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ABSTRACT
This case analyzes the best practices of Saudi Aramco, the world's biggest oil producer, using the Triple Bottom Line model. Aramco's CSR policies focus on the need for business transparency and ethical behavior. Aramco's CSR values include achieving sustainable development and complying with national and international laws. The CSR strategy is integrated with the company's corporate business strategy, which is based on the four conceptual pillars: Economy, Community, Knowledge, and Environment.
Keywords: Aramco, Corporate Social Responsibility, Triple Bottom Line model
INTRODUCTION
Globalization has rapidly changed the conduct of international business in response to key factors, such as depletion or shortage of resources, economic recessions, disruptive innovation, environmental pollution, and society's expectations of the corporate world. This last factor is the focus of Corporate Social Responsibility (CSR), a topic that has achieved wider recognition and acceptance not only in the business world but also in the academic literature. CSR may be defined as a "situation where the firm goes beyond compliance and engages in 'actions that appear to further some social good, beyond the interests of the firm and that which is required by law" (McWilliams et al., 2006). CSR refers to an organization's commitment to perform its business operations in an economically, socially, and environmentally sustainable way. According to Panapanaan et al. (2003), "CSR encompasses three dimensions - economic, environmental and social."
Today many business organizations not only incorporate CSR practices into their business operations, they also periodically publish CSR reports. Research published in 2006 suggests that 73 of the UK's largest 100 listed companies had issued a public statement indicating adoption of CSR practices (Ethical Investment Research Sendee, 2006). Furthermore, McWilliams (2006) and his colleagues suggest that organizations in the United States, the European Union, and the so-called "Asian tiger" countries (e.g., Japan, South Korea, Malaysia and China) are at the forefront in implementing CSR practices. It is also worth mentioning that many organizations within developing counties are also focusing on the importance and use of CSR in conducting their business operations.
The Middle East is not lagging behind in the adoption of CSR practices in business organizations, particularly in the Gulf Co-operation Council (GCC) countries (e.g., UAE, Oman, Qatar, and Saudi Arabia). As the largest economy in the Arab world...