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From the first point of view, Mubadala Company is a socially responsible investment company that aimed to deliver both strong commercial and social value to Abu Dhabi. Its activities expanded on several industries, such as health care, real estate, technology, infrastructure, hospitality, energy, and aerospace. Main shareholder of Mubadala is government of Abu Dhabi that plays an important role in Abu Dhabi social and economic development. Mubadala Company states that its mission is built on the aim to bring strong social returns and profit (Achi, 2010). Mubadala is not only profitable company; it also sets basics for the developed economy in the Emirate. Companys mission is closely interconnected with Abu Dhabi Economic Vision 2013 (Achi, 2010). However, Mubadalas strategic development can be criticized as a big-spender company that can run Abu Dhabi into the trouble.
According to the United Nations Global Compact (2011), companies should create value for society and participate in solving of global problems through traditional philanthropy (without expectations of financial return), and through business strategies that combine advantages of economically profitable activities with delivering of social return.
However, Mubadala deal seems to be focused around delivering only financial returns for Abu Dhabi. If we look through companys recent activity, we can see how quickly it extends its portfolio into the growing emerging markets.
Modest investments in Russia, Indonesia, Nigeria, China, and Latin America are aimed to find financial returns from oil-rich countries (Kerr, 2012). Mubadala has stakes in companies starting from General Electric to the Carlyle Group. Moreover, Mubadalas deal called the Batista seems to be focused on gaining financial profit for Abu Dhabi, as the company finally expands its portfolio into the developing Brazilian market. Social returns for Abu Dhabi seem to come later in a form of the technology transfer an investment term that rarely delivers what it promised.
Mubadala is investing billions in profitable industries to diversify Abu Dhabi economy. However, taking into consideration working with non-profit or public sector for establishment of social impact initiatives, Mubadala is not aiming to achieve higher levels of sustainability performance (Global Compact Lead, 2012). Contrarily, it aims to be a top player in the profitable sectors of the economy. Despite losses in $900 millions in 2011, Mubadala continued to seek deals in 2012 in contempt of main principle of social investment that investor should take responsibility for the investment outcomes, reflect self-evaluation, and peer advancements (United Nations Global Compact, 2011). Mubadala continued to invest in different risky deals in 2012.
For instance, in 2012, Mubadalas aerospace division invested a $1 billion contract to build carbon-composite structures for Boeing with only one goal, to become a key manufacturer in aerospace industry (Reuters, 2012). It looks like Mubadala avoid investing into social enterprises or micro-businesses to advance environmental and social goals.
Using the Internet search, one can find only one report that corresponds to globally recognized sustainability reporting system (GRI). It is Mubadalas renewable energy company called Masdar. According to companys announcements, the sustainability report of Masdar received an A+ grade (the highest possible rate) for its correspondence to wide variety of sustainability indexes, starting from environmental and economic activities to labor and human rights activities. This fact really highlights Mubadala achievements in CSR sphere. Moreover, the report really meets international standards from its supply chain to its management style.
However, if to look closer to other Mubadalas spheres of activities, it is not possible to find other sustainability report. The Mubadalas sphere of activity is quite diverse starting from aerospace industry to semi-conductors. Nevertheless, it is possible to find only one report that corresponded to GRI requirements.
Masdar renewable-energy project seems to be a perfect CSR initiative. However, above all things, Mubadala invests significant amounts of money to get superior financial returns (Achi, 2010). Masdar initiative can be defined as main area for growths from economic development perspectives.
Mubadala Company founded special Mubadalas Youth Platform that reflects the latest information related to companies CSR activities. This platform reflects latest social initiatives, projects, career development opportunities, and exclusive video materials. All initiatives are supported by Mabadala Company. However, the majority of initiatives are targeted on Abu Dhabi youths, despite the fact that CSR practices should be targeted globally.
CSR activities are invisible like an iceberg, it is more than simple brand management operation, and it is always an active attempt of the company to increase its corporate domination (Akbar, 2011). Corporate Social Responsibility activities should be win-win. Companies earn money and society benefits. However, in the case of Mubadala who really wins? If the Abu Dhabi society benefits, which in any case is doubtful, are these benefits outweighed by losses to society in other fields of the Mubadalas activities and by achievements that company is able to make as the result? CSR has double motives. There is always underlying financial motive, so the company benefits more than society. CSR practices help to create perfect companies image for society, to hide negative impacts of the activity by supplying media with positive pictures of the corporations CSR activities and initiatives.
Personally, I think that Mubadala should value transparency, truths and accountability principles of CSR more than they claim. As from the information above, it is appeared to be a conflict between what company says in public and its real activities.
Mubadala still stays socially responsible company, which aims to deliver social and economic value in Abu Dhabi. Mubadala CSR activity is connected with such industries as health care, technology, real estate, energy, oil and gas, aerospace industry, etc. As main shareholder of Mubadala Company is Abu Dhabi government, its strategic goals are mainly directed on social and economic development of Abu Dhabi. Mubadala Company claims that its core aim is to build profound socially and economically stable city. However, despite all the advantages of the company, it can be criticized as a huge investment-spender that can run Abu-Dhabi economy into crisis. Irresponsible conduct of the company can be defined through risky investments into oil and gas industries, avoiding working with non-profitable industries, and constant desire to be monopolist in profitable branches and industries. Unfortunately, Mubadala Company always considers financial profit as the first main goal and reason when they are making investments (Achi, 2010). It goes through financial tests and strategic benefits that allocate in a cluster that creates perspectives to Abu Dhabi. Mubadalas CSR strategies can be considered only from social point of view, as company always turn it in manner to create profits (Achi, 2010). Choosing investments, which make sense for Mubadala, the company looks how it can play to their strengths and opportunities. Company researches how important an industry could be in long-term perspective and amount of profits an investment can bring eventually (Achi, 2010). Mubadala takes particular approach in selecting of industries, clusters, companies, fields, countries, and understanding what it really needs from investments to drive GDP, economy and to make profit. The company never compromises on profits. Company thinks that if they start making trade-offs only on social perspectives, they will end up on a dangerous way that can take Mubadala to places it would not ideally need to be (Achi, 2010).