ABSTRACT

CSR, AN OVERALL SYSTEM DESIGN AND EFFECT OF ITS

PROPER AND IMPROPER IMPLEMENTATION ON ORGANIZATIONS

Corporate Social Responsibility (CSR) is an effort to operate a company or a business organization in an

economical and socially sustaining environment. This paper is written keeping in view, the increasing
importance and adaptation of CSR in organizations. This paper slightly discusses the cooperate
environment of DUBAI and international organizations and spots some areas, where CSR is non-existent
yet e.g. in education sector, and impact of having CSR in that areas on society and business. It then
compares the Islamic ideological system and present CSR concept. Some new CSR indicators and
dimensions are yet to be uncovered. It is never important to start CSR department in some organizations,
there should be some CSR performance measures and analysis tools. This paper proposes not only some
major analysis tools but also gives the new concept of proper and improper implementation of CSR, CSR
levels and their impact on corporate business, ethical social values and corporate reputation. Concluding
the discussion and depending upon the above-mentioned techniques the CSR system design and
implementation technique, in any general corporate body will be proposed.

Authors:

[1] - H. M. Umer Arfi

[2] - Fahad M. Mirza

CV’s with contact information of both the authors are attached

 Hafiz Muhammad Umer Arfi
Phone (Res):0092515537968
Phone (Mob): 00923455935070
Phone (Off): 0092512871700 EXT-325
E-mail: arfeenrwp@gmail.com
Address (Home): P-736 St. No. – 4 Muhallah Banni Rawalpindi Pakistan

Qualification:

• Bsc. Electrical Engineering ( 7 Semesters )

SS-Care school of Engineering G-5/1 Attaturk Avenue Islamabad Pakistan
(Affiliated with UET Taxila)

• Fsc. Pre-Engineering (1st division)

FG Sir Syed College Mall Road Cantt Rawalpindi

• Metric with (Biology, Mathematics, Chemistry, Physics) with A+ grade

Siddiq Public School 6th Road Rawalpindi

Experience:

• Four months experience in AC-Nielsen marketing research company as a surveyor for doing
interviews (During my FSc.)

• Part of admissions in SS-Care School of Engineering since last two years. (It held for One and a
Half month every year)

• Work as an organizer for IEEE International Conference on Emerging Technologies

(ICET 2005) held on 17-18 September 2005, at Islamabad organized by Center for Advance
Studies in Engineering (CASE)

• Worked as an internee at Centre for advance studies in engineering (CASE) under DR.
SHOAB A. KHAN during June 20, 2006 to September 01, 2006
I have worked here on

Research:

• I have written a research paper with Fahad M. Mirza

“ETHICAL CODE OF CONDUCT RESULTS IN THE GROWTH
OF TOTAL PRODUCTIVITY FACTOR IN AN ORGANIZATION”
I have got my abstract accepted in 4th International Conference ERGON-AXIA held on July 9-
12, 2007 at Poznan, Poland but due to financial constraints I was unable to publish my paper in
conference.

• Worked on organizational analysis techniques (SWOT, PESTELI etc) under Mr. Tariq
Hameed Butt, a Phd Scolar doing Phd in Engineering Management from CASE.
 Fahad Mehmood Mirza
Phone (Res):0092519258577
Phone (Mob): 00923445509276
E-mail: aceneutron@yahoo.com
Address: Case 19th Attaturk Avenue G-5/1 Islamabad Pakistan

Qualification:

• Bsc. Electrical Engineering ( 7 Semesters )

SS-Care school of Engineering G-5/1 Attaturk Avenue Islamabad Pakistan
(Affiliated with UET Taxila)

• Fsc. Pre-Engineering (1st division)

Bahria College Islamabad

• Metric with (Biology, Mathematics, Chemistry, Physics)

Bahria College Islamabad

Experience:

• Two years experience in SUKH (Social Uplift through knowledge and health). I am the only
undergraduate co-founder with Dr. Ali Sajid and is assistant associate manager.
www.sukhonline.com

• Part of admissions in SS-Care School of Engineering since last two years. (It held for One and a
Half month every year)

Research:

I have written a research paper with H. M. Umer Arfi

“ETHICAL CODE OF CONDUCT RESULTS IN THE GROWTH
OF TOTAL PRODUCTIVITY FACTOR IN AN ORGANIZATION”
I have got my abstract accepted in 4th International Conference ERGON-AXIA held on July 9-
12, 2007 at Poznan, Poland but due to financial constraints I was unable to publish my paper in
conference.

