Improving legislation and procedures to advance corporate social responsibility
Public Policy Analysis and Human Rights Unit
Maat for Peace, Development and Human Rights (Egypt)
Under a project
The Universal Periodic Review as a Tool to Improve Public Policies during the Transition
“This release was implemented with the help of the European Union. The content of this publication is the responsibility of the Maat Foundation for Peace, Development and Human Rights and can in no way be considered a reflection of the vision of the European Union.
Social responsibility is one of the most important duties of national companies and institutions, and it is a continuous commitment by them to contribute to developing and improving the cultural, educational, economic and health level of the owners of small and medium enterprises, through the provision of various services that would raise their level in particular and society and change the negative images prevailing in a way. General.
In light of the Maat Foundation for Peace, Development and Human Rights’s interest in following up on the Egyptian government's commitment to its international commitments in the field of urging companies to participate in the comprehensive human development process based on the principle of corporate social responsibility in light of its project “The Universal Periodic Review as a Tool to Improve Public Policies”, the Foundation presents this paper In an attempt to present legislative and procedural proposals and recommendations to bodies entrusted with social responsibility, to help them fulfill their role in the development of the Egyptian state.
The paper deals with the issue through a number of axes, the first of which is an explanation of the concept of social responsibility and the related international efforts, then corporate social responsibility in Egypt, the constitutional, legislative and human rights frameworks that regulate corporate social responsibility towards society, and some recommendations for the advancement of corporate social responsibility.
The first axis: social responsibility, its concept, dimensions and types
First: the concept of social responsibility
There are multiple definitions for the term social responsibility, but the most accepted concept is the one adopted by the World Bank, which defines it as “the commitment of business owners to contribute to sustainable development by working with their employees, their families, the local community and society as a whole to improve the standard of living of people in a manner that serves trade and serves development. at the same time."
It is considered as social responsibility all the activities in which companies contribute voluntarily to achieve development based on ethical and social considerations. Therefore, social responsibility depends on the initiatives of companies without the presence of legally binding procedures.
In most societies (especially Western societies in which the idea of social responsibility arose) it is practiced in a voluntary manner, and there are no specific laws that regulate it, but rather it is left entirely to the discretion of the companies themselves, and this philosophy is what made the European Union define social responsibility as a concept according to which companies incorporate considerations Social and environmental in its actions and in its voluntary interaction with stakeholders.
The European Union focuses on the notion that social responsibility is a voluntary concept that does not require the enactment of laws or the setting of specific rules that companies adhere to in order to fulfill their responsibilities towards society.
Through the previous definitions, we conclude that corporate social responsibility is a voluntary and not compulsory act that reflects the corporate policy and strategy to achieve the interest of all parties, and by this we mean that there are actual returns and incentives that accrue to the company as a result of its social commitment as it returns to society, and the shareholders, workers and customers benefit from this. Consumers and society at large.
The forms of corporate social responsibility differ due to the different party benefiting from that responsibility, for example, and not limited to, the responsibility towards the consumer is the production of a product that conforms to international standards, and the companies' tendency to create job opportunities, while working to raise the efficiency of local labor, and towards employees is limited to wages and training programs To develop the skills of workers and provide an insurance system, and also towards the environment in terms of concern for the industry's approval of environmental conditions, and towards society, by solving problems related to motherhood, health, street children, poverty and the infrastructure of the state as a whole in order to improve the environment surrounding the citizen.
Second: Dimensions of social responsibility
Social responsibility is formed from different dimensions in several aspects, including economic, social, environmental and ethical as well, and social responsibility is represented in the set of voluntary activities carried out by profit institutions, and it fulfills some needs that may not have a direct benefit to the institution and socially responsible institutions seek interest in society through gathering Between the economic, legal, ethical and humanitarian concerns in their marketing strategies, and the economic side and the legal aspect are the most effective on the part of the institutions, while we see that the interest of institutions in the ethical and humanitarian aspects is almost non-existent.
