Business Solutions Report English

for
Business Solutions
Human Development
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Business Solutions for Human Development Report 2007
Photo Credits
All photos in this report are copy right of Community and Institutional Development (CID).
Disclaimer
The views expressed in this publication are those of the author(s) and do not necessarily represent
those of the United Nations, including UNDP, or their Member States.
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Acknowledgments
Director and Lead Author Dr. Laila Iskandar
Editor Ms. Janet Breeze
We would like to thank the United Nations Development Programme (UNDP) in Egypt for
undertaking this pilot study which is in line with UNDP’s global initiative for Growing Inclusive
Markets (GIM) which recognizes that the private sector is the greatest untapped resource in the
race to achieve the Millennium Development Goals (MDGs) by 2015.
The cooperation with H.E. Dr. Mahmoud Mohieldin, Minister of Investment in Egypt was
instrumental for the development of this report through the Ministry’s substantive inputs, guid-
ance on content and support, as well as for the assistance from colleagues in the Ministry of
Investment. Particular thanks go to Ms. Racha Khalil, Investment & Financial Services Specialist,
and Ms. Eman El Gammal, Economist.
Several people provided substantive inputs: Dr. Barbara Ibrahim, Director of the Gerhart Center
for Philanthropy and Civic Engagement, the American University in Cairo, for the content on
Philanthropy in Egypt, while Ms. Janet Breeze, CSR Consultant, for her contributions in chap-
ters one and three. Two UNDP representatives: Mr. Mohamed El Kalla, Private Sector Specialist
and Ms. Nahla Zeitoun, Research and Policy Associate for their contributions in sections of chap-
ters 2 and 5 and for sparing no effort to bring partners together, research sources, provide
resources, organize round table events, contact Readers’ Group, commission papers, contract
research firms and provide valuable insights into the document. UNDP’s Private Sector Division
in New York provided continuous support, consultation and insight throughout the process of
production of the report, particularly Mr. Sabha Sabhani, Programme Manager and Ms. Afke
Bootsman, Programme Analyst.
Two institutional partners made the quantitative and qualitative research possible: ACNielsen on
the former and Center for Development Services in partnership with ACNielsen on the latter.
The outstanding Readers’ Group comments led to a critical review and refinement of the docu-
ment to reflect important aspects contributed by them. To: H.E. Dr. Mahmoud Mohieldin,
Minister of Investment, Egypt; Dr. Ahmed Galal, Director, Economic Research Forum (ERF);
Dr. Barbara Ibrahim, Director, Gerhart Centre for Philanthropy and Civic Engagement,
American University in Cairo; Mr. Youssef Mansour, Chairman, Mansour Group; Mr. Ian Gray,
Vodafone Chairman, Egypt; Mr. Richard Daly, CEO, Vodafone; Mr. Bruce Jenks, Assistant
Administrator and Director, Bureau for Resources and Strategic Partnerships (BRSP); Mr.
Antonio Vigilante, Director, UN/UNDP, Brussels; UNDP; Mr. Sabah Sabhani, Programme
Manager, Private Sector Division; Ms. Afke Bootsman, Programme Analyst, Private Sector
Division, UNDP; and Mr. Mounir Tabet, UNDP Country Director, Egypt - we offer our heart-
felt thanks.
We extend our heartfelt thanks to two corporate partners: Vodafone Corporation and the
Mansour Group. Special thanks go to Ms. Noha Saad, Corporate Responsibility & Foundation
Manager, Vodafone Egypt, and Mr. Walid Nagi, External Relations Manager, Mansour Group. iii
Special thanks go to several of Egypt’s business associations, namely the British Egyptian Business
Association, the German Arab Chamber of Industry of Commerce, the American Chamber of
Commerce, the Global Compact Network in Egypt, and the Federation of Egyptian Industries for
facilitating consultations and discussions on the report’s scope and mandate and for ensuring the
adoption of a participatory process to its completion.
We would like to thank the Talal Abu-Ghazaleh Organization (TAGO) for their in-kind con-
tribution that of translating the Report into the Arabic language. Particular thanks goes to Ms.
Sherine El Maghraby, Executive Director, Business Development Office, TAGO.
And last but not least, if it had not been for the tireless, faithful monitoring of every step of this
project by Community and Institutional Development’s (CID) Ms. Dina Selim, Research
Assistant, this report would not been completed in the manner and time it did.
iv
Preface
Egypt has been endowed with a human resource base, which remains to be one of the most impor-
tant assets this country possesses. However, human resource development has traditionally
remained a government concern. Today, in the midst of the superlative growth performance of the
Egyptian economy and the associated high levels of investments undertaken by the private sector,
we are witnessing an increasingly strong sense of ownership by the business community of the goal
of human resource development. This report presents excellent documentation of the valuable
contribution of large corporations operating in Egypt -both national and foreign- to this goal.
Achieving the Millennium Development Goals (MDGs) is a top priority on the agenda of policy
makers in Egypt. But this is not an easy undertaking. The synergy between government efforts and
the contribution of the business community in Egypt to meet the MDGs is bringing us closer
towards achievement. Today, a culture of corporate social responsibility is proliferating in Egypt,
with business corporations increasingly realizing the merit of voluntary activities which serve the
underprivileged communities. While large corporations are relatively more knowledgeable and
resourceful in terms of learning about the MDGs and gearing their resources in the right direction,
we need to share this knowledge with small and medium enterprises, which have been playing an
exceedingly dynamic role in economic activity in Egypt, and have strong potential to serve the
communities within which they operate. A strategy of harnessing the resources of small and medi-
um enterprises towards human resource development, should ultimately contribute to the achieve-
ment of the MDGs.
This report is a step in the right direction. By sharing the findings of how business corporations
are supporting the MDGs, we are hoping that a 'demonstration effect' will follow, whereby every
responsible business endeavor regardless of its size should be able to contribute its due share to
achieve the MDGs.
It is with this spirit of cooperation and sharing, that Egypt will be able to achieve as well as sustain
further progress for all its citizens.
Mahmoud Mohieldin
Minister of Investment
November, 2007
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vi
Foreword
Traditionally, when international development practitioners think of development they often refer
to government economic, social and environmental policies that, combined, would improve the
living standards of the poor and hopefully eradicate poverty altogether. In this traditional model
of development the private sector was not always thought of as an important partner. Fortunately,
this thinking is changing.
In its first Human Development Report, UNDP stated that “Human development is about much
more than the rise or fall of national incomes. It is about creating an environment in which peo-
ple can develop their full potential and lead productive, creative lives in accord with their needs
and interests.” In UNDP’s Global Management Team Meeting of February 2006 the
Administrator of UNDP stated: “Without the energy of the private sector, without private enter-
prise, private initiative, private savings, private resources, we won’t make it in terms of stimulating
development. …the private sector is, indeed, the driving force in development...[and] we need a
very strong but lean state working with the private sector, not to undermine it but to strengthen
it.”
These two statements summarize the philosophy of UNDP on Human Development and the vital
role that the private sector plays in promoting it.
As Egypt begins enjoying the fruits of its most recent economic reforms, the question of how the
poor are benefiting from this growth and what is the role of the private sector are beginning to sur-
face. The answers are not always easily available. This report is a partial answer to the question on
the role of the private sector in development. It is the fruit of a joint initiative with the Ministry
of Investment, private sector partners such as Vodafone and Mansour Group, and is intended to
begin understanding how can the private sector in an environment of positive growth begin to
include those occupying the base of the economic pyramid (BOP) and contribute to improving
the overall status of human development in Egypt.
The main premise put forth by this report, entitled Business Solutions for Human Development
is that “you can bet on the poor”. The report reinforces in the Egyptian context, what has been
known in other contexts for a while now, that private companies can make profit while simulta-
neously contributing to the reduction of poverty when they consciously place the poor as an
important part of their overall agenda.
The first of its kind in Egypt, the report showcases a number of innovative private sector and mar-
ket-based solutions that address poverty alleviation. It builds on the Growing Inclusive Markets
(GIM) initiative led by UNDP and driven by a strong conviction that the private sector remains
the greatest untapped resource, providing both investment and innovation, both of which are vital
to achieving the Millennium Development Goals (MDG’s) to which the world has committed
itself at the UN summit at the beginning of this century.
Looking at Egypt, one sees great potential in engaging the private sector in a dialogue over this
emerging economy’s development and reform agenda. The private sector has already demonstrat-
ed a strong commitment to addressing key issues that inhibit socio-economic development.
However, despite many private sector players actively pursuing this agenda, most remain partially vii
unaware of their potential ability to positively impact poor communities. Pro-development activ-
ities are still largely viewed as an ‘add-on’ or voluntary activity as opposed to a tool that, in coop-
eration with other sectors, can advocate for and implement change on such a grand scale while have
a quantifiable impact on the core business and value chain.
As Egypt makes further progress on the MDGs and as we explore the potential of business engage-
ment for human development in Egypt, we note a number of challenges that need to be addressed
to go beyond the full achievement of the MDGs to achieve a state of Human Development that
is sustainable and is commensurate with the aspiration and potentials of Egyptian citizens. There
is a need to create an environment that encourages and supports the confidence in, and growth of,
private initiatives and also facilitates the development of public-private partnerships. Thus, given
the right incentives, business-led solutions can considerably help accelerate the pace of develop-
ment efforts. This includes enhancing the existing legal and fiscal frameworks, regulatory condi-
tions and further entrenching and deepening progress of stable democratic institutions.
The tripartite sponsorship of this report by the Ministry of the Investment, the private sector and
UNDP mirrors in many ways the necessary partnership required for fuller and more people cen-
tered development. Achieving the MDGs and going beyond them to more sustainable human
development can only be possible if government, private sector and civil society leaders come
together as one.
Mounir Tabet
UNDP Country Director
November 2007
viii
Table of Contents
Executive summary 10
Background 11
CHAPTER ONE: Evolution of Corporate Social Engagement in Development

Definitions 11
International context 11
Business and the Millennium Development Goals (MDGs) 11
Voluntary community contributions
Core business operations and value chain
Advocacy and policy dialogue and institution-building
Prospects for business engagement in development in emerging economies
Moving forward
CHAPTER TWO: Millennium Development Goals
CHAPTER THREE: Dimensions of Business Solutions for Human Development

Research methodology and scope
Findings
What is the degree and form of support of the MDGs by the private sector in Egypt?
How do companies approach their pro-development activities?
Base of the Pyramid models
Value chain initiatives
Philanthropic and voluntary contributions
Philanthropy in Egypt
Religion and giving
Serving god / serving the community
Institutional forms of philanthropy
Philanthropic potential in Egypt
Advocacy and public policy dialogue
What are the drivers and inhibitors to corporate engagement on the MDGs in Egypt?
CHAPTER FOUR: Analysis of Business for Development Engagement

What motivates multinationals to engage in CSR?
What motivates large national companies to engage in CSR?
What motivates SMEs to engage in CSR?
SMEs as learning labs for entrepreneurial livelihoods model
CHAPTER FIVE: Towards an Enabling Environment for Partnerships

The role of intermediaries
1. Business associations
a. Development Financing and Technical Support Associations
b. The American Chamber of Commerce (AmCham)
c. The Federation of Egyptian Industries (FEI)
2. International social entrepreneurship groups: Ashoka
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3. UNDP and the Global Compact in Egypt

Governance factor
Learning, monitoring and evaluation factor
Intermediary (neutral ground) factor
4. International NGO partnership programs - INJAZ:
5. Academia: John D. Gerhart Center for Philanthropy and Civic Engagement, AUC
6. Public private partnerships - Egypt Education Initiative
Examples of global collective action
Partnerships need strong, transparent government structures
Conclusion
CHAPTER SIX: The Way Forward

Goal One: Eradicate Extreme Poverty and Hunger
Goal Two: Achieve Universal Primary Education
Goal Three: Promote Gender Equality and Empower Women
Specific recommendations for businesses
Specific recommendations for civil society organizations and intermediaries
Specific recommendations for government
References
Appendix 1 – The Millennium Development Goals
Appendix 2 - The Interview Protocol Used
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Acronyms
ADEW Association for the Enhancement and Development of Women
AFNCI Association of the Friends of the National Cancer Institute
APE Association for the Protection of the Environment
BOP Base of the Pyramid Model
BPD Business Partners for Development
CDA Community Development Association
CDS Center for Development Services
CEOSS Coptic Evangelical Organization for Social Services
CEWLA Center for Egyptian Women’s Legal Aid
CID Community & Institutional Development
CIDA Canadian International Development Agency
CSR Corporate Social Responsibility
DEO Deutsche Evangelische Oberschule
ECWR Egyptian Center for Women Rights
EEI Egypt Education Initiative
EHDR Egypt Human Development Report
EJBA Egypt Junior Business Association
EQI Environment Quality International
ETI The Ethical Trading Initiative
FEI Federation of Egyptian Industries
GAIN Global Alliance for Improved Nutrition
GBC Global Business Coalition
GC Global Compact
GDP Gross Domestic Product
GIM Growing Inclusive Markets
GTZ German Technical Cooperation
HEPCA Hurghada Environment Protection & Conservation Association
IBLF International Business Leaders Forum
ICED International Center for Environment & Development
ICT Information & Communication Technology
IFC International Finance Corporation
ILO International Labour Organization
ISO International Standard Organization
KFW The German Bank For Reconstruction
LIFE Literacy Initiative for Empowerment
MDG Millennium Development Goal
MNC Multinational Corporation
MOE Ministry of Education
MOSS Ministry of Social Solidarity
MSC Marine Stewardship Council
NCCM National Council for Childhood & Motherhood
NGO Non Governmental Organization
P&G Procter and Gamble
PPP Public Private Partnership
SME Small & Medium Enterprises
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SOY Spirit of Youth Association for Environmental Services

