Responsible Business Is the Key – The Role of Corporate Social Responsibility in the Arab Economies

A lot has been written during the last months about the so-called Jasmine Revolution, the end of some corrupt political systems, and the embarking of the Middle East and North Africa (MENA) toward democracy and social reforms. Topics like human rights, transparency, as well as youth unemployment and new technologies for production of energy are dominant in the media coverage about the region. In this interview, Habiba Al Marashi, Chair of the Emirates Environmental Group (EEG) and Board Member of the UN Global Compact, and Walid Nagi, Manager CSR and Corporate Communications at the Al-Mansour Holding and UNGC Regional Networks Manager MENA and Europe, talk about the drastic social changes, the examples companies can provide, and the importance of the business sector for sustainable development in the MENA region.

In the last months, calls for democracy in the Arab world surprised experts all over the world. It began with the demonstrations against high youth unemployment and rising food prices, but soon it transformed into the biggest democratic movement in recent Arab history. How have you experienced the last few months?

Walid Nagi: As I was in the United States at the time, I cannot really comment on that. Like everyone else, I was watching the news on television. But from talking to several people, the feeling has been so positive during and after what has happened in Egypt. During the 18 days, although it was chaotic and no one knew what was going on, everyone had a sense of solidarity and people were acting together to achieve a common goal, which made everyone closer and made the population even stronger.

Which future role should the economy play to support the change?

Walid Nagi: In the future, it is all about the economy, it is all about the private sector acting responsibly and making more investments in Egypt. It is about creating employment that will create social equality. Without the economy, everything will collapse. It is time now to get into creative projects that will employ people and help them earn their living. It is time for the multinational corporations and the local businesses to trust people and to act responsibly in order to achieve growth.

Successful companies traditionally combine economic success with a strong commitment to corporate responsibility and environmental campaigns in the region. Is this a blueprint for other Arab and North African companies? And how has the “green consciousness” of consumers changed over the years?

Habiba Al Marashi: The “green consciousness” of Arab consumers has improved greatly over the years, but more work still needs to be done to shift the whole region into thinking about sustainability, equality, and the environment as a way of life, and not only as a business venture to increase competitive edge. Today a large number of companies are practicing CSR or have environmental policies in place, which is a huge improvement compared to 10 years ago. However, not every company recognizes the work and advantages of being involved with the UN Global Compact, and EEG is actively communicating the benefits with a number of its members and through its large network. By utilizing our outreach capacities, we can reach and inform a wide number of stakeholders, which in turn can keep improving the environmental awareness of society.

Walid Nagi: Mansour Group has always assumed the responsibility of being the leader in the field of development, even if done on a small scale. Mansour Group has been, and still is, one of the biggest advocates of the cause in Egypt, expanding to the Middle East and even to Europe whenever the opportunity is there. Lots of SMEs have even joined the Global Compact to follow Mansour, and we always took it upon ourselves to be mentors and supporters in that area. Mansour is the main supporter of the Global Business Initiative on Human Rights in the MENA region, the representative of the Global Compact in Egypt, and also the main supporter of the Egyptian Corporate Responsibility, the AUC Gerhart Center, among others.


Since 2008, the Arabia CSR Awards recognize corporate engagement in the region. Can you describe the results of the contest over the last few years?

Habiba Al Marashi: The Arabia CSR Awards was established in 2008 to honor organizations that demonstrate a clear and effective CSR strategy. The award series has grown in stature and status over the years. Companies that apply to the awards process gain many advantages and feedback, even if they are not “crowned” as the overall winners. The awards have resulted in many companies improving their accountability, using resources more efficiently, increasing the standards of their workplaces, and improving trust and social dialog. In addition to being considered in the running for the prestigious award, the Arabia CSR Network has set a benchmark standard for companies to meet and go beyond. This benchmarking has actively contributed toward improving business excellence in the region.

Today the UN Global Compact is well integrated in the whole MENA region. Its Local Networks have a high and well-known reputation for their work. Which role can the UN Global Compact play in the future development of your countries and the national CSR community specifically?