CSR, AN OVERALL SYSTEM DESIGN
AND EFFECT OF ITS PROPER AND
IMPROPER IMPLEMENTATION ON
ORGANIZATIONS
Abstract
Corporate Social Responsibility
(CSR) is an effort to operate a company or
a business organization in an economical
and socially sustaining environment. This
paper is written keeping in view, the
increasing importance and adaptation of
CSR in organizations. This paper slightly
discusses the cooperate environment of
DUBAI and international organizations and
spots some areas, where CSR is non-
existent yet e.g. in education sector, and
impact of having CSR in that areas on
society and business. It then compares
the Islamic ideological system and present
CSR concept. Some new CSR indicators
and dimensions are yet to be uncovered.
It is never important to start CSR
department in some organizations, there
should be some CSR performance
measures and analysis tools. This paper
proposes not only some major analysis
tools but also gives the new concept of
proper and improper implementation of
CSR, CSR levels and their impact on
corporate business, ethical social values
and corporate reputation. Concluding the
discussion and depending upon the above-
mentioned techniques the CSR system
design and implementation technique, in
any general corporate body will be
proposed.
Research Strategy
We have gone through the
fundamental concepts of CSR (Corporate
Social Responsibility), paid visits to the
governmental and private organizations
having CSR departments being
implemented in Pakistan, and also studied
CSR departments, some international
organizations are running, in the course of
their websites. In addition we have learnt
the proper business ethics’ rules and
regulation, The Islamic ethics, statistical
analysis tools and contacted few cost
management and budgeting professionals.
We found some organizations; responsive
and oblivious of corporate social
responsibility but no department of the
subject as such; still they are helping the
society to some degree, observing
business ethics and educating their people
for the improvement of the society and
environment. Going through this research
we found out that society still needs more
betterment because there are people not
being helped in the society yet. We
investigated for the reason. Many
organizations know CSR concept but least
has adopted it as a department, else are
those who did not have CSR departments
but helping the society from Islamic
perspective. The least who have the
departments implemented, no regulatory
authority or CSR assuring authority is
there to ensure CSR implementation is up
to the mark or not. The many, who have
not implemented the departments, give
reasons to do so but we are to point out
some areas out of many where CSR is
least or non-existent and pointed out
some reasons for them. One of the above
mentioned areas is the education sector.
We proposed a concept through which
CSR will be having no limitations. For the
organizations in which CSR is
implemented in the form of departments,
we derived a formula which will check the
performance and the proper and improper
implementation of the CSR relating CSR
budgeting and society needs. By putting
the values in that formula, we get either
positive or negative value showing us
being proper and improper respectively.
And the magnitude of the output will tell
the level of properness; greater the value
of the magnitude, greater will be the possible now. This whole concept is of
impact on sides and vice versa. give-and-take and every facility one is
availing come up with some responsibility.
Introduction The same way God has gifted us the
facility of the society but we have
CSR, Corporate Social
obligations for its responsibility, known as
Responsibility, is an extensive area to
social responsibility. It is said that this
cover. It is adapted and perceived by
concept comes fifty years back [2], but
different organization around the world,
the true picture of social responsibility has
and in this IT age when world is a global
its roots from the start of the universe
village, so giving one definition of CSR is
when first man was there on earth and he
very difficult but usually it is perceived to
then formed a society. Every person in the
be the tool for any company to improve
society has a right to have all the basic
the quality of life of the employees, their
facilities the society is adorned with.
families [1], local community, society and
Remaining, he should avail through his
quality of environment This paper does
hard work. Providing basic facility to the
not describe the old and already
people is the responsibility of the
mentioned areas of CSR internationally
Government but now population has
discussed, but it is unique in its own way.
grown up to an extent that Government
As a child plays with the colors for the first
alone cannot get into every street.
time; colors are old but the combination
Sometimes the social and environmental
of the colors will be unique and have some
hazards are much bigger than the
influence on him, the other artists and on
government capacity. Importance of social
the society.
responsibility can be proven the other way
This paper describes CSR not from the round. What happens, if people in the
scratch as well but when it will come to an society don’t help each other? If
end then we will be having some picture educationist doesn’t help a milkman when
of CSR system design which can be he needs him/her, maybe he will not be
