Corporate social responsibility in Iran in a comparative framework Yadollah Dadgar Iran

1. Corporate social responsibility in Iran in a comparative framework Yadollah Dadgar Iran

2. Introduction Principles, approaches, theories CSR trend in Iran Concluding remarks Brief content

3. BRIEF SUMMARY 3 MAIN ELEMENTS:( based on CSR theories ,historical experiences and observable data): First: Iran as a significant case study in middle east Second: Comparison as CSR is concerned Third: main results of the paper Introduction

4. First Element: Iran as a significant case study in middle east 1-a great potentiality both positively and… ,historically …(civilization and people not government. It is unfair and drastic to judge….. 2-its location geopolitically…. 3-both natural and human resources, peaceful mentality, special smartness in final decision…recent election…e

5. Second Element: Comparison as CSR is concerned: 1-before and after 1980..Establishing CSR 2-reform period 1997-2004…moderation and some progress in CSR 3-hard lining period 2005-2013..collapsing CSR and any other substantive entities

6. Third Element: considering the first two: Results: the role of some factors on CSR 1-well developed private sector or…. 2-ideological-extremist or moderate governance 3-peaceful(not revolutionary or violence oriented) movements ..green movement…Arabic Spring… are synergizing CSR…

7. CSR as a self regulating, human oriented mechanism is primarily based on ethical and international standards. ////It is in itself an instrument of common language and a way of communication, though it is informal, it is significantly helpful and affective.

8. CSR could potentially be construed as the fourth integrating part of modern societies: business sector, government sector, civil sector and CSR one. As the role of companies is significant in daily activities of ordinary citizens, CSR could have crucial role thereof.

9. CSR as a synthesis of ethics, law and international norms could have paramount role in synergizing altruistic affairs. ////Due to complexities in globalization era, assistance of informal and people oriented activities including CSR are influential, specially in resolving some human and ecological hardships.

10. If business ethics is related to morality of organizational actions, CSR focuses on the consequences of organizational actions. So both are incorporated into a strategic process Efficient CSR is going to compromise both profit maximization and ethical considerations. ////Paul. S. Otellini, president of Intel stipulates that: a key determinant of Intel‘s success is its ability to advance leadership in corporate responsibility.

11. ////Some successful managers believe that CSRis no longer optional for business leaders, but a mandatory duty which is remarkably helpful Recent world economic forum stressed on corporate citizenship as a key factor which will play a crucial role in shaping the agenda for business leaders for third decade of 21 century.

12. ///Considerable numbers of studies, demonstrate that there is a significant relationship between financial improvement of businesses at one hand, and their share of CSR at the other. Even opponents of CSR believe that business is a social institution, although they differentiate on the exact meaning of social responsibility itself.

13. Looking carefully to the main constituents of CSR will reveal its link to the profitability of business itself. • For, the key elements in CSR could be illuminated as: • Environmental protection • Disclosure of information to stakeholder • Equality of treatment for minorities • Profit sharing • Ethics in advertizing • Philanthropy

14. Companies, specially giant ones, deliver essential services to over 4 billion customers and play key role in economic and social development of above 200 countries throughout the world.

15. ////For instance France Telecom Orange, FTO delivers daily services to over 250 million customers of 45 countries in Europe, Africa and the Middle East. Therefore its mangers believe that CSR is a key component of FTO conquest 2015 strategic project.

16. CSR is closely related to theories of sustainable development and therefore it includes ecological aspects, economic justice, welfare of future generations and so on. So many studies suggest that although CSR may impose some cost on companies in short run, it enhances their profitable capacity in mid and long run.

17. As ethical duties overcome the limitations of legal duties, they could be complements of CSR aspects. In CSR framework, ethical principles as informal rules of games are energetic partners for legal principles.

18. Ethical considerations stem from a diversified sources including religious convictions, moral traditions, human principles human rights commitment and so on. Although 1920 has been mentioned as the early period of CSR development, its modern evolution, however, was alongside with development of stakeholder theory in 1960s. Decade in question, is coinciding with a great social change in America.