UNDP United Nations Development Program
UNEP United Nations Environmental Program
UNESCO United Nations Educational, Scientific & Cultural Organization
UNICEF United Nations Children Fund
UNVA United Nations Volunteer Association
USAID United States Agency for International Development
VMS Voice Message Services
WFP World Food Program
YAPD Youth Association for Population & Development
xii
Executive Summary
This study assesses the current and potential scope of business engagement towards the attainment
of the Millennium Development Goals (MDGs) in Egypt. Its findings and recommendations have
been drawn up using a participatory and consultative approach. They are based on an extensive
review of literature and quantitative and qualitative studies of a representative sample of multina-
tional, large national, small and medium-sized companies operating in Egypt.
Chapter 1 defines the international context for, and terms of, private sector engagement in devel-
opment. It outlines how companies can impact communities through internal measures and exter-
nal outreach, and how often they move from voluntary philanthropic contributions, towards more
structured community investments and proactive management of core business and value chain
operations to bring about wider positive community benefits. It also outlines how some go further
still and take a leadership role in advocacy, policy dialogue and institution building to benefit com-
munities and society as a whole. In this way, the chapter sets the scene for an assessment of how
relevant this evolution is to emerging economies and Egypt in particular.
Chapter 2 gives an overview of Egypt’s current performance in relation to the eight MDGs. These
address hunger and poverty, education, gender equality, child and maternal mortality, communi-
cable diseases, environmental sustainability and partnerships for development. Egypt’s current
mixed achievements on human development are set against Egypt’s positive performance on the
macro economic level and provide a backdrop against which to consider the valuable contribution
the private sector can make. The chapter concludes that something critical has to change in the
way we conduct business and the way we conduct the business of development if the MDGs are
to be met by 2015.
Chapter 3 presents the main findings of the business community survey in Egypt. It answers ques-
tions such as: What is the extent and form of support to the MDGs by the private sector? Towards
which sectors of the economy, segments of the population, and geographic regions do companies
direct their efforts? What constraints does the business sector face in designing and implement-
ing business solutions for human development? What successful and potentially replicable models
exist in the business and community development/NGO sectors? How can business, the public
sector and NGOs come together to achieve the MDGs? Specific case studies of business commu-
nity engagement are featured and the importance of the government’s facilitative and legal role is
underscored.
The chapter also highlights the limitations of the current predominant short-term ‘project’
approach towards bringing prosperity to the poor and need for greater focus on pooling resources
and long-term solutions to end social and economic injustice. It demonstrates through case stud-
ies how companies can maximize their potential to contribute to the MDGs through corporate or
family foundations geared towards development, rather than unfocused charitable activities,
through core business and value chain activities, through social entrepreneurship and ‘base of the
pyramid’ models as well as through more traditional philanthropic giving.
It concludes that, in spite of the growing practice of philanthropy and corporate social responsibil-
ity in Egypt, the private sector’s efforts are still scattered and fragmented and that investment in
partnerships for development is limited. Without greater information-sharing, trust-building activ- xiii
ities and a level playing field for business potential in all these areas will remain unfulfilled. In
Egypt fundamental aspects of poor governance adversely affect all three sectors – businesses, gov-
ernment, and civil society - and until systemic change comes about improvements in the human
condition of Egyptians and the attainment of the MDGs will not come about. An entire section
on philanthropy underscores the importance of this traditional mode of giving in sustainable devel-
opment and community solidarity.
Chapter 4 explores what motivates companies of all sizes towards engaging in pro-development
activities. It analyzes the prospects for future action within the current socio-cultural and political
context. It proposes a model - SMEs as Learning Labs for Entrepreneurial Livelihoods - as a pos-
sible solution, as it links youth, education and livelihoods – three vital ingredients for transform-
ing the economy for those who are at the ‘base of the pyramid’. By engaging people in gainful,
decent work and empowering them to contribute to their own and their families’ well-being, the
spiral of poverty is interrupted, creating an environment more likely to be free from conflicts and
instability.
Chapter 5 focuses on intermediaries such as NGOs, business associations, chambers of commerce,

business federations, international agencies and foundations and proposes a greater emphasis on
their role. Intermediaries can bring stakeholders and partners to the drawing board to examine,
explore, assess, design and implement actions which will lead to the attainment of the MDGs,
rather than just allocate project budgets. On the international level, intermediaries play an impor-
tant role in facilitating policy dialogue between the public and private sectors, so creating an
enabling environment for partnerships. Successful examples of company community partnerships
are given, involving community development and welfare associations, as well as larger NGOs and
international development organizations.
Chapter 6 concludes with suggested models for business engagement to achieve impact. These
address the first three MDGs: poverty, education and health and leave the field wide open for fur-
ther design and adaptation to meet the remaining MDGs.
Concluding remarks call for a new ‘recipe’ to enable business solutions for human development.
Civil society organizations must widen their networks of partners to include business and spread
awareness about the MDGs and the needs of local communities. Government needs to create the
climate for social change, good governance and set in motion incentives for stakeholder engage-
ment. The private sector needs to go back to the drawing board and re-think the way it does busi-
ness in order to design production processes and service delivery models that spread prosperity up
and down the value chain. This requires new leadership from the private sector in Egypt – one
that envisages the harnessing of its resources, technologies, innovations, and problem-solving skills
to achieve the MDGs.
The new approach seeks to measure the private sector’s ‘development footprint’ in the same way
climate change calls for the measurement of companies’ ‘carbon footprint’. The ‘development
footprint’ would record improved well-being and sustainable livelihoods, guiding other businesses
in the redesign of their core activities. With such guidance, they could deliberately target segments
of the population, sectors of the economy, geographical locations, aspects of deprivation, develop-
ment indicators, etc in ways that create a social value and development impact while maintaining
business growth and profits. Such encouragements will be vital if our journey is to lead to its final
xiv destination - the achievement of the MDGs for the Egyptian people.
Background
The world is halfway to the 2015 deadline to meet the Millennium Development Goals (MDGs)
set by the United Nations in its Declaration of 1999 and signed by member countries in the UN
system in 2000. The global picture is far from positive in spite of progress in some areas. The sit-
uation in Egypt shows that something critical has to change in the way we conduct business and
the way we conduct the business of development if the MDGs are to be met. This report looks at
innovative solutions that might potentially spur the process towards the achievement of human
development for the people of Egypt.
The United Nations Development Program (UNDP) undertakes country and regional reviews of
the human condition and measures human deprivation and development. It has now embarked
on a review of business engagement in society to achieve the MDGs. As part of that exercise, we
map the current situation with regards to businesses’ role in human development, highlight inno-
vative promising trends, identify gaps, and propose new approaches and partnerships within the
Egyptian culture and context. By examining case studies from companies of different sizes and sec-
tors and drawing out key lessons, we explore ways of transforming challenges into opportunities
and of promoting the scale-up of existing and new pro-development best practice by the private
sector.
We focus on how companies in Egypt can work in partnership with communities and the govern-
ment to achieve the MDGs. In particular, we consider how, while growing local businesses, cre-
ating prosperity, contributing to poverty alleviation, and promoting the participation and empow-
erment of local communities businesses can expand their markets, increase their profits, and
improve production and productivity. Egypt is an emerging market but we seek to dispel the myth
that business engagement for development is only for rich countries and/or for large companies,
especially multinational companies. We do so by assessing whether and how national and foreign
companies have shared the fruits of prosperity while transferring skills and technology to local res-
idents and businesses. This might be by extending their distribution channels and supply chains
to include small local businesses, adopting fair trade practices, industry influencing government
regulations and bureaucracy relating to registration and operations for small businesses and local
small and medium enterprises (SMEs), or providing microfinance and telecommunications facili-
ties to local communities. The report further discusses how to create an enabling environment for
business engagement in development with particular attention to the roles of government, civil
society, and intermediaries.
The report is specific to the Egyptian context and the MDGs. While at the international level dis-
cussion about business engagement with the poor tends to revolve around how businesses can
influence those who are outside the circle of prosperity through value chains, community invest-
ment and philanthropy, this report uses the MDGs, the associated indicators, and time-bound and
measurable targets as points of reference. These are national benchmarks and milestones which
Egypt, as a country, needs to achieve.
The project team undertook the report in consultation with UNDP’s Partnerships Bureau and as
an integral part in the formulation of the Growing Inclusive Markets (GIM) initiative. The main
objectives of the GIM initiative are to raise awareness and provide research and analytical tools that
will enable business leaders, policy makers, and development practitioners to make markets more xv
inclusive for the poor. The current initiative grew out of a need for a better understanding of how
market-based approaches to human development can ‘do good’ for people living in poverty while
also being good for business. It is founded on the premise that “inclusive markets” that offer the
poor access to basic goods and services and empower them economically as consumers and pro-
ducers can help lift them out of poverty. The initiative is being coordinated through a multi-stake-
holder dialogue involving partners from different institutions including international development
agencies, global intermediary business organizations and chambers of commerce and experts from
leading North and South-based research institutions operating at the interface of business and
development.
The main premise of the report is that the development context of Egypt requires the private sec-
tor to play a greater role in facing mounting population and development pressures and in supple-
menting inadequate public sector budgets. We believe it must become a more responsible corpo-
rate partner in the development of people and communities. The current context and develop-
ment indicators in Egypt serve as a call for firms to reassess their responsibilities to all stakehold-
ers. While keeping the profit motive in mind they can perceive and implement a new role for
themselves in generating prosperity and opportunity in the community. This is in line with the
existing culture of solidarity and giving characterized by the giving of alms - ‘zakat’ - in the Muslim
community and the giving of tithes in the Christian community. We see it on a large scale in char-
itable acts, philanthropic ventures, and support in reaching out and connecting to the needy. The
report searches for models of engagement beyond charity, however, exploring how the potential of
the business sector is fulfilled through investing in local communities and partnerships among the
three sectors: civil society, business, and government.
A multidisciplinary team using a partnership approach between the private sector, the non-profit
sector, the government, academia, and independent experts undertook this study. It drew on the
expertise of UNDP’s global and Cairo-based bureaus, the Ministry of Investment, two actively
engaging companies – Vodafone and the Mansour Group, the consulting firm Community and
Institutional Development (CID) and Janet Breeze, CSR consultant and International Business
Leaders Forum’s (IBLF) representative who was contributing editor to the report. Background
papers were commissioned from Dr. Barbara Ibrahim, director of the Gerhart Center for
Philanthropy and Civic Engagement, the American University in Cairo. A literature review of
local and international best practice complemented the quantitative survey conducted by AC
Nielsen, assisted by the Center for Development Services (CDS) during the structured interview
phase.
UNDP’s partnership approach to the implementation of the study is further illustrated by the con-
sultations held with intermediary groups, business associations, and partners who were invited to
express their views on the topic at various meetings. The objectives of these consultations were, in
relation to the MDGs, to:
• assess the development impact of business activities
• map current initiatives undertaken by private sector enterprises
• produce detailed studies of various companies/cases incorporating a comprehensive overview of
their activities, programs, policies and partnerships
• raise awareness and legitimize the debate amongst key stakeholders
• identify the development and business case for company involvement
xvi
Through this process, the study succeeded in:

• highlighting the extent to which businesses are already contributing to the MDGs and whether
they do so through philanthropy, community investment, corporate social responsibility or
their core business activities
• demonstrating how the MDGs matter to/can be made more relevant to business
• determining which policies need to be reformed by the government so that companies will ini-
tiate activities to help Egypt achieve the MDGs
The international and national review of existing research and data, as a precursor to the mapping
exercise in Egypt of business activity along the continuum of philanthropy, corporate social
responsibility, public private partnership, and business for human development, involved both
gathering case studies and identifying success and failure factors (e.g. policy barriers) to corporate
engagement. The survey focused specifically on businesses engaging in human development and
the attainment of the MDGs rather than on business engagement in the economy at large. The
private sector’s lack of familiarity with the MDGs and with development language and concepts
were obstacles in conducting the research.
Some of the critical issues that the report explores are:

• How can we address the current situation of jobless growth?
• Are we engaging businesses in reducing rural poverty and encouraging private sector growth in
rural economies to the point where we can stem rural to urban migration?
• Were large-scale private sector investments designed in ways that energize the small and medi-
um scale industries in forward and backward sourcing and distribution value chains?
• Is such an approach even considered, or is the business of human development perceived to be
the domain of the government, non-profit associations, and the donor community?
• Does the current environment in Egypt promote the kind of business engagement in develop-
ment that we seek? What enabling mechanisms and forces do we need to put in place in order
to see the business of development proceed through the private sector in partnership with the
government and civil society?
xvii
1
Evolution of
Corporate Social
Engagement in
Development
The evolution of corporate social engagement has taken place within the context of an international
debate on globalisation. It was brought into focus by the failure by many companies and governments
to ensure that socio-economic conditions improved for all in countries opening up to international
trade. In Egypt, traditional patronage relationships which existed prior to industrialization continue to
some degree but are fast eroding as villages and slums become disconnected from the prosperity of the
growing private sector. Multinational companies, facing boycotts by sophisticated and well informed
consumers, had to seek new approaches and business solutions to address problems ranging from work-
ing children in supplier factories in the Far East to environmental violations and unbalanced trade rela-
tions. Large Egyptian companies, on the other hand, had to grope with new industrial standards and
internal compliance in order to penetrate export markets. For the majority of Egyptian businesses, the
distance between them and the local community determines the extent to which they were aware of
urgent and unmet needs. They have begun to translate their traditional, cultural manner of giving from
charitable acts in the popular economy to more organized and structured methods starting with corpo-
rate philanthropic acts to the establishment of business and family foundations.
In such circumstances, it is important to create an ic development in emerging economies - small and
enabling environment for business solutions in which medium enterprises (SMEs) and their representative
Egyptian companies and business associations take a organisations.
leading role. This requires a vibrant private sector,
supportive government and community partners and So what are current definitions and models of corpo-
the means to identify, scale up and replicate good rate engagement in the developed and developing
practice. Account must be taken of good internation- world context? Are international models currently
al and indigenous pro-development models and cul- being promoted helpful in seeking to mobilise busi-
tural mores. The arguments set forth to encourage the nesses in emerging economies such as Egypt? What
private sector to play a role in development must, in can we learn from leading practitioners and has it
particular, be tailored to the main engines of econom- applicability in the context of Egypt?
1 Business Solutions for Human Development Report 2007
DEFINITIONS tion with them and brand equity established

Evolution of Corporate Social Engagement in Development
through years of serving the same communities

Definitions of corporate engagement in devel- was diluted. NGO campaigns capitalised on
opment vary and have changed over time, but this to draw attention to their cause, highlight-
essentially companies which are socially respon- ing the extent of their overseas activities and
sible have embraced the concept that they are pre-eminence attributed to shareholder con-
accountable for not only their financial, but cerns relative to workers’. NGOs assumed the
also their social and environmental impacts. role of “international regulator”. By criticising
They put systems in place to ensure that they companies for applying lower standards abroad
take these impacts into account in everyday than in their home countries they also high-
decision-making and engage with stakeholders lighted risks to reputation and the bottom line.
on an ongoing basis to ensure continuous
improvement. In Egypt, corporate engagement There followed a period during which many
occurs in a less structured manner. Stakeholders companies searched for quick-fix solutions. As
are not organized, networked or informed time passed it became apparent that they would
about issues to the point where they can engage remain in the spotlight and needed to change
in dialogue and collaborate in concerted action their operations and establish more constructive
and definitions of corporate engagement are relationships with NGOs and others. Some
still very culture specific and derive from his- NGOs, although wary of selling out to compa-
toric patterns and relationships. This presents nies, are willing to engage with them on an
an opportunity to define and design fresh ongoing basis. Businesses’ market orientation
home-grown models of corporate engagement lent itself to accountability and reporting at a
that spring from Egypt’s religious and philan- global level but not necessarily to the attain-
thropic culture of giving (zakat and tithes) and ment of the MDGs.
circumvent the path international engagement
has taken. The age old cultural solidarity might Key performance indicators such as the Dow
be used by the business sector for the develop- Jones Sustainability Index1 and FTSE4Good2
ment of the people of Egypt and the attainment appeared on the international scene. Similarly
of the MDGs. key initiatives such as the UN Global Compact
and sector-specific initiatives such as the
INTERNATIONAL CONTEXT Equator Principles3 for the financial services
sector highlight examples where companies
In the late 1980s and 1990s the importance of have taken a leadership role in addressing issues
building relationships of trust with a wider of concern.
range of stakeholders became apparent. At this
time many companies were scaling down their Some argue that CSR reporting seeks to deflect
home operations in favour of setting up cheap- attention from more dubious practices. In
er production or sourcing bases abroad. response the practice of external assurance, the
Communities no longer had a strong associa- use of stakeholder engagement standards such
1www.sustainability-index.com.
Launched in 1999, tracks the financial performance of the top 10% of world’s 2500 sustainability leaders across 58
industry groups. Information is gathered through a questionnaire and from publicly available sources.
2 www.ftse.com/indices/FTSE4Good_Index/index.jsp
Measures the financial performance of companies that meet globally recognized corporate responsibility standards
www.equator-principles.com
3 Launched in 2003 and revised in July 2006, provides a framework for addressing environmental and social risks in
4 project financing.
Business Solutions for Human Development Report 2007 1
as AA10004 and reporting frameworks such as considerable additional community benefits by

the Global Reporting Initiative5, promote new applying creative thinking to solving develop-
standards of accountability and reflect the ment issues. There is scope to do just this in
sophistication of the current debate. the context of Egypt, for instance by engaging
those concerned about Egypt’s attainment of
the MDGs in discussion and concerted action.
Global CSR reports are a controversial
tool by which companies seek to reassure
stakeholders that they are addressing VOLUNTARY COMMUNITY
their concerns. There is an ongoing and CONTRIBUTIONS
growing debate around the measurement
of CSR and its use in company reporting. These encompass philanthropic donations, vol-
unteering programmes, long-term community
investment in, for example, health or educa-
BUSINESS AND THE MILLENNIUM tion, or commercial initiatives with community
DEVELOPMENT GOALS (MDGs) benefits (such as sponsorship of cultural events
or cause-related marketing).
While not the natural language of business, the
Millennium Development Goals (MDGs) pro- A number of companies commit to donating a
vide an important framework for reporting on percentage of pre-tax profit to community caus-
how companies are contributing to community es. Local and global corporate foundations may
development, particularly in the developing have large endowments, and make grants to
world and emerging economies. national and international non-profit organisa-
tions operative in developing countries. Many
In seeking to promote business engagement on have management independent of the company
the MDGs in emerging economies, the trend itself, although sometimes they also use funds
amongst some intermediary organisations (such to support the company’s community activities.
as IBLF)6, is to focus on maximising positive Monitoring and measuring of the outputs, both
development outcomes. This can be explored on the community and company and in the
through philanthropy and voluntary contribu- short and longer-term, is growing. Companies
tions, core business operations and value chain, are seeking out community partners and using
advocacy and policy dialogue and institution- mechanisms such as The London Benchmarking
building. This approach derives from the belief, Model7 to calculate the full impact and value of
that while companies should continue to focus community programmes.
on financial performance, they are able to bring
4 www.accountability21.net/aa1000/default.asp
A framework for improving the quality of the design, implementation, assessment, communication, and assurance
of stakeholder engagement.
5 www.globalreporting.org
Develops and disseminates globally applicable sustainability reporting guidelines for voluntary use.
6 www.iblf.org
7 www.lbg-online.net
A global measurement standard for corporate community contributions (cash, time, in-kind and management costs)
and business and community outputs and longer-term impacts used by MNCs in their national and global report-
ing and as a basis for benchmarking performance in key markets. 5
CORE BUSINESS OPERATIONS AND hygiene benefits and in its CSR reporting high-
VALUE CHAIN lights its wider positive economic impacts, gen-

erating employment and stable sources of
In conducting its everyday business, a company income9. However, many express concerns that
has opportunities to raise standards beyond min- MNCs’ size and resources give them an unfair
imum compliance and influence positively those advantage over traditional providers, so chasing
with whom it interacts. Through active engage- them out of the market, and state that in reality
ment with employees it can improve terms and the potential of such markets is limited.
conditions and maximise opportunities for pro-
fessional development. It can implement meas- Other opportunities to tackle the MDGs come
ures to reduce energy consumption and waste, from working with business partners in the
through, for example, building design, recycling value chain. In South Africa, for example, the
schemes and encouraging reduction of the com- expansion of workplace programmes to control
pany’s carbon footprint. It can ensure that cus- HIV/AIDS infection rates amongst skilled
tomer communications are honest and accessible workers and surrounding communities now
and include all information relevant to the use of reach out to suppliers and distributors to great
its products and services. In terms of its indirect effect. Banning agricultural producers’ use of
impacts through the value chain, through ethical harmful pesticides can help protect the ecosys-
sourcing codes and capacity-building pro- tem and prevent water contamination. The suc-
grammes it can help suppliers and distributors to cessful implementation of such programs
improve workforce performance and minimise requires the buy-in of the whole community.
environmental damage. In many societies there are major inhibitors to
success. These include corruption in govern-
In the case of large-scale infrastructure projects ment agencies, distrust and entrenched atti-
and public private partnerships (PPPs) to pro- tudes towards the business sector and govern-
vide, for example, water and sanitation or elec- ment, difficulty in identifying credible commu-
tricity, the potential impact on the MDGs can nity partners, unfamiliarity with the fundamen-
be tremendous and there are many examples of tals and potential of partnership working, and
companies “thinking outside the box” to max- lack of dedicated resources to promote collabo-
imise the benefits to the poor. ration. In such situations the vision and leader-
ship of individuals and intermediary organisa-
Through its Growing Sustainable Business pro- tions have often been vital.
gramme8 the United Nations is seeking to pro-
mote models that open up new markets while The case of child labour in supplier factories in
serving less privileged and more geographically Asia provides a clear rationale for sustained
remote customers. The rising number of so- involvement in tackling the MDGs. On this
called “base of the pyramid models” (BOP) issue and many others the case for investing in
illustrate how companies can tap into local Egypt’s development must be made so that
expertise to adapt their existing products, servic- longer-term relationships with NGOs, govern-
es and distribution channels to expand their ment, large businesses and SMEs develop based
markets and bring fringe benefits to the poor. on trust and geared towards investment in tech-
Unilever in Indonesia, for example, marketed its nology and upgrading skills and management
soap products by highlighting health and practices. Collaborative approaches, such as
8 www.undp.org/partners/business/gsb/
9 Clay, Jason. Exploring the Links Between International Business and Poverty Reduction: A case Study of Unilever in
6 Indonesia. Oxfam GB, Novib Oxfam Netherlands and Unilever, 2005
The Vietnam Business Links10 illustrates how provides IT inputs and training to schools, is

partnerships can reduce costs, raise productivity being adapted and implemented in experimen-
and quality standards, increase employment tal government schools. Central government
and, most importantly, improve conditions for support is necessary to facilitate networks and
workers and their families. generate buy-in amongst important stakehold-
ers, business contributes primarily technology,
There are also examples of non-food and bever- innovation and management expertise, and the
age companies playing a role, such as technolo- not-for-profit sector assesses needs and current
gy companies providing ICT to help producers and possible solutions. The combination of all
check on international commodity prices, these creates great potential for improvements
bypass middle-men and ensure more income in education, although there is ongoing debate
reaches farmers11. These examples illustrate the about whether such initiatives could reach
importance of collaborative action to address pockets of poverty and address the needs of
many development issues highlighted by the those at base of the pyramid in more targeted
MDGs. and effective ways.
ADVOCACY, POLICY DIALOGUE AND PROSPECTS FOR BUSINESS

INSTITUTION-BUILDING ENGAGEMENT IN DEVELOPMENT IN
EMERGING ECONOMIES
A number of studies have shown that the buy-
in, commitment and personal leadership of Businesses in emerging economies realize that
CEOs and senior managers is often critical in there are structural problems which inhibit
moving companies towards engagement on their growth and profits. The most strikingly
development issues. Externally also CEOs and apparent is the lack of skilled labor to meet
senior managers championing business involve- their needs at all levels of the business. This
ment in broader development issues can be the derives from a number of factors, including an
catalyst for policy dialogue and partnership educational system which has not responded to
action. While often a means to manage risks, market needs and which requires major sys-
broad and industry-specific initiatives such as temic changes in order to move the country and
the Global Alliance for Improved Nutrition business sector forward. Other inhibitors are
(GAIN)12, Ethical Trading Initiative (ETI)13, limited availability of information and restric-
Forest Stewardship Council14, Extractive tions on the freedom of association, both of
Industries Transparency Initiative15 and which are so necessary in a networked society.
Publish What You Pay16go beyond just serving A third is Egypt’s crippling bureaucracy and
individual company interests. In the Middle lack of transparency.
East, the Egypt Education Initiative17, which
10 www.iblf.org/re.g.ions/asia/vietnam.jswww.gainhealth.org. In 1999 shoe manufacturers, governments, multi-lat-

