The objective of this blog entry is to propose a new approach to corporate social responsibility (CSR) within the private sector. This entails aligning on an alternative, strategic, direction for CSR initiatives, identifying organizations that share a similar perspective, and kicking-off a dialogue on how we can structure our efforts to ensure their sustainability and long-term impact in areas deemed priority within our market.
In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.
It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.
It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.
It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.
It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
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The private sector and “Corporate Social Responsibility”
Corporate social responsibility (CSR) can be defined as the overall management process that accompanies all the efforts of an organization within the limits of a certain ethical conduct. CSR starts internally within the organization as a set of beliefs and values that guide the relationship between the human resources. These communicated beliefs should result in added trust towards the organizations’ overall image and will potentially increase business and sustain development in the long run.In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
CSR in Lebanon’s Private Sector
Radwan (2016) conducted a study on CSR practices in Lebanese SMEs, which highlighted that “there is a great deal of awareness of CSR-related terminology and the managers are more aware of the benefits that CSR could bring for their organizations, such as enhancing their branding, image, reputation and even increase trust with their customers. Their activities, however, are considered at a lower level than their understanding since these activities are not strategic enough and are mostly still at the philanthropic level.Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
- Government: Tasked with regulating and minimizing risks.
- Business community: Expected to commit to and drive ambitious initiatives.
- Civil society organizations: Entrusted with guiding and facilitating efforts.
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
For this approach to succeed, several conditions must be met:
Initiating and scaling self-sustaining projects aimed at achieving medium and long-term results is a considerable challenge as it requires the involved entities to align themselves around shared objectives to foster collaborative relationships.To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
Starting point:
The natural starting point for initiating dialogue within the private sector is our shared stakeholder: society. For private companies, society comprises both the labor force and the customer base. As the conditions of society decline, so too does our business environment.The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
- Jointly diagnose society's condition today.
- Identify and understand the risk we are facing today: the depletion of society as we know it, and the establishment of a "different" society, and ultimately a different relationship between capital, labor, and the market.
- Identify what we want to change (objectives) and how (initiatives). How do we want the relationship between labor, capital, and the business environment to look like, taking into consideration the changes society is undergoing?
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.Where do we go from here?
Business goals and operations are deeply intertwined with the societies and environments in which companies operate. Today, the primary risk faced by the private sector stems from the profound societal changes underway. These changes are driven by various factors, including the security situation, inadequate access to basic human rights such as healthcare and education, limited career opportunities, among others.It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
The private sector and “Corporate Social Responsibility”
Corporate social responsibility (CSR) can be defined as the overall management process that accompanies all the efforts of an organization within the limits of a certain ethical conduct. CSR starts internally within the organization as a set of beliefs and values that guide the relationship between the human resources. These communicated beliefs should result in added trust towards the organizations’ overall image and will potentially increase business and sustain development in the long run.In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
CSR in Lebanon’s Private Sector
The objective of this blog entry is to propose a new approach to corporate social responsibility (CSR) within the private sector. This entails aligning on an alternative, strategic, direction for CSR initiatives, identifying organizations that share a similar perspective, and kicking-off a dialogue on how we can structure our efforts to ensure their sustainability and long-term impact in areas deemed priority within our market.The private sector and “Corporate Social Responsibility”
Corporate social responsibility (CSR) can be defined as the overall management process that accompanies all the efforts of an organization within the limits of a certain ethical conduct. CSR starts internally within the organization as a set of beliefs and values that guide the relationship between the human resources. These communicated beliefs should result in added trust towards the organizations’ overall image and will potentially increase business and sustain development in the long run.In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
CSR in Lebanon’s Private Sector
Radwan (2016) conducted a study on CSR practices in Lebanese SMEs, which highlighted that “there is a great deal of awareness of CSR-related terminology and the managers are more aware of the benefits that CSR could bring for their organizations, such as enhancing their branding, image, reputation and even increase trust with their customers. Their activities, however, are considered at a lower level than their understanding since these activities are not strategic enough and are mostly still at the philanthropic level.Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
- Government: Tasked with regulating and minimizing risks.
- Business community: Expected to commit to and drive ambitious initiatives.
- Civil society organizations: Entrusted with guiding and facilitating efforts.
