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

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

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

Resources of CSR in Oman Traditional sources Modern Sources

Traditional sources of CSR in Oman [ Islamic Sharia ] QuranSunnah

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

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

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

UN principles of CSR /2000 Human Rights LabourEnvironment Anti- Corruption

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

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

Environment Royal decree 115/2001 protecting sources of running water Royal decree 114/2001 of environment protection & antipollution. 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

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

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

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?!!! Social Infrastructure HealthEducation Employment Skills & Local Enterprise Fishing-rods, not Fish Culture & Heritage Sports and Recreation Environmental Protection

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

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

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