eral agencies, MNCs and health and safety agencies came together to improve working conditions, resulting in 60%
improvements in the health and safety field. The initiative has now been expanded to incorporate the garments sec-
tor.
11 www.kacekenya.com
12 www.gainhealth.org
13 www.ethicaltrade.org
14 www.fscus.org
15 www.eitransparency.org
16 www.publishwhatyoupay.org
17 www.jei.org.jo/ 7
Egypt is now producing its own multinational Today, philanthropic giving persists as the most
firms. These are venturing into the Arab visible form of corporate community engage-
region, the Middle East and Africa. Many prac- ment in many emerging economies. Many large
titioners and thinkers in Egypt question companies donate to high-profile national
whether they should adopt international mod- organisations tackling popular issues such as
els of business engagement without further education and health, their focus on gaining
scrutiny and debate. There is scope for profile with influential stakeholders, rather than
Egyptian firms to draw their own vision of on outputs. Indigenous companies and SMEs
equitable development, be it at home or abroad. usually make charitable donations with no
expressed expectation of return and tend to
SMEs’ valuable role in tackling the MDGs is align their efforts to personal interests and net-
often overlooked. Credible worldwide estimates works rather than core business competencies.
state that they account for 90% of business and Larger family-run companies often establish
50-60% of employment.18 They assist the tran- foundations in memory of their founders and
sition from agricultural-led to industrial undertake the role of community provider in
economies and equitable growth. They have areas such as health and education. They build
greater reach than MNCs and large indigenous places of worship and support orphanages and
firms whose supply chains are often limited and make ad hoc contributions to help employees
distribution and sales oriented towards urban and others in the local community.
areas. Their sound understanding of communi-
ty needs enables them to develop appropriate MOVING FORWARD
products and services while generating income
and jobs and directing charitable giving towards So are we right to put our hope in the business
the most disadvantaged. By building their net- sector to address the MDGs?
works with suppliers in disadvantaged areas,
either to support their current operations or As indicated earlier in this chapter, many com-
develop new BOP products and services, facili- panies are willing to accept their responsibility
tating their access to technology, finance, skills, to manage their operations with due regard to
assisting them to scale up and replicate success- stakeholder concerns. There are many inspira-
ful practices, large firms can help share econom- tional examples of companies tackling the
ic and other benefits more widely, particularly MDGs through voluntary community engage-
amongst the poor. ment programmes, core business activities and
advocating for action amongst the wider busi-
However, SMEs’ success and potential to ness community, so contributing to policy dia-
address the MDGs depends on much more logue and institutional capacity-building.
than the above interventions. The government
plays an important role, providing infrastruc- However, given the myriad demands by power-
ture, appropriate education and training, health ful stakeholders across the globe and over-
services and other social safety-nets and facili- whelming challenges developing countries face,
tating their formalisation. Most SMEs operate is it feasible for businesses to prioritise the inter-
in the informal economy, some through choice, ests of economically and often geographically
but many due to the heavy burden of bureau- marginalised people, as encapsulated in the
cracy and regulation, low education levels and MDGs? Should efforts focus on other actors –
expectations of workers, many of whom may be government bodies, both national and interna-
family members. tional, civil society groups and indigenous busi-
18 Luetkenhorst, W. CSR and the Development Agenda: The Case for Proactively Involving SMEs, 2004
8
nesses, large, medium and small? • To clarify the rationale for corporate

engagement on the MDGs in the local con-
An international review of good practice in pro- text and on this basis draw up a list of
development engagement by business in devel- actions for business, government and civil
oped and developing countries suggests that society that will help create an enabling
yes, and that the way forward might be: environment for the greater take-up of pro-
development engagement, by companies of
• To analyse the true effectiveness of nation- different sizes and industry sector
al and international models of corporate • To identify appropriate leaders and neutral
engagement in the local context and devel- brokers capable of mobilising collaborative
op indigenous models of that engagement, action which factors in the needs and
which focus on the potential and limita- expectations of all partners and rigorously
tions of MNCs, large indigenous compa- and openly assesses performance, reinforc-
nies and SMEs to tackle the MDGs ing accountability to all
9
2
2 Millennium
Development
Goals
At the Millennium Summit in September 2000, the largest gathering of world leaders in history adopted
the UN Millennium Declaration, committing their nations to a new global partnership to reduce extreme
poverty and setting out a series of time-bound targets, with a deadline of 2015. These have become
known as the Millennium Development Goals (MDGs). In order for businesses to design their corporate
engagement programs, it is essential that they become familiar with the framework of the MDG’s.
The MDGs address extreme poverty in its many

dimensions — income, hunger, disease, lack of ade-
quate infrastructure and shelter and exclusion while
promoting gender equality, education and environ-
mental sustainability. The MDGs encapsulate
human rights - the rights of each person to health,
education, shelter, and security.19
The MDGs set out below need to be achieved at the

country level, not just the regional or global levels.
level. Country reports periodically reflect the prevail-
ing situation and alert governments to the need to
speed up certain actions or focus on specific sectors,
while proposing appropriate approaches and strategies.
GOAL 1: REDUCE POVERTY AND SOCIAL

EXCLUSION/ERADICATE EXTREME
POVERTY AND HUNGER
In 2002, the number of poor in Egypt was approxi-

Eighteen targets and 48 indicators define these goals mately 11 million, constituting 16.35% of the total
(see Appendix 1). They serve as guidelines for moni- population. In the same year, the number of ultra
toring and tracking progress on a national and global poor reached 3.8 million, 5.6% of the total popula-
19 Bahadur, Chandrika, Kruk, Margaret, and Schmidt-Traub, Guido. Preparing National Strategies to Achieve the Millennium
Development Goals: A Handbook. United Nations Millennium Project, United Nations Development Program, October 2005.
tion.20 According to the 2005 Egypt Human Contract, with little obvious risk to their busi-
Millennium Development Goals
Development Report the total number of those nesses. However, if structural, systemic changes
living in poverty in 2004 was 14.1 million are to be achieved, e.g. trade-offs between con-
(20.7% of the total population), of whom 3.3 tinuing current practices and embracing the new
million are considered ultra poor. Thus in Social Contract need to be discussed and nego-
absolute terms and percentages the poor in tiated, so that businesses can see the long-term
Egypt have increased. In addition, the income benefits of having a well-educated, skilled work-
share of the lowest 40% of the population force, a streamlined and functioning bureaucra-
dropped from 22.7% in 200021 to 20.3% in cy, and a transparent and level playing field.
200422. The widely accepted global definition
of poor is those living on less than $2 a day at Figure 1: Percentage of Poor and Ultra Persons
25
local currency purchasing power and of ultra Poor Ultra Poor
poor less than $1 a day. The table below illus- 20

trates the poverty picture for Egypt from 1995
15
to 2004. These figures demonstrate the
intractable situation of the poor in Egypt and 10
the fluctuations around the poverty line for mil-
lions who in 2002 were struggling to emerge 5
from below the poverty line and then sank back 0

in 2004 to 2000 poverty levels. 2004 2002 2000 95/96
A feature of these fluctuations is the ‘shallow- In 2001, 8.8% of children below the age of five
ness’ of poverty in Egypt, i.e. the elasticity of were underweight, dropping dramatically to
income for the poor which causes them to move 1.3% in 2003.24 While this is a positive indi-
up and down the poverty line. This is an indicator signaling lower hunger levels and better
cation that structural changes are needed to nutrition in the home, yet another indicator
address the situation, and not financial transfers, based on sample studies in Upper Egypt reflects
emergency funds, etc. which might assist in the the alarming levels of stunting and malnutrition
short term but cannot significantly lift this large among children above the age of five25.
proportion of the poor out of their current Furthermore, there were an estimated
predicament. The last Egypt Human 2,786,000 working children between 6-14
Development Report (2005) 23 proposed a years of age, constituting 21% of the total num-
Social Contract. Viewed from a business per- ber of children in this age group.26 Working
spective, in the short term, businesses can con- children support poor families, particularly
tinue to operate without paying heed to this female-headed households.
20 Egypt Human Development Report 2004: Choosing Decentralization for Good Governance. United Nations
Development Program and Institute of National Planning.
21 Egypt Human Development Report 2003. United Nations Development Program and Institute of National
Planning
22 Egypt Human Development Report 2005: Choosing Our Future – Towards a New Social Contract. United
Nations Development Program and Institute of National Planning.
23 Ibid.
25 El Zanaty, Fatma and Ann Way. Egypt Household Demographic Survey 2005. USAID, Ministry of Health and
Population, UNICEF, National Council for Population, Ford Foundation, and Zanaty and Co., March 2006.
26National Council for Childhood and Motherhood (NCCM). National Survey of Working Children Phenomenon in
12 Egypt. Cairo, 2004.

Regional disparities have persisted between the private sector has found innovative ways of
Upper and Lower Egypt. This situation has per- participating in school refurbishing programs:
sisted for too long despite significant inputs Vodafone has collaborated with UNDP and the
from international donor agencies in Upper Ministry of Education in targeting schools in
Egypt. The point bears out the fact that donor need of renovation. Their ‘Madrasty’ initiative
inputs alone cannot pull a country or a region allocates one piaster to the cause for each call
out of poverty, although they can offer innova- made during Ramadan. Businesses can contin-
tive solutions to many hitherto intractable prob- ue to support school construction programs but
lems and often allow for the piloting and exper- they can also partner with the Ministry of
imentation of approaches that, if proven effec- Education in its nationwide quality of
tive, could successfully be adopted more widely. Education Reform Program, currently support-
ed by United States Agency for International
GOAL 2: ACHIEVE UNIVERSAL Development (USAID), Canadian
PRIMARY EDUCATION International Development Agency (CIDA),
UNICEF, UNESCO, and others. A few com-
With regards to the second goal, achieving uni- panies are currently engaged in the enhance-
versal primary education, gross primary enrollment of the quality of education in one or two
ment ratios dropped to 96.4% in 200427 from schools close to their company premises. These
98.5% in 1998/199928, while literacy rates for outstanding efforts remain fragmented and
those aged 15 and above have remained almost require more concerted planning and strategic
the same for the past few years (65.6% in 2001 effort in order to achieve impact and truly con-
and 65.7% in 2004). There is a striking over- tribute to the attainment of the second MDG.
lap between poverty and illiteracy in the gover-
norates of Upper Egypt. The research also uncovered many positive and
effective strategies to meet the learning needs of
Both globally and locally among the ultra poor, working children and to provide quality educa-
literacy has been established as a major factor tion in non-formal, out of school learning pro-
inhibiting social mobility and escape from the grams. The Fostat and Aboul Seoud NGOs in
extreme poverty trap. In Egypt, the literacy Old Cairo and the Better Life Association in
issue is closely related to the gender equality Minya have implemented innovative programs
goal. Thus three of the MDGs (poverty, educa- providing children working in hazardous occu-
tion, and gender inequality) intersect to create a pations with the chance to acquire alphabet,
negative situation with regards to Egypt’s poor. health, and cultural literacy. They have part-
nered with the Ministry of Social Solidarity and
The Ministry of Education has worked hard to numerous private sector groups which, driven
provide Egypt with much needed schools by religious philanthropic motives, have pro-
through a nationwide construction program. In vided in-kind contributions and donations.
this, it has collaborated with the private sector They have accessed donor funds and imple-
and international agencies such the World Bank mented projects collaboratively or formed
and the European Union, the German Bank for umbrella organizations of smaller grassroots
Reconstruction (KfW), the Egyptian Swiss non-profit associations. Their interventions
Development Fund and Italian Cooperation in have encompassed a broad range of strategies.
Egypt. Besides philanthropic giving in that area, The Sohag Businessmen’s Association has
28 Egypt Human Development Report 1998/ 1999. United Nations Development Program and Institute of National
Planning. 13
encouraged SMEs to release working children Basic life skills - how to manage micro-credit,
for an hour of literacy classes in return for assis- to acquire vocational skills, navigate the daily
tance on how to complete technical and legal needs of living in a village or informal settle-
formalization procedures. They have partnered ment starting with survival issues such as read-
with UNICEF and other development agen- ing road signs all the way to reading and under-
cies, as well as with local governments in this standing instructions, critically assessing infor-
program. The Spirit of Youth (SoY) NGO in mation and questioning the status quo. Civic
Manchiet Nasser partnered with UNESCO, literacy is vitally important – understanding
Procter and Gamble, Unilever, Rotary Sunrise, how to relate to local municipalities and village
Save the Children Federation, International councils around infrastructure needs, services
Center for Environment and Development and rights, and how to vote.
(ICED) and others to design a multiple litera-
cies program. This incorporated recycling, cul- In the academic year 1999/2000, the female
ture and the arts, alphabet, legal, health and gross enrollment ratio in basic education was
hygiene literacy, life skills, and youth-to-youth 90.5%. It rose to 94% in 2003/2004. While it
exchanges between Africa and the Arab region. shows a positive trend, the research questions
the quality of education delivered in public
GOAL 3: PROMOTE GENDER schools. It is still at a level that threatens to pro-
EQUALITY AND EMPOWER WOMEN duce another generation of illiterate adults in
the next decade. School dropout rates among
In the context of the third goal, promoting gen- working children (2.8 million) are a further
der equality, and empowering women, female alarming indicator.
literacy rose to 56.2% in 200429, compared to
49.6% in 2000.30 The low female literacy level Egypt is classified by UNESCO as one of the
is alarming. Global research asserts the critical countries eligible for technical and financial
role maternal education plays in families’ well- support under its global Literacy for
being. Thus a focused targeting of female liter- Empowerment (LIFE) program. Countries
acy as a national goal would go a long way who qualify under that program are those with
towards achieving well-being for the majority of more than 10 million illiterate people or 50%
Egypt’s poor. We use the term literacy here in or more of the adult population. The situation
all its senses, not just alphabet literacy. It merits particular engagement from the private
includes health and environmental literacy sector as economic progress on a national level
around water and sanitation, personal and envi- is unachievable while such low literacy levels
ronmental hygiene all the way to rights-based persist. Companies may grow and thrive in
literacy relating to, for example, access to fish- specific sectors but illiteracy is bound to affect
ing rights, sources of irrigation, protection from their growth and stability at some point.
pesticides, etc. It also encompasses knowledge
and understanding of legal matters such as how The Egypt research uncovered positive pro-
to obtain registration documents - birth certifi- grams that dynamic and innovative NGOs are
cates and identity cards, and family status laws. implementing in many communities. They
30 Egypt Human Development Report 2000/ 2001. United Nations Development Program and Institute of National
14 Planning.

