CSR MANUAL FOR
EGYPTIAN COMPANIES
Step-by-step guide for CSR Implementation in Egypt
About the Manual
T
his manual is a step-by-step guide to support companies in Egypt develop a comprehensive Corporate Social Responsibility (CSR) strategy based on a holistic view of the corporations’ value chain activities. While most of the previous conceptions about CSR take a philanthropic stance for its application, this guide positions CSR not only as an activity that supports local communities but also as a strategic function that may impact consumers’, employees’, and other stakeholders’ key performance indicators. The guide covers the main pillars of CSR and provides hands-on successful case studies of Egyptian multinationals, local conglomerates, and Small and Medium Enterprises (SMEs) that are able to integrate CSR strategically into their value chains. Furthermore, the guide provides a comprehensive tool to assess the company’s performance with regard to the current implementation of CSR, as well as provides recommendations based on each company’s respective performance. Finally, the guide presents a tool for companies to adopt in their CSR communication with various stakeholders. Important references for additional information are included at the end of the guide.
Acknowledgments
T
his manual has been funded by the Bureau for Employers Activities of the ILO (ILO - ACT/EMP) and has been developed as a joint effort between the Federation of Egyptian Industries (FEI), the International Labour Organization (ILO), and the German University in Cairo (GUC). The team members from each organization are as follows:
FEI Basma Osman Senior Advisor Sally El Kholy - Unit Head CSR & Women in Business
ILO Eric Oechslin Senior Specialist Employers Activities
GUC Dr. Raghda El Ebrashi Assistant Professor of Strategic Management
Dr. Elsayed Torky National Coordinator
Dr. Menatallah Darrag Assistant of Professor of Management Mostafa El Gohary Research Assistant
This Manual has been designed and produced by CreMedia
Contents 1
Corporate Social Responsibility (CSR): Benefits and Myths . . . . . . . . . . . . . . 6
2
What do you know about CSR? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3
A value chain view for implementing CSR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Inbound logistics: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Outbound logistics: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Marketing & Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Disposal & After Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
4
Assessing the status quo: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5
CSR reporting - Tell the world how you do it! . . . . . . . . . . . . . . . . . . . . . . . . . 27
6
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
1
Corporate Social Responsibility (CSR): Benefits and Myths
When you hear the term CSR, you always think it is out of your domain; it is costly; it is for big companies, or it is just not the right time for it. Actually, this is not true! CSR can help you increase your sales, grow, and improve your relationships with various stakeholders. Here are some preconceived thoughts and their respective realities:
MYTH
6
REALITY
CSR is for big corporations, not SMEs
Many SMEs perform CSR activities, just without naming them as such! It’s for all corporations, whether you secure healthcare or provide paid meals for your employees.
CSR is way too costly to implement
You choose your investment size! Be it moderate or high, ranging from locally-sourcing your materials to using energy saving bulbs.
We are so much consumed with our core business. We really don’t have time for CSR!
It’s not hard to infuse CSR in core business practices but just needs your thoughts. You can reduce pesticides’ use for securing export potential or establish micro-distributors’ network to reach out to unattainable poor areas. It all counts.
It is very hard to gain the support of employees for CSR activities
CSR helps in filling employees with motivation & the needed spirit to get through their jobs done. You may establish a system whereby employees can volunteer for few hours every month as part of their working hours, or they can do that on the job by for example mentoring and shadowing young interns.
CSR has marginal impact on the community
CSR secures multiple stakeholders’ objectives, like a corporation launching awareness campaigns that would serve in reducing a social community problem.
2
What do you know about CSR?
CSR is the set of activities that firms engage in for the benefit of various stakeholders including customers, labor, suppliers, society, government, as well as the environment. CSR has direct and indirect economic benefits for the firm including:
CSR is not philanthropy or giving charity to the poor. While CSR may constitute various support activities to the community, CSR also encompasses responsibility toward labor, consumers, and the environment. By being responsible for those different stakeholders, the company will gain financial and non-financial benefits. The 4 pillars of CSR are:
Workplace It addresses corporations’ responsibilities towards its labor in factories and premises. Corporations should provide a healthy and safe working environment, training and open-channels for labor to communicate their concerns and further participate in decision making. Eventually, this will increase labor productivity, engagement, retention and positively affect corporations.
