Ministry of Finance, Kuwait: CSR, Stakeholder Theory, and Innovation

This essay examines the Corporate Social Responsibility (CSR) activities of the Ministry of Finance (MoF) in Kuwait, in conjunction with the European Commission's (EU) definition of CSR and stakeholder theory. The MoF aims to enhance value creation and economic sustainability, transitioning from philanthropy to stakeholder-driven CSR. This involves assessing monetary and economic policies, promoting acceptance of change, and supporting investors. The essay also highlights the importance of social innovation, such as mentoring programs and knowledge exchange, for managing financial crises and fostering sustainable economic development. Ultimately, the essay concludes that collaboration with stakeholders while maintaining CSR is crucial for Kuwait's sustainable economic growth.

Ministry of Finance, Kuwait 1
Ministry of finance, Kuwait
Name
Institution affiliation

Ministry of Finance, Kuwait 2
Ministry of finance, Kuwait: CSR activities in line with the stakeholder’s theory and CSR
European Commission definition and Social Innovation
Ministry of finance (MoF) Kuwait is part of the cabinet and is also one of the governmental
bodies. Since its formation, the ministry has been involved in the financial regulation in this
projects as well as policy making. The primary purpose of the ministry is to enhance value
creation as well as develop economic sustainability of the country ( -دولة الكويت وزارة المالية.).
The ministry works together with the European Commission (EU) which is responsible for
implementing decisions and proposing legislation as well as managing day to day businesses in
Europe. The two bodies have successfully incorporated Corporate Social Responsibility (CSR) in
their activities. CSR is a form of international self –regulation in the operations of a given
organization (McWilliams, and Siegel, 2001). MoF’s role to CSR initially focused on making an
internal shift from being philanthropists in maintaining CSR to involving the stakeholders in
maintaining and driving CSR. In consideration to this, it is important to address the stakeholder’s
theory which is a theory of managing organizations as well as marinating the business ethics
through addressing morals and values in the management of an organization. It is therefore vital
to assess the monetary and economic policies needs in regard to the country’s vision.
The second idea is to boost the acceptability towards change as this would enable restructuring
of the past policies and guidelines. To bring in high circular flows of money in the economy, the
ministry needed to integrate and support investors who are basically the major players in the
economy since they facilitate the inflow and outflow of cash.
Corporate governance issues can be addressed on a big platform for example road shows. This
would help in bringing in the lens of sustainable development in eyes of the organization’s
stakeholders in view of the three dimensions, i.e. economic, environment and social parameters

Ministry of Finance, Kuwait 3
which are directly linked with the ministry’s actions. Any project intervention in this regard
would be successful if all the discussed dimensions are encompassed and an integrated approach
is set to generate work and investment for the Kuwait private sector.
Another important idea in streamlining the stakeholder’s needs and enhancing clarity in
management of financial crisis is social innovation. We can define social innovation as a process
in developing and deploying effective solutions for systematic and environmental issues. In this
case, the innovation can be done through mentoring programs in the community. The programs
can be in form of knowledge exchange programme, international tie-ups and conferences. The
enlightment passed on will help in financial crisis management at the macro level and also in
negotiation with the regional and global countries to ensure sustainable economic development.
In conclusion, working together with the stakeholders while marinating CSR will lead to
sustainable economic development in Kuwait.

Ministry of Finance, Kuwait 4
References
-دولة الكويت وزارة المالية. (n.d.). Retrieved from
http://www.mof.gov.kw/MOFInfo/MOFInfo.aspx#mofInfo1
McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm
perspective. Academy of management review, 26(1), 117-127.