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Running head: ALMARAI CSR

Almarai CSR
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ALMARAI CSR

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

ALMARAI CSR

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.

ALMARAI CSR

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

ALMARAI CSR

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

ALMARAI CSR

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,

ALMARAI CSR

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.

ALMARAI CSR

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

ALMARAI CSR

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.