contracts which may bring not so nice surprises later on your credit card statements. For example, a friend who was renting a car in Dubai told me the agent asked for all the normal stuff: photocopies of his passport, driving licence and a credit card authorisation. Then she handed him the form for the payment which quoted a price Dh600 higher than the agreed price. Her excuse was: This document doesn’t matter, we will charge your card the correct amount. “So why do you ask me to sign a document that doesn’t matter?” he furiously asked. Here she decided to contain his anger. “No problem. Please sign here and we will fill it with the correct numbers later,” she said, pointing to a blank document.

He found it pointless to argue with her, so he collected his documents and walked out. He definitely did the right thing. Why should he willingly sign a document which quotes the wrong price or another with no price at all while car rental companies are aplenty? Even though credit card transactions can be negotiated and voided, he would not be in a good position since they have a document carrying his signature.

For my loved ones

Co-signing on other people’s credit documents isn’t a good idea. However cruel it might sound to advise someone to say no to a friend or a child, it may be the right thing to do. People do default on their loans – check the statistics. This doesn’t mean you should not consider helping them if you can. But take your time to find out whether you can afford it or not. An additional car payment of Dh1,000 a month for a car that you’re not driving may not be a good surprise. If you do want to help and are willing to bear the burden if things don’t work out for your loved ones, then go ahead and sign here, and here and there.

A signature, in a way, formalises or legalises a document. Be patient when you’re asked to sign and think of the consequences.