1. Federation of Egyptian Industries
(Environmental Compliance Office ECO)
Strategic Vision to Sustain Corporate Social
Responsibility
Prepared By:
Dr/ Said El Dalil

2.  The One of the most frequently asked
questions and probably for all those
individuals and organizations dealing with
CSR issues is the obvious - just what does
'Corporate Social Responsibility' mean?
 Different organizations have framed
different definitions - although there is
considerable common ground between them.
 CSR is about how companies manage the
business processes to produce an overall
positive impact on society.

3.  Understand the key features of Corporate
Social Responsibility, particularly as a tool for
bringing about real solutions to current
environmental challenges.
 Understand how the CSR concept can be
executed and applied appropriately.
 Why CSR increases competitiveness of
Egyptian businesses?

4.  Approach and conceptual framework for CSR,
definition, concept, strategy.
 The business society (Egyptian impact).
 Arguments against CSR.
 Environmental Compliance Office (ECO).
 The challenge of CSR, issues and difficulties
of CSR.
 Conclusions and Recommendations

5.  The CSR as an idea first emerged in 1930s in the
Anglo-American world when the separation of the
ownership and control in the large corporations led to
the discussions on the „abilities‟ and limits of
„discretionary power‟ of the managers.
 In 1950s, the growing power of the large corporations
triggered the discussions on the capabilities and
limits of the managers who direct the corporations.
 In 1960s, the debates on CSR concentrated on the
content of the responsibilities of the businessmen.
 In 1970s, the outburst of many scandals in the
developing countries concerning the activities of
multi-national corporations (MNCs) condensed the
political debate on the legitimate sources of the
corporate power

6.  Furthermore, in 1980s, as an attempt to
integrate economic, moral and political
concerns regarding the corporate actions,
the Stakeholder Theory was developed.
 CSR is built on the assumption that the CSR is
a floating phenomenon and contested
concept of which content varies in respect to
the interrelation of different structural
factors and the strategies of different
agencies in particular settings.

7.  Corporate social responsibility generally
refers to:
 A collection of policies and practices linked to
relationship with key stakeholders, values,
compliance with legal requirements, and respect
for people, communities and the environment.
 The commitment of business to contribute to
sustainable development, commonly understood
as sustainable development is the ability of the
current generation to meet its needs without
compromising the ability of future generations to
meet theirs.

8.  CSR Main Components:
 Environmental protection.
 Labor Security.
 Human rights.
 Business standards.
 Marketplace.
 Community involvement.

9.  The motivation for CSR in Egypt differs from that
of companies operating internationally. CSR is
strongly influenced by Egypt‟s religious beliefs.
 CSR in Egypt is still regarded as a non-
institutionalized phenomenon and is understood
mainly as a philanthropic concept.
 Egyptians are historically known for their close
social ties and their inherently philanthropic
disposition. However, CSR is still waiting to
become a full-fledged and integral part of core
business activities.

10.  Therefore, we examine the extent and the
determinants of CSR disclosure in Egypt; we
examine the degree to which firm
characteristics :
 Firm size.
 Profitability .
 Liquidity.
 Ownership type.
 Audit type

11.  CSR in Egypt is still regarded as a non-
institutionalized phenomenon and is understood
mainly as a philanthropic concept. Egyptian
companies operate in an environment where CSR
compliance is mostly voluntary and many lack the
necessary consistency and seriousness of purpose in
their social responsibilities. In Egypt there are the
usual PR and marketing campaigns rather than well-
conceived programs aimed at ongoing societal
development and sustainable economic
improvement.
 Egypt‟s CSR was regarded by many as a legitimate
alternative philosophy needed to correct the
country‟s economic fiascoes and amend its social
inequalities. Many questions rose in trying to describe
the expected role of CSR in the country.

12.  Moral argument: CSR broadly represents the
relationship between a company and the
wider community within which the company
operates. It is recognition on the part of the
business that „for profit‟ entities do not exist
in a vacuum, and that a large part of any
success they enjoy is as much due to the
context in which they operate as factors
internal to the company alone.

