Running head: ALMARAI CSR 1

Almarai CSR

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Introduction and Organization Snapshot

Majority of the multinational as well as small and medium scaled enterprises are focusing

on maintaining business as well as social sustainability as it can help the organizational leaders

and management to ensure effective competitive edge. This particular report will analyze and

evaluate the CSR activities and approaches adopted by Almarai. Almarai can be referred as one

of the largest and leading organizations across the Saudi Arabia headquartered in Riyadh.

Almarai is a popular Saudi-Irish joint venture. In an addition to it, the organization is popular

among the consumers due to its high quality as well as differentiated products. The

organizational management has adopted and implemented vertical integration in the

organizational structure development process in order to enhance effective organizational

communication process between the top level management and employees of the organizations.

On the other hand, it is also vital to state that the organization has a strong brand image across

the globe as its effective and strong umbrella branding and differentiated product offering

strategy helped the firm to become one of the reputed organizations.

In terms of CSR approaches and activities, the organizational management and top level

leaders of Almarai has significantly focused on the effective community service management

process. Apart from these things, the organizational management of Almarai is also focusing on

maintaining the sustainability within the Saudi Arabia education industry. The essay will

thoroughly analyze and evaluate CSR strategies and approaches adopted by Almarai.

Industry CSR Snapshot

Almarai operates within the food, dairy, and beverage industry in Saudi Arabia. This

particular industry is strongly competitive and highly saturated as this particular industry is full

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of different potential competitors. The management of each and every organization within the

particular industry used to focus on effective community welfare activities. Apart from

significant strategy establishment and execution process, effectual community welfare practices

can help an organization in several ways. First of all, it helps to enhance stakeholder support and

stakeholder value. Secondly, it helps to earn effective customer loyalty. Thirdly, this particular

aspect generally helps an organization to ensure strong brand image. However, each and every

organization within the Saudi Arabia Food and Beverage industry is trying to focus on the

consideration of community welfare approaches to become competitive and popular

In terms of community welfare activities, different organizations within the industry are

adopting and implementing different types of approaches, such as water recycling and zero solid

waste management process. These particular aspects are generally helping the organizations to

focus on the reduction and limitation on the usage of natural resources. On the other hand, some

organizations are participating in charitable programmes in order to become popular and

sustainable. Last but not the least; some organizations are participating education providing

activities and different types of social welfare approaches. Therefore, it is clear that different

organizations within the Saudi Arabia food and beverage industry are focusing on corporate

social responsibility approaches beside the development of competitive approaches.

CSR Audit

Almarai has become one of the popular brand names in the food and beverage industry

within Saudi Arabia due to its vertical integration and decentralized approaches. Moreover, it is

also important to mention that organizational department of Almarai is focusing on effective and

noteworthy community welfare activities similar to the other organizations within the industry.

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This part of the assignment will conduct an audit of the CSR activities that are practiced and

approached by the organizational management of Almarai.

The organizational management leaders always focus on the competency, knowledge,

and skill development process of the students of Saudi Arabia. The organizational leaders as well

as top level management of the firm always focus on free of cost training programme for the

students in order to improve their knowledge and competency level (Reding, 2010). The Almarai

Food and Dairy polytechnic department used to offer vocational and technical training to almost

400 students of the Saudi Arabia on yearly basis. However, different firms used to integrate with

Almarai in order to offer the similar training and it helps them too collaboratively to become

socially responsible.

Apart from the offering of technical and vocational training to the students, the

organizational leaders as well as top level management of Almarai used to offer GPT programme

to the graduates as well as undergraduates. Moreover, it will be highly effective to mention that

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different managers and leaders of Almarai are responsible for offering graduate professional

training to the graduates and undergraduates across the Saudi Arabia. The top level management

and organizational leaders of Almarai has succeeded to offer employment opportunities to

several jobless young individuals across Saudi Arabia (Brower, 2008). It is also can be referred

as one of the effective and important social welfare activities.

Apart from these things, the organizational leaders as well as top level management of

Almarai has focused on maintaining internal sustainability. The organization has developed sales

academy in the year 2014 in order to bring ethics and sustainability within the sales department

(Almarai, 2016). Moreover, the organizational management also has concentrated on the

management development and supervisory development programme in order to improve the

motivation as well as self-confidence level of the employees. Last but not the least; the

organizational management of Almarai is also focusing on maintain sustainability in the human

resource management department by ensuring proper performance management and on job

training process. These are some adopted and implemented CSR approaches of Almarai.

Scandal Analysis

It is highly essential to acknowledge that each and every organization has to face some

challenges despite the adoption and execution of different sustainable activities in business

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operation process. It is clear from the above analysis that the organizational management of

Almarai strongly focuses on effective community welfare activities by offer free of cost training

programme to the students as well as job seekers across Saudi Arabia. Apart from this, the

organizational management is also responsible for maintain sustainable and conflict free

workplace environment (Uddin, 2008). Despite these approaches, the organizational

management has faced critical legal challenges as the organizational management failed to

maintain general external environmental sustainability in its business operation process.

It would be effective to discuss that the organizational leaders as well as administration

department of Almarai has strongly considered aggressive business expansion strategy

throughout the Middle-East (Kotler, 2016). Therefore, the management has u8nderstood the need

of growing numbers of warehouses and manufacturing units. Slowly and gradually, the

organizational management has succeeded to develop more manufacturing plants across the

country. On the other hand, the organizational management failed to maintain and control the

growing level of carbon and GHG emission. This particular aspect has affected the

environmental sustainability as the production department and professionals did not bother about

the growing carbon and green house gas emission level. It is highly imperative for the

managerial leaders to focus on effectual and vital solutions to these problems as these challenges

have affected the business operation process of the organization in several ways. First of all, it

has affected the brand image and stakeholder support aspect as environmental sustainability has

become one of the major aspects in business operation sustainability (Uddin, 2010). Apart from

this, it is also important to mention that the organizational leaders should try to ensure focus on

sustainability of different training programmes. It is true that the organizational management

gives practical training programmes to the students without any proper environmental set-up,

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which can control the emission level. These aspects have somehow affected the brand image and

business operation sustainability of the organizations.

