The Ministry of Economy on Monday said that it will be mandatory for the private sector to declare their Corporate Social Responsibility (CSR) initiatives by the end of 2017.
The CSR programme is one of six main themes of the UAE’s National Strategy, which aims to encourage all companies to play a role in charitable and humanitarian work.
To implement the Year of Giving strategy, the Ministry of Economy launched 11 initiatives on Monday to create workplaces that take up philanthropy as part of its core values and helped the government keep a database and monitor the companies’ compliance to philanthropy.
The ministry, which will implement its initiatives starting 2018, is currently working with different economic departments and the chamber of commerce to make the required modifications in current policies and laws to make Corporate Social Responsibility compulsory for UAE companies.
H.E. Sultan bin Saeed Al Mansoori, Minister of Economy, said: “Ever since the country declared 2017 as the Year of Giving, national efforts have started to contribute to the development of an integrated framework that will spread the culture of giving across the country.”
Therefore, by the end of the year, CSR will be mandatory to execute among 400,000 companies across the country, aiming to dedicate at least Dh500 million in cash or in-kind philanthropic work from companies.
Mohammed Ahmed bin Abdelaziz Al Shehhi, Undersecretary of the Ministry, said, ‘Auditors will be required to present financial statements to verify CSR involvement.’ He noted the audit declaration will be a requirement for their business license renewal.
Some of the ministry’s 11 initiatives for Year of Giving
– “Smart Platform” that will guide companies on CSR initiatives need in the country.
– “National Corporate Social Responsibility Index” that will list the ranking of companies involved in philanthropy.
– “Social Responsibility Passport” will be granted to top five performing companies in social responsibility that will give them priorities in federal and government projects.
– “Social Responsibility Label” that will hep market companies and reflect their extent of contributions to community responsible projects.
– Companies will be asked for mandatory declaration of their corporate social responsibility.
– Financial privileges will be granted to companies with high social responsibility contributions.
– A social responsibility committee will be formed to oversee the process.
However, the percentage of funds that companies will be required to allocate to CSR initiatives, whether monetary or in-kind, is yet to be announced.
The initiatives aim to raise awareness and support the interaction of the private sector with economic, social and environmental development challenges, while encouraging them to support various community projects in the country.
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