- The economic dimension
The economic dimension indicates that the business sector has an obligation to be productive, profitable, and meet the consumption needs of society, and the pattern of economic responsibility depends on the point of view in which organizations focus on the goal of maximizing profit, and that social contributions are nothing more than byproducts of the economic dimension, which is the discount from The corporation's tax base.
- The social dimension
Social responsibility, in its economic dimension, is represented first by achieving profit, which enables the organization to cover future costs. If it is not able to cover costs through achieving profits, it will not be able to meet any other social responsibility. The social dimension of social responsibility expresses the set of ethical standards and social values prevailing in society by respecting customs and traditions and taking into account the ethical aspects of consumption, so the focus is on the products and services provided in line with the quality of life in society, and the focus is on providing the basic needs in society.
- The legal dimension
The legal dimension expresses the institutions ’commitment to laws, legislations, and regulations enacted by the state that are considered as encouragement, and the organizations’ commitment to adopt responsible and acceptable behavior in their activities and outputs provided to society, and that they do not result in any harm, and this behavior is not reflected in the boundaries of the organization’s relationship with Society only, but works to protect organizations from each other as a result of unfair competition methods that may occur. Social responsibility includes several elements with its legal dimension, including consumer protection laws against fraud, and it also includes protecting the environment from pollution, preventing unregulated use of resources, and disposing of waste, etc.
- The environmental dimension
The environmental dimension represents an urgent necessity that must be undertaken by institutions, especially those that leave an impact on the surrounding environment, such as cement factories, petrochemical factories, and a succession of institutions that affect the environment, directly or indirectly, the institution must take into account the environmental impacts of its operations and products and the elimination of emissions Toxic waste and waste, maximizing efficiency and productivity from available resources and minimizing practices that may adversely affect the enjoyment of the country and future generations.
Third: areas of social responsibility
There are many types of social responsibility, but we can say that it is all that companies, regardless of their size or field of work, do voluntarily towards society. The types of corporate social responsibility include several axes, the most important of which is the commitment to observance of human rights, especially the rights of workers in accordance with the applicable laws and regulations, as well as participation in the promotion of health and environmental care levels, and the development of the local community, and here we monitor corporate responsibility in three axes:
- Responsibility of companies towards their employees
The company’s investment in the company's human resources sector is a real investment that the company reaps in the short and long term, as employment represents an internal field of social responsibility, in which the company is committed to providing the necessary services to improve the quality of workers ’lives through several programs such as training and assistance programs Workers wishing to complete their higher studies in order to develop their technical and administrative skills, also the contribution to social insurance for workers is considered a certain percentage of their salaries and wages to obtain a suitable retirement salary after leaving the pension. One of the companies ’roles in social responsibility towards workers within the company, as it is one of the most important activities Corporate social responsibility is to participate in a private insurance system in partnership with employees with the aim of providing health care and treatment in hospitals and doctors, and providing medical drugs to workers and their families. Also, one of the activities of social responsibility of private sector companies towards workers is distributing a share to workers from the annual profits of the company in order to raise the level of The affiliation and loyalty of employees to the company.
- Corporate responsibility towards the surrounding environment
The Egyptian Ministry of Environment plays an active role in caring for and preserving the Egyptian environment from pollutants through multiple methods, including measuring and monitoring the percentage of pollutants resulting from factory waste, but companies bear a large part of the responsibility in this field, especially in preventing pollution and confronting environmental damage from radiation And emissions from factories as a result of production processes or water pollution and land leveling due to waste dumps and other sources of pollution in order to eliminate societal environmental problems that most people suffer from, one of the most important types of social responsibilities of companies, especially industrial ones.
- Corporate responsibility towards society
This type of responsibility is considered the most important type, especially since companies provide activities related to areas of public benefit to members of society, and the government's participation in providing these activities leads to the speedy elimination of social problems, and this will create an attractive environment for investment and provide social stability for groups of people. The most important of these activities are donations. For foundations, charities and NGOs to finance and provide the needs of needy families within a specific community.