adopted by different organizations’ by provided by milk anymore and vice versa.
type, operations, local community and If some people in the society which are
environmental needs. having each and every facility, say X
group of people and the other divine of
Importance of adapting CSR basic facility Y group of people then a
misbalance will be created in the society,
A man is a social animal, lives in
which will be having bad impact on X
society and cannot exist alone. This is not
group of people as well, one is deprived of
only the human need but an intrinsic
basic facilities then he executes crime.
property by birth from God. Farmers farm
Social responsibility through organizations
crops and other eatables, constructor
make its implementation effective. Every
construct homes for others to live in,
individual belongs to a family where some
some make cloth and some sew it,
people serve in organizations, so every
educationists provide education to behave
organization is made of people with
in society just as parents teach their
different thoughts and backgrounds
young one a mother language to interact
making it easy for them to educate and
with each other. Technocrats give us
train people to contribute in helping the
technology without which life is not
society and getting a good name for
organization as an offshoot. This way, CSR
adaptation is necessarily important for
every organization.
Dubai- International Corporations and
Organizations
CSR is wanted everywhere the
globe, essentially after the internet
revolutionized it to a global village. Every
country has impact on the other by some
means.
Internationally so many types of
organizations are there and different
cultures are being followed by them. To
pack under our small box of discussion,
we only take some major sectors to derive
the non-existent CSR organizations. Major
types of organizations are:
a. Technology-oriented
b. Industries
c. Media
d. Education
The Technology-oriented organizations are
doing good business and earning huge in
today’s world. Microsoft, Oracle, Intel and
Google are such examples among many.
As already mentioned, facility comes with
responsibility. As they are doing good
business and have more impact on people
internationally, so their obligations to the
society have also been raised. The same
way industries like steel mills have
emerged effectively as Lakshmi Mittal; an
Indian Steel-king is now one of the richest
men in the world [3]. Some private
organizations are CSR concerned, but are
infrequent in government sectors.
Dubai is a multicultural domain and a
major business centre where most of the
organizations enjoy their headquarters or
business offices due to its strategic
location, political and economic
environment, open and free economic
system and extensive foreign trade
networks. Many multilevel and
multiregional people are work with full
cooperation together.
So, as far as media fruition is concerned,
Dubai is in front in this race.
Nevertheless, it has greatest market of
gold as well. Dubai is now taking notice
towards educational project, the Dubai
Knowledge Village (DKV) [4]. Also for the
last decade, the progress of educational
sector can be seen; so many worldwide
institutes have opened branches there [5].
Dubai is sincerely putting effort to observe
CSR for this DCCV (Dubai Centre of
Cooperate Values) work is appreciable [6].
OSR equates the CSR
CSR is adapted by companies,
public and private sectors but non-
existent in many sectors. Sectors of
education, hospitals and media, we
traced, have CSR either least or non-
existent. Rather it is understood that they
have more obligation towards society.
A familiar case is with media and
hospitals. Hospitals should create
departments of CSR because poor patients
need charity, attention, care, time and
sympathy, all summarizing to the
definition of social responsibilities.
The same way media is an example. It
has a direct impact on growing minds. In
this era, children to adults get rapid
inspirations from TV today. We believe
there should be an adaptation of social
responsibility and an authority that
regulates it, as the bad side of the media
leaves deprived impact on the audience.
People of educational sector reply with the
simple reason, when asked that why CSR
not implemented as departments in
education. The reason behind is the
definition of ‘Corporate’. In Pakistan and
usually in international societies, a
corporate has some rules and regulations
defined in corporate ordinance or law,
which does not include educational
organizations. Indeed they are working to
some extent for the society but not as
such structure has been implemented for
social accountability.
As these organizations have direct
influences on public. Corporate and other
organizations have different ingredients
and different output products, but as far
as educational sector is concerned, these
organizations have both humans, at the
input and the output product and course
of action includes knowledge of books and
teachers. It is where we don’t only
acclimatize and execute social
responsibility but can also do really well
for its promotions. Increasing CSR in
educational sector means increase the
quality of the output product as education
gives elevation to the quality of humans.
Output quality = Ingredient quality +
Process quality + People quality
Concept of OSR (Organizational Social
Responsibility)