promote the concept of the plurality of litera- accomplish. Women constitute only 23.9% of
cies31 (UNESCO 2004) and have achieved the total labor force and occupy 25.9% of leg-
recognition for their work both nationally and islative and managerial positions. While an
internationally. They have never offered learn- improvement on 1999 when these figures were
ers a financial incentive to attend literacy class- 21% and 11.6% respectively, private businesses
es, the strongest motivation being the relevance could bring about further improvements. They
of the curriculum, in other words a curriculum can amend their gender policies and plan
grounded in learners’ everyday, real life needs. women’s career paths so that they can receive
The most prominent of these programs is professional training, are not excluded from
Caritas’ Learn and Be Liberated program certain occupations and positions because of
(Ta’allam Taharrar) which has proved effective stereotyping and so can advance to managerial
in both rural and urban contexts. Learners use positions. They can also ensure adequate day-
community literacy centers and libraries as focal care provision for their children.
points to acquire multiple literacies. NGOs
have implemented other non-formal programs Figure 2: Number of Women in the Workforce
linking literacy to micro-credit. These include (Millions)32
Association for the Enhancement and 5
Development of Women (ADEW), Alliance for 4.5
Arab Women and the Coptic Evangelical 4
3.5
Organization for Social Services (CEOSS). Yet 3
others have linked it to income-generating 2.5
activities so that learning and earning occur 2
1.5
simultaneously. The Integrated Care Society,
1
Association for the Protection of the 0.5
Environment (APE) in Manchiyet Nasser, 0
2006 2005 2004 2003 2002 2001 2000 1999 1998 1997
Bashayer NGO in Helwan, the Women and
Society NGO in Boulaq el Dakrour and Future
Eve (Hawaa’ al Mostaqbal) run such programs. GOAL 4: REDUCE CHILD MORTALITY
The Center for Egyptian Women’s Legal Aid
NGO (CEWLA) and Egyptian Center for The fourth MDG addresses child mortality.
Women’s Rights (ECWR) operate in the realm The infant mortality rate (per 1000 live births)
of legal literacy and family status laws. Both dropped from 30 in 2001 to 22.4 in 2004.
provide legal aid, counseling and advocate for Similarly, the under-five mortality rate (per 1000
women’s legal causes. live births) fell from 39.1 in 2001 to 28.6 in
2004.33 This was due to massive immunization
Egypt is rich with experience in how to achieve campaigns implemented by the government in
higher literacy rates among the poor, and par- partnership with numerous non governmental,
ticularly among poor women. These models of and for-profit organizations. Such tangible
best practice are ready to go to scale at a nation- improvements towards MDG targets reflect the
al level and in partnership with the private sec- value of all three sectors working together with
tor. Nevertheless, there is still much more to one vision, one mind, and one focus.
31 UNESCO. 2004b. The Plurality of Literacy and its Implications for Policies and Programmes, UNESCO
Education Sector Position Paper. Paris, UNESCO.
The plurality of literacy refers to the many ways in which literacy is employed and the many things with which it is
associated in a community or society and throughout the life of an individual.
32 Information Decision and Support Center (IDSC). www.idsc.gov.e.g.
33 Egypt Human Development Report 2005 and 2000/ 2001. United Nations Development Program and Institute
of National Planning. 15
GOAL 5: IMPROVE MATERNAL MDG Goal 6 should be tailored more to

HEALTH Egypt’s needs and not dictated by international

realities. Egypt has still not won the war on bil-
Progress on maternal health, the fifth MDG, is harzias or schistosomiasis, the most widespread
mixed. While the percentage of births attended water-borne endemic disease in rural areas, yet
by health personnel rose from 56.5% in 2001 to the current discourse is more about HIV Aids.
71.7% in 2004, the maternal mortality rate for The alarming rise of Hepatitis C indicates that
2006 recorded 59 deaths per 100,000 live this disease should be a health intervention pri-
births.34 Much more still needs to be done ority. Both curative and preventive measures
around women’s reproductive health, with provide the business community with opportu-
opportunities for the pharmaceutical industry to nities to work with government and the non-
play a leading role. The clinics sprouting up all profit sector to look at the full implications of
over rural Egypt are often staffed by poorly the rapid spread of this disease among Egypt’s
trained doctors and nurses who place women in population.
jeopardy and contribute to poor service delivery.
More village birth attendants need to be trained GOAL 7: ENSURE ENVIRONMENTAL
as women seldom make it to hospitals. Many SUSTAINABILITY
NGOs have trained professional birth atten-
dants thus there is plenty of experience of effec- In Egypt, approximately 8.1 million feddans
tive approaches that could be deployed more are cultivated, a mere 3.4% of its overall land
widely. The Sawiris Foundation is an example area. Total water resources decreased from 60
of a private sector family foundation currently billion m3 in 1992 to 58.6 billion m3 in 2004.
supporting nursing schools in Upper Egypt. Households with access to piped water
remained constant (91.3%) from 2001 to 2004
Doctors need to desist from prescribing multi- while those with access to sanitation dropped
ple kinds of antibiotics and to communicate from 94.5% in 1999 to 93.6% in 2004. It is
with patients in culturally appropriate ways and important to mention that the 2006 Egypt
language so that patients do not adopt negative Human Development Report will offer a new
habits of antibiotic abuse and refrain from, for definition of sanitation that will most likely
example, using a half dose of six different alter the picture for Egypt.
antibiotics.
Most households deprived of sanitation are in
GOAL 6: COMBAT HIV AIDS AND small hamlets in Upper Egypt where popula-
TUBERCULOSIS tion density precludes wastewater networks as a
viable option. The Egyptian NGO CARE,
The incidence of tuberculosis dropped from Save the Children Foundation, and Danish Aid
18.6 in 1990 to 14 in 2003. Doctors per Agency Danida, have had years of experience
10,000 people rose from 6.0 in 2001 to 8.9 in installing on-site sanitation systems in small,
2004.35 Trachoma, another disease related to rural communities and have proven models of
poverty and lack of hygiene, drew little atten- micro-credit for the financing of septic tanks
tion, until Al Maghraby’s El Nour Foundation and low-cost solutions for individual house-
launched its large-scale mobile eye clinics. holds and small communities. The experimen-
These are linked to their non-fee paying hospi- tation and piloting which has taken place in the
tal in Rod in Farag in Cairo. NGO sector over the past thirty years presents
34 Ministry of Health, National Maternal Mortality Surveillance System. 2006.

35 Egypt Human Development Report 2005 and 2000/ 2001. United Nations Development Program and Institute
16 of National Planning.
Table 1: Largest Mega Slums Worldwide

Million Million
1. Neza/ Chalco/ Izia (Mexico City) 4.0 16. Dharavi (Mumbai) 0.8
2. Libertador (Caracas) 2.2 17. Kibera (Nairobi) 0.8
3. El Sur/ Cindad Bolivar (Bogota) 2.0 18. El Alto (La Paz) 0.8
4. San Juan de Lurigancho (Lima) 1.5 19. City of the Dead (Cairo) 0.8
5. Cono Sur (Lima) 1.5 20. Sucre (Caracas) 0.6
6. Ajegunle (Lagos) 1.5 21. Islamshahr (Tehran) 0.6
7. Sadr City (Baghdad) 1.5 22. Tlalpan (Mexico City) 0.6
8. Soweto (Gauteng) 1.5 23. Inanda INK (Durban) 0.5
9. Gaza (Palestine) 1.3 24. Manshiet Nasser (Cairo) 0.5
10. Orangi Township (Karachi) 1.2 25. Altindag (Ankara) 0.5
11. Cape Flats (Cape Town) 1.2 26. Mathare (Nairobi) 0.5
12. Pikine (Dakar) 1.2 27. Aguas Blamcas (Cali) 0.5
13 Imbaba (Cairo) 1.0 28. Agege (Lagos) 0.5
14. Ezbet El Haggana (Cairo) 1.0 29. Cite-Soleil (Port-au-Prince) 0.5
15. Cazenga (Luanda) 0.8 30. Masina (Kinshasa) 0.5
a ready market for contractors, developers, extend to education, health, culture and open
wastewater engineers, and banks. Repayment spaces.
rates on these loans has traditionally been very
high (98%) thus lending institutions are guar- GOAL 8: DEVELOPING PARTNERSHIPS
anteed a good return on their investment. FOR DEVELOPMENT
However, on-site sanitation is still considered a
‘backward’ model among municipal engineers Goal 8 has both national significance and an
and, for want of other alternatives, villages are international dimension. Developed and less
left without any kind of sanitation and suffer developed countries share the responsibility of
poor environmental community health. Again, “Developing a Global Partnership for
systemic and structural aspects of development Development”. The extent to which agree-
need to move Egypt out of grassroots experi- ments, treaties, and trade cooperation exist
mentation, modeling, and demonstration to between countries, regions and in the interna-
serious policy approaches. tional market should be assessed, as they facili-
tate the transfer of new technologies and know-
The seventh MDG includes a quantifiable how.
global target of improving living conditions for
100 million slum dwellers worldwide. At the national level, we can assess the degree of
According to a 2003 UN report on “The application of Goal 8 through an overall analy-
Challenge of Slums”, Cairo has four of the 30 sis of those macro economic and macro social
largest mega slums in the world. policies, which facilitate regional cooperation
and integration into the global system.
Upgrading informal settlements has become a
government priority and is achievable if formal Currently this goal is measured in Egypt by the
private sector companies, many of whose number of telephones per 1000 households -
employees live in these neighborhoods, engage. 364 in 2004. This indicator is a basic measure
Upgrading would not only address physical of a population’s ability to communicate and
conditions and infrastructure services but also share information. The full measure of partici-
17
pation far exceeds just being able to communi- In many countries in the Arab region (Egypt
cate. It covers aspects of freedom of association included), the overall unemployment rate is
and expression, the ability to organize, partici- around 7-10%, while the youth unemployment
pation in elections and the wider democratic rate is around 30% - three times the national
process. rate. This indicates that employment markets
are static and that it is increasingly difficult for
The percentage of households with access to tel- youth to ‘partner for development’.
evision sets was 89.4% that year, the number of Currently the majority of young Egyptians fall
cell phone subscribers 108 per 1000, and those into one of two categories:
subscribing to internet services a mere 55.7 per • Highly qualified: they tend to work in
1000. While chosen to indicate the degree to multinational or large national firms, at
which people have access to the benefits of new home or in foreign neighboring markets in
technologies, in reality the significance of these the Gulf or in Europe where economies are
statistics is very limited. They do not paint a growing at a rapid pace and are in need of
picture of where the country stands in relation new competences and skills
to either MDG 8’s general objective or the • Poorly qualified or not qualified at all: they
higher objective of the Millennium Declaration may hold a degree or be illiterate or
- development. Unless these communication unskilled, but for whatever reason, they are
technologies influence positively Egypt’s wider not qualified for the market and are search-
social and economic structures and capacities ing for any available job in order to survive
and create opportunities for all their develop-
ment contribution will be minimal. From a Stimulating employment is one of the major
human development perspective it is more sig- tools to reduce poverty (MDG 1) and a signifi-
nificant to note the degree to which Egypt is cant measure of the attainment of MGD 8 in
contributing to the production of new tech- that it demonstrates whether youth is collabo-
nologies or to their active and productive use in rating in the shaping of their economy and
improving governance both at the national and nation.
local levels (e-government etc) and to other
aspects of empowerment. Similarly, target 17 of MDG 8 specifies partner-
ships and cooperation with pharmaceutical com-
Target 16 of MDG 8 (youth employment) panies to provide access to affordable, essential
illustrates further the critical significance and drugs in developing countries. While on the
true dimension of partnering for development. national level this target relates to MDG 6
This youth-oriented target can be split into two (health), on both international and national lev-
strategies: on the international level, establish- els it is also a significant measure of whether part-
ing partnerships with developing countries and nerships for development have been established.
implementing strategies for decent and produc-
tive work. On the national level: creating job The complex ramifications of MDG 8 encom-
opportunities. At this level, the 15-24 year old pass all aspects of development. To secure pri-
unemployment rate is inadequate as an indica- vate sector engagement in the achievement of
tor unless we compare it with the general the MDGs they should be fully explored.
unemployment rate amongst the overall active
population. Such a comparison gives a more The government of Egypt’s ten-point program
valuable insight into problems in the national for the country’s development is of great rele-
economy. vance when assessing the potential role of busi-
ness in development.
18

Ten Point Government Program - 2007
Program 1: Investment and Employment

• Objective: To achieve higher rates of economic growth by increasing investments and exports, and creating new
job opportunities.
Program 2: Enhancing Economic Performance

• Objective: To augment economic activities through restructuring the financial sector, reducing tax and customs
impediments, and increasing growth rates and competitiveness.
Program 3: Freeing the Market Economy

• Objective: To establish sound macroeconomic policies that will support the transition to a market-based econo-
my while minimizing the impact on indigent citizens.
Program 4: Building an Information Society

• Objective: To bring Egypt to the forefront of the information revolution by strengthening the telecommunica-
tions industry, infrastructure and workers.
Program 5: Developing Education and Scientific Research

• Objective: To create a qualified and well trained labor force that will give Egypt a competitive advantage in the
international market.
Program 6: Modernizing Government Organizations

• Objective: To enhance the efficiency of the administrative body, enabling it to handle change dynamically, man-
age state resources more efficiently, and deliver services to the people in a timely manner
Program 7: Expanding Basic Public Services