13.  Economic argument: It is an argument of
economic self-interest (that there are very real
economic benefits to businesses pursuing a CSR
strategy)and is designed to persuade those
business managers who are not persuaded by the
moral case.
 Proponents of this argument believe that CSR
represents a holistic approach to business.
Therefore, an effective CSR policy will infuse all
aspects of operations. They believe the actions
corporations take today to incorporate CSR
throughout the organization represent a real
point of differentiation and competitive market
advantage on which future success can hinge.

14.  The Environmental Compliance Office at the
Federation of Egyptian Industries (ECO) was
established in 2002 by the Egyptian
Government in accordance with article 3 of
presidential decree no. 64 of 2001.
 . ECO provides premium consultancy services
for the private industrial sector in the field
of cleaner production, environmental
management system and energy efficiency,
strengthen the competencies and the local
capabilities to promote the cleaner
production technology.

15.  ECO helps its clients achieve environmental
compliance by the application of Cleaner
Production technologies (CP) thus reducing
the environmental impacts of their business
and at the same time attaining higher profits
due to improved product quality and reduced
waste.

16.  ECO is currently active in promoting CSR
(Corporate Social Responsibility)
commitment in the small and medium
enterprises (SME).
 FEI‟s commitment to CSR is very much in line
with overall mission “To drive industrial
economic growth, both domestic and export,
using an independent proactive, self
sustainable and integrated approach to
global competitiveness, while balancing the
needs for our stakeholders”.

17.  By providing knowledge, dissemination of
best practices, practical localized tailored
tools and other means of support, the FEI
and ECO should help Egyptian companies
develop and implement CSR strategies. FEI
and ECO should develop industrial sectors
initiatives to mainstream CSR principles
within each sector‟s particular context.

18.  CSR would increase the competitiveness of
Egyptian businesses in globalized world.
Hence, FEI and ECO work in close
collaboration with the government,
international donors and business association
as well as other organizations committed to
growth and sustainability, creating a shared
agenda among government, businesses and
civil society.

19. Al-Mansour Group is a leading private sector
conglomerate in Egypt, with an annual
turnover exceeding $2.4 billion dollars and
employs more than 10,000 people. The
Group‟s core expertise lies in the distribution
of world-renowned brands in Egypt, Russia,
the Middle East, and Africa, supported and
maintained by best-in-class customer
service.

20.  Education: The group follows a very
organized CSR strategy that mainly consists of:
 Reduce poverty through Education;
 Focus contributions on responding to human
needs in order to alleviate suffering;
 Ensure contributions are sustainable and
have measurable impact.
 Work with well-organized associations to
ensure that support is reaching the intended
beneficiaries.

21.  Al-Mansour group successfully implemented
several projects and initiatives focusing on
Education, including “The Literacy Awareness
Campaign”, “Eradicating illiteracy in Beheira
and Mansoura Governorates", and “Financing
the Advance School for Autistic Children”.
Below is a brief description of the three
projects.

22.  Environment: Al-Mansour Group strongly
believes and is firmly committed to raising
awareness on the importance of protecting
the environment. The group emphasizes key
environmental issues, such as climate
change, a topic currently raising significant
global concerns.

23.  One of the main environmental initiatives
that the group implemented is the
“Environmental Awareness Campaign" (2005-
2008). This campaign was developed to
support the group‟s vision of increasing
Egyptians‟ awareness of the threats and
hazards of pollution, and its serious effects
on the environment and on peoples‟ health.

24.  AllLove Egypt”. The campaign focused on
how people could change their behavior to
save the environment. They promoted this
concept by providing examples of some
habits that, if applied, could keep the
environment clean, including regularly
maintaining cars to reduce smoke pollution,
and cutting down burning rice straws.