OSR takes the same concept and
perception as CSR does, but OSR
enhances the adjustment criteria. OSR
also helps up the wider concept of societal
responsibility. Calling OSR removes the
constraint of CSR and frees the social
responsibility from being corporate only.
Every organization of any type now,
education, hospitals, NGO’s, shops, small
and big business industries, public and
private sectors, now have ease of opening
departments of OSR.
Every people now have an advantage of
serving the society through OSR, as group
of people working together is called as
organization. OSR does not limit the
concept of CSR but gives improvement,
promotion and betterment to the concept.
We call CSR as OSR from now onwards.
OSR and Islamic Ideology
Whenever we discuss under
religion and society then the answer is
very common and obvious. Every religion
forbids disturbance and anarchy in a
society. It never asks to observe theft,
murder and torture someone physically
and mentally. Every religion asks his
followers to be tranquil, help the
disadvantaged and so on. Religions are
defined already; having differing social
and religious obligations. As far as Islam
is concerned, if we say that it is the
religion of social obligations only, then it
will not be wrong. Islam is the only
religion who gives complete code of
conduct to its followers. We know the
history of Arabs before and after
Muhammad (PBUH). He leaves behind
Holy Quran and his practices which
complete the society obligations. A few
verses of Quran and the holy expressions
from Muhammad (PBUH) and his
companions will prove that the OSR
concept is not a fifty years old concept but
this type of society had been started
about fourteen hundred years back.
Religion play a vital role in personality
building and spiritual growth but SNSRE
(Spiritual, Natural Social Responsibility
Effect) can always be seen in them by one
way or the other.
“It means that every child is born with
pure and sinless nature”
Muhammad (PBUH) [7]
Organization is nothing but a group of
people working together and when
organizations combined together, then a
society will be formed. Thus OSR is
nothing but every individual’s social
responsibility as sea is nothing but a
combination of drops of water.
Muhammad (PBUH) explained seven rights
of humans towards each other to create
balance in the society.
“It is the duty of every person to observe
the given rights of his brother in faith.
a. One should not fail to show him
respect and reverence.
b. One should really love him from
the bottom of one’s heart.
c. One should share one’s belonging
with him equally.
d. One must refrain from back biting
him and mentioning unseemly
things about him in his absence.
e. One should visit him when he falls
ill.
f. One should attend his funeral on
his death.
g. One should not mention him
except kindly after his death.”
Muhammad (PBUH) [7]
Now we will appreciate the importance of
social responsibility in front of Muhammad
(PBUH). He does not declares the best
person, one who performs Islamic
obligations but the one, sincere to the
society
“The best of works near GOD is to make
happy a brother in faith by relieving him
of hunger, distress and sorrow.”
Muhammad (PBUH) [7]
“The dearest of the human being is
someone with the greatest benefit to the
people.”
Muhammad (PBUH) [7]
Now appreciate the seriousness and
concern of Islam about a society. ALLAH
(SW) asks HIS followers for observing
Islamic basic rules and regulations i.e.
Kalma, Namaz (prayer), Roza, Zakat
(alms), and Haj. Where ever, HE asks for
prayer, HE asks to pay alms.
What is Zakat, a liability for rich and a
right for poor and needy? It is 2.5% of
one’s extra money which have not been
used for the whole year. Islam gives the
complete system of Zakat to observe
balance in a society. It is the duty of
Islamic government according to Islam to
collect and give Zakat from rich and
distribute among poors. Islam thus gives
the concept of some department and
organization for social responsibility.
ALLAH (SW) clearly states that HE will
forgive all HIS rights and liabilities
towards HIM but not forgive one who does
not provide rights to others. In a verse
ALLAH (SW) in two lines talks about what
we call the Islamic obligations, but the
whole remaining verse is dedicated to
social obligations which prove the
seriousness and importance of Social
responsibility in the eye of Islam.
“It is not piety that you turn you faces to
the east and to the west, true piety is this
to have faith in GOD and the last day, the
angels, the book and the prophets, to give
of one’s substance, however cherished to
kinsmen and orphans, the needy, the
traveler, beggars, to ransom the slaves,
to perform the prayer, to pay the alms,
and they who fulfill their covenant when
they have engaged in a covenant and
endure with fortitude misfortune,
hardship, and peril, they are they who are
true in their faith, these are truly GOD
fearing.”
(2:177) [7]
According to MUHAMMAD (PBUH) if one
completes his every obligation to Islam
and not serving the society any way then
he is not a Muslim.
“If someone hears a person calling Muslim
for help does not respond positively to his
call and request for help and does not
assist him he is not a Muslim.”
Muhammad (PBUH) [7]
Now what are these? Some new
dimensions and indicators of OSR are
being derived but it is Quran, MUHAMMAD
(PBUH), and his companions sayings not
us. Social responsibility has no limitations.