• Objective: To provide basic services equally to all Egyptian citizens in both rural and urban regions regardless of
socio-economic status.
Program 8: Modernizing Health Services and Controlling Population Growth

• Objective: To modernize & expand preventive healthcare, family planning & medical services for the public, to
sustain healthy individuals & stabilize population growth.
Program 9: Cultivating the Political and Legislative Environment

• Objective: To implement ongoing democratic reforms within a political and legislative framework, and encourage
the participation of the citizenry at all levels.
Program 10: Management of Natural Resources

• Objective: To utilize Egypt’s extensive natural resources for economic benefit while responsibly preserving the
environment.
With Egypt’s progress towards the MDG’s consumption and investment growth at the
varying in magnitude and momentum, the pic- turn of the millennium, when monetary policy
ture on the macroeconomic level looks more was tightened so that real lending rates rose
optimistic. Egypt’s main economic indicators markedly and credit to the private sector
for 2007 reveal that real GDP growth reached declined. The initial recovery was gradual -
7.1% as the pound stabilized and business and growth rose to just 3.1% in 2002/2003 and
consumer confidence recovered and sweeping 4.2% in 2004, led by exports of goods and serv-
reforms were instituted.36 This followed a low ices following the sharp decline of the pound
of 3% in 2001/2002 and sharp falls in private that raised Egypt’s export competitiveness.37
36 The Egyptian Economy – Towards new Frontiers. The Ministry of Investment Report on the Egyptian Economy,
Cairo, September 2007.
37 Egypt Country Report. The Economist Intelligence Unit, United Kingdom, 2006. Printed and distributed by
Patersons Dartford, United Kingdom. 19
2
Millennium Development Goals Business Solutions for Human Development Report 2007
Figure 3: Real GDP Growth (at factor cost) Figure 4: GDP Sectoral Breakdown for FY 2005/06
% GDP LE 18 Billion
8 7.2
6.9 7.1 Market Prices
7 6.5
6 Communication &
Information Technology Construction
5 4.6 2% 7%
4.2 Agriculture
4 3.4 14%
3.2 3.1 Services
3 35%
2
1
0 Finance Tourism Industry
32%
2000/01
2001/02
2002/03
2003/04
2004/05
2005/06
Q1 2006/07
Q2 2006/07
Q3 2006/07
7% 3%
Source: Ministry of Economic Development Source: Ministry of Economic Development
The Egyptian Economy – Towards new Frontiers. The Ministry of Investment Report on the Egyptian Economy,
Cairo, September 2007.
This gradual economic recovery (real GDP level, but have not improved the well-being of
growth) since mid-2003 can in part be attrib- the people at the base of the pyramid.
uted to government measures. The Cabinet However, Egypt’s socio-economic programs
appointed in 2004 took a series of bold and continue to be vulnerable to external shocks
decisive steps in the areas of trade and tariff as and fluctuations in relation to the international
well as foreign exchange reform. These have prices of its major exports: oil and cotton.
already yielded tangible results on the macro
Reforms endorsed by the Government since July-2004 have been anchored to a clear set
of economic policy objectives
• Ensuring macroeconomic stability as well as achieving and sustaining average annual real GDP growth in excess
of 7 percent
• Creating new job opportunities by enhancing the role of private investment both domestic and foreign in eco-
nomic activity
• Maintaining price stability through fiscal discipline and prudent monetary policy
• Financial sector reform
• Deepening the integration of the Egyptian economy into the global nexus of investment and trade
• Improving the public debt structure of the country
• Upgrading the quality of government services
• Ensuring an equitable distribution of income through the redesign of social policies
The Egyptian Economy – Towards new Frontiers. The Ministry of Investment Report on the Egyptian Economy, Cairo,
September 2007.
In spite of the declining unemployment, the mal economies, need to be included in the new
government recognizes that in the context of growth paradigm. This sector contributes most
continued population growth, the private sector to job creation and poverty reduction, although
needs to become more engaged in addressing hitherto it has not fulfilled its potential to con-
the challenges facing the attainment of the tribute to technological innovation or industri-
MDGs. It also acknowledges that micro enter- al modernization. Further assessment can help
20 prises and SMEs, both in the formal and infor- identify those sectors able to become catalysts
for micro enterprises and SMEs to play a more and facilitate private sector partnership with

dynamic and active role in both business and NGOs in touch with the poorest of the poor
human development in Egypt. and maximize government spending and target-
ing of the poverty sectors. However, a reduc-
A study conducted by the International Finance tion in bureaucracy and trust-building meas-
Corporation (IFC) entitled “The SME ures are also necessary.
Landscape in Egypt” suggests that the number
of M/SMEs in Egypt in 2003 accounted for As previously highlighted, the situation is seri-
2,576,937 enterprises. These are distributed as ous because a full one quarter of Egypt’s popu-
2.4 million micro enterprises representing lation – some 18 million – live on an annual per
93.5% of the sample; 127,631 very small enter- capita income of less than $1,500 - at the base
prises (4.97%); and 40,305 small and medium of what Professors Stu Hart and C.K. Prahalad
sized enterprises (1.56 percent). Micro enter- have dubbed the ‘economic pyramid’. The
prises were identified as employing from one to ‘base of the pyramid’ represents a potential
four employees; very small enterprises from five market for the private sector but companies
to nine employees; and small and medium must make concerted efforts to lift these people
enterprises from 10 to 200 employees.38 out of their current poverty. They can do so by
selling low-cost, appropriate products to them
While the macro economic picture of Egypt and engaging them in that productive process.
shows improvement, human development indi- It is in the government’s interest to create an
cators do not demonstrate the same upward enabling environment for companies to reach
trend. This mismatch calls for all three sectors this market as their efforts can, potentially, lift
to work together to scale up community level the poor out of poverty, overcome income dis-
best practice in order to achieve greater impact, parities, and prevent conflicts from arising.
at regional and national levels. This will enable
38 The Ministry of Foreign Trade. The Small and Medium Enterprises Policy Development Project.(SMEPoL)
Profile of M/SME’s in Egypt, October 2005. 21
3
3
Dimensions
of Business
Solutions
for Human
Development
Businesses in Egypt contribute to development in a variety of ways but most contributions are of a phil-
anthropic nature. This forms the foundation of other forms of engagement such as core business and
value chain activity, advocacy and policy dialogue. In this chapter, we present the findings of the research
including a number of local and international case studies. These provide businesses with examples on
how to contribute to the MDG’s in a way that leverages core competencies and has lasting impact.
RESEARCH METHODOLOGY AND SCOPE view and conduct pro-development activities and
of the obstacles and incentives to further corporate
The research consisted of: engagement. (Discussion / interview guide given
• An extensive review of literature and web-sites on in Appendix 2)
CSR and corporate engagement in development • The British Egyptian Business Association,
with the aim of identifying good practice relevant German Arab Chamber of Industry and
and applicable to Egypt Commerce, American Chamber of Commerce, and
• A questionnaire administered face-to-face or over Federation of Egyptian Industries hosted meetings
the telephone to managers in 574 formal private at which the Project Team briefed members and
sector companies of various sizes, operating in a invited their comments on corporate engagement
range of business sectors and geographical loca- in development and their role as intermediaries
tions. The aim was to analyze the extent and form between business, government and the community.
of corporate engagement in poverty reduction and
development in Egypt FINDINGS
• Based on an analysis of this initial quantitative
research, follow-up face-to-face interviews with What is the degree and form of support of the MDGs by
managers responsible for development activities in the private sector in Egypt?
44 of those companies were conducted. The aim
was to gain a deeper understanding of how they A significant percentage of the 574 companies sur-
3
Dimensions of Business Solutions for Human Development Business Solutions for Human Development Report 2007
Table 2: Overview of companies involved in quantitative phase of research
Sectors %Sample Total
Manufacturing 48% 276

Food & Beverages 60
Industrial & Consumer products 60
Textile, Apparel, & Leather 43
Pharmaceutical 39
Oil, Gas & Mining 30
Chemicals 24
Metals 20
Service 27% 158
Education 41
Health Services & Hospitals 40
Wholesaling & Retailing 32
IT & Telecommunication 30
Transportation & Warehousing 15
Tourism 9% 50
Hotels, resorts, floating resorts & restaurants 30
Travel agencies 20
Construction & Real Estate 5% 30
Construction & Real Estate / Mining / Building Material 30
Financial 5% 30
Investment / Insurance / Banking Services 30
Agriculture 6% 30
Agricultural activities 30
TOTAL 100% 574
Figure 5: Scope of Operations Figure 6: Locations of Operations

Local Cairo
Global Alexandria
Delta
Upper Egypt
24% 13% 1%
9%
77%
76%
Figure 7: Company Origin Figure 8: Business Sector

National Manufacturing
Multinational Services
Tourism
18% Construction & Real Estate
Financial
6% Agriculture
5%
5%
9%
24 82% 48%
27%
Dimensions of Business Solutions for Human Development

veyed in the quantitative research phase (61%) programs using this framework. When prompt-
reported no involvement in pro-development ed, most companies spoke only of their volun-
activities. While in reality, their operations will tary activities in the community. A detailed
affect local communities, in the main they did analysis of their pro-development engagement
not view development as their responsibility demonstrates that their contribution is much
and reported having no specific policies or pro- wider than they perhaps perceive and is partic-
cedures to enhance their positive impacts on the ularly significant in some areas, with well over
MDGs. The remaining 39%, however, report- half contributing to MDGs 1, 3, 7 and 8.
ed that they actively contributed to the achieve-
ment of the MDGs. An overview of the extent In terms of how companies contributed, it was
and type of their activities is given below. mostly through financial or capital donations,
although they also allocated human and in-kind
Many interviewees were unfamiliar with the resources. Contributions were either fully sup-
MDGs and were not used to categorizing their ported / funded by the company (internally
Figure 9: Major Contribution Area Cited by Companies
Companies Interviewed 574 (100%) All figures indexed to 100

Companies contacted
2960
Companies involved in pro- Companies not involved in pro-

development activities related to development activities related to
MDGs - 221 (39%) MDGs - 353 (61%)
Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8 Others

86 27 4 20 2 14 20 25 23
(39%) (12%) (2%) (9%) (1%) (6%) (9%) (11%) (10%)
Goal 1: Eradicate extreme poverty and hunger Goal 5: Improve maternal health
Goal 2: Achieve universal primary education Goal 6: Combat HIV/AIDS, tuberculosis, and other diseases
Goal 3: Promote gender equality and empower women Goal 7: Ensure environmental sustainability
Goal 4: Reduce child mortality Goal 8: Partnerships for development
Figure 10: Companies’ overall contribution to MDGs Figure 11: Form of Contribution
90 100
All Activities Most Important Activity 90
80
70 80 92 Internal Resources
88 External Resources
85 70
60
60 Total
50
50
40 66 59
40 53
75
30 62 30
39 37
20 36 32
20 27
10 22 17 10 13
12 2 9 9 11 9
1 6
0 0
Money / Capital
Human resources
Transportation/vehicles
Consultancy
Government support
Volunteer time of staff
Economic research
Technical assistance
Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8

Goal 1: Eradicate extreme poverty and hunger (NET)
Goal 2: Achieve universal primary education (NET)
Goal 3: Promote gender equality and empower women (NET)
Goal 4: Reduce child mortality (NET)
Goal 5: Improve maternal health (NET)
Goal 6: Combat HIV/AIDS, malaria, and other diseases (NET)
Goal 7: Ensure environmental sustainability (NET)
Goal 8: Develop a global partnership for development (NET) 25
3
Figure 12: Frequency of Undertaking the Activity Figure 13: Period during which contribution sustained
Annually More than 20 years ago (20)
More than once every 2 years (0.75) Past year (1)
Less than once a month Past 1-5 years (3)
Monthly Past 6-10 years (8)
Quarterly Past 11-20 years (15.5)
Semi-annually
9%
7% 25% 21%
38%
4%
24% 21%
3% 29%
19%
Average: 4 times per year Average: 11 years
supplied), or partially or fully supported by focused on long-term business success or sus-

other companies than the respondents (exter- tainable projects to address poverty, illiteracy
nally supplied) or were a combined contribu- and unemployment in Egypt.
tion from both sources.
The table below charts progress towards the
The response rate of 574 out of 2960 intervie- 2015 MDG targets and assesses the likelihood
wees is the basis of our analysis. It reflects a siz- of them being met.
able SME sample although for many more, the
subject matter was unfamiliar, and they did not More companies report more contributions to
feel they had information to contribute. MDG 1 than any other goal. However, with
Indeed, during the course of the quantitative more than 60% of companies reporting no pro-
and qualitative research it became apparent that development activity, much more needs to be
most companies were unaware of the MDGs done to engage SMEs, the most significant
and had limited understanding of the private employers, and to ensure that efforts are well
sector’s potential to impact development, either targeted. The study revealed the strong engage-
in conducting its day-to-day operations or ment of the private sector in providing employ-
through voluntary activities. Often respon- ment to unemployed youths. On the basis that
dents were unfamiliar with CSR and develop- the growing numbers of young people in Egypt
ment terminology and, although a full 70% have low skill levels or qualifications that do not
reported “usually” being involved in the plan- meet the needs of the formal private sector, this
ning and reporting of pro-development activi- should remain a priority. Nevertheless, there
ties (with the remainder “quite often”), it is are other areas where the private sector could be
probable that the full extent of the companies’ more active. Less than 10% of companies
activities were not captured. What respondents report MDGs 3, 4, 5 and 6 as their main area
meant by ‘pro-development’ activities were of activity, although the role of women and
community outreach activities, more in the health in promoting sustainable development is
sphere of corporate philanthropy than actions incontrovertible.
26