Environment It addresses corporations’ responsibilities towards the environment. Corporations should provide waste reduction, recycling and efficient production mechanisms that save resources. Eventually, this will increase production efficiency, secure savings to corporations and moreover earn them environmentfriendly reputation and certification that is essential for EU exports.
Marketplace It addresses corporations’ responsibilities towards its customers. Corporations should provide accurate information about products, ensure and enhance customer awareness, ease of use and safety of their products. Eventually, this will increase customers’ respect and attract more of them, enhance corporations’ image and might attract potential international importers.
Community It addresses corporations’ responsibilities towards the community. Corporations should provide different techniques to assist and reach out to the community, like health and educational services’ provision or selecting to source from local suppliers. Eventually, this will earn corporations ‘community acceptance’ and help them earn the local communities’ support to operate safely. 7
3
A value chain view for implementing CSR
So how can you implement CSR in your business? Here is a detailed guide based on value chain analysis with examples from big companies and SMEs. This section will show you how to integrate the 4 pillars of CSR in your value chain and the corresponding benefits. It is worth to mention that one CSR strategy can serve more than one CSR pillar.
value chain
Outbound Logistics:
These are activities related to distribution and transportation of goods and services.
Operations:
Marketing and Sales:
Inbound logistics:
Disposal:
These are the activities related to manufacturing and processing, or service design.
These are all the activities related to sourcing suppliers for raw materials and their warehousing.
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These are activities related to promoting products and services and increasing consumer awareness.
These are activities related to disposing of/ managing waste of the companies’ products.
Inbound logistics:
Marketplace Sourcing high-quality raw materials that are healthy and safe for consumers to use/ consume
SEKEM (local company that internationalized) Embedding CSR in core business operations had contributed in writing SEKEM’s success story as it ultimately boosted their exports to the EU, while helping out suppliers in their value chain. SEKEM made social impact and responsibility a mission at heart, considering their main business objectives. It had endorsed organic farming, waste elimination and biodiversity in cultivation. Further, it reached out to small farmers to follow suit through awareness campaigns and providing assurance to convert to organic farming. Alongside, it endorsed fair competitive trade with small farmers. All of this opened up the EU market to the Egyptian produce exports. Nefertari (SME)
Al Daour (SME)
Nefertari Company had carved its path in the beauty care industry in Egypt amid competitors by stressing on their main strategy; of delivering natural organic and healthy products to the hands of their consumers preservatives-free. Stressing on the consumers’ health and well-being, whilst using 100% natural, local-made, organic and preservativefree materials with clear affiliations had made them quite successful.
Daour had taken up the vision of delivering premium quality cotton textiles & garments for the local market at affordable prices, up to compete with imported ones. Sequentially, this vision had been crystallized not only in building up their own facility and selecting styles, but by sourcing high quality zippers and buttons that don’t rust and thus Al Daour products are safe to wear especially by children. This is in addition to providing complete components’ labeling with cleaning instructions.
9
Danone
Community Sourcing raw materials from local suppliers; Providing training for local suppliers on how to improve the quality of their raw materials
Danone had strategically planned to employ CSR to overcome its problem of raw material provision. They had launched the Milk Collection Centers (MCC) that were meant to empower small milk producers through capacity building programs to increase milk production and quality, as well as provide them with channels for distribution and trade. The MCC elevated the economic standard of local communities, and had also served in providing sustainable source of milk for Danone that is of low cost and high quality. Alef Book Stores (SME that internationalized) Alef bookstores tailored its operating system to endorse and develop its local suppliers (book publishers), which paid off in its success eventually. This included providing publishers with training on how to plan for products’ launch in different venues including exhibitions and bookstores, coaching on financial management to improve sales, and orientations on which books to publish including category development.
Cilantro (local business)
Environment Sourcing raw materials that consume less energy or natural resources
Cilantro, the renowned Egyptian coffee shop had pioneered in launching an environmental initiative in the hospitality sector in Egypt. It is the first company in Egypt to offer napkins and cups from recycled paper, which is a viable strategy to fulfil its objective of raising environmental awareness. Sun Clean (SME) Sun Clean works with the dual objective of biogas generation and environmental protection, through designing and installing bio-gas units in poor villages in Egypt to generate energy for various household and agricultural activities, in addition to running waste management and recycling services to some high-income suburbs in Cairo.
