ADOPTING socially responsible practices is not a burden but a spur to doing business, Sherine Nasr reports. Corporate social responsibility (CSR) is increasingly being seen as a tool to guarantee sustainability for companies, businesses, the economy and society at large. "Many businesses still mistake CSR for charity business. In reality, it is about sustainability of business more than anything else," said Tarek Tawfik, chairman of the Egyptian Dutch Business Club, during a seminar held last Monday as part of the Hello Holland Week organised by the Dutch Embassy in Cairo. "CSR sets new industry standards, maximises the use of fossil fuel, attracts more consumers and eventually generates more profits," said Susan Blankhart, ambassador of the Netherlands in Egypt, who added that Dutch companies encourage their Egyptian partners to adopt CSR principles to help create a more sustainable and equitable community. In Egypt, though CSR is still new to the majority of the business community, the concept is picking up fast. According to Tawfik, Egypt is a country of limited resources with many critical issues to address -- energy, waste management and pollution, to name but a few. "We should study the means to accelerate more awareness of the concept and its benefits. Legislation can play a vital role in this respect," said Tawfik, adding that those in the food business, for example, are well aware of the fact that European countries have imposed many CSR-related criteria that have to be complied with in order to venture into these markets. "These include environmental control, waste disposal control and prohibition of child labour, among other things." During the past few years, concrete steps have been taken to promote CSR norms amongst the business community. The Egyptian Institute of Directors was established in 2008 to promote principles of CSR among listed and non-listed Egyptian companies. And, "lately, a CSR index has been introduced to evaluate some 100 companies in the stock market based on their environmental and corporate governance practices," pointed out Osama Saleh, chairman of the General Authority for Investment and Free Zones (GAFI). He added that Egypt has become the co-founder of the Middle East and North Africa (MENA) CSR initiative that aims at promoting dialogue among different player in the MENA region, including officials, NGOs and the private sector, to adopt socially responsible and sustainable practices while doing business. "Businesses must pay attention to the societies where they operate and to the wide consumer base, which includes the poor and the ill." Saleh noted that the UN Global Compact Initiative advocates principles of anti-corruption, human rights and the rights of labour. "The initiative has been adopted by the majority of foreign companies abroad and is now attracting more supporters in Egypt," said Saleh. In the meantime, greater attention has lately been given to small and medium-sized enterprises (SMEs) in adopting CSR principles. And an entrepreneurial skills unit has been established to upgrade the skills of these enterprises on various levels.