19. General schematic format of comprehensive CSRformat could be as follows: Ethical Res Economic responsibility CSR Legal Res Altruistic Res Complementary Responsibility

20. Economic responsibility could have some constituents as follows: Satisfying customers Poverty eradication Fair rate of returns Economic responsibility Generating upward mobility Creating new jobs Promoting innovation

21. Being moral Respecting peoples moral rights Ethical responsibility Preventing harms caused by others Doing right, just and fair

22. ///One of the strengths of success CSR is that it relies on dialogue with stakeholders Some empirical studies indicate that social quality is inseparable from long term economic sustainability.

23. some results of optimum CSR plans are: Improving in equal opportunity, child protection, accessibility to internet , Typical aspects regarding CSR

24. Facilitating access to education and medical services Finding innovative solutions for a green world ////Firm commitment to human rights

25. Combating the geographic digital divide Increasing access to information and communication technologies optimizing waste management and so on

26. Iran Introducing a general platform to analyze Iranian case performance of CSR before 1980 CSR situation in 1980-2013

27. Existence of well defined private sector and independent companies The role and the nature of the government Factors affecting general CSRplatform for Iran

28. Typical framework Priorities Commitments Place people at the heart of the company support employees in equal opportunity etc Recognize and support employees Responsible use of products with regard to prosecuting children privacy and data security Ensure transparency quality and safety for customers Bring economic designed products reducing customer environmental footprint decreasing CO2 and so on Solutions for greener world etc

29. ////Although Iran has ever suffered from less developed private sector, this has been terribly and extremely crucial after 1908s and specially 2005-2013 Public private relationship in Iran

30. ////Public sector especially in 2005-2013 took over major parts of economy and crowded out private sector altogether. ////Right know roughly 85% of 100 top Iranian companies are owned by government or semi- government. The role of semi-gov…double miserable….double tragedy

31. 100 top Iranian company

38. In addition about 130 holdings are working in Iran which constitute a remarkable CSR potentiality. The problem is ,however, government dominance on those holdings as well. Historically and as the data indicate, in Iranian case the more government intervention in economy the less CSR progress.

39. Comparing CSR indices before and after 1980, reveals a meaningful relationship in this connection. ////One can observe a brilliant performance of CSR at least for several companies in 1967-2000,theier establishment of which …before 1980

40. Some typical successful cases in CSRtrend before 1980

42. As CSR package is concerned these 12 famous Iranian companies (established before 1980), had been in top in operating social responsibility.

43. For instance: Aalinasab companies were providing the required protein for a considerable families in slum areas of Tehran seasonally . ///It was devoting at least 35% of its profit to assist school building construction in 3 provinces including Azerbaijan.

44. ///Khayami company helped the children of poor workers to complete their elementary school period. Combating with cancer, launching free medical services for poor and providing free lunch for low income workers are among other activities of company in question.

45. Those 12 famous companies, were doing their responsibilities in all five folds format (below):

46. Socio-economic responsibility Environmental responsibility Industry responsibility Work place responsibility Inter organizational responsibility

47. ////Optimum governments welcome to CSR , for CSR reinforces their policies and strategies. In Iranian case specially under 2005-2013 this is reverse.

48. To be much more efficient, CSR requires a democratic and an optimum government. For, democratic governments construe CSR as assistant partner for themselves, whereas despotic governments considers CSR as their rival and competitors (The case would be seen obviously in Iranian case 2005-2013).

49. Iranian culture before Islam was influenced under Zoroastrianism which requires each firm devotes 10% of her saving for charities and helping poor people.

50. After dominance of Islam, the CSR situation was depending on type of ruling regime. Under moderate and democratic administration CSR was much more efficient .We face with the worst situation under totalitarian one. Under the reform administration 1997-2004 both private and state owned companies had better performance in CSR cases.