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
For this approach to succeed, several conditions must be met:
Initiating and scaling self-sustaining projects aimed at achieving medium and long-term results is a considerable challenge as it requires the involved entities to align themselves around shared objectives to foster collaborative relationships.To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
Starting point:
The natural starting point for initiating dialogue within the private sector is our shared stakeholder: society. For private companies, society comprises both the labor force and the customer base. As the conditions of society decline, so too does our business environment.The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
- Jointly diagnose society's condition today.
- Identify and understand the risk we are facing today: the depletion of society as we know it, and the establishment of a "different" society, and ultimately a different relationship between capital, labor, and the market.
- Identify what we want to change (objectives) and how (initiatives). How do we want the relationship between labor, capital, and the business environment to look like, taking into consideration the changes society is undergoing?
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.Where do we go from here?
Business goals and operations are deeply intertwined with the societies and environments in which companies operate. Today, the primary risk faced by the private sector stems from the profound societal changes underway. These changes are driven by various factors, including the security situation, inadequate access to basic human rights such as healthcare and education, limited career opportunities, among others.It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
- Government: Tasked with regulating and minimizing risks.
- Business community: Expected to commit to and drive ambitious initiatives.
- Civil society organizations: Entrusted with guiding and facilitating efforts.
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
For this approach to succeed, several conditions must be met:
Initiating and scaling self-sustaining projects aimed at achieving medium and long-term results is a considerable challenge as it requires the involved entities to align themselves around shared objectives to foster collaborative relationships.To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
Starting point:
The natural starting point for initiating dialogue within the private sector is our shared stakeholder: society. For private companies, society comprises both the labor force and the customer base. As the conditions of society decline, so too does our business environment.The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
- Jointly diagnose society's condition today.
- Identify and understand the risk we are facing today: the depletion of society as we know it, and the establishment of a "different" society, and ultimately a different relationship between capital, labor, and the market.
- Identify what we want to change (objectives) and how (initiatives). How do we want the relationship between labor, capital, and the business environment to look like, taking into consideration the changes society is undergoing?
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.Where do we go from here?
Business goals and operations are deeply intertwined with the societies and environments in which companies operate. Today, the primary risk faced by the private sector stems from the profound societal changes underway. These changes are driven by various factors, including the security situation, inadequate access to basic human rights such as healthcare and education, limited career opportunities, among others.It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
The private sector and “Corporate Social Responsibility”
Corporate social responsibility (CSR) can be defined as the overall management process that accompanies all the efforts of an organization within the limits of a certain ethical conduct. CSR starts internally within the organization as a set of beliefs and values that guide the relationship between the human resources. These communicated beliefs should result in added trust towards the organizations’ overall image and will potentially increase business and sustain development in the long run.In the ideal case, CSR is conducted as part of, and adapted to, the business strategy and vision. The strategy is therefore conducted by the company and becomes a part of its identity.
In response to public demands for greater accountability and transparency, companies in “developed markets” started to publish “social reports” or “sustainability reports” in the early 1990’s and began to recognize that intangible assets like reputation have a deep impact on the value of their business.
In developing markets, however, CSR seems to have arisen as part of initiatives driven by an apparent lack of capacity of governments to effectively provide social services and enforce their laws.
CSR in Lebanon’s Private Sector
Radwan (2016) conducted a study on CSR practices in Lebanese SMEs, which highlighted that “there is a great deal of awareness of CSR-related terminology and the managers are more aware of the benefits that CSR could bring for their organizations, such as enhancing their branding, image, reputation and even increase trust with their customers. Their activities, however, are considered at a lower level than their understanding since these activities are not strategic enough and are mostly still at the philanthropic level.Managers are still the dominant decision makers when it comes to CSR initiatives in Lebanon, and are affected by their beliefs, culture, and self-initiatives. The main constraints for the implementation of CSR are financial issues and the lack of support”.
In conclusion, most managers are aware of the meaning of CSR and its advantages, but most of their activities lack the strategic part of CSR, since it is still centered on philanthropic activities.
One example of attempting to unify the strategic direction of CSR initiatives is the United Nations’ identification of “Sustainable Development Goals” (SDG), through which the organization aimed to produce a set of universal goals that meet the urgent environmental, political, and economic challenges facing our world.
In its 2023 annual review of the private sector and the SDGs in the region, ESCWA states that “the private sector’s approach to SDG actions remains largely conventional; a shift is yet to take place towards shared value creation”. The ESCWA report also identifies three key stakeholders responsible for addressing the existing gaps in SDG implementation:
- Government: Tasked with regulating and minimizing risks.