Also, one of the most prominent activities that companies must undertake is financing the fields of education and donations for needy students, and encouraging them to continue their higher studies at home and abroad.
It is also considered one of the most important areas of social responsibility is that companies support health and work to establish medical clinics, and full operating rooms in some hospitals, and contribute to establishing hospitals for serious and endemic diseases, as well as the obligation to compensate individuals for any damages that occur to them as a result of working in the company or individuals in the company's work environment. If they are affected by the company's emissions.
The companies' organizing sports, cultural and scientific forums is one of the most important activities that companies should be concerned with within the framework of their social responsibility towards the state in order to raise the awareness and skill of children in society.
Fourth: International efforts in the field of social responsibility
There are a number of important international initiatives aimed at supporting, promoting and developing corporate social responsibility, and it is important to note that many of the major companies operating in Egypt and outside Egypt are keen to be in line with these initiatives due to the privileges they earn previously mentioned, so it is important to address these Initiatives, the most important of which can be summarized as follows:
- The United Nations Global Compact:
In 1999, the “Global Compact” was issued, an international initiative whereby the United Nations called on companies to display the spirit of corporate citizenship, increase their contribution to addressing the challenges of globalization, and voluntary participation in sustainable development. This charter contained ten principles in the scope of human rights, labor standards, environmental protection and combating corruption. By signing this charter, companies affirm their commitment to their social responsibility in accordance with the principles of this charter.
It should be noted that there are no specific standards to identify the extent of companies ’commitment to implementing the ten principles of the Global Compact. Companies may claim compliance with them without the presence of any standards or evidence demonstrating that, or ensuring that this commitment is met. Some also believe that these principles are related to human rights, workers' rights, the environment, and combating corruption. Therefore, commitment to them cannot be voluntary, but rather there must be some kind of legal commitment to them.
- OECD Guidelines for Multinational Enterprises:
These guidelines, issued in 2001, represent the most comprehensive tools for corporate social responsibility. They are the directives that governments direct to transnational companies operating in countries that have adhered to these recommendations. These directives aim to ensure that these companies respect the prevailing social policies and systems in the countries in which they operate, in order to encourage the positive contribution of the private sector to economic, social and environmental activity in order to achieve sustainable development.
These are the only integrated directives that govern the behavior of transcontinental companies. Although these directives are not binding, they are very useful in providing confidence between transcontinental companies on the one hand and the countries in which they operate and their workers on the other hand. These guidelines cover human rights, disclosure of information, anti-corruption, taxation, labor relations, the environment, consumer protection, and competition protection.
- Tripartite Declaration of Principles Concerning Transcontinental Corporations and the Social Policy of the International Labor Organization:
This declaration was issued in 1977 with the aim of encouraging the positive contribution of transcontinental companies in advancing development. This declaration contained principles relating to the social aspects of the activities of these companies, which both governments and workers' organizations must respect.
These principles include raising the level of employment in the host countries, observing equality of treatment, providing employment opportunities, providing an element of stability and hopes for workers, encouraging training, providing favorable conditions for living and working, and paying attention to industrial relations. These principles are also not mandatory and their application is voluntary. This declaration has been amended more than once to bring it in line with the principles adopted by the International Labor Organization and to renew commitment to the basic principles of the Declaration.
During 2006/07, the International Labor Organization launched a new initiative to emphasize the central role the organization plays in encouraging transcontinental companies to adhere to the principles of the Tripartite Declaration as the basis for its corporate social responsibility policy and for the programs it implements in this context. The organization also seeks, through this initiative, to provide sufficient information on the experiences of different countries and companies in the field of corporate social responsibility, train companies in this field, exchange experiences and facilitate dialogue between other organizations concerned with this topic.
