Business students enrolled in the Business Ethics course (Business 215) at the American University of Beirut were awarded for the best Corporate Social Responsibility (CSR) project by the Suliman S. Olayan School of Business (OSB).
The two short-listed groups presented their projects in front of an evaluation committee and audience at OSB on May 26, 2011. The three committee members were Dima Jamali, Business 215 professor and chairperson of the Management, Marketing and Entrepreneurship (MME) Track at OSB, Cynthia Myntti, professor of public health practice, and Charlotte Karam, assistant professor of organization psychology.
In their presentation, Alisar Diab and Nour Al-Hakim argued against each other on whether CSR should be mandatory or voluntary for corporations. Diab argued that CSR should be mandatory because corporations can no longer be trusted, and their priorities are being questioned. Diab added that the media is being used as an effective tool to shame corporations; however, she noted that shaming is good for scaring corporations but it does not teach them anything. Thus, she concluded that it is necessary for CSR to be mandatory. On the other hand, Nour Al-Hakim argued that CSR should be voluntary because it is already becoming a widely followed trend and all companies will catch up eventually. She added that if CSR is to be voluntary it will put no pressure on small and start up companies because implementing CSR is costly. Moreover, embracing CSR gives a competitive advantage for those who adopt it and makes companies with intrinsic motives distinguishable. At the end, both presenters agreed that the approach to implementing CSR should be a mixture of mandatory and voluntary components especially in the Middle East and North Africa region.
Laura Hage and Raja Sabbagh, the second group of presenters, argued about whether CSR projects have a positive or negative impact on society in developing countries. Sabbagh argued that CSR has a negative impact in developing countries because companies tend to overuse it as a marketing technique and a façade rather than a practice that reflects genuine commitment. Moreover, Sabbagh noted that consumers in developing countries are unaware and unsupportive of CSR implementation, not to mention that it can not be implemented in countries facing economic and political instability especially that those countries typically suffer from corruption. Hage however, argued that implementing CSR will have a positive impact on societies in developing countries. Hage found that CSR helps increase the social welfare of the community in developing countries, addressing social gaps while also increasing government intervention. She said that when CSR is implemented in developing countries, the benefits surely outweigh the costs. At the end, both Hage and Sabbagh concluded that the positive impact of implementing CSR in developing countries actually exceeds its potential negative impact.
After the presentations, the committee deliberated the content and style of both the projects and presentation. After heated discussions, the decision was made and the group of Alisar Diab and Nour Al-Hakim came in first place while the group of Laura Hage and Raja Sabbagh came in second. However, the committee admitted that the great work done by both groups was admirable making it a rather tough selection. Jamali also expressed genuine support to OSB Dean George Najjar and the Mikati CSR Initiative at OSB for making such student competitions possible, as they invariably add value to the life of the school and its students.