Walid Nagi: The Global Compact is the universal corporate social responsibility platform, hence it has a major role to play in the MENA region.

Habiba Al Marashi: The Compact can still play a significant role in the future development of the MENA countries. CSR is becoming more widespread, but the level of participation and commitment from companies can still be improved. The Local Network groups can have a significant impact on companies by becoming the focal point for company representatives to share experiences and learn from each other. As Local Networks go from strength to strength, opportunities are created throughout the MENA region that will contribute to advancing the Global Compact Principles, which are helping to manage the consequences of rapid expansion and business activities.

Nearly all countries in the MENA region are classified as “extreme risk” countries for workers, according to a study by British CSR consultancy Maplecroft. What kind of human- and labor-rights preparation do you recommend to international companies when they become active in your region?

Habiba Al Marashi: Companies that are looking to expand their business in the MENA region, or that already have, cannot be excused for having weak human rights departments because some countries are labeled as being “at risk.”

Issues related to labor and human rights have changed over the years due to changes in regulations, changes in global markets, and other factors. Competitive pressures have also affected the potential for company survival, which may sometimes lead to shortcuts in some business areas such as human resources and/or human rights. The recommendations I would make to companies beginning their ventures in the MENA region would be, firstly, to get involved with the UN Global Compact due to the information and advice that will be available to them. They must also see proper and timely preparation and regional research as an investment for their company and not just as a cost. Companies should take time to investigate the local laws on labor and use management to develop clear goals and objectives to enable them to meet these laws and go beyond the base-level expectations. Implementation of strong CSR strategies would also help them to become competitive in this region.

Walid Nagi: I would recommend that companies join the Human Rights Working Group when they become members of the Global Compact so they can learn the basics about implementation. I would also recommend the same when it comes to labor rights, as these are the main assets for any business.

Protestors in North Africa and the Arabian Peninsula identified the so-called Wasta regime as an obstacle to development. Observers from the Western world often believe that Wasta is no more than a local forum for corruption, which is truly wrong: In fact, Wasta forms part of traditional daily culture, and some experts do not have a completely negative opinion about it. Can you comment on this phenomenon and classify it with the 10th Principle of the Global Compact?

Habiba Al Marashi: Wasta is defined as “an Arabic word that loosely translates into ‘clout’ or ‘who you know.’ It refers to using one’s connections and/or influence to get things done, including government transactions such as the quick renewal of a passport, waiving of traffic fines, and getting hired for or promoted in a job.”
By using the influence to perform a service, the “wasta” acquires prestige and honor. However, more importantly, the person receiving the favor incurs a debt of gratitude, which may have to be repaid in unspecified ways at some point in the future. In the past, wasta was considered as a means of managing relations between tribes and families.

Wasta can be equated to corruption. However, this concept is fast diminishing from the UAE society. It can be considered as one of the main causes for the downfalls of the governments in Egypt and Tunisia. In the UAE, specifically, the concept of wasta is frowned upon and the government has abolished it completely! With a strong education base and transparency, we can ensure this act is completely eliminated.

Let us talk about environment issues: For a long time, your region – as in other parts of the world – has been strongly dependent on fossil fuels, especially oil. But now it seems that new technologies and the use of renewable energy have been brought to public and political attention. Which role can clean technologies play in the future of both the Arabian Peninsula and North Africa?

Habiba Al Marashi: Clean technologies and renewable fuels will most definitely have a role in the future of the Arab Peninsula and North Africa. The region needs to invest in these technologies now even though we still have reserves of fossil fuels. This is important, partly for environmental reasons but also for economic reasons. Due to the complexity of socioeconomics and the environment, if the region does not become a leader in this new type of energy production and begin to move away from oil and gas, we will be left behind in the energy sector, which will have many economic and environmental consequences and repercussions.

Thank you.

The Interview was conducted by Dennis Lohmann, Editor at macondo Media Group