Some organizations have CSR
departments but the organizational
culture and behavior of the big bosses are
not good to the employees, their families
and other stake holders but giving
charities, here is another entity or a
qualitative measure for improper
implementation which is needed to be
quantize but it is open to researchers.
Coming formula below does not include
this factor. Islam has complete rules for
this system as well
According to Islam, there should be some
department i.e. OSR, where social
responsibility is divided into sub
departments or areas, and they have the
capability of solving problems concerning
that areas, e.g. a poor student but
intelligent needs money for education,
there should be some dedicated money
coming from charity, Zakat or whatever
resources by the people of organization or
may be outside the organization.
Secondly, one come up with education
and need job, so there should be some
department concerning jobs, thirdly, some
patient come and need treatment, there
should be some department for this type
of thing as well and same is the case with
all the dimension of OSR. The OSR
dimensions increase in the level of OSR
and better will be the implementation of
OSR.
That’s what Islam says about social
responsibility and we have seen the
completeness of Islamic values concerning
society. Under the light of Islam we have
sort out some indicators of social
responsibility
Dimensions and Indicators of OSR
The dimensions of OSR are
countless, and many of them vary on the
basis of community needs, .e.g.
cultivating job for the jobless people can
be the dimension of OSR Many such have
been adopted by the organizations’ CSR
departments, such as education, poverty,
illness, natural disasters and senior
citizens’ old houses etc. A few important
indicators of OSR, although not considered
and recognized as a responsibility by
many, involves; a) care for the others
from the depth of one’s heart, b) sharing
the belongings with others equally, c)
refraining from viciousness, d) inquiring
the illness and e) looking after the
deprived and underprivileged society, f)
bid people unto virtue and honor and g)
forbid from vice and dishonor and h)
appreciation of successful work.
These are a very few indicators of OSR,
we and almost everyone will believe, that
give a pure reflection of the subject in any
organization. That group, any certain
group, is socially liable towards these
indicators running an organization
because ethics involve such social
responsibilities.
Levels of OSR
This is the first step towards the
OSR system design and involves true
transparency of the dimensions and areas
being mentioned and covered in some
OSR department agenda. As the
statement goes, the levels of OSR here
mean the number of dimensions covered,
by seriousness and concentration, falling
under OSR. More the dimensions, the
more will be the levels and vice versa.
One important thing is that the
dimensions should be logical and should
base on the community needs presently.
For example, a) education, b) poverty and
c) natural disasters are a few among
them. We will assume these three
dimensions as our mathematical
parameters for comprehending the OSR
model and it’s working.
We denote the levels by ‘L’ and every
dimension will be given the degree 1. The
formula derived for the model is (from 1
to n dimensions):
L = D1 + D2 + D3 ……… + Dn … (1)
Here, D1, D2 and D3 till Dn are the
dimensions being added together to give
us the level. From the three dimensions
mentioned in the above paragraph as an
example, the level L will be
L=1+1+1=3
Proper and Improper OSR
Being a complex area to
understand, the concept has been
summarized to its basic most level. The
society needs change variably and have
never been certain in almost any era of
the centuries. Although the fundamental
needs of any society do not differ, but it is
the percentage or requirements that
varies time to time. Under this argument,
we define the OSR being proper or
improper.
By the help of surveys, organizations can
get the fair idea that what lacks the most
in their society, and should apply OSR
properly towards the issue.
Here the idea of applying OSR, properly
relates the local community needs and
budget allocation for those areas, if some
area in society needs more attention,
more should be the budget weight
towards it in OSR department. So if we
say that this is the quantitative analysis of
qualitative measures then it won’t be
wrong. Now the model will be explained
taking the example of OSR department
working on three dimensions of social
responsibility, that is already mentioned,
education, poverty and Natural disasters,
D1, D2, and D3 respectively. More
dimensions can be taken which will
increase ‘L’ i.e. levels.
Arfi Proper and Improper OSR Model
Before the model is explained, the
terminologies and its working should be
understood, remaining one can easily
understand by looking at its picture. On
the name of one of the authors, “Umer
Arfi” this model is named as
“Arfi Proper and Improper OSR
Model”
AP
AP is Attribute Percentage;
percentage, by which society lacks, should
have been calculated by previous ten
years records and trends. e.g. in local
community there are 70% people
uneducated, 56% poor, 7% are affected
by Natural Disasters every year on
average, here education, poverty
and Natural Disasters are attributes and
attribute percentages are AP1=70%,
AP2=56%, AP3=7.