- World Bank lectures program on corporate social responsibility and its impact on corporate competitiveness:
The World Bank offers through the International Information Network a program of lectures on models of corporate social responsibility and the practical practice of companies in this field and their impact on their competitiveness. 20,000 participants from ninety countries benefited from this training program. The World Bank’s interest in providing training programs on corporate social responsibility is due to the lack of skills and competencies for companies in developing countries, especially local companies, to enable them to carry out their social responsibility.
The second axis: corporate social responsibility in Egypt
First: social responsibility in Egypt
In Egypt, this concept is relatively recent, and interest and institutionalization began a few years ago (after the year 2000). It focuses mainly on the activities carried out by companies in some areas of community development, such as improving public services, supporting charitable and charitable institutions, carrying out some education and literacy activities, Vocational and professional training for youth and women, developing unplanned areas, supporting people with disabilities and at-risk groups, improving public health and supporting health institutions.
But so far, no contributions have emerged for companies outside this framework, especially in the areas of human rights support for civil society, awareness of issues of a political or civil nature, in addition to the fact that the majority of companies that practice social responsibility do not set governing institutional rules in this regard and do not allocate fixed rates of their profits. For this purpose, they often focus on issues that provide media publicity to these companies or directly serve their profit purposes and their economic fields of operation.
Most of the companies in Egypt carry out their activities through non-governmental organizations of a charitable nature such as Orman, Misr El-Khair and Resala, and a few companies cooperate with associations of a developmental nature that focus on youth, such as the “Injaz Egypt Foundation”, or some universities and academic institutions or even government institutions, but There is no cooperation between human rights organizations and companies.
Other than that, there are companies that have established private institutions affiliated with them to assume the role of social responsibility, and among the most important examples are the Vuafon Foundation for Community Development, the Mohamed Farid Khamis Foundation of the Oriental Weavers Company, the Banque Misr Foundation for Community Development, the Hermes Foundation.
One of the most important areas of interest for companies in Egypt is the development of informal settlements, followed directly by helping people with disabilities, then vocational training for young people, support for the health and education sector, and finally helping women breadwinners, street children and orphans, and there is limited interest in issues of a civil nature such as violence, for example.
The government banking sector is the most committed to and supportive of the idea of social responsibility, and Banque Misr is one of the most supportive in this field, followed by the Federation of Egyptian Banks, and then comes the telecommunications sector, with Telecom Egypt (a government company) at its head.
The first report issued by the United Nations on social responsibility in Egypt confirmed that 61 % companies and industrial and investment institutions in Egypt do not participate in any activities in support of the various fields of social responsibility. This is due to the limitation of the concept of social responsibility for those companies, while the companies that embrace the concept of social responsibility have a higher profitability rate 18% than those that do not have responsibility programs. These companies must issue their annual non-financial reports in which their mechanism is clearly defined in social responsibility, in order to achieve the principle of transparency and help the media to carry out their responsibilities towards that company or not, and it also includes transparency in work, and keeping away from administrative, financial and moral corruption .. to other than This is one of the factors that are related to each other and together form the basis for corporate social responsibility.
But on the other hand, the report indicates that although a limited number of companies in Egypt are interested in participating in development, their participation has had a positive impact in reality. The figures indicate that the private sector’s participation in development, although it was limited to 39% only, out of a total of 574 companies included in the report, managed to contribute about 5.5 billion pounds in the fields of fighting hunger, extreme poverty, education, environment and development, which is a huge and influential figure and highlights the importance of private sector participation in development as a matter of Corporate social responsibility.
The report issued by the United Nations Development Program entitled “Business Sector Solutions for Human Development” indicates that the contribution of the companies covered in the report in the fields of education and the eradication of hunger and extreme poverty by 11% for each of the total contributions, while the figures indicated that the contribution is in the areas of improving maternal health and the environment The lowest score was 2%. The report also made clear that most of the companies' initiatives were primarily humanitarian and religious motives, and were often separate from the company's core business activity.
