Qassim Cement Company: A Case of Ethical Management

Abstract

The development of the economy of Saudi Arabia outside of the petrol-related industries is vital to the future of Saudi Arabia. Beside others, the Qassim Cement Company (QCC) is one of the major companies in the field of building materials that contributes to strengthening the Saudi economy. This case study explores the challenges of maintaining a high-level of competitiveness while remaining true to ethical values and practices embedded in the teachings of Islam. The Qassim Cement Company has sales of about SAR 800 million (about USD$ 200 million) and a workforce of about 650 people. It has a profit margin of around 34%. By comparison, the average profit margin in the cement industry varies between 10% and 20%. Yet at the same time, interviews with employees suggest that the company implements Islamic principles of management. This case raises an important philosophical question about management principles universal or should they be adapted to the local context and culture.