Notable Shift Towards Holistic Understanding of CSR

It took its time but the Global Compact has become increasingly important in the Middle East and North Africa (MENA) over the last couple of years. UNGC spokesperson Matthias Stausberg explains in our interview that the understanding of Corporate Social Responsibility (CSR) as a value driver is typical for the whole region.

Matthias, you visit the MENA region frequently. What are the latest highlights in your opinion?

Matthias Stausberg: Since taking its first steps into Egypt more than five years ago, the Global Compact has made enormous progress in the entire Middle East, with the number of active participants now standing at 158, including 120 businesses. Most recently, Global Compact launch events have been held in Israel and in the Gulf Region, with new networks emerging fast in Jordan and Syria as well. The adoption of responsible business practices has certainly been on the rise throughout the region, with a notable shift from pure philanthropy to a more holistic, strategic understanding of CSR as a value driver. Thankfully, governments throughout the region are beginning to understand the importance of promoting responsible business as a critical factor in maintaining the competitiveness of their economies, especially in this difficult time.

With Masdar City and other ambitious projects, the Gulf region is promoting its green vision. They are all prestigious. Do you observe good grassroots policies, too?

Stausberg: There are national prestige projects, but there is also an astounding array of efforts by individual businesses, business associations, and civil society organizations to raise awareness of responsible business practices and advance implementation. Note that corporate responsibility is often discussed in the context of national development – there is an increasing sense that tackling the issues the Global Compact promotes is critical to the long-term sustainable development of the region. Of course, many critical issues remain to be addressed effectively, from labour standards to corruption. But across the board, there has been significant progress.

Due to the political situation in the region, conflict prevention is still a core issue for the whole area. Is the CSR community in the region making progress in that sense?

Stausberg: Many business leaders in the region are well-aware of the positive role business can play in conflict prevention. Markets can only flourish in a climate of peace and stability. At the same time, business can help bridge divides that exist between cultures and peoples.

There are additional forces at work as well. More recently, institutional investors from a number of countries formed the Conflict Risk Network (CRN) – a new initiative to advance corporate responsibility in conflict-afflicted regions to mitigate conflict risk and increase responsible foreign investment. These kinds of efforts will have an impact, as foreign investors are under increasing public scrutiny.

What are the upcoming milestones for the MENA region in your opinion?

Stausberg: The next few years will see the continued increase of Global Compact participation in the region, hopefully coupled with the establishment of strong local networks. The business case for corporate responsibility is increasingly understood, so we remain hopeful that progress will be rapid. In some issue areas, such as renewable energy and low-carbon infrastructure, the region has some advantages and could emerge in a leadership role, both through smart investments and clever public policy.