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This chapter introduced and discussed a number of distinctive factors, which characterise Saudi Arabia. The country’s population has increased substantially over the past few decades, and has been characterised by a large proportion of young people presenting opportunities as a resource and challenges in terms of the need to provide them with training and jobs. Saudi Arabia is a very rich country with a growing infrastructure and a strong economy that is heavily dependent on the country’s oil resource. Although the size and influence of the Saudi private sector has been increasing, the rentier nature of the economy results in a blurred line between public and private sectors. Businesses generate almost no tax income and depend on cheap energy provided by the state, which leave them highly dependent on the government defining and driving the business environment. The Saudi private business model revolves around family business with the overall decision making process

characterised as highly centralised and hierarchical in nature. The organisations, which play key roles in economic and social development in the Saudi Arabia include the Ministry of Labour and Social Development; the Social Development Centres, the Saudi Arabian General Investment Authority and the Saudi Council of Chambers of Commerce and Industry. Islam is the state religion of Saudi Arabia, which represents an integral part of everyday Saudi life and influences all aspects of politics, business and society. However, a modernisation agenda is starting to result in a slow but marked change in economic, political and social activities. In this context, work discussed later in this thesis aims to explore a potential role for the SDCs in social development in Saudi Arabia through a proposed role for government in CSR.

Chapter Two: Literature Review

An Examination of the History and Development of

Corporate Social Responsibility

2.1. Introduction

CSR is a concept and practice that has become well established worldwide. This is reflected in the growing body of academic literature on the theoretical and applied aspects of CSR (Lantos, 2002; Porter and Kramer, 2006; Secchi, 2007; Visser, 2008; Reinhardt and Stavins, 2010). The traditional role of governments as the main body responsible for improving the living conditions of the society has become less viable with the increased demands on public resources, placing more emphasis on the role of business in society (Hertog, 2006; Jamali and Mirshak, 2007; Ali and Al-Ali, 2012; Park and Wilding, 2014; Abdull Razak, 2015). CSR is increasingly becoming an important factor in the corporate decision making agenda, where many companies are considering how to improve their relationship with customers, the environment and the community while ensuring their business is successful (Visser, 2008; Reinhardt and Stavins, 2010; Mandurah et al., 2012).

Although CSR principles have long been practiced by business in various contexts and to different extents, the concepts, definitions and theories of CSR implementation have been evolving. While there are many definitions of CSR, Holmes and Watts (2000) introduced a relatively inclusive definition as the ‘continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large’. This definition incorporates several of the main aspects and objectives of CSR practice, which defines the relationship between businesses and their stakeholders in general. This chapter aims to provide a historical and theoretical overview of CSR through an examination of the literature view of definitions, concepts and theories of CSR understanding and practice. It starts with a historical overview of

CSR development, followed by a discussion of its definitions and concepts, as well as an examination of the main drivers and theories of CSR. The use of CSR as a strategy for public relations is then discussed, before considering the implementation and reporting of CSR. Finally, the role of government in CSR promotion and implementation is reviewed.

The content of this chapter is based on a literature review, which aimed to explore literature relevant to theoretical and practical aspects of CSR. The search was started in 2014 and continued until September 2017. The key words used in the search included ‘CSR’ and ‘history’, ‘definition’, ‘concepts’, ‘drivers’, ‘theories’, ‘implementation’, ‘practice’, ‘charity’, ‘public relations’, ‘stakeholders’, ‘Non- governmental organisations’, ‘government role in CSR’, ‘CSR and development’, ‘social development’ and ‘community development’. The search strategy involved extensive searching of electronic databases available through the library services at the University of Salford including International Bibliography of the Social Sciences (IBSS), ProQuest Social Science Journals, Social Policy and Practice and Applied Social Sciences Index and Abstracts (ASSIA). The search also included other resources and methods such as Google Scholar and manual search of key specialist journals such as Journal of Business Ethics, Social Responsibility Journal and Journal of Management Studies. An examination of the reference lists of the initially found references led to the identification of a large number of other relevant references. Grey literature including dissertations and reports were checked through the electronic resources at the University library and websites of relevant organisations, respectively. The aim of this literature review was to produce a narrative account summarising currently available information in order to establish an up-to-date

understating and critical evaluation of the history, definitions, drivers and theories of CSR. Although different types of literature reviews have different expectations, the format of this narrative review is meant to be more than descriptive (Jesson and Lacey, 2006). It is intended to be original and analytical based on a critical evaluation of a reasonable selection of sources.