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Operations
Workplace Providing training for labor; Ensuring healthy and safe working environment; Initiate employee-based governance mechanisms; Introduce flexible working hours; Maintain female friendly environment
Alef Book Stores (SME) Alef bookstore had embraced women-friendly programs to enhance females’ participation in the retail industry workforce. They had entitled female employees to select morning shifts as well as branches to work in, as per convenience. In return, females receive 75% of their total income (including fixed and variable amounts). ENTRA (SME)
Daour (SME)
As a manufacturing company, ENTRA is a believer in competitive advantage embeddedness through its workers. The company carries out regular training programs on environmental issues as well as health and safety. ENTRA has a clear safety and security policy for its employees, and the company has employed safety equipment to make sure that employees are not injured throughout the production process. The health and safety policy also includes medical insurance.
Daour company abides by the labor law, regulating work shifts of 8hr/day with 1hr break, as well as provids medical insurance coverage, job training and shadowed internships from experienced supervisors’ through job rotation to broaden workers’ experience.
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Mass Food Mass food considers its employees as the most precious asset. It engages employees in the decisionmaking through an open door policy. Also, employees are offered funding for higher education, attractive compensation packages, training, medical and social insurance. This helped in creating a loyal workforce who forms a cornerstone of the company’s tremendous success. Crystal Asfour
As-Sonbolah (SME that internationalized)
Crystal Asfour is aiming to protect and guarantee a secure health-care provision for its employees and their families. In 2014, it had successfully inaugurated its medical center that aimed to provide specialized medical services of superior quality to its workers. Currently, it is extending its operations to include its surrounding community by participating and successfully inaugurating a charitable hospital.
As-Sonbolah has positioned itself as a world-class exporter of rice. Internally, it created a healthy working environment for workers through finetuning its machinery and the factory setting. Rice mills are prone to producing dusts that may have health hazards. As-Sonbolah installed air suction lines on all machinery and handling equipment to remove dust generated during industrial processing to prevent dust particles coming out of the machine, and thus maintaining the quality of air for a healthy working environment for workers. Moreover, filters are placed on the final exhaust to prevent any dust and particles from escaping to the outside environment. Also, sections of the floor have been fixed with special material that is anti-slipping and anti-bacterial to maintain a healthy working environment for employees.
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Marketplace Manufacturing product package and design that is convenient to customers; Increase inspection quality for products to provide high-quality products with fewer defaults; Innovate products that suit low-income consumers
Community Sourcing labor from local communities and raising their capacities
Daour (SME) The company employs high-quality control through tests carried out on produced textiles. For example, tests include that clothes will not shrink or get damaged from water, and it also tests if buttons are easily displaced. The company has international benchmarks and this is why it became the subcontractor to Unilex in Turkey (Get Designs), where products are later sold in H&M and Bershika. Mediterranean Gardens (SME) As a producer of olive oil as well as pickles, the company provides all product information on its communication materials for suppliers and consumers. For example, a bottle of olive oil has the following information on it: size (in different measurements), number of bottles per package, price per cartoon, and the number of cartoons per ballet. Mediterranean Gardens also pioneers efficient packaging system to suit the demands of different end and business customers including packaging that is suitable for exporting . Juhayna Juhayna introduced a brand called (Bkhero) to suit the needs of low-income consumers and enabled them to access healthy packed milk at low cost. It uses plastic-bag-like packaging to reduce the cost of the product and at the same time suit the consumer behavior of low-income consumers .
Prince Steel (SME) Prince Steel Company’s initiative was to include street children (18 years old) as labor in their operations. The company employed good mannered street children who received intensive training programs and then join the factory’s workforce. Some from those who chose to work in engineering-related tasks can now use AutoCAD and work in industrial and engineering design . Nestlé Nestlé’s CSR objective is to leave an imprint on the societies that they operate within. In cooperation with specialized vocational centers and NGOs, Nestle sources its labor from its factories’ local communities, and provides vocational training to youth who are offered paid internships and shadowing from factory managers to gain production experience .