It is also noticeable according to the report that multinational international companies are more generous in participation and giving than national companies due to the existence of a solid international culture that supports the trend towards community participation. It is a fact proven and discussed by the United Nations Report on Corporate Social Responsibility. The report indicated that national companies play a role in community participation, often in the short term, and as a result of the presence of certain problems and cases, the company finds that it must play a role in confronting the contribution to solving them. This means that most of the activities are mainly associated with individual cases and public relations, but they are not absorbed in the framework of work programs that serve the needs of the economy and society in general..
Second: companies benefit from practicing social responsibility?
In light of the increasing interest in the concept of corporate social responsibility, the question arises about the reasons that encourage it
Companies to abide by this responsibility, especially in light of the financial and material burdens it entails. International and national experiences indicate that the advantages that accrue to companies are as follows: -
- Improving the companies' reputation, which is built on the basis of efficiency in performance, success in providing services, mutual trust between companies and stakeholders, the level of transparency with which these companies deal, the extent of their observance of environmental considerations and their interest in human investment. The companies' commitment to social responsibility greatly improves their reputation
- Facilitating obtaining bank credit, especially in light of the introduction of some indicators that affect the credit decision of banks. These indicators include the Dow Jones Sustainability Index (DJSI), which was launched in 1999 and is concerned with ranking global companies according to the degree to which they take into account social dimensions and environmental considerations during their economic activity, and therefore companies that exercise social responsibility have a greater opportunity to obtain financing from institutions. International finance and banking.
- Attracting the most efficient human elements, as the companies' commitment to their responsibility towards the society in which they work represents an element of attraction to the distinguished human elements, especially for transcontinental companies or major local companies that work in specialized fields and use modern technology
- Building strong relationships with governments, which helps in solving problems or legal disputes that companies may encounter during the exercise of their economic activity
- Good management of the social risks that result from companies carrying out their economic activities, especially in the context of globalization. These risks are represented in environmental compliance, respect for labor laws and application of standards, which represent a challenge for companies, especially small and medium-sized enterprises
- Obtaining tax exemptions: - Many tax laws grant exemptions to companies for donations they make to society or to civil society organizations, and in Egypt the new Associations Law (70 of 2017) stipulates in Article 16 that donations made to associations are considered a cost on the donor's income without It increases 10% of his net income.
Third: the role of the government in corporate social responsibility
قامت الحكومة المصرية في العام 2005 بمنح الشركات الخاصة ورجال الأعمال إعفاء جزئي من الضرائب التي تخضع لها أرباحها إذا ما قامت بالتبرع للأنشطة التي تندرج تحت المسئولية الاجتماعية، وقد أعفى قانون الضريبة على الدخل رقم 93 لسنة 2005 التبرعات والدعم الذي تدفعه الشركات للجمعيات الخيرية والمنظمات غير الحكومية في حدود نسبة %10 من أرباح هذه الشركات وهي نفس النسبة الذي أقرها أيضا قانون الاستثمار رقم 72 لسنة 2017.
The Egyptian government has also established the Egyptian Center for Corporate Responsibility, which aims to raise awareness, build commitment, and promote multi-stakeholder participation in corporate responsibility and sustainability practices. The center’s mission is to enable companies to develop sustainable business models, in addition to improving the government's ability to design, implement and monitor sustainable liability policies. Corporate social.
In the year 2011, the Center established the Egyptian Corporate Responsibility Index, which is concerned with evaluating companies in terms of the volume of information that these companies voluntarily collect about their practices in the field of corporate governance, the environment and corporate social responsibility, and the best 30 companies are chosen from among these companies to represent the Egyptian index of corporate responsibility. This evaluation of companies is carried out through three basic stages: the quantitative evaluation stage, then the qualitative evaluation stage, then the stage of calculating the collected points, then the companies 'ranking is announced, which will benefit the company in improving the companies' reputation, facilitating access to bank credit, attracting the most efficient human elements -Build strong relationships with governments.
