AbstractThis case study represents the story of Abdul Latif Jameel company, a family business which was established in 1945 as a gas station in Jeddah. Moreover, now expanded its international reach into over 30 countries across five continents. Besides promoting their transportation, engineering, and manufacturing businesses, the company is concerned with improving societies throughout the world. This encouraged the establishment of Community Jameel, which is a social enterprise organization. Their initiatives include research that addresses the causes and solutions of poverty, protecting the environment by developing viable keys to secure food and water, and promoting the Middle Eastern arts and culture around the world. Moreover, since 2003 the organization provided over 720,000 job opportunities and supported over 100 Massachusetts Institute of Technology students with its scholarship fund program. This case concentrates philanthropy and community service and deals with corporate social responsibility and its impact on the company’s social image.KeywordsCSR, philanthropy, Multinational, policy, foundations?Introduction”The Arabian proverb – ‘If a wind blows, ride it!’ – was a favorite of my father, the founder of Abdul Latif Jameel. It sums up his pioneering and entrepreneurial spirit that lives on in our company today.”Mohammed Abdul Latif Jameel, KBEChairman and Chief Executive Officer,Abdul Latif JameelAbdul Latif Jameel, the leading automobile company in Saudi Arabia and the whole MENAT region, established a charitable foundation in 2003 concerned with fixing the world’s complex issues. ALJ was founded in 1945, as a gas station in a harsh, desert. Today, the company has entered the markets of more than 30 countries worldwide. Moreover, it has expanded its business from only selling automobiles to engineering and manufacturing, land and real estate, energy and environmental services, and many more.The late Abdul Latif Jameel was generous and known for helping thousands of people throughout his life. To follow his example, his son Mohammed Abdul Latif Jameel started Community Jameel company. Establishing strong partnerships with global institutions such as Massachusetts Institute of Technology (MIT), the Victoria and Albert (V&A) museum, and the Grameen Foundation has supported the achievement of the company’s fundamental goal, which is pioneering positive social change.Industry overviewThe automobile industry is a vast range of companies and organizations that work on designing, developing, manufacturing, selling and marketing vehicles. Its revenue is one of the most important economic sectors in the world. In 2007, there were around 806 million cars and light trucks on roads around the world. However, the automotive industry faced a crisis from 2008 to 2010 that significantly affected the Asian and European manufacturers. Therefore, the automobile production drastically declined see figure 1. From 2008 to 2009 the production decreased from about 71 million to 62 million vehicles, in 2010 it recovered to nearly 78 million.The USA has undoubtedly one of the most important automotive markets within the globe and is domestic to many international automobile and car components producers. In 1950, more than 80% of the world’s motor vehicles were produced in the USA see figure 2. Light automobile sales reached 17.5 million units in 2016. America is the world’s second-largest marketplace for vehicle sales and production. Billions of dollars are invested in the United States; whether it was directly or indirectly, the car industry employs hundreds of thousands of Americans. Since 1982, when Honda opened its first plant in the USA, almost every prime automaker whether it was from Europe, Japan, or Korea has produced vehicles at an American assembly plant.The most significant automotive and auto parts in the Middle Eastern market is in Saudi Arabia, selling approximately 40% of all the vehicles sold in the region. The Kingdom imported 1 million vehicles in 2016, including passenger cars, light trucks, and commercial vehicles. The majority of automobiles and auto parts sold in Saudi Arabia are imported. There’s a little amount of locally produced auto parts, but that can fill the market demand. In Saudi Arabia alone, about 12 million vehicles cruise the streets daily. To be successful in this industry, producers must support the dealers fully by training, advertising, and customer service.Company background In 1945, Abdul Latif Jameel founded the company and started operating as a gas station in Jeddah, even before the roads and highways were developed in Saudi Arabia. He started the distributorship of Toyota vehicles in Saudi Arabia in 1955 and became the sole distributor in the Kingdom. The Japanese Toyota cars became one of the most popular brands in Saudi Arabia, with a market share reaching 40% at times after its partnership with Abdul Latif Jameel see figure 3. With his ambitious personality, Abdul Latif Jameel expanded his company by establishing a Financial Services business and a Consumer Products business in 1979. Then he started an Outdoor Advertising Company in 1981. The second Japanese automobile brand he launched in Saudi Arabia was Lexus in 1989 and became its sole distributor. Abdul Latif Jameel led and continuously expanded his company from its foundation until his death in 1993.After his father passed away, Mohammed Abdul Latif Jameel took over the business. He became the Chairman and President of Abdul Latif Jameel. He studied at Sophia University in Japan, and in the Massachusetts Institute of Technology. Following his father’s footsteps, he expanded the distribution of Toyota cars to North Africa starting with Algeria and Morocco. He is a noted generous philanthropist, who donates primarily to social and educational related causes. Moreover, he has been recognized with multiple awards and honors. For example, he was presented with King Abdul Aziz Medal of the First Order by His Majesty King Abdullah of Saudi Arabia, the Kingdom’s highest award, for his role in creating job opportunities for both male and females of Saudi Arabia.For about eight decades, the company focused on Saudi Arabia as a center