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Environment Utilizing renewable energy; Recycling manufacturing waste; Employing efficient machines
Oriental Weavers (local company that internationalized) Oriental Weavers focuses on creating the highest quality rugs and carpets with minimal impact on the environment. Thanks to its consistent compliance with strict environmental policies, OW successfully exports its products to foreign markets including EU. Also, by smartly managing its wastes, OW has optimized resource inputs and benefit from processes’ waste by reselling it to independent contracts. OW obtained quality management and environmental management ISO certifications including ISO 9001 for Quality Management System and ISO 14001 for Environmental Management System. Intercement (Amreya)
Art Express (SME)
Intercement- Egypt, the giant cement maker, focuses on minimizing the impacts of its activity on the environment by means of the latest technology in terms of production, process controls, risk management and specific actions. In addition to having the ISO 9001 certification for customercentered management, Intercement also obtained the ISO 14001 for environmental management. The factory employs the necessary filters to control emissions, while solid wastes are safely disposed, recycled to cement packages, or sold as spare parts. Water used in manufacturing is also purified and reused in the manufacturing process. The factory also utilizes plant wastes to generate energy .
Art Express print shop launched an initiative aiming at recycling paper waste from the print shop and from different production houses in Alexandria. Also, it only employs eco-friendly printing machines with no carbon emissions. Further, it reduces the electricity usage by installing LED bulbs in its shop.
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Karm Solar (SME)
Mediterranean Gardens (SME)
KarmSolar is a solar technology and integration company, whose goal is to commercialize sustainability, enabling businesses to gain from an increase in productivity whilst benefiting from, and protecting the environment. Its subsidiary, KarmBuild, integrates solar energy technology into buildings’ designs that are ideally suited to off-grid environments and target the needs of the agricultural, industrial and tourism sectors.
Mediterranean Garden has been successfully exporting to the US thanks to obtaining ISO 9001 for management, ISO 22000 (HACCP) for food safety and security, ISO 14001 for preserving the environment, and ISO 18001 for labor safety.
Daour (SME) Daour recycles the production residuals from clothes to produce other products for infants such as socks and flip-flops. In addition, the factory recently employed LED bulbs to save energy, and they have this practice of closing iron boilers that are known for consuming a high level of energy.
As-Sonbolah (SME that internationalized) As-Sonbolah uses all the by-products of production. Husk is sold as an animal feed, while broken rice is distributed to domestic and international markets. Moreover, the company innovated a new way to benefit from its own waste, where they added a production line that transforms rice production wastes to stabilized rice bran, which is a nutritious and valuable food product for human consumption; rich in omegas, vitamins, and minerals.
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Outbound logistics:
Marketplace Distributing products and services in different areas to provide accessibility for different consumer segments
Environment
Mansour Group
Using energy-saving transport, warehouse, and distribution systems and ensuring road safety for laborers working in the transportation of goods
Mansour Holdings started “Kheir Zaman” chain in 2006 which offers a variety of food products at affordable prices to satisfy the lower income segment of the consumers. Today the chain has grown to reach a total of 38 outlets in different governorates . Alef Bookstores Alef bookstores revamped its business model to reach consumers in low-income governorates. It encourages small investors in Upper Egypt and Delta to invest only 350 – 400 thousand to open a 40-meter square outlet instead of paying a huge investment to open its franchise.
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Nestlé Nestlé Egypt launched a two-year program to raise awareness for safe driving and road safety in hope to decrease road accidents in Egypt. The targeted categories for training include the drivers of Nestle Egypt, the owners of cars, the sales, the distributing fleet and trucks drivers belonging to any third party, in addition to the staff of deliveries.
Community Sourcing labor from local communities and raising their capacities
Unilever Unilever started “Zeinab� project to provide economic opportunities for women in Upper Egypt to become its saleswomen. It recruits women from local communities to sell its products door-to-door, thus reaching low-income segments . Daour (SME)
Alef Bookstores (SME)
The company includes small vendors in the distribution of its products. In addition, Daour has a responsibility toward start-ups who wish to do distribution business with the company. For example, Daour takes reduced markup from start-up distributors and provides them with technical and marketing advice on how to improve operations.
Alef Bookstores has a Franchise Development Program that provides financial management training, orientations, training on the how to run the enterprise along with weekly seminars for franchisees’ employees to increase their intellectual capabilities.
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Marketing & Sales NestlĂŠ
Marketplace Increase the awareness of consumers about the health benefits or concerns of certain products for different age groups and gender.
NestlĂŠ Healthy Kids program aims at increasing the awareness of children about healthy nutrition & lifestyle and it also organizes physical activities for child. Since 2009, the program has now reached more than half a million children in public schools. Sun Clean Egypt (SME) Sun Clean Egypt, a biogas provider, educates its stakeholders on two different level; the farmers (consumers) to empower biogas usage, and urban areas consumers (suppliers) to educate them on how to segregate waste at home. Also, it provides awareness sessions to children on the importance of preserving environment and recycling.