SV
SV is Smallest Value among the
entire attribute percentages, e.g. in above
case it is 7%.
W A+B+C…+Z=1
W is the Weight of attribute
percentages, it is about to find that which
attributes in the society is most important
and which is needed by society the most
among the dimensions on which OSR
department is working; e.g. in above
example 70% people in the local society
are uneducated and need more attention,
although poverty is important but while
budgeting education should be given more
weight as its percentage is maximum,
Wn =integer (APn / SV) … (2)
E.g. in above case weights are W1 =
(70/7 = 10), W2 = (56/7 = 8) and W3 =
(7/7 = 1) respectively. It means money
which is to be allocated for education and
poverty should be 10 and 8 times of the
money allocated to Natural Disasters
respectively.
N
Sum of all the weights or we can
say total weight.
N = W1 + W2 + W3 ….. +Wn … (3)
E.g. in above case it N = 10 + 8 + 1 = 19.
A, B, C, D, E
These are calculated budget
weights, tells weight in fraction and sum
of all equals to 1.
A=W1/N, B = W2 / N …, Z = Wn / N … (4)
E.g. in above case there are only A, B, C.
the calculated budget weights for above
example will be (A = 10/19 = 0.52), (B =
8/19 = 0.42), (C=1/19 = 0.05). It mean
for attribute AP1, AP2 and AP3, 52%, 42%
and 5% of the budgets will be allocated. It
is to be noted A + B + C = 0.99 around 1.
By doing this we have calculated the
budget for contingent and dependant
attributes by doing simple mathematics.
a, b, c, d, e
The small letters are different from
capital letters. These are the budget
weights organization is manually
allocating to the attributes in OSR
departments, sum of these will also be 1,
as this is the distribution of 100% of the
OSR department budget among different
areas or dimensions. Let’s suppose (a =
0.6), (b=0.3), (c = 0.1) and we have
calculated these weights in previous page,
to be (A = 0.52), (B = 0.42), (C = 0.05).
These values are not equal to our values
but we can see the properness of the
OSR, as some of the values are close. We
set a band in our model whose value can
be set, the band is some things OSR
assuring organizations can play with and
set a rule. We take example with band of
0.2, a, b, and c can deviate from A, B, and
C respectively from 0.1 only, either on the
negative side or on the positive side,
According to this a, b, and c should be
around (0.32 –> 0.52), (0.42 –> 0.62)
and (0 –> 0.15) respectively.
P.F
P.F, Proper Factor is the factor
which decides the proper and improper
implementation of OSR concerning budget
allocation, if values of a, b, and c lies in
defined bands then P.F will be equal to the
allocated budget weight and is
positive, else if a, b, and c don’t lies in
bands then P.F will be the difference
between the calculated and manually
allocated weights and will be negative.
P.F1 = - 1 * mod (A - a) … (5)
P.F2 = - 1 * mod (B - b)
P.Fn = - 1 * mod (Z - z)
According to above rules P.Ft will vary
from -2 to +1, so what we did is, if
(P.Ft<0), it will be divided by 2, this gives
us two fold advantage, make P.Ft vary
from -1 to 1 thus setting a standard and
secondly increase in improperness is down
scaled and estimation became easy.
P.L
Properness Level is the output of
the entire model
P.L = P.Ft*L … (7)
E.g. in above example it is P.L = 0.58*3 =
1.74, so is clear if P.L comes out to be
equal to L i.e. Levels then best
implementation as far as budgeting is
concerned and if P.L comes out to be -L
then most improper implementation.