of its operations. Now, the company is based in the MENAT region and has a presence in over 30 countries around the globe. The wisdom of the entrepreneurial founder, the late Abdul Latif Jameel is behind the current growth. He improved his nation’s economy and addressed the citizen’s needs when he launched the personal transportation automobiles. With effective leadership and well-trained employees, the company continuously makes a profit even after setbacks or times of crisis see table 1. The company now approximately employs 17,000 people.Helping communities transform themselvesSince the 1930’s the late Abdul Latif Jameel, founder of Abdul Latif Jameel company had started a tradition of helping less fortunate people. Even before starting his own business, throughout his life, he helped tens of thousands of people to improve their lives across many fields, including healthcare, employment, and education. In 2003, Mohammed Abdul Latif Jameel established Community Jameel to honor his father’s traditions and follow in his footsteps. The social enterprise organization aimed to control a vast variety of initiatives which promote and contribute towards changing societies positively and sustaining the economy. First of all, lifting people and communities out of poverty is this century’s hardest challenge. The poverty may seem like a simple issue, but what causes it, and how to find the suitable solution can be incredibly complicated. To address this critical issue and help societies to understand and diminish poverty, The Poverty Action Lab (PAL) was founded in 2003 at the Massachusetts Institute of Technology (MIT) by professors Abhijit Banerjee, Esther Duflo, and Sendhil Mullainathan, with the support of the Department of Economics. As Mr. Jameel being an (MIT) alumni, he supported it with three significant endowments in 2005. Then The Lab was renamed to Abdul Latif Jameel Poverty Action Lab (J-PAL) to honor Mr. Jameel’s father. He further endowed the (J-PAL) activities in 2009.Then in 2010 a Business week story, “The Pragmatic Rebels,” called (J-PAL)’s approach “a new breed of skeptical empiricists committed to assiduous testing and tangible results.” Moreover, in the review that Bill Gates wrote about Banerjee and Duflo’s book Poor Economics, he said: “To me, what’s great about (J-LAP) is that it is producing scientific evidence that can help make our anti-poverty efforts more effective.” (J-LAPS) Its headquarters is a center within the Economics Department of the (MIT), and it has regional offices that are hosted by local universities in Europe, Africa, North and South America, South and Southeast Asia see table 2. This vast expansion has supported the organization’s objectives by having trustworthy people that can evaluate the needs and problems of their nation, building relationships with the governments, and extracting knowledge to scale up effective programs. To this day, over 100 (J-PAL) associated professors have made more than 565 evaluations across 56 nations, and over 1,500 people were trained to impact evaluation. The assessments, by Michael Kremer and Edward Miguel, included lots of things from analyzing the effectiveness of eyeglasses in improving the Chinese students test grades, to a study on how deworming can improve Kenya’s student attendance and academic performance. The results motivation for the Deworm the World Initiative, which has reached 20 million children. Nava Ashraf, a (J-PAL) researcher has recently completed her work on innovating channels to relieve the burdened healthcare workers in Zambia. Another evaluation done in India done by (J-PAL) directors, found that vaccination rates increased dramatically after introducing reliable services at suitable mobile clinics.Innovations for Poverty Action (IPA) is a close partner with (J-PAL). They both share a joint mission and take similar organizational approaches to improve policy evaluation. The only difference is that (J-LAP) works through universities and uses academic resources, while IPA, is a non-profit organization, and it works through county offices. Both establishments have initiated the use of “randomized evaluations” to study the efficiency of development interventions worldwide and have cooperated significantly of field studies involving randomized evaluations. Some (J-PAL) Affiliates are also (IPA) Research Affiliates or IPA Research Network Members. Also, the work of both organizations has been featured in many popular press books.World Water and Food Security LabThere’s a new research about harvesting water from the air and further technology the improves the production of crops. Those projects are being supported by Abdul Latif Jameel World Water and Food Security Lab (J-WAFS) at the Massachusetts Institute of Technology (MIT).J-WAFS was co-founded in 2014 by Community Jameel and MIS. It is a movement that will have a positive effect on communities in our briskly changing world and the increase in population. It coordinates and promotes research related to water and food security and safety.Since that the region of the Middle East and North Africa (MENA) is the driest in the world, the majority of this region’s population are living under conditions of “water stress.” So according to the World Bank, the demand far outstrips the supply. Such issue could not be ignored by Community Jameel initiative, J-WAFS. So, it supported multiple projects and research to improve water and food supply in that area.Enhancing crop production with an eye towards sustainability The theme of several funded projects this year was enhancing crop production and supporting the farming practices in developing countries that are environmentally sustainable. Two of those projects address the challenges of nitrogen fertilizer. The nitrogen is required for the productivity of agriculture, but most of the nitrogen fertilizers are produced using fossil fuels, which leaves a huge carbon footprint. In Africa and some other parts of the world, it is hard to access nitrogen fertilizer on most farms. Because of the poor infrastructure for distribution, most farmers achieve limited crop yields. However, in other parts of the world, like North America, the excess fertilizer