Evaluating Corporate Social Responsibility: Ministry of Finance Kuwait

This report provides a critical evaluation of Corporate Social Responsibility (CSR), focusing on the role of the Ministry of Finance in Kuwait. It explores how CSR sustains companies and benefits both internal and external stakeholders. The report examines specific CSR activities, including training programs, internship opportunities, and educational initiatives. It also discusses the application of stakeholder theory and the importance of aligning CSR activities with the needs of various stakeholders. The report references the European Commission's definition of CSR and suggests incorporating social innovation, such as mentoring programs, to address financial crises and enhance community development. The analysis emphasizes the integration of environmental, economic, and social dimensions in CSR practices and highlights the significance of sustainable initiatives, like educational scholarships, for ensuring a favorable future for students. The report concludes by emphasizing the growing trend of social innovation within the corporate sector and its positive impact on civil society.

Executive summary
Corporate social responsibility is an activity that is undertaken by various leading
organizations in order to show that they care for the society. It is evident that corporate social
responsibility helps in satiating the needs of an organization and that of a stakeholder of that
organization. The aim of the report is to critically evaluate the role of corporate social
responsibility in sustaining the long-term existence of a company. Along with the latter the
paper will also adjudge the leading CSR activities and programs undertaken by companies in
order to benefit both the internal and the external stakeholders of a company long with
suggestions for social innovation.

The ministry of Finance Kuwait
Ministry of administration and finance, department of treasury and other financial
departments are existent in every government. The main purpose behind the creation if the
financial departments is to manage the inflow and outflow of the funds of a nation along with
several administrative functions. The financial department is responsible for such action in
both state and the national level. Creation of annual budgets and fund allocation into each
existent department is the role of the ministry. Thus, it can be said that the main nature of
operation of the ministry of finance revolves around the creation and allocation of funds. The
Ministry is responsible for harmonization of policies, foreign licenses, consideration of
licenses, agreements, maintaining the agenda of the state, regulation of the capital markets
and many more. Some of the other major functions that are carried out by the ministry is
creating public and private partnerships, setting up agency laws, managing the key changes
and leading in terms of the CSR activities. The ministry of finance can be considered as a
platform through which the governments adjudge and review the various sort of CSR activity
implementation by the key stakeholders while implanting their very own plan for corporate
social responsibility extensionally. In the aim of making corporate social responsibility a
success, the ministry derives ideas from the stakeholder’s theory (Government of Kuwait,
2019). The main focus of the program is to directed towards the needs of the stakeholder, that
is the customers, the suppliers, the employees, various shareholder and the community as a
whole. The ministry is a branch of the government that is responsible for development of the
country in terms of economic sustainability of the nation. Furthermore, it the role of the
ministry to sustain the measures for creation of value in order to boost the efficacy of
development of the economy (New EU definition on CSR mirrors Enterprise 2020 aspirations
| CSR Europe. (2019)).

Provision of various financial plans and financial support can be considered some of the
major responsibilities that the ministry carries out while catering to the needs of the
customers. The ministry engages with suppliers who have the have major activities aimed
focusing on the betterment of the society, community and towards environmental
sustainability effects. As a CSR activity the ministry provides services such as training such
as organization of workshops for boosting the efficacy of the employees of the organization.
As a form of service to the community, the ministry provides opportunities in the form of
internship programs through which the youth of the community are likely to gain experience
in the mode of operations in which they are carrying out the internships. The main rational
behind creation of the creation of the latter opportunity is to develop the employability
quotient in the industry. Along with it the ministry is a pioneer in providing education to the
society in terms of informing the latter about the financial terms, issues and concepts. Grants
and support in terms of education are offered to they shareholders as they are recognized as
the key stakeholders of the Ministry of finance.
Definition of Corporate social responsibility
While operating in any market, regardless of the nature, companies utilize the
resources that are provided by the environment and the society. Thus, it is the responsibility
of the companies to return something back to the community. The service that companies
provide in return to the resources that are offered by the community is known as corporate
social responsibility or CSR. CSR activities can be sustainable contributions to the society in
terms of development of the economy, betterment of the environment, empowerment of the
minorities and others (Corporate Social Responsibility CSR - Markaz. (2019)).
The main aim behind the creation of the ministry is to contribute to the wealth of the
society and cater to the needs of the stakeholders. The CSR policies that are formulated by