Code of Ethics and Evaluation

It is clear from the above discussion and analysis that the organizational management of

Almarai is trying to maintain economic, legal, discretionary, and ethical responsibility through

the applied corporate social responsibility activities.

In terms of economic sustainability, the organizational management and important

stakeholders of Almarai has introduced a training programme for the graduate and under

graduate students across Saudi Arabia. It is true that majority of the young individuals within the

country are jobless. Therefore, the organizational management is trying to generate employment

opportunities through the graduate training programme for the jobless graduates and

undergraduates. It is known to all that unemployment is one of the critical determinants of

economic slowdown (Shah-Kazemi, 2006). Therefore, the management of Almarai is focused on

these approaches. Apart from this, the organizational management is also focusing on offering

technological and vocational training programme for the college as well as university students to

make them eligible for getting employment opportunities in different firms. Almarai is trying to

maintain economic sustainability through these approaches.

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In terms of ethical responsibility, the organizational management and leaders of Almarai

has focused on the application of vertical integration and decentralization within the

organizational culture and structure development process. Several organizations lack in ethical

and transparent organizational communication process. Therefore, it is highly important to

mention that effective vertical integration and decentralization can motivate employees to share

their thoughts, views, and challenges to the top level management of the organization. Apart

from this, effective stakeholder engagement in strategy development and application aspect has

helped the management and leaders of Almarai to maintain ethical responsibility in the overall

business operation process (Kars, 2011).

In terms of legal responsibilities, the organizational management of Almarai has strongly

focused on stability of different organizational departments, such as sales, human resource

management, and operations. The leaders and management of Almarai has ensured effective

sales development, supervisory development, and management development programme for the

employees as it can help the organizational management to justify community and social welfare

activities (Leiberman, 2013). Last but not the least; the organizational leaders also ensured

effective and systematic human resource approaches in order to boost the motivation and self

confidence level of employees. Apart from these, it is also important to mention that despite the

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sustainable approaches the management of Almarai has faced legal problems regarding growing

carbon and GHG emission due to lack of green or environment friendly manufacturing activities.

In terms of discretionary responsibilities, the organizational management of Almarai has

ensured effective employee motivation. The management and organizational leaders have

successfully adopted and executed democratic leadership strategy within the workplace to boost

their self-confidence and motivation level. It is known to all that the democratic leaders always

try to focus on employee engagement in the decision making, strategy development, and strategy

implementation process (Leuchtenburg, 2009). Apart from these, it is also important to mention

that different leaders are leading from front to ensure the effectiveness of workplace

environment. Organizational management adopted and implemented this type of leadership style

to ensure the creativity and knowledge development process of employees. However, effective

management and leadership approaches have helped the organizational management to get

success.

Conclusion and Recommendations

It is clear and transparent from above discussion that the organizational leaders as well as

top level management of Almarai are focused on effective and significant community welfare

activities. The organizational management tries to ensure economic sustain ability by taking care

of the knowledge and skill development process of the job seekers and college students. On the

other hand, it is also important to mention that the recruiters and human resource department of

Almarai has recruited skilled, talented, and knowledgeable job seekers across the Saudi Arabia.

It has helped the firm to maintain economic sustainability. Apart from these, it is also important

to mention that several leading as well as popular firms are getting collaborated with Almarai to

be socially responsible. On the other hand, adopted and executive decentralization as well as

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vertical integration is helping the organizational management to enhance effective organizational

communication process, and stakeholder support. Alternatively, it is also important to state that

differentiated department development and welfare programmes are helping the organizational

management to ensure overall business operation sustainability. However, the management of

Almarai faced legal challenges due to high carbon emission level in the manufacturing activities.

Following recommendation plans will help the organizational management to overcome the

associated challenges.

First of all, it is highly important for the organizational leaders of Almarai to focus on

effective sustainable approaches in manufacturing process. The production managers should try

to consider substitutes of the oil and gas energy sources. Use of thermal, or water, or solar energy

can help the organizational management to reduce the consumption and usage of natural

resources. It will automatically reduce the carbon and GHG emission level (Blum, 2013).

Last but not the least; the production department of Almarai should also try to focus on

the use of water recycling and zero solid waste management process. This consideration will

help the organization in two different ways. First of all, it will help to limit the sourcing of

natural resources that will help to maintain environmental sustainability. On the other hand, it

will help to reduce overall business operation cost.

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References

Almarai. (2016). CSR. [Online]. Retrieved from: <

https://www.almarai.com/en/community/csr>.

Blum, S. (2013). The Economic System Recovery Plan. New York: Oxford University Press.

Brower, A. (2008). Who owns the High Country. London: Sage.

Karas, J. (2011). The Petite Advantage. London: IGI.

Kotler, P. (2016). Marketing Development. Stamford: Cengage Learning.

Leuchtenburg, E. W. (2009). In the Shadow of FDR. London: Routledge.

Lieberman, D. (2013). The Story of the Human Body. London: Kogan Page.

Reading, N. (2010). Methland. New Jersey: John Wiley & Sons.

Shah-Kazemi, R. (2006). The other in the Lights of the One. New York: McGraw-Hill.

Uddin, S. (2008). Corporate Governance in Les Developed and Emerging Countries. New

Jersey: Pearson.

Uddin, S. (2010). Research in Emerging Economies. New York: Springer.