Disposal & After Sale
Marketplace
Community
Provide consumers with venues to get rid of carcinogenic products
Partnership with local garbage collectors
Recyclobekia (SME)
P&G
Recyclobekia is a pioneer electronic waste recycling company that collects the e-waste from different stakeholders. Using its innovative know-how, the waste is sorted into recyclable and resalable items. It reduces the harmful effect of e-waste and contributes to the economy by generating new jobs .
P&G works with the garbage collectors in Egypt to collect and grind their shampoo containers after usage to prevent counterfeiting. It allows garbage collectors to make use of the grinded plastics to produce recyclable products such as plastic bags, tube covers, cloth handlers, and others.
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4
Assessing the status quo:
Many companies are implementing CSR but they do not acknowledge it. This section provides a detailed tool to guide businesses map the various CSR activities they are already implementing across their value chain and to also help them spot the activities that need some work. For the following, please mark the status of your company with regard to the CSR activities mentioned. In the description section, please describe what you do in the respective aspect, or mention something similar you implement in your company if the CSR activity is not exactly what you have.
CSR Pillar
CSR Activity
Not considered at the time being
Policy in place, but not implemented
Fully implemented
Set transparent contractual agreements that include at least basic pay and social insurance Update equipment and implement safety measures (manufacturing companies), and/or update software, maintain facilities and comfortable work place (service companies) Workplace Related Activities
Engage employees in recommending courses of action for operational and HR concerns Provide various technical and/or soft skills trainings to employees Provide in-kind incentives for labor (e.g. flexible working hours, working from home‌etc) Ensure that the workplace is friendly to female workers in terms of working hours, flexibility, or other services Provide trainings for suppliers and/ or distributers that may enhance their productivity
Community Related Activities
Include micro and small enterprises from the surrounding community into company’s value chain Provide services to the surrounding community such as access to employment in the company or contributing to infrastructure development, health services, or charity
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CSR Pillar
CSR Activity
Reduce the use of utilities (e.g. electricity, paper use, and air conditioners) and/or installing efficient power supply systems/equipment
Environmental Related Activities
Recycle or use production waste when possible and/or implement waste segregation system (plastic, paper, and others)
Minimize packaging used
Provide clear instructions, factual, and unbiased information to consumers on product labels
Produce products that are healthy and safe ConsumerRelated Issues Defend the customer’s right to return back the product in case it is of bad quality
Innovate products that can be used/ utilized by low income consumers/ businesses
20
Not considered at the time being
Policy in place, but not implemented
Fully implemented
Description
21
Description
22
Recommendations
Workplace Related Activities
CSR Pillar
CSR Activity
Recommended course of action
Set transparent contractual agreements that include at least basic pay and social insurance
Ensure you implement a transparent pay system to ensure fulfilling obligations toward the law and increase employee morale
Update equipment and implement safety measures (manufacturing companies), and/ or update software, maintain facilities and comfortable work place (service companies)
Ensure the maintenance of equipment and facilities to guarantee a safe and secure working place. Employee injuries may jeopardize your reputation and may lead to legal problems. Keeping a comfortable working place will increase productivity
Engage employees in recommending courses of action for operational and HR concerns
Try it! Involving employees in decisionmaking will increase their retention and loyalty. They will also be eager to support you in times of recession
Provide various technical and/or soft skills trainings to employees
This is very important to consider. If employees don’t feel the value of being part of your company by gaining knowledge and skills, they will leave you in a short period of time
Provide in-kind incentives for labor (e.g. flexible working hours, working from home‌ etc)
Sometimes in-kind incentives are more important than monetary incentives. Consider implementing any of these in-kind incentives to reduce employees’ hardships and increase their productivity
Ensure that the workplace is friendly to female workers in terms of working hours, flexibility, or other services
Females tend to show higher level of job engagement, loyalty, and productivity if they are able to balance work and social obligations. Consider applying any services for your female workers to ensure higher productivity and loyalty
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Recommendations
Community Related Activities
CSR Pillar
24
CSR Activity
Recommended course of action
Provide trainings for suppliers and/ or distributers that may enhance their productivity
Try it! Capacity building programs for suppliers and distributers increase the quality of service provision and will definitely affect positively your quality of production/service, cost, and supplier/ distributer relations
Include micro and small enterprises from the surrounding community into company’s value chain
Consider the inclusion of micro and small enterprises from your surrounding community anywhere in your value chain to gain community acceptance, reduce cost, and access resources
Provide services to the surrounding community such as access to employment in the company or contributing to infrastructure development, health services, or charity
Caring and elevating the standard of your surrounding community is good for your company’s image and gaining community acceptance and support
Recommendations
Environmental Related Activities
CSR Pillar
CSR Activity
Recommended course of action
Reduce the use of utilities (e.g. electricity, paper use, and air conditioners) and/or installing efficient power supply systems/ equipment
Try it! While this strategy will save the environment, it will also save you lots of costs. Do you know that energy saving bulbs save 75% of energy and is long lasting? Closing computers and appliances before leaving work can save 5-10% of electricity bills. Lowering air-conditioning by one degree Celsius can contribute to 10% cut in electricity bills!
