Status of CSR in Oman. Recent Development in Community Engagement Dr. Amel Abdallah

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1 Status of CSR in Oman Recent Development in Community Engagement Dr. Amel Abdallah

2 CSR as a Tool of Development protect and develop human and natural resources in society Role of private sector and government Balance between law, ethics and profits

3 CSR in Oman & Islamic Culture Omani legal system is influenced by the rules of Islamic Sharia Social Responsibility (CR) known in Oman 14 centuries ago. Mandatory nature of social responsibility in Oman. Different Resources of CSR in Oman

4 Resources of CSR in Oman Traditional sources Modern Sources

5 Traditional sources of CSR in Oman [ Islamic Sharia] Sunnah Quran

6 Quran Art 177 of sorit al Bakarah righteousness is not to turn your face towards east and west in prayer but righteousness is the one who believes in Allah, the last day, the angels, the book, the prophet and who give his money in spite of love for it, to kinsfolk, orphans, poor people and wayfarer..etc

7 Sunnah all of you are guardians and responsible to his subjects God bless tolerant man in case of sale or purchase. Monopolization is a wrongful act Different Hadith of Prophet Mohamed preventing monopolization and corruption. Encouraging good behavior of traders Gifts for Responsible considered as a bribe

8 Modern Sources of CSR in Oman Omani National Laws UN Principles of CSR

9 UN principles of CSR /2000 Human Rights Anti- Corruption Labour Environment

10 Human Rights The Omani constitution 1996 Omani penal law 1974 and penal procedure Oman national committee of Human rights by royal decree 124/2008, corporations should support and respect the protection of internationally declared human rights and make sure that they are not complicit in human rights abuses

11 Labour Omani Labour law issued by royal decree No.35/2003 (art.11) prevented discrimination between workers, (art.75)prevent child labour under 15 years old corporations encouraging the freedom of association, elimination of forced, compulsory and child labour. corporation responsible to eliminate discrimination in respect of employment and occupation. (art.80) 0rganized women labour.

12 Environment Royal decree 114/2001 of environment protection & antipollution. Royal decree 115/2001 protecting sources of running water corporations bound by supporting protective approach to environmental challenges; carry out initiatives to promote greater environmental responsibility; and developing and diffusing environed mentally friendly technologies

13 Corruption Omani penal law has its regulations against officials misconduct. Bribery (art.154), misuse of public function(art 160) misappropriation ( Art.159), Oman still need more regulations to implement the principle of anti- corruption) UN principles of CSR stated that corporation should work against corruption in all its forms, including extortion and bribery. Regulations of penal law are not enough

14 Omani regulations of CSR General regulations could be applied to CSR some rules relating to principles of faire completion and trader s behavior in Commercial code. No special regulations for CSR Neither in Commercial code nor in company law.

15 Role of Private sector in CSR national and multinational corporations in private sector such as SHELL, HSBC, NAWRAS, Al ZUBAIR declared their initiatives in CSR, in different fields, But is it enough?!!! Environmental Protection Social Infrastructure Sports and Recreation Health Culture & Heritage Education Fishing-rods, not Fish Employment Skills & Local Enterprise

16 Role of Government Encourage, protect and improve initiatives of private sector organizing the triple relationship between Corporations, government and society in a legal frame. (CSR Bill) support the mandatory nature of CSR set of detailed rules (implementing UN Principles)

17 Recommendations CSR could be more effective as a tool of development in Oman with some more mandatory rules as follows : Establish a national fund of CSR by mandatory financial contributions from corporation in order to indemnify victims of violations. Mandatory rules make the corporation bound by Annual initiatives in CSR under supervision of ministry of social affairs. Entitle the National committee of HR to proceed in penal action against corporations in case of violating HR rules. Encouraging CSR initiatives by tax relief. Create an integral legal frame for Anti-corruption Modifying penal law considering the nature of corporation as a moral person in case of violations.

18 Thanks for your attention