Table 3: MDGs tracking indicators
Indicator Level Level Target Potential for
in 1990 in 2004 for 2015 achieving target
• Goal 1 Eradicate extreme poverty and hunger
1 Percentage of population below $1 per day ___________________________________________
8.2 0.94 4.1 Met
1a Percentage of population under national poverty line __________________________________
24.3 22 20.2 12.1 Probable
2 Poverty gap (using national poverty line) _____________________________________________
7.1 3.9 3.6 Met
3 Share of poorest quintile in national consumption ______________________________ 8.3
4 Prevalence of underweight children under 5 ________________________________________ 9.9 a 8.6 b 5.0 Possible
5 Percentage of population below minimum level of dietary energy consumption ________25.6 c 14.0 d 12.8 Possible
• Goal 2. Achieve universal primary education
6 Net enrolment ratio in primary education ____________________________________________ 85.5 e 94.0 f 100 Probable
7 Percentage of pupils who reach grade 8 ______________________________________________ 83.9 g 86.8 h 100 Probable
8 Literacy rate of 15-24 years-olds ____________________________________________________ 73 i 87.0 f 100 Probable
• Goal 3 Promote gender equality and empower women
9a Ratio of girls to boys in primary education ____________________________________________81.3 c 90.9 j 100 Probable
9b Ratio of girls to boys in secondary education _________________________________________ 77.0 c__ 104.3 j 100 Met
9c Ratio of girls to boys in tertiary education (physical sciences) __________________________
51 e 66.0 b 100 Unlikely
9d Ratio of girls to boys in tertiary education (social sciences and humanities) _____________
65 e 99.0 b 100 Met
10 Ratio of literate women to men, 15-24 years old ____________________________________ 84.7 i 86.4 f 100 Possible
11 Share of women in wage employment in the non-agriculture sector ____________________ 19.2 20.6 k 50 Unlikely
12a Percentage of seats held by women in People’s Council _____________________________ 4.0 2.6 50 Unlikely
12a Percentage of seats held by women in Consultative Assembly ____________________________ 4.0 8.0 50 Unlikely
• Goal 4 Reduce child mortality
13 Under-five mortality rate _____________________________________________________________
56.0 35.4 k 18.7 Probable
14 Infant mortality rate ________________________________________________________________
37.8 28.2 k 12.6 Possible
15 Proportion of 12-23 months old children immunized against measles ____________________
81.5 a 95.6 b 100 Probable
• Goal 5 Improve maternal health
16 Maternal mortality ratio ______________________________________________________________
174 a 67.6 43.5 Probable
17 Proportion of births attended by skilled health personnel _____________________________
40.7 a 69.4 b 100 Probable
• Goal 6 Combat HIV/AIDS, malaria and other diseases
18 HIV prevalence among pregnant women aged 15-24 years ____________________________ not available 0.0
19 Condom use rate among married women using contraceptives _________________________ 4.2 a 15 b
20 Number of children orphaned by HIV/AIDS ___________________________________________ not available
21 Prevalence of malaria ______________________________________________________________ 0.0 0.0 Met
23 Incidence of tuberculosis ___________________________________________________________18.6 14.0 b
24a Proportion of tuberculosis cases detected under DOTS ________________________________ 58.0
24b. Proportion of tuberculosis cases cured under DOTS __________________________________ 88.0
• Goal 7 Ensure environmental sustainability
25 Proportion of land area covered by forest _____________________________________________
26 Ratio of area protected to maintain biological diversity to surface area 6.5 10.0 17.0
27 Energy use (metric ton unit equivalent) per $1000 GDP _______________________________ 3.9 6.3
28a Carbon dioxide emission per capita __________________________________________________ 2.0l 3.1
28b Consumption of ozone-depleting CFCs ________________________________________________ 2.144 1.335 k
29 Proportion of population using solid fuels ____________________________________________ not available
30a Proportion of urban population with sustainable access to an improved water source___________
96.9 a 100 98.5 Met
30b Proportion of rural population with sustainable access to an improved water source____________
61.1 a 95 80.6 Met
31a Proportion of urban population with access to improved sanitation ____________________ 94.7 a 100 97.4 Met
31b Proportion of rural population with access to improved sanitation ______________________ .. ..
32 Proportion of households with access to secure tenure ________________________________not available
• Goal 8 Develop a global partnership for development
47 Telephone lines and cellular subscribers per 100 population __________________________
8.3 l 21.2 b
48a Personal computers in use per 100 population ______________________________________ 1.2 l 2.2 b
48b Internet users per 100 population _____________________________________________ 0.3 l 3.9 b
a data for 1992 e data for 1995 i data for 1996
Source: Ministry of Planning (2005), Achieving the Millennium Development Goals: Success and Challenges b data for 2003 f data for 2005 j data for 2002/03
c data for 1990/91 g data for 1991/92 k data for 2001
d data for 1999/2000 h data for 1992/93 l data for 1999
The Al Maghraby Group and Unilever case contribute in areas of particular expertise
studies below illustrate the approach of a large (health and hygiene) while gaining market
indigenous company and an MNC with strong share and working in partnership with commu-
local roots. Such examples, where the compa- nity-based NGOs, could be replicated by other
ny sets clear priorities, seeks opportunities to large companies operating in Egypt.
AL MAGHRABY GROUP – AL NOOR FOUNDATION
The Maghraby group set up Al Noor foundation as an independent entity registered in Egypt as a charitable non-
governmental organization, under registration No. 214A for the year 1999. Start up funds for the foundation were
donated by the Maghraby group. The sustainability of the foundation is guaranteed through external funding from
international donors as well as international NGOs and universities. 27
3
Over the past seven years, Al Noor foundation has conducted field research study on Trachoma disease. The study
surveyed 13,500 people in three governorates and determined that the disease causes loss of eyesight in the long
term. The study was funded by foreign donors and technically supported by the University of British Columbia.
The government shared the results of the study with WHO, which reformed its health sector program in this area
to be able to mitigate the causes that spread this disease. The main challenge Al Noor Foundation encountered in
the study was the common perception that Trachoma had been eradicated in Egypt.
Partnerships:
The Ministry of Health in Cairo, the three governorates, BC Center for Epidemiology (University of British
Columbia), the International Trachoma Initiative, and the Social Research Center (American University in Cairo).
The outcomes of the project included forging new relationships with partners, indirectly reforming governmental
health sector policies on Trachoma, and gathering much needed authoritative baseline data for future reference.
Among Al Noor Foundation’s other projects are medical caravans, which began in 2000. Doctors go out to differ-
ent governorates and examine patients with ophthalmologic disorders free of charge twice a week. An annual plan
directs the caravans to governorates.
A training facility for eye doctors was established at Al Noor foundation. It offers a two-month training course free
of charge. In 2002, Al Maghraby Group established a non-paying hospital, and by 2005, the hospital became
financially sustainable by having fee-paying patients cover the cost of those who are unable to pay for treatment.
The Ministry of Social Solidarity and NGOs refer poor patients to it.
Al Noor foundation advocates for hygiene as part of the World Sight Day, and raises awareness about hygiene.
Almost all foundation activities are related to the core business of the Maghraby group i.e. eye care. The founda-
tion staff manages these. Al Noor foundation perceives its strength in having a hospital, a well-trained cadre of
doctors and staff, and a solid reputation among the community. Obstacles faced by the foundation include high
costs of eye care, and the need to achieve financial sustainability.
UNILEVER
The Village Development Project aims to improve the conditions of poor villages in Alexandria and Greater Cairo.
T. El-Talat Kabary village near Alexandria was selected as a pilot project. Approximately 90% of its population is
itinerant workers with a high rate of illiteracy.
A credit scheme was launched around animal husbandry over 3 years, interest free. A veterinarian and an agricul-
tural specialist conduct regular visits to beneficiaries and a board of directors from the community acts as liaison
between Unilever and the village. Literacy classes and handicrafts production are additional components of this
CSR activity.
In the field of health care, Unilever has been providing a dental health educational program for a number of years.
This is organized under the Signal brand, and promotes children’s awareness of the importance of dental hygiene.
Each child receives a free toothbrush and toothpaste. More than 5 million children in governmental schools have ben-
efited from this program and from the regular visits by dentists to schools to provide free check-ups and treatment.
Partnerships
In collaboration with the Rotary Club of Alexandria, Unilever funded a medical convoy to Sudan with 25 physi-
cians from different specialties who performed over 500 medical procedures, mostly among children.
In collaboration with the Rachid Foundation for Cultural and Social Development, and the Egyptian General
Authority for Adult Education, Unilever provided literacy programs for its 3000 employees.
In partnership with the Arabian Academy for Science and Technology, Unilever partly funds intensive computer
training to high achievers in IT technology and applications.
A special committee in Unilever organizes and manages CSR initiatives. The committee consists of a Board mem-
ber, the financial controller, and representatives from the various departments. Unilever’s main criteria for choos-
ing a potential CSR initiative include compatibility with the company’s plans and policies, and for beneficiaries to
28 fall within the company’s specific target groups (unemployed, orphans and special needs groups).

INFOSYS 39
Infosys, an Indian information technology services firm, grew from less than $10 million in sales in the early 1990s
to become a leading global player with almost $800 million in sales today. Along the way, it has also been setting
international standards for corporate governance and creating a new partnership for development with local and
central government.
Infosys Foundation, the philanthropic arm of Infosys Technologies Ltd., came into existence in December 1996
with the objective of fulfilling the social responsibility of the company by supporting and encouraging the under-
privileged sections of society. In a short span of time, the Foundation has implemented numerous projects in select-
ed areas – health care, social rehabilitation, rural development, learning and education and art and culture. From
making high-quality healthcare accessible, to enabling the spread of education where it is needed the most, the
Foundation has undertaken various initiatives in providing medical facilities to remote rural areas, organizing novel
pension schemes and in aiding orphans and street children. It has undertaken a large rural education program titled
“A library for every school” under which 5500 libraries have been set up in government schools spread across many
villages. Other activities include the reconstruction of old school buildings, setting up of rural Science Centers and
schemes to provide support to dying traditional art and culture forms.
Some companies might choose to set up foun- Egypt where human development indicators
dations with clearly-stated objectives. This is and the likelihood of meeting the MDGs are
the case of Infosys in India as described above. lowest
• Business sectors: an analysis of different
For some companies such large-scale initiatives business sectors’ actual and potential
may not be feasible, but in all cases a better tar- impacts on the MDGs can be made and col-
geting of groups and more deliberate design of laborative projects initiated
pro-development engagement is needed. Thus
companies have the choice of targeting based The diagrams below illustrate how this
on segments or beneficiary groups, regions or approach might be implemented on the
specific business sectors, or even on all three, as ground. Some companies are already support-
outlined below: ing these and other targets, for example, work-
• Segments / beneficiary groups: these might ing children (especially girls) in on-farm and
be unemployed youth (currently the most off-farm activities in rural Upper and Lower
favored by companies), women, children Egypt’s herbal flower and cotton trade, envi-
• Regions: companies tend to target commu- ronmental health in slum areas, environmental
nities in the proximity of their operations, degradation of water sources in the urban
thus Cairo is the most targeted region, fol- Delta, water and sanitation for small towns and
lowed by the urban Delta and Alexandria. hamlets, etc. However, few are undertaking the
Achievement of the MDGs would require a three-pronged targeting approach, and fewer
major shift in emphasis towards Upper yet are referencing it to the MDGs.
Upper Egypt Manufacturing Agri-Business

Crafts Sector SME’s Rural Egypt
Illiterate Urban Working

Adults Youths Children
South Sinai Distrubution Sector
39 http://www.infosys.com/infosys_foundation/learning.htm 29
By aligning these activities to core business