Recycle or use production waste when possible and/or implement waste segregation system (plastic, paper, and others).
Waste management will save the environment and the population from lots of health hazards. But this is not it! By using any proper waste management system, you may also save costs as you will be able to reuse your waste in your manufacturing processes, or even to sell you waste (e.g. paper) to respective factories and gain income
Minimize packaging used
Reducing materials for packaging will save the environment and will also reduce your costs. In addition, consumers started to be conscious about the environment, especially in export markets. Your company will gain more consumer support if you reduce package materials used or even use recyclable packaging materials
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Recommendations
Consumer-Related Issues
CSR Pillar
26
CSR Activity
Recommended course of action
Provide clear instructions, factual, and unbiased information to consumers on product labels
Consumers are becoming more conscious about product information, and the absence of this information may stop consumers from purchasing your product/service. In addition, providing information and instructions on product labels is crucial for export markets
Produce products that are healthy and safe
Consumers are becoming more conscious about their health and well-being. Using dangerous materials, ingredients, or alike will stop consumers from buying your product/service and may harm your company’s image. In addition, you will not be able to access export markets
Defend the customer’s right to return back the product in case it is of bad quality.
Consider this important aspect as consumers will not buy from your company next time if they aren’t able to return back a faulty product. In addition, the Consumer Protection Agency states clearly that this is consumer right, so try to endorse this strategy to prevent any legal actions against your company.
Innovate products that can be used/utilized by low income consumers/businesses
Consider innovating products/services that can be utilized by low income consumers/businesses. This will increase the accessibility of low income population to your products/services and will consequently increase your customer base and profits
5
CSR reporting - Tell the world how you do it!
It is very important that companies communicate their CSR strategies and initiatives to various stakeholders to ripe the benefits mentioned earlier and to gain support. For primary stakeholders, it is very important to relate CSR activities communicated to the interests of every group. For example, CSR activities communicated to employees should focus on labor and human rights, while those communicated to consumers should focus on product quality and environmental concerns. Different tools can be used which may include employee general meetings and bulletins, flyers inside product packages or information on product labels, business meetings, and others. As for secondary stakeholders, social media, press releases, periodic leaflets, and website posts can be used as effective CSR communication tools about the comprehensive strategies implemented by the firm. Secondary stakeholders might be interested to partner in one of the CSR initiatives of the firm, sponsor, or even take the firm’s initiative as a case study in one of the publications and thus provide more exposure and investment opportunities. The following is a simple tool to be used for communicating various CSR activities to stakeholders.
What kind of business is your company in? Production
Retail sale
Pharmaceuticals/Cosmetics
Financial services
Tourism
Wholesale
Construction
R&D
Consultancy
Transport
IS/IT
Other: ....................................................
For how long has your company been operating? Less than one year
5-10 years
1-5 years
More than 10 years
How many employees does your company have? 1-9
50-249
10-49
More than 249
Does your company own a defined strategy embedding CSR in its mission and vision? Yes
Do not know
No Does your company undertake socially and environmentally responsible activities (CSR) on occasional or regular basis? And is it related to business strategy or not?
Mission: Organizational statement identifying the organization’s purpose(s) and are related to the specific sector an organization operates in. Vision: Organizational statement outlining what the organization wants to be, where it concentrates on the future, acts as a source of inspiration and provides clear decision-making criteria.
