Corporate Social Responsibility

Corporate social responsibility is considered as self-regulating industry model that helps the business to be answerable to its investors and to the community. It helps the company in sustaining its competitive advantage and become the market leader. The disclosure of CSR initiatives directly affects the performance of the company. It helps in building reputation and enhances the financial performance of the company.

Corporate Social
Responsibility
2019
Student’s Name
5/5/2019

Corporate Social Responsibility 1
Executive Summary
Corporate social responsibility is considered as self-regulating industry model that helps the
business to be answerable to its investors and to the community. It helps the company in sustaining
its competitive advantage and become the market leader. The disclosure of CSR initiatives directly
affects the performance of the company. It helps in building reputation and enhances the financial
performance of the company. In the further paragraphs of report it will reflect the CSR initiatives
undertaken by Emirates NBD and the impact of the initiatives on the financial performance of the
bank. It will also reflect the impact of CSR disclosures on the firm.

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Content
s
Introduction................................................................................................................................3
The notion of CSR versus charity..............................................................................................3
Impact of CSR on the performance of firms..............................................................................4
CSR disclosure of Emirates NBD..............................................................................................4
Impact on the financial performance of Emirates NBD.............................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

Corporate Social Responsibility 3
Introduction
In response to the changing paradigm, companies are requiring to consider ethical
considerations and be responsive to society. It is analyzed that the disclosure of the CSR activities
builds the progressive impact on the financial performance of the business by maintaining the
loyalty of the customers, charging the premium prices and lowering of the reputational risk during
the time of crisis. It helps in increasing the profitability of the company and maintains a competitive
advantage by enhancing the relationship with the stakeholders (Crowther & Seifi, 2018).
The notion of CSR versus charity
Corporate social responsibility is considered as a self-regulating industry model that aids the
company to be answerable to its investors and to the community. It is a management notion under
which the business incorporates the communal and ecological concerns in their business operations
and interactions with the stakeholders. Through this, the companies achieve the environmental,
economic and social imperatives. The notion of corporate social responsibility goes outside than
philanthropy because it directly involves the companies to contribute towards the community. On
the other hand, philanthropy is the donation of wealth to bring social change. The charity may be in
the form of time and effort but majorly contributes in the form of finance. It is done leaving the
permanent effect on the community (Bremner, 2017).
The notion of CSR is to make the business more sustainable by not contributing towards the
community but also motivates the staff, increases employee retention, attracts new business and
providing a competitive advantage over its competitors. In contrary to the above the aim of

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philanthropy is to attempt and promote to bring the social change in the community by making the
financial contribution or the contribution in the terms of time and efforts (Grayson & Hodges, 2017).
Impact of CSR on the performance of firms
Application of corporate social responsibility at the workplace helps the firm in attracting
and retaining the best employees because the employees feel motivated in contributing to the
community and become more happy and satisfied. The companies tend to invest more on the
employees and create a positive working environment. Involvement of the corporate social
responsibility activities helps the companies to develop a positive brand image and creating a
positive influence on social media tools. Creation of the positive image increases the sales of the
company and enhances productivity by retaining the highly motivated workforce (Chintaman, 2014).
CSR disclosure of Emirates NBD
Emirates NBD considers the responsibility to effectively contribute to the community. It
focuses on socio-economic issues and improves the living condition of society. It is analyzed that the
company huge investment in helping the disabled people of the community and raising the financial
literacy levels of the community. It has covered almost 2 million people to enhance their living
standard and advance the quality of life. The company partners with the community institutions to
strategically target the area where the company wants to serve. It has developed in-house
volunteering programme exchanger that provides the opportunity to the employees and the
partners to serve the community including a variety of causes such as women empowerment,
financial literacy, health and wellness, environment and community development. The company is
able to make a positive influence through exchanger programme (Olayemi, Heckroodt & Kevin,
2018).

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The company supports tolerance at the workplace and highly committed towards the
inclusive of the diverse workforce. It has hired 36 employees with disabilities and makes continuous
efforts in sustaining the business by developing socially responsible programmes that address the
United Nations Sustainable Development Goals. The company launches a strategic program to
introduce youth in the financial world. The company has focused on empowering the people with
the knowledge and the skills so that they can the right financial decisions and helps in improving the
well-being of the people. By taking the right financial decisions it allows the people to save the
money and spend where they are required which improves the life of the people. Emirates NBD has
developed an online donation channel under which it works with the charity partners to contribute
towards the community and develop the meaningful campaigns that address the social and the
environmental needs of the community. The company has created value by contributing to
philanthropy and corporate social responsibility (Ghaddar, 2015).
Impact on the financial performance of Emirates NBD
It is analyzed that the disclosure of CSR activities has effectively contributed to the financial
routine of the company. The company has delivered excellent performance and has earned a profit
of AED 10 billion. The balance sheet of the company remained healthy in the year 2018. Its profit
increased to 15% through the on-going initiatives taken by the company in response to corporate
social responsibility. The balance sheet remained strong due to improvement in the liquidity and
capital ratios. Involvement in CSR disclosures helped the company to stable the credit quality and
retain the trust of the customers. The customers feel satisfied when they are associated with the
company who effectively contributes towards the community. The company has converted 40% of
its branches under UAE into disability-friendly branches which boost the morale of the employees
and leads to employee retention. The cost of the company has improved from 7% due to a reduction
in the staff cost, low professional fees and marketing expenses of the company. The contribution
towards the community helped the company to maintain the interest of the stakeholders and has

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built a good reputation for the company. Due to high performance, the bank has been awarded as
the best bank in the Middle East (Husaini, 2019).
Conclusion
From the above analysis, it will critical to note that the disclosure of corporate social
responsibility directly shakes the presentation of the company. It is analyzed that Emirates NBD has
effectively contributed to improving the wellbeing of the community. The company was able to
sustain its business by developing a competitive advantage over its competitors. In the year 2018,
the company was able to gain a positive position in the market and has left a good impact on the
financial presentation of the company. Therefore it is concluded that the involvement of corporate
social responsibility has developed crucial for every business to protect the interest of the
stakeholders and for an effective contribution towards the community.

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References
Bremner, R.H., (2017). Giving: Charity and philanthropy in history. London: Routledge
Chintaman, S. A. (2014). A comparative study of CSR practices of Islamic banks and conventional
banks in GCC region. Journal of Islamic Banking and Finance, 2(1), 1-21.
Crowther, D. & Seifi, S. (2018). Redefining Corporate Social Responsibility. United Kingdom: Emerald
Group Publishing
Ghaddar, S. F. (2015). Corporate philanthropy and corporate social responsibility in the Arab
Gulf. Theses, Dissertations, and Projects.
Grayson, D. & Hodges, A. (2017). Corporate social opportunity: Seven steps to make corporate social
responsibility work for your business. London: Routledge.
Husaini, A. S. (2019). CSR in the Middle East: From a Philanthropic Model to a Social Investment
Approach—The Case of Manzil. In Practising CSR in the Middle East (pp. 185-204). Palgrave
Macmillan, Cham.
Le Pelley, A. (2017). Middle East. In The World Guide to CSR. London: Routledge.
Olayemi, A. A. M., Heckroodt, S., & Kevin, S. (2018). Corporate Social Responsibility (CSR)
in Islamic financial Institutions: the Shariah Adoption and Standardization, UAE and
Malaysian Model. In The Name of Allah, The most Beneficent, The most Merciful, 43

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