The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the

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2 The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, and their families, as well as of the local community and society at large (World Business Council for Sustainable Development, 2000). Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business (Business for Social Responsibility, 1998). Key issues in responsible business: *Labor rights Environmental conditions *Human rights *Poverty alleviation

3 Early Definitions: Economic Responsibilities: The corporation's sole responsibility was to provide a maximum financial return to shareholders, 1960 s and 1970 s: Legal Responsibilities -The pursuit of financial gain had to take place within the laws of the land. Law is society's codification of right and wrong. Ethical Responsibilities: Be ethical - Obligation to do what is right, just, and fair: i.e., labor and ethical business practices. Philanthropic responsibilities: Be a good corporate citizen - Contribute resources to the community, i.e., donating charity funds. (Source: adapted from Carroll, 1991) Today, we need institutional engagement/partnership between the private sector and the government to achieve broader development goals and drive sustainable economic growth and opportunity.

4 The Egyptian National Competitiveness Council (ENCC) is an independent policy advocacy body established through the efforts of Egyptian businessmen. It is the first non-governmental organization in Egypt to focus primarily on the issue of competitiveness. ENCC s vision is to become a key instrument in changing government strategies and policies to increase Egypt s global competitiveness. ENCC s mission is to be an efficient and effective platform that brings together stakeholders (government, businesses, civil society, political groups, Parliament, academia and media) in order to raise awareness end advocate policies that enhance competitiveness and inclusive growth. Similar global organizations include the World Economic Forum, the World Business Council for Sustainable Development, the International Business Leaders Forum, the Initiative for Global Development and Business Action for Africa. (The FEI in Egypt).

5 Competitiveness is defined as the set of institutions and policies that determine the level of productivity of a country. The WEF s GCR measures 3 stages of competitiveness (basic requirements; efficiency enhancers and business sophistication and innovation) over 12 pillars.

6 Egypt s Performance on the GCI

7 Responsible Business & Competitiveness: Is there a Relationship? Corporate (Micro) Level (Projects) At the corporate level, The adoption of a RB strategy has a positive impact on competitiveness, as it forces sustainable development in corporate vision through corporate strategy, strengthens relationships with key stakeholders through stakeholder management, and improves the transparency of the organization through accountability management processes Macro-Level (ENCC/Government Policies) ENCC as a business-led coalition provides an increasingly important platform for: convening multi-stakeholder initiatives and mobilizing private-sector and other stakeholders engagement in development; improving the transparency of the government through accountability management.

8 Responsible Business & Competitiveness: Is there a Relationship? Corporate (Micro) Level (Projects) The term "stakeholders describes those groups or persons who have a stake, a claim, or an interest in the operations and decisions of the firm. Sometimes the stake might represent a legal claim, such as that which might be held by an owner, an employee, or a customer who Macro-Level (ENCC/Government Policies) At the macro-level it the term stakeholders describes all the partners in reform: the government, the private sector, civil society, media, political groups, parliamentarians, labor unions. Each group has a stake in reforms, and has different objectives that need to be aligned towards a bigger goal The stake might be represented by a moral claim, such as when groups assert a right to have their opinions taken into consideration in

9 In Egypt, socially responsible conduct is the conduct that does not violate the Law. The precise codes of responsible conduct of companies that do not contradict with the interests of numerous stakeholders are not defined. Either because of the lack, or break of such codes today great damage is caused to consumers, the employed, social community, living environment Activities connected with corporate social responsibility are mainly focused on solving problems at micro but not at macro level. For example, many international companies, by their activities in the sphere of social responsibility, contribute the local communities development, but not to policy change which leads to the development of the country as a whole.

10 CSR agenda of corporations in Egypt is mostly defined by the financing gap in public spending. CSR does not address policy issues affecting competitiveness of firms and competitiveness of Egypt. Multilateral and bilateral development agencies have provided catalytic financing to support private enterprises and their representative bodies in policy dialogues with the government and remain the biggest supporters to policy advocacy. But the experience of the last 4 years has shown us that: Donor support could be unreliable. Donors may have their own agendas not aligned with the private sector/ civil society view of needed change.

11 The private sector could be more effectively engaged by broadening awareness on country ownership. Champions and leaders from the top businesses in the private-sector, civil society and academia need to understand the importance of becoming more engaged in identifying priorities for inclusive growth and competitiveness, and develop implementation strategies and public campaigns. How can we encourage and integrate the private sector s voice and experience into in a more collective manner to achieve system-wide change and increase the scale and impact of joint efforts on the policy dialogue with the government? Within multilateral and bilateral development agencies, there is an opportunity with sustainable impact support the scaling up of business engagement in advocacy and public awareness of competitiveness/development issues. Private sector stakeholders need to jointly develop innovative new financing mechanisms and business models that will deliver more inclusive growth and competitiveness in Egypt.