Occasional activities,
Regular activities, unrelated to
CSR is not supported by our
unrelated to business strategy
business strategy.
company.
Occasional activities, related
Regular activities, related to
to business strategy.
business strategy. 27
Does your company carry out socially and environmentally responsible activities (CSR) not aimed at its own employees? Yes, independently (only our
Yes, in cooperation with other
company)
companies
Yes, in cooperation with non-
No, CSR is not supported by
profit organization
our company
Does your company communicate your CSR practices undertaken? Yes, full disclosure Yes, partial disclosure No If Yes, kindly enlist in which way does your company report your CSR practices: Via Sustainability Report
Other (please specify)
Via Environmental report
..........................................................
Via CSR/Sustainability report
..........................................................
integrated in annual report
..........................................................
Is your report audited by an external party? Yes
No
If yes, please enlist the party:
Disclosure: getting the fact about CSR activities known and publicly available A CSR/ sustainability report is a general report about the economic, environmental, social and ethical performance of the companies. An environmental report is a document published by companies to communicate the most relevant environmental issues to its s t a k e h o l d e rs . CSR Report Audit: having an official examination of the CSR report undertaken by an external party (be it an accountant, or an audit firm, or an agency like one of the UN bodies, or a certifying body like the ISO) where such party produces a report about the original CSR report your company had developed to judge its accuracy.
..................................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... Does your company have any accreditations attributing it as a Responsible Company as per some standards (e.g. ISO 9000, ISO 14000, EMAS, other recognized bodies, etc.)? Yes, company is certified according to:
Currently not, but my company is considering the
.........................................................................................................
following certification:
.........................................................................................................
.........................................................................................................
.........................................................................................................
.........................................................................................................
No ISO 14000: license indicating that companies endorse environmental systems as practical tools to manage their environmental responsibilities. ISO 9000: license indicating that companies ensure that their products and services consistently meet customer’s requirements and that quality is consistently improved. European Eco-Management and Audit Scheme (EMAS):
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European Commission (EC) instrument for companies and other organizations to evaluate, report, Other recognized bodies: Different UN bodies like the International Labor Organization (ILO), Global Compact (GC); or Federation of Egyptian Industries (FEI) or others alike.
Community: Identify which of the following activities had been undertaken by your corporation to serve the community it operates within; that are not identified as support for its employees. Check all that applies.
Kindly provide some details about the checked activities in the space provided below
Sport activities.
Recruit suppliers from the surrounding communi-
Cultural activities.
ty and include them in the value chain.
Healthcare.
Include suppliers’ employees in training and de-
Education, mentoring & training activities .
velopment activities for capacity building to ele-
Environmental protection and ecological activi-
vate their standards to meet company’s expecta-
ties (other than activities in direct relation to the
tions.
implications of the company’s own operations).
Other............................................................................................
Assisting deprived community groups in commu-
None of the above measures are implemented in
nity involvement and work process
the company.
Details: ................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... Workplace: Identify which of the following activities had been undertaken by your corporation to serve its workplace. Check all that applies.
Kindly provide some details about the checked activities in the space provided below
Endorse and assist in employee education, train-
Ensure compliance with hiring & tailoring the
ing and development.
workplace to fit with disables employees.
Ensure no employee is subjected to discrimina-
Provision of in-kind incentive systems as flexible
tion throughout hiring or in the workplace in gen-
working hours, bridging vacations, flexible work-
eral.
ing hours, working from home, and others.
Ensure health & safety measures are secured
Creation and compliance to a code of ethics for
throughout the workplace.
all the workforce.
Ensure an ergonomic working environment with
Contribution to social insurance and/or life insur-
comfortable office desks and chairs, and paint
ance for employees.
the offices with nice and bright colors.
Other...............................................................................................
Top-down management consultation with em-
None of the above measures are implemented in
ployees is ensured in different decision-making
the company
processes. Details: ................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... .....................................................................................................................................................................................................................................
29
Marketplace: Identify which of the following activities had been undertaken by your corporation to serve the marketplace it operates within. Check all that applies.
Kindly provide some details about the checked activities in the space provided below
Provide clear, honest and factual information to
Consider underprivileged groups as business op-
consumers about products and services provided
portunities to extend your products and services
Communicate clearly about products’ ingredients,
to (bottom of the pyramid).
usage instructions, assembly, and maintenance.
Other...............................................................................................