the ministry, help in achievement of the goals that are established. CSR activities do not have
to be carried out by small and medium scale companies; however, it can be said that they
must be carried out by the leading multinational companies in order to contribute to the
sustain themselves in the market.
The stakeholder’s theory states that each and every stakeholder of a company should
not be treated indifferently. Rather they should be treated equally, if the stakeholders are
subject to wealth of any sorts, they should be spread equally as well. It is crucial for an
organization to incorporate the CSR activities with the stakeholder’s theory in order to
preserve the values, ethics and morals and values of companies. (Malecki, 2018). Earnings
should be equally spread among the stakeholder irrespective of their size. The same was
realised by the Ministry of Kuwait, who realised the importance of the CSR initiatives and
focussed on the same which brought great deal of attention to then state as a result of the
successful implementation of activities such as engagement of employees through employee
involvement. The ministry, however had limited focus on the internal stakeholders which
ultimately affected the degree of involvement of the internal stakeholders of the company.
As defined by the European commission, CSR activities are the initiatives that are
considered an assimilation of factors such of social and environmental integration in the
operations of companies and interaction of voluntary nature with the stakeholders of the
company. The ministry of finance of Kuwait collaborate their efforts with that of the
activities such as aligning itself with the global market trends. All companies have to abide
by the rules that have been established by the European commission which requires them to
contribute to the society in some substantial form or another.
The substantial impacts to be made by the companies should not be limited to the
mere commodities or allowances. Rather they must involve activities such as provision of

necessary hygiene conditions for work, protection of the human right, health, services such as
education, training, innovation and sustainable contributions to the environment. Sustainable
contributions to the environment can be activities such as green initiatives, measures to
reduce carbon footprints, management of natural calamities and carrying out activities that
help in solving issues related to global warming (Parra et al., 2017).
Another form of CSR activity can be aimed at reframing the internal policies of an
organisation. Restructuring would help in redirecting the flow of operations and would also
help in developing a circular flow of money. Facilitating the inflow and outflow of cash of
the major companies in the country is another activity that can help in then in sustaining their
initiatives related to CSR. Furthermore, it can be said that corporate social responsibility
activities should highlight activities such as corporate governance that would highlight their
sustainable action by the help of which they would be on the receiving end of attention from
the stakeholders of various organisations. Thus, the three dimensions which includes, the
environment, the economy and the society will get linked to the operations and action of the
ministry. Implementation of CSR activities that are aligned to the three dimensions would
supposedly help in generation of work opportunity and financial contributions in Kuwait’s
privatised sector. Furthermore, social innovation can help in the management of crises in
terms of financed and thus must be incorporates in to the CSR activities. The same can be
achieved with the help of mentoring programs.
Conclusion
On a concluding note, it can be said that social contributions in terms of innovative
practices are beginning to emerge in the corporate scenario. The main aim of the latter is to
target and strengthen the civil society. Aspects such as hygiene and working conditions, level
of education, development of communities and health promotional activities are incorporated

in activities that are deemed as social innovations. Social innovation in terms of education is
being carried out by companies all over the word and it has been found that the educational
scholarships are the most common type of corporate social responsibilities that are carried out
by companies that help in ensuring favourable futures for the students. However, the
sustainable initiatives should ensure that the needy students get scholarships. Furthermore, it
should be ensured that the development process of the students is completed with the help of
placements and same is being carried out by the ministry of Kuwait that helps in enhancing
the living conditions of the people of the country.

REFERENCES
Corporate Social Responsibilities in Kuwait. (2019). Retrieved from
https://www.ukessays.com/essays/management/corporate-social-responsibilities-in-kuwait-
management-essay.php
Corporate Social Responsibility (CSR) - Internal Market, Industry, Entrepreneurship and
SMEs - European Commission. (2019). Retrieved from
https://ec.europa.eu/growth/industry/corporate-social-responsibility_is
Corporate Social Responsibility (CSR). (2019). Retrieved from
https://www.investopedia.com/terms/c/corp-social-responsibility.asp
Corporate Social Responsibility CSR - Markkas. (2019). Retrieved from
https://www.markaz.com/Corporate-Social-Responsibility/Strategy
New EU definition on CSR mirrors Enterprise 2020 aspirations | CSR Europe. (2019).
Retrieved from https://www.csreurope.org/new-eu-definition-csr-mirrors-enterprise-2020-
aspirations