25.  “Anew phase of our understanding of the
role we have to play in developing Egypt, we
believe it is no longer possible for us to work
on development and CSR separately. It has
become a necessity to unify the efforts of
the private sector, the public sector, civil
society and the international organizations to
achieve a real development long awaited by
our society. Only by growing together we can
ground breaking results that cannot be
achieved by any of these groups alone”

26.  Exposure to criticism from various parties
because of imposed social responsibility
programs for capital corporate commitment to
transparency, which could adversely affect the
willingness of companies to participate in the
design and implementation of these programs.
 Lack the necessary expertise to implement social
responsibility programs for capital effectively
and associated for the preparation of reports and
follow-up and evaluation.
 The high cost of implementing social
responsibility programs of capital and the lack of
adequate financial resources to cover them.

27.  Providing a better climate for doing business, and a better level
of governance, transparency and voluntary, and respect for the
laws.
 Establish some important values ​in human resources workers to
motivate them to respect the values ​of work and excellence, and
encourages the best human elements and qualified and trained
labor.
 Raising the level of productivity to face increased competition
globally and locally.
 The obligation to apply international standards, especially when
exporting to the outside and rehabilitation with the terms of
purchases government.
 Improve the relationship between companies and various
stakeholders from consumers and suppliers, companies‟ transient
continents through global supply chains.
 Use social responsibility programs as a tool for monitoring and
evaluation within the companies.
 Responding to efforts by the government and civil society
initiatives for the protection of consumer rights.

28.  In general, and despite the varying level of
social responsibility of capital from one
country to another, but the indicators
emphasizes the growing social role played by
companies in the areas of social, especially
in the areas of education and health and
support the poor and minorities and the
defense of human rights. But this role is still
limited and do not feel it but a small
percentage of the members of the
community.

29.  National Plan:
 Provide a favorable environment for the corporate activity
and meet the challenges of local and global competition.
 Give a good example to companies through transparent
disclosure and advertising for various government policies
and the provision of information, availability and improve
governance systems in the bodies and various government
departments and encourage partnership between the
public and private sectors.
 Encourage companies to its commitment to social
responsibility towards various stakeholders through
incentives tax and special privileges, government tenders,
for a specified period and linked to the achievement of
social goals specific.
 Grant some financial and moral awards to encourage
companies to contribute effectively to the responsibility
programs social capital.

30.  Business Organizations:
 Define the concept of a unified social responsibility of capital,
reflecting the economic and social reality Egyptian society.
 Organizing large-scale campaigns to promote the concept of
corporate social responsibility and to increase awareness among
these companies, especially small and medium enterprises, the
importance of these programs and their impact on corporate
profits in the long medium and long term and the integration into
the global supply chains.
 Prioritizing social development to be on the business sector to
target and identify the most efficient ways to deal with them.
 Drawing an integrated strategy for social responsibility to be
built capital in determining the priorities that will be handled
and also the general principles that must adhere to corporate
responsibility programs are implemented social.
 Setting a time frame for the implementation of this strategy and
selection of some of the indicators that measure the success of
programs strategy in achieving the desired objectives.

31.  Each company must ensure that its own message to
assume their social responsibility towards different
stakeholders, as emphasizes the protection of
company assets, and respect for the rights of the
owners Interests.
 Adopting companies a clear policy for human
development, so as to provide on workers
participation in management by reviewing the annual
budgets and determine the wages and the level of
health care that they enjoy and also the training they
need.
 A group of companies committed to ethical rules
determined by the boards of these companies and
approved by the campaign shares are declared with
full transparency and companies committed to its
application.

32.  Companies should be interested to meet its
obligations to its customers and strives to
meet their wishes and protect their rights.
 Need to take into account environmental
considerations during practice firms to
economic activity.
 Preparing guidance for social responsibility.

33.  Coordinate among international companies
to provide expertise accumulated from
working in the field of social responsibility of
capital in different countries, especially with
regard to effective and efficient programs
and how to implement and finance and also
the style and systematic follow-up and
evaluation and disclosure and reporting.
 Support for local companies, especially in
the area of ​training of trainers and
rehabilitation in the field of designing and
implementing programs social responsibility.