contributes to water pollution after running off from farms. To solve the African problem, The Career Development Professor in the Department of Chemical Engineering Karthish Manthiram is developing a solar-powered electrochemical device, and it can convert nitrogen from the air, water, and sunlight then changing it into ammonia that can be added to the soil to promote crop growth. The professor of biological engineering, Christopher Voigt, is choosing a completely different path to solve the North America problem. His objective is to engineer cereal grains that can “fix” the nitrogen in the atmosphere the same way legumes do. Once achieved, the fixed grains can become self-fertilizing and high-yield producers in several regions around the globe. This will dramatically reduce the damage to the health of the soil, water supply, and the ecosystems that often are associated with the use of chemical fertilizer.Enhancing methods for culturing microalgae for food and fuelThere’s a newly funded project that could significantly contribute to our ability to create a promising source of protein and oil in the future, and minimize the use of energy associated with producing it. Assistant professor of mechanical energy, Mathias Kolle, aims to make a new class of multifunctional micro- and nonstructural optical fibers that will efficiently and effectively transport light and carbon dioxide through industrial microalgae cultures. Microalgae can efficiently generate protein-rich biomass that could, if made on an industrial scale, be supplementary for human nutrition, and provide animal feedstock, and be a biofuel. However, the production methods currently are not viable economically for this scale. Those microfibers would transform large-scale industrial microalgae production, and make a new produced protein and fuel a sustainable, economically viable, and energy efficient option in the near future.Harvesting water from airIn many regions of the world, the water is either scarce or polluted. Securing clean drinking water in such environments is a challenge. Additionally, using it for agriculture and industrial productions reduces the global supply of clean water which increases the demand for alternative ways of gathering water. Associate professor of chemistry, Mircea Dinca, and Gail E. Kendall Associate Professor in the Department of Mechanical Engineering, Evelyn Wang, are working together to develop a new technology to be used in harvesting water in even the driest regions of the world. They are creating a solar device that can extract fresh, clean water from the air at any scale of humidity, by using a metal-organic framework (MOF), a specialized material. J-WAFS are supporting and funding the development of those MOFs to be later used in providing water to distant areas, with a significantly reduced industrial production cost.Recognizing the role of art in building secure and interconnected communitiesJameel gallery of Islamic artThe gallery contains more than 400 pieces of artwork and crafts produced between the 8th and the early 20th centuries. The main aim of this project was to introduce the Islamic art and culture to the rest of the world. Community Jameel chose The Victoria and Albert (V&A) Museum in London which is one of the most prestigious museums in the world, to deliver this message. The museum has a collection of over 2.3 million objects; therefore, it is known as the world’s leading museum of art and design. In 1852, the museum opened its doors, already including an impressive collection of Islamic artwork and crafts. When one of the galleries needed renovating in 2006, Mohammed Abdul Latif Jameel involved himself in the project and supported it to create a place worthy of the incredible artifacts displayed and to help to expand the existing collection. Now the gallery is known as Jameel Gallery, and it has over 400 items, including textiles, metalwork, ceramics, carpets, glass, and woodwork. Those objects are dated from the days of great Islamic caliphate of the 8th and 9th centuries to the years around the World War I, and the objects were collected from an enormously vast area, starting from Spain in the west to Afghanistan in the east, considering the most important centers of producing art in the Arab lands, turkey, and Iran. The most significant item is the Arbadil Carpet (see photo 1), which is said to be the largest and oldest carpet in the world formed by more than 30 million knots. This magnificent work of art was made for the Shah of Persia in 1539.People from all around the world visit this gallery, introducing a better understanding of the Islamic world. The collection is constantly expanding, and the gallery is always evolving.The house of traditional artsIt is a center for teaching and maintaining the unique methods and expertise of the traditional Islamic art and crafts. Opened in 2015 and based in the old town of Jeddah, this institution offers programs following the teaching methodology of the Princes School of Traditional Arts which is based in London. It is currently offering major educational programs that focus on patterns and designs of the Islamic geometry, nabati ornaments, woodwork, and other traditional crafts. Also, being located in the old town, it is surrounded by historic buildings which enhances the experience of conventional art.The global impactWith the massive expansion of Community Jameel and its affiliates all over the world, it successfully reached an estimated 203.17 million people around the globe. Their projects that are designed to empower, support, and inflict a positive change have inspired the creation of more charities and encouraged more philanthropist to participate in this transition. (J-LAP) Has trained nearly 9000 practitioners through a variety of educational courses, training workshops, and online open courses. They have established 680 projects which are either complete or ongoing in 66 different countries. Jameel Community had created more than 720,000 job opportunities around the world. From the headquarters in Saudi Arabia, they manage programs in the Middle East and around the world. To change the world and find solutions for its most complex problems.