E.g. P.F1, P.F2, and P.F3 are

(P.F=-1*mod (A-a) = 0.6 (as lies inside
the band)), (P.F2 = -0.12 (as a lies
outside the band)) and (P.F3 = 0.1 (as
lies inside the band)) respectively.

P.Ft

Total proper factor tells us the

properness of the entire system, its value
is in between -1 to 1 (Most Improper to
Most Proper), P.Ft = 0, does not means
improperness rather infectiveness.

P.Ft = P.F1 + P.F2 + P.F3 … + P.Fn … (6)

E.g. in above case (P.Ft = 0.6 - 0.12 +

0.1 =0.58), for the best case scenario, if
(a = 0.4, b = 0.5, c=0.1) then according
to above rules P.Ft = 1 means proper
budgeting is done and organization
seriously shows concern about society.
 ARFI Proper and
Improper OSR Model

Attribute %age Attribute %age Attribute %age Attribute %age Attribute %age
AP1 AP2 AP3 AP4 AP5

Loop unless find

smallest value
among attributes
Smallest Value =
SV

Weight of AP1 Weight of AP1 Weight of AP1 Weight of AP1

= W1 = W2 = W4 = W5
= int (AP1 / SV) = int (AP2 / SV) Weight of AP1 = int (AP4 / SV) = int (AP5 / SV)
= W3
= int (AP3 / SV)

Total Weight = n = W1 + W2 + W3 +W4 + W5

Calculated Calculated Calculated Calculated Calculated

Budget Weight Budget Weight Budget Weight Budget Weight Budget Weight
A = (W1 / n) B = (W2 / n) C = (W3 / n) D = (W4 / n) E = (W5 / n)

Input Budget a Input Budget b Input Budget c Input Budget d Input Budget e

If(a>=(A-k) If(b>=(B-k) If(c>=(C-k) If(d>=(D-k) If(e>=(E-k)

&& && && && &&
a<=(A+k)) b<=(B+k)) c<=(C+k)) d<=(D+k)) e<=(E+k))

YesNo Yes Yes Yes Yes

No No
P.F (Proper P.F (Proper No P.F (Proper No P.F (Proper P.F (Proper
Factor) Factor) Factor) Factor) Factor)
P.F1 = a P.F2 = b P.F3 = c P.F4 = d P.F5 = e

P.F1 = -1 * |A – a| P.F2 = -1 * |B – b| P.F3 = -1 * |C – c| P.F4 = -1 * |D – d| P.F5 = -1 * |E – e|

P.Ft = P.F1 + PF2 + P.F3 + PF4 + PF5

P.Ft =P.Ft Yes P.F total = +ve No P.Ft = (P.Ft/2)

P.L = P.Ft * L
Future Research Strategies

Our major research area relates to the

quantitative analysis of OSR indicators.
Besides, our current work is deriving an
assuring standard for OSR only, as we
have SA8000, AA1000 and ISO14000 for
social accountability and environmental
guarantee respectively.

References

1. Corporate Social Responsibility at

http://en.wikipedia.org/wiki/Corpor
ate_Social_Responsibility

2. The Concept of CSR at

http://www.dccv.ae/what-is-
csr.html

3. Lakshmi Mittal the billionaire at

http://www.forex-
guide.net/lakshmi-mittal.html

4. Dubai Knowledge Village at

http://www.kv.ae

5. Licensed Institutions at
http://www.caa.ae/CAAweb/Deskto
pModules/Institutions.aspx

6. DCCV forms CSR committee at

http://www.dccv.ae/Dubai-Centre-
for-Corporate-Values-forms-CSR-
committee-1.html

7. Sayyid Mujtaba Musawi Lari (1997)

Ethics and Spiritual Growth,
Foundation of Islamic Cultural and
Propagation in the World, Tehran