The Ministry of Industry and Trade also provides moral awards to companies that achieve best practices in the field of social responsibility, as has happened for a long time in Egypt, which is the awarding of the Companies Cup annually before.
The third axis: the constitutional, legislative and legal framework for social responsibility
There are many frameworks governing companies in carrying out their role in society according to the constitution and some legal articles that regulate the amount of companies' participation and also what was presented to the state of Egypt during its submission to the universal periodic review mechanism, according to the following: -
- the Constitution
For the first time, after the recent amendments in 2014, the Egyptian constitution was concerned with obligating the state to motivate the private sector to assume its responsibilities towards the surrounding environment and towards society, in Article 36 It stipulates that “the state works to stimulate the private sector to fulfill its social responsibility in serving the national economy and society”
One of the obstacles that companies assume their responsibilities towards society is the lack of an explicit and clear law on social responsibility, which has led to the reluctance of a large number of companies to play their societal role, as social responsibility was limited to very few articles within the new investment laws No. 72 of 2017 and the tax law on Income No. 91 of 2005, and Law No. 70 of 2017 affirmed the role of companies in donating to NGOs and civil institutions, which led to the failure to provide an appropriate environment for companies to carry out their activities in the field of social responsibility.
In addition, the failure to adopt laws that allow the transparent announcement of the various government policies, provide information, improve government systems in various bodies and departments, encourage partnership between the public and private sectors, and carry out their social responsibility towards various stakeholders through the necessary incentives and privileges for government tenders for a specific period and link them to achieving specific social goals. To the reluctance of companies to actively participate in their societal role.
Where the text of the investment law Ali:
Article 15 “In order to achieve the goals of comprehensive and sustainable development, the investor may allocate a percentage of his annual profits to be used in establishing a community development system, outside his investment project, through his participation in all or some of the following areas:
1- Take the necessary measures to protect and improve the environment.
2- Providing services or programs in the fields of health, social or cultural care, or in any other development field.
3- Supporting technical education or funding research, studies and awareness campaigns aimed at developing and improving production, in agreement with a university or scientific research institution
4- Training and scientific research
The amounts that the investor spends in one of the fields stipulated in the previous paragraph, not exceeding the percentage (10%) of his net annual profits of costs and expenses shall be deductible according to the provisions of Article (23) (Clause 8) of the Income Tax Law promulgated by Law No. 91 of 2005 .
The Competent Minister, in coordination with the concerned ministries, may create a list of the best investment projects that carry out societal development activities, whether geographically, sectorally, or otherwise, and announce it to the public opinion.
In all cases, it is prohibited to use projects, programs, or services provided under the social responsibility system to achieve political, partisan, or religious purposes or that involve discrimination between citizens.
The executive regulations of the law indicate the necessary controls and other rules for implementing the social responsibility system.
The income tax law also stipulated Ali:
Article 23 “The following …… are among the costs and expenditures that must be deducted in particular.
Article 8: Donations and subsidies paid to Egyptian civil societies and foundations publicized in accordance with the provisions of the laws that regulate them, and to educational institutions, hospitals under government supervision and Egyptian scientific research institutions, in a manner that does not exceed 10% of the taxpayer's annual net profit
Civil Associations Law No. 70 of 2017
Law No. 70 of 2017 (Civil Associations and Institutions Law) also affirmed the participation of companies in social responsibility, in accordance with the fifth paragraph of Article 16, which stipulates that “Donations made to associations shall be subject to a charge on the donor's income not exceeding (10%) of net His income '
From the above, it is clear that the systems currently applied in business companies do not include methods and methods for accounting for social responsibility activities, and that all information announced in the reports and financial statements of social activities does not go beyond the limits of those that lead to financial burdens for tax purposes, And it is announced on the basis that it is part of information related to economic activities, and not as information related to the extent to which the company exercises its social responsibilities. For example, the value of social insurance that the company pays for its employees is disclosed in terms of salaries and wages, while information related to social activities Towards the community and does not result in explicit financial burdens, whether its results are positive, such as spending on studying and training some students and sponsoring an orphan, or negative, such as the company's contribution to environmental pollution as a result of dust and flying smoke from practicing its activities. It is not disclosed in the published financial statements of the company.