- Business community: Expected to commit to and drive ambitious initiatives.
- Civil society organizations: Entrusted with guiding and facilitating efforts.
However, this perspective remains purely theoretic and fails to acknowledge the realities of Lebanese society. On one hand, due to the current state of the government and its institutions, it is unrealistic to expect them to regulate in the interest of society and the economy.
On the other hand, the influence of civil society has been minimal, and at times, counterproductive. Although some NGOs have made positive contributions through initiatives funded by foreign investments, most remain reliant on external funds tied to regional political objectives. Consequently, when these objectives shift, beneficiaries are left with little progress, returning to square one.
This leaves the “business community” (private sector) as the most capable entity to play a role in initiating, supporting, and scaling sustainable, impactful, and localized initiatives.
For this approach to succeed, several conditions must be met:
Initiating and scaling self-sustaining projects aimed at achieving medium and long-term results is a considerable challenge as it requires the involved entities to align themselves around shared objectives to foster collaborative relationships.To ensure the effectiveness of these objectives, the involved entities must address local needs directly. This requires them to have a common diagnosis of the current situation, before being able to adopt a shared perspective on objectives, goals, and strategies.
The shared objectives must also be commercially viable, ensuring they can achieve self-sustainability and have a lasting positive impact not only on society but also on the business landscape. It is unrealistic, and unfair, to expect companies' participation in short-term initiatives reliant on perpetual funding without leading to meaningful long-term change on the business itself.
In addition to aligning on shared objectives, entities that share a long-term CSR vision and aim to collaborate to execute it must establish suitable operating mechanisms and decision-making processes.
Frequently, overarching strategic goals may clash with individual, tactical, short-term opportunities, leading to internal conflicts among participating entities. To mitigate such conflicts, the involved entities should target building a clear organizational structure and decision-making framework, guided by the pursuit of common goals, to govern the relationship.
Moreover, there should be a mutual understanding of the entity's relationship with the "system". Building on learnings from previous efforts that failed to create long-term impact, the key differentiator between this coalition, striving to create positive societal impact, and other initiatives should be the cultivation of a culture that prioritizes profit generation in harmony with our environment, society, and other stakeholders, rather than at their expense.
Starting point:
The natural starting point for initiating dialogue within the private sector is our shared stakeholder: society. For private companies, society comprises both the labor force and the customer base. As the conditions of society decline, so too does our business environment.The state of society is directly influenced by economic sectoral policies, an area where the private sector wields significant influence and thus holds the greatest potential to create substantial change. If the companies that choose to be part of this coalition agree that the realistic CSR "Purpose" to join forces around is improving society's conditions, leading to better business conditions in the future, then they need to:
- Jointly diagnose society's condition today.
- Identify and understand the risk we are facing today: the depletion of society as we know it, and the establishment of a "different" society, and ultimately a different relationship between capital, labor, and the market.
- Identify what we want to change (objectives) and how (initiatives). How do we want the relationship between labor, capital, and the business environment to look like, taking into consideration the changes society is undergoing?
The diagram above illustrates the various levels of alignment necessary to organize the relationships among entities involved in a private sector coalition over the long term. These entities may opt to establish a common fund to manage shared initiatives or consistently operate independently. Clear guidelines for external communication on behalf of the coalition are essential to prevent conflicts in the future.
Where do we go from here?
Business goals and operations are deeply intertwined with the societies and environments in which companies operate. Today, the primary risk faced by the private sector stems from the profound societal changes underway. These changes are driven by various factors, including the security situation, inadequate access to basic human rights such as healthcare and education, limited career opportunities, among others.It is imperative for organizations to implement initiatives that not only deliver immediate benefits but also ensure long-term societal impact to support the sustainability of their businesses. At Wakilni, we firmly believe that private companies seeking sustainable and impactful CSR programs must collaborate and align on common objectives, strategies, and initiatives. Moreover, they need to organize themselves into a cohesive entity capable of scaling efforts for greater societal impact, based on the actual local needs.
To kick-start this dialogue, we will be establishing a platform (podcast) where experts, businesses, younger generations, and individuals can come together to share their perspectives. Our aim is to comprehensively understand existing narratives, deconstruct them, and develop new ones that truly reflect the collective interests of a coalition comprising capital, labor, and society. This initiative seeks to foster new forms of relationships among entities within a rapidly changing society, driving positive change and progress.
Track Orders
