Corporate Social Responsibility from philanthropy to business strategy: Comparative study of CSR concept in the United Kingdom and Saudi Arabia in regard the basis and the new reforms in Saudi Arabia

Abstract

The purpose of this paper is to identify and analyse the concept of corporate social responsibility (CSR) in the United Kingdom and Saudi Arabia, as well as to discuss recent CSR initiatives in Saudi Arabia. It will analyse the common reasons behind the divergence in understanding CSR between the United Kingdom and Saudi Arabia, as well as recent reforms suggested in Saudi Arabia and how they may change the understanding of CSR concepts in ways similar to the United Kingdom. Comparative methods were applied for each country’s legislation, literature, and perspectives, and various effective CSR case studies in both nations were addressed. The United Kingdom is one of the leading countries Saudi Arabia is using as a guide for their own CSR practices, and the analysis showed the main reason behind the different interpretations of CSR is the basis each country uses. The United Kingdom employs a legislative framework of hard and soft law, but in Saudi Arabia there is an absence of CSR legislation, which makes the Islamic religion the main basis there. Observations reveal that new reforms in Saudi Arabia may not be effective to change the interpretation when there is a lack of specific CSR regulations, although there has been some participation from multinational corporations. To change the concept from philanthropy to business strategy in Saudi Arabia, laws must be enacted to establish a CSR framework so it can be regulated as it is in the United Kingdom. However, there is still a need for further research and studies because of recent CSR strategies in Saudi Arabia that may impact business attitudes, and new laws are expected to be issued soon after it obtained approval by the Consultative Assembly of Saudi Arabia (the Shura Council).