- Review recommendations
In the last UPR, several recommendations were submitted to the Egyptian government related to the need to urge companies in the private sector in general to participate in the comprehensive human development process based on the principle of corporate social responsibility, and the Egyptian government agreed to all of these recommendations, and thus the government is committed to implementing them. Which: -
- Recommendation No. 166-291, which states “Urging commercial enterprises and the private sector to participate in the comprehensive human development process based on the principle of corporate social responsibility, including through voluntary initiatives and charitable work”, and submitted by the State (Sri Lanka);
- Recommendation No. 166-292, which states “Spreading the concept of social responsibility for capital and broadening its understanding, and encouraging businessmen and the private sector to contribute to the overall human development process, including through voluntary initiatives and charitable work” and was presented by the State of (United Arab Emirates);
- Recommendation No. 166-293, which states: “To exert more efforts to promote corporate social responsibility in private enterprises, and to encourage them to promote voluntary initiatives that contribute to the human development of the Egyptian people: and it was submitted by Venezuela (Bolivar Republic)
- Recommendation No. 166-294, which stipulates “Encouraging private capital to contribute to the national development process by financing charitable work,” and it was presented by the State of (Iraq)
The fourth axis: the final recommendations
From the above, it appears that the social responsibility of the private sector companies in Egypt has become the issue most concerned with helping the government to fulfill its obligations towards society, which makes the private sector have to play a greater role in raising the level of community welfare and preserving the environment with the aim of preserving the good reputation of the company. In society, for this to happen, the Maat Foundation for Peace, Development and Human Rights proposes a number of recommendations at the level of legislation and also a set of recommendations to the executive bodies with the aim of helping the government to maximize the role of corporate social responsibility for the advancement of society.
- First, recommendations at the legislative level
- Increase the tax exemption limit to 20 % of the annual net profit value in return for directing it to social activities by amending Article 15 of the Investment Law and Article 23, Clause 8 of the Income Tax Law.
- Establishing comprehensive legislation for corporate social responsibility: it regulates corporate spending according to the state’s plan for developing society, which helps to bridge deficiencies in some sectors such as health and education.
- Taking into account the procedures that facilitate the companies' assumption of their social responsibilities in the executive regulations of investment laws, civil societies and institutions currently being prepared.
- Second: Recommendations to the executive authorities
- The Egyptian government is developing a set of indicators for social responsibility through the Ministry of Investment in order to compare and evaluate the performance and social role of companies, while giving competitive advantages to the most active companies.
- The government transparently announces its various policies, provides information and makes it available, improves government systems in various bodies and departments, and encourages partnership between the public and private sectors, by giving companies a set of incentives and privileges for government tenders for a specific period and linking them to achieving ad hoc social goals.
- Organizing large-scale campaigns to promote the concept of corporate social responsibility, especially small and medium-sized companies, with the importance of these programs and their impact on corporate profits in the medium and long term.
- The government announces the prioritization of social development that companies wishing to implement social responsibility programs should target in accordance with sound systematic plans prepared in advance.
- Third: Recommendations for companies
- The necessity of believing in the issue of social responsibility towards society
- The company defines a clear vision towards the social role it wants to adopt and the main issue that it will be interested in working to contribute to addressing.
- The company assigns a dedicated official to this activity, along with specifying the required goals and plans
- Interest in making these social programs stand alone in the future and working to cover their expenses on their own.
- Ensure that these programs are provided with strong, distinguished performance and high quality.
- Good management of the social aspects that emerge during the companies' economic activity. These aspects are environmental commitment, respect for labor laws and the application of standard specifications.