Help in educating consumers on the environmen-
None of the above measures are implemented in
tal, social, and economic impact of their purchase
the company .
decisions. Details: ................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... Environment: Identify which of the following activities had been undertaken by your corporation to serve the environment it operates within. Check all that applies
Kindly provide some details about the checked activities in the space provided below
Manufacture products that utilize less or environ-
Measure and assess quantifiable reduction in
mentally friendly resources, with environmental-
carbon emissions from the previous years or low
ly-better packaging.
levels in general as per environmental laws
Possess an environmental policy and an action
Develop, implement and maintain a recycling
plan to implement the policy to lower its environ-
program to protect its surrounding environment
mental impacts
Other...............................................................................................
Identify and introduce measures to limit the con-
None of the above measures are implemented in
sumption of environmental resources
the company
Develop a training program in place to help employees implement the company’s environmental policy and action plan Possess and maintain an environmental monitoring system, measuring the main environmental impacts, especially resource usage, and carbon emissions Details: ................................................................................................................................................................................................................... ..................................................................................................................................................................................................................................... .....................................................................................................................................................................................................................................
30
In your opinion, your corporations’ CSR operations mostly influences which of the following groups? Check all that apply. Workplace (employees)
Environment
Other.......................................................
Marketplace (customers)
Community
...................................................................
Kindly explain your choice: ........................................................................................................................................................................ .................................................................................................................................................................................................................................... ....................................................................................................................................................................................................................................
Kindly attribute which activities have been in practice the major contributors of benefits to your company out of its implemented CSR activities undertaken as per the four below categories. Check the below letter boxes to indicate the answer, where more than one group can be selected. Marketplace
Environment
Workplace
Community
Benefit Enhancing relations with government and public administration
Enhancing customers’ loyalty and favoring your brand
Enhancing relations with business partners and investors
Enhancing employees´ job satisfaction, loyalty, morale and performance
Enhancing the image of the company (creating a positive image)
Enhancing the community that the company operates within
31
References SEKEM www.sekem.com Nefertari http://nefertaribodycare.com/ Al Daour Interview with Mr. Ahmed Al Daour - partner Cilantro https://www.cilantrocafe.net Sun Clean https://www.facebook.com/suncleanegypt/ Danone Extracted from ILO Publication: “CSR Industrial Leaders of Egypt” Towards Creating Shared Value, 2015. Alef Bookstores www.alefbookstores.com Interview with Mr. Ahmed Rahmy, CEO ENTRA Extracted from the publications of the Federation of Egyptian Industries, Environmental Compliance Office (ECO), 2015. Mass Food Company www.massfood.com Mediterranean Gardens http://www.mga-eg.com/quality.asp As Sonbolah http://sonbolah.com/en/ Crystal Asfour www.asfourcrystal.com Juhayna www.juhayna.com Oriental Weavers http://www.orientalweavers.com/ Intercement http://www.intercement.com/en/#/home/
32
Art Express Interview with Ms. Sahar El Seweahy, Financial Controller Karm Solar www.karmsolar.com Prince Steel Interview with Mr. El Prince Menshawy, Owner Nestle www.nestle.com.eg Mansour Group http://mmd.mansourgroup.com/retail/metro/ Unilever Extracted from ILO Publication: “CSR Industrial Leaders of Egypt” Towards Creating Shared Value, 2015. Recyclobekia http://recyclobekia.com/ Proctor & Gamble (P&G) https://www.pg.com/en_EG/ Interview with Mr. Ezzat Naem, Managing Director of Spirit of Youth Association General websites identifying CSR & sustainability guidelines: ••International Labour Organization Multinational Declaration: Tripartite declaration of principles concerning multinational enterprises and social policy (MNE Declaration) - 4th Edition ••http://www.ilo.org/empent/Publications/ WCMS_094386/lang--en/index.htm ••United Nations Global Compact (UNGC): The Ten Principles of the UN Global Compact ••https://www.unglobalcompact.org/what-is-gc/ mission/principles ••OECD Responsible Business Conduct: OECD Guidelines for Multinational Enterprises ••http://mneguidelines.oecd.org/global-forum/ ••ISO 14000 - Environmental management ••http://www.iso.org/iso/iso14000 ••ISO 26000 - Social responsibility ••http://www.iso.org/iso/home/standards/ iso26000.htm
Notes
33
Thank you!