Figure 14: Activity Decision Maker

operations (e.g. the large-scale agribusinesses 60
working with producers) and working with 52
50
other companies and NGOs with grassroots
expertise, companies can achieve scale and so 40 38
enhance standards, not only within their own 30

value chains, but also in the business sector as a
20
whole. In this manner they can achieve more
widespread and sustainable positive outcomes 10 6 6
3
for communities in some of Egypt’s most disad-
0
vantaged regions. SMEs in particular, which
Responsibility CSR
PR Manager
Marketing Manager
Owner
CEO
Corporate Social
may not have resources to set up foundations or
Executive
specific teams and departments to manage their
community activities, may wish to adopt a sec-
tor-specific or partnership approach to max-
imise impact. Many development agencies and
business associations are willing and able to However, the current trend amongst MNCs
advise on appropriate partners and projects and and large-scale indigenous companies is to con-
act as brokers with government and others. sider CSR as a separate function in the compa-
ny – one that is seldom referenced to the devel-
How do companies approach their opment context of Egypt or the MDGs.
pro-development activities? Companies such as Mobinil, Vodafone, the
Mansour Group and the Arab African
Our international research identified several International Bank (AAIB) have appointed CSR
examples of specifically pro-development or managers with international, business and devel-
MDG-oriented initiatives by business. Much opment backgrounds with the remit of drawing
of the literature focuses attention on businesses’ up CSR strategies and professionalizing volun-
impacts in terms of core business operations in tary contributions, benchmarking against inter-
the workplace, market place and along the sup- national best practice. Such companies are,
ply chain, philanthropic and voluntary activi- however, still very much in the minority.
ties, advocacy, and policy dialogue. So, for
example, how can large companies modify their Many MNCs operating in Egypt have well-
distribution channels and products to bring in developed worldwide company policies and
small operators and reach new BOP markets? management and reporting procedures
designed to minimize social and environmental
Below we use that framework to present the risks to the business. Some have gone beyond
findings of our quantitative and qualitative basic compliance to thinking creatively about
research, highlighting specifically pro-develop- how they can adapt workplace policies to bring
ment models that are, or might be implement- greater benefits to local communities.
ed in Egypt. Unilever’s partnership in Cairo with The Right
to Life Association is a good example. The
Given that most of the companies surveyed company provided 10 days training to 180
were SMEs, it is perhaps not surprising that in handicapped youths, enabling them to work in
90% of cases the owners, followed by CEOs, a specially established small-scale soap packag-
were the main decision-makers around pro- ing production unit. This project helped these
development activities / initiatives, with only youth become “extended employees” of
6% reporting dedicated personnel to organize Unilever, earn independent income and take
30 and manage these activities in their company. pride in their skills and abilities.
There is evidence that Egyptian companies, and adhere to labor laws, child protection princi-

particularly those with international exposure, ples, and environmental standards when given
are also beginning to mainstream CSR through financial and technical support.
reinforcing adherence to local laws and seeking
accreditation to international standards in areas Base of the Pyramid Models
such as labor rights, health and safety and the
environment. Eighty-nine percent of compa- The study did not reveal many so-called “Base
nies surveyed had some form of certification or of the Pyramid” (BOP) models, wherein a com-
guarantee for internal compliance to appropri- pany develops or adapts products and services
ate standards. specifically to meet the needs of poorer cus-
tomers. A few are mentioned below:
Figure 15: Internal Compliance Certification 40
90
• Village adoption schemes involving compre-
80
79 hensive development of a range of services
70 • Interest-free and micro loans from banks
60 and other companies, often to employees
50 but sometimes geared specifically towards
40 women
30 25 • Specialized banking and other products for
20 14 poorer customers, such as low-cost, easy
9
10 5 5 4 4 installment housing plans which do not
0
require down payments
Local Labor Law
ISO 9000 Series
ISO 14001
International
Labor Law
ECO-TEX
TQM
HACCP
ISO Social
Standards
• Building water, sanitation and electricity

infrastructure for poor areas
• Promoting and marketing local crafts
• Creating environmentally sustainable busi-
The study also documented a number of nesses for the underprivileged
planned, development projects that are • Providing knowledge and expertise to initi-
attempting to upgrade the SME sector’s prac- ate and support socially sustainable agricul-
tice concerning rendering the working environ- tural, feeding, and food development pro-
ment safer, reducing, if not totally eliminating grams
child labor in workshops, introducing technol-
ogy and improved production processes. This The Kheir Zaman chain of supermarkets man-
indicates willingness by informal SMEs to aged by the Mansour Group is an example.
40 ISO 9000:
http://www.iso.org/iso/iso_catalogue/management_standards/iso_9000_iso_14000/iso_9000_essentials.htm
ISO 14001: http://www.iso.org/iso/iso_catalogue/management_standards/iso_9000_iso_14000/iso_14000_essen-
tials.htm
International Labor Law: http://www.itcilo.it/actrav/actrav-english/telearn/global/ilo/law/lablaw.htm
Eco-Tex: http://www.textil-online.net/englisch/Publications/Yearbook2002/E1350.htm
TQM: http://www.managementhelp.org/quality/tqm/tqm.htm
HACCP: http://en.wikipedia.org/wiki/HACCP
ISO Social Standards:
http://isotc.iso.org/livelink/livelink/fetch/2000/2122/830949/3934883/3935096/home.html?nodeid=4451259&ver-
num=0 31
3
THE MANSOUR GROUP
The Mansour Group focuses on literacy, education, orphans, and the environment. Their projects include the
Kheir Zaman chain of supermarkets, which serves the needs of lower income bracket consumers, offering high qual-
ity products in more affordable packaging. The Group plans to purchase supplies for this project from smaller busi-
nesses as a means of both acquiring their goods at a lower cost, and helping these businesses flourish by procuring
the bulk of their stock.
The Mansour Group established an advanced school for Autistic Children in 1999, complete with a hospital, gar-
dens, and storefronts where the children can sell their handicrafts
In the area of corporate volunteerism, the Mansour Group supports the INJAZ program that uses the Junior
Achievement International Curriculum designed to enhance skills of the Egyptian youth to enter the job market as
employees or entrepreneurs.
The Mansour Group signed a protocol of agreement with the General Authority for Adult Education in 2005
whereby the company produced and aired three 30-second television advertisements to create awareness about the
importance and value of literacy. In addition, the company has been supporting literacy classes in Beheira and
Mansoura Governorates from 2006 until 2009, and provides scholarships for students who continue their educa-
tion beyond literacy.
While international research records many the Poor”41 presents a number of best practices
examples of MNCs or large companies, such as adopted by national and multinational compa-
Cemex in Mexico, supporting such projects, nies. They demonstrate the tremendous poten-
there are other examples of smaller operators tial of the private sector to contribute to devel-
taking the initiative and achieving scale through opment while contributing to company profits.
thinking creatively about how to access previ- The following case studies were selected with a
ously untapped markets. The 2004 UNDP view to their relevance to the Egyptian context
publication entitled “Unleashing and to their potential replication by SMEs.
Entrepreneurship: Making Business Work for
CEMEX 42
Cemex, the Mexican cement firm, has become one of the world’s leading producers and innovators in the indus-
try, employing thousands. The company partnered with federal, state, and local governments to provide Mexico’s
poorest residences with a concrete floor. The “Piso Firme” program has now been implemented in Mexico and
Colombia and helped almost 200,000 disadvantaged families by replacing their dirt floors with a unique antibac-
terial concrete, an ideal way to preserve a clean and healthy environment.
Cemex has also helped to make the dream of home ownership a reality for more than 120,000 Mexican families
through the “Patrimonio Hoy” program that organizes low-income families into self-financing cells that facilitate
and expedite the typical home-building process. Cemex provides them with all the materials they need as well as
technical assistance, including an architect who helps design their house with an eye to future growth, so that they
can optimize space and reduce waste.
Through its “Construmex” program, Mexicans living in the US can transfer money home to fund their families’
construction needs. For only a dollar each, Cemex’s clients can transfer orders directly through a network of more
than 20,000 distributors across Mexico who then delivers the building materials to clients’ designate recipients.
41 Commission on the Private Sector and Development. Unleashing Entrepreneurship: Making Business Work for the
Poor. Report to the Secretary General of the United Nations. United Nations Development Program, New York,
March 2004.
32 42 http://www.cemex.com/cc/cc_cm.asp

BASE OF THE PYRAMID MODELS
Examples include social enterprises, not-for-profit organizations, and cooperatives of other institutions developing
innovative solutions that provide a social, environmental, or economic benefit to the community. Examples
include “digital dividend” projects that bring telecommunications and internet access to poor communities and
solar power projects, which bring electricity and other services to off-grid communities.
In India, small-scale soybean farmers use a village internet kiosk to check spot prices for their products on the
Chicago Board of Trade’s web site, bypassing local intermediaries and getting better prices.
Casas Bahia in Brazil has developed a unique business model providing efficient retail services aimed at poorer cus-
tomers. As the largest retail chain store in Brazil, it was one of the first companies to offer highly successful credit
sales schemes enabling the urban poor to buy electronic and other household products. Their installment sales
schemes unlocked the purchasing power of Brazil’s enormous working class and catered to the needs of low-income
groups while earning good returns for the company.43
The ICICI Bank in India is applying technology to access a range of new markets, but particularly rural SMEs and
micro-entrepreneurs. It provides farm equipment loans for farmers in 381 locations and gives them easy repayment
terms from one to 9 years. 44
In Cambodia hundreds of small private providers offer services ranging from battery recharging to fully metered
electricity provision for entire communities. These providers now serve and estimated 115,000 customers – more
than one-third of electricity customers nationwide.
Value Chain Initiatives Egypt. Such approaches might look at how

food-processing companies can engage small
The research also revealed that, in planning farmers, the hotel industry community-based
their pro-development activities, a number of handicraft producers; the automotive industry
companies are taking into account their wider can promote road safety or the food export
impacts along the value chain. Therefore, for industry greater compliance with international
example, they incorporate consideration of how health and hygiene standards amongst rural
standards and positive impacts can be raised suppliers and in the home.
amongst suppliers, distributors and in the mar-
ket place. International research indicates that The EQI case study below illustrates this
this is perhaps an area of significant potential in approach.
EQI 45
In 1996 EQI President Mounir Neamatalla, expanded the company’s activities beyond advisory services to direct
investments in sustainable development. Based on consultations with the local community and other stakehold-
ers, EQI designed and implemented The Siwa Sustainable Development Initiative which incorporates a number of
commercial ventures aimed at promoting economic development in Siwa, that are in harmony with its sensitive
environment and that revitalizes its unique cultural heritage. EQI’s approach has been to draw on the indigenous
wisdom, traditional skills, and creativity of the local community, and complements them with modern know-how,
to develop Siwa into a model of sustainable development.
EQI, the principal investor and catalyst, partnered with the local community and local authorities bringing techni-
cal expertise on economic development. and garnering political support for the project. Key initiatives include a
Shali lodge built in the traditional Siwan architectural style, ecotourism activities, organic agriculture products, and
women’s artisanship, cultural expression.
43 http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG102.htm
44 www.icicibank.com/Pfsuser/loans/farmequip/fehome.htm
45 http://www.eqi.com.eg/index.php?activemenu=Project%20Showcase&screenid=11 33
3
The community welcomed the project because it allowed women to work from their homes, or in an all-women
setting, in keeping with Siwan tradition. Within a year, 300 joined up.
Women artisans earn a steady income comparable to - and sometimes higher than - the average earnings of Siwan
men. Marketing occurs in high end outlets in Europe. Branding, quality control and shipping are handled by EQI.
In partnership with the International Finance Corporation (IFC), EQI developed Siwa into a center of excellence
for the production of organically grown produce and agro-culinary products, while improving the standard of liv-
ing of Siwan farmers. The project, which benefited 300-450 farmers and 50 off-farm workers, added value to Siwan
agricultural produce by promoting organic farming methods and farm management systems compatible with inter-
national certifications. Project components included a crop pre financing scheme, a cattle-financing scheme, a
renewable energy initiative, and a packaging warehouse.
EQI manages the funds, provides the necessary training and technical assistance, and undertakes all post-harvest
activities up until shipment.
The Siwa Sustainable Development Initiative has revitalized centuries-old systems for managing the environment that
were being abandoned in favor of modern but inappropriate technologies that were depleting the natural and cultur-
al assets of the oasis. It has renewed Siwans’ pride in their cultural heritage, creating a wave of building in the Siwan
traditional architectural style. It has also resulted in a decree by the Governor of Matruh that all new construction be
built in the traditional style. Most importantly, the initiative has benefited the local community by creating environ-
mentally and culturally sustainable employment and income-generating opportunities that draw on materials and
expertise available locally rather than imported from the Nile Valley. Six hundred Siwans are now gainfully employed
in such areas as the supply of raw materials, production of furniture and handicrafts, transport of goods, transporta-
tion of workers, and operation of tours. The renewed interest in Siwan architecture is also providing employment
opportunities for the new generation of craftsmen and builders that has emerged as a result of the project.
Voluntary Contributions entire hospitals and clinics (also mobile) in

impoverished areas or specialized medical
The study reveals that most activities reported units within them(e.g. kidney dialysis,
by companies in Egypt as contributing to the neonatal health, X-ray or liver units, rehabil-
MDGs can be categorized as voluntary with itation and physiotherapy departments)
some small and scattered models of base of the • Distributing meals and food products dur-
pyramid actions. In other words, most were ing religious festivals such as Ramadan and
not closely linked to core business operations, feasts and providing financial support for the
but rather philanthropic in nature. While not poor
included in our survey of 574 companies, there • Organizing health campaigns, vaccination
is evidence that on a small scale, informal SMEs programs
undertake similar philanthropic activities in • Building mosques and supporting commu-
their immediate neighborhoods. Examples nity development centers which offer basic
include feeding the poor and indigent, support- services (education, health, computers, voca-
ing orphans and widows, subsidizing children’s tional training, culture and arts) at nominal
education, etc. This provides a valuable oppor- fees
tunity to re-orient cultural modes of giving • Establishing charitable foundations
towards pro-development activities with more
sustained outcomes and to depart from the From the above, it is clear that most of the
‘project’ mindset of existing actions in favor of activities fall into the categories of pure charity
building structures and systems that allow for or longer-term community investment.
the scale-up of sound models. Examples of paid time off for employee volun-
teering are also evident. Cause related market-
Typical and widespread examples of current ing, wherein a company links its products to
voluntary contributions by business are: specific social causes, are relatively rare,
• Offering and supporting literacy classes although Procter and Gamble’s CSR program
34 • Establishing, renovating and/ or equipping has elements of such an approach.

PROCTER AND GAMBLE
In Egypt, P&G markets fourteen brands, seven of which are manufactured in Egypt. P&G’