Oman-based global firms must play a bigger role in CSR
August 8,
2015 | 9:10 PM
By Saleh Shaibany
Our perception towards companies who have the environment protection low in their priorities should be based on their ethical reputation and genuineness to care for the communities.
Sharelines
Muscat: International companies operating in Oman must contribute more towards the cause of Corporate Social Responsibility (CSR) to justify millions of rials worth of contracts they are awarded by the government every year.
Clearly, they do not do enough towards their responsibility for the good of the society, their clients, staff and stakeholders. For example, multi-billion dollar projects in Sohar owned by global companies are raking in tens of millions of rials every year in profit but give back very little in return to the environment and people around them.
Established industries in the coastal areas such as Salalah, Duqm and Sohar considerably pollute the sea to leave visible sediments floating in the water. The disposal of their chemical waste, noted by fishermen in these towns, depletes the fish stock. Pollutants from their factories escape in the environment to reduce the quality of the air. The government is very keen to attract foreign investments but global companies must take the responsibility of adhering to international safety standards to make sure the environment in the areas they work is protected.
But the coastal areas are not the only places where they bear the brunt of pollution in the intolerable scale. In the desert towns where foreign companies have oil and gas concessions need a closer scrutiny, too. These companies flush out oil from the deep using millions of gallons of water. The water, which is contaminated by crude oil is not always filtered or reused and get dumped to the wadis. Big companies in the Sultanate also do not adequately dispose of their office waste the way it is required. At the end of the day, while they make huge revenues, they leave the environment in a bad way. They will tell you that they generate jobs but again a closer inspection will reveal that wages of local employment takes up only a small percentage of their operating costs.
To preserve the environment at an acceptable level requires a big budget. Global companies are not prepared to erode their income to protect local communities from potential harm. It is time they have a different business view for their adopted country by safeguarding its interest. And theirs in the long run, for that matter. It is also time consumers should look at the products from such companies with a different view. Questions should be asked not only how they treat their employees , but how ethical they are and the way they engage with the people who live close to their projects or businesses.
In other words, our perception towards companies who have the environment protection low in their priorities should be based on their ethical reputation and genuineness to care for the communities. If we are not convinced, we should not buy their product, invest in them or do business with them. Most of these companies acknowledge that their customers are the most important stakeholders but the communities are not. They also don’t acknowledge that the communities need help to get out of problems these companies impose in their towns. Fishermen, farmers, retail business owners and people engaged in handicraft trades are affected by the environmental damages due to the presence of multi-million projects. These companies must contribute financially to the good causes to offset the inconvenience they cause to the lives of residents, especially those who ply their living in the same areas. That way, they can earn the respect of consumers, employees, shareholders and all stakeholders. It is a great platform to stand on when they start to invest on communities and solve their social issues. Moreover, to behave ethically and in a transparent way will foster good relationship both with the government and communities around them.
To get in touch: saleh@timesofoman.com
Clearly, they do not do enough towards their responsibility for the good of the society, their clients, staff and stakeholders. For example, multi-billion dollar projects in Sohar owned by global companies are raking in tens of millions of rials every year in profit but give back very little in return to the environment and people around them.
Established industries in the coastal areas such as Salalah, Duqm and Sohar considerably pollute the sea to leave visible sediments floating in the water. The disposal of their chemical waste, noted by fishermen in these towns, depletes the fish stock. Pollutants from their factories escape in the environment to reduce the quality of the air. The government is very keen to attract foreign investments but global companies must take the responsibility of adhering to international safety standards to make sure the environment in the areas they work is protected.
But the coastal areas are not the only places where they bear the brunt of pollution in the intolerable scale. In the desert towns where foreign companies have oil and gas concessions need a closer scrutiny, too. These companies flush out oil from the deep using millions of gallons of water. The water, which is contaminated by crude oil is not always filtered or reused and get dumped to the wadis. Big companies in the Sultanate also do not adequately dispose of their office waste the way it is required. At the end of the day, while they make huge revenues, they leave the environment in a bad way. They will tell you that they generate jobs but again a closer inspection will reveal that wages of local employment takes up only a small percentage of their operating costs.
To preserve the environment at an acceptable level requires a big budget. Global companies are not prepared to erode their income to protect local communities from potential harm. It is time they have a different business view for their adopted country by safeguarding its interest. And theirs in the long run, for that matter. It is also time consumers should look at the products from such companies with a different view. Questions should be asked not only how they treat their employees , but how ethical they are and the way they engage with the people who live close to their projects or businesses.
In other words, our perception towards companies who have the environment protection low in their priorities should be based on their ethical reputation and genuineness to care for the communities. If we are not convinced, we should not buy their product, invest in them or do business with them. Most of these companies acknowledge that their customers are the most important stakeholders but the communities are not. They also don’t acknowledge that the communities need help to get out of problems these companies impose in their towns. Fishermen, farmers, retail business owners and people engaged in handicraft trades are affected by the environmental damages due to the presence of multi-million projects. These companies must contribute financially to the good causes to offset the inconvenience they cause to the lives of residents, especially those who ply their living in the same areas. That way, they can earn the respect of consumers, employees, shareholders and all stakeholders. It is a great platform to stand on when they start to invest on communities and solve their social issues. Moreover, to behave ethically and in a transparent way will foster good relationship both with the government and communities around them.
To get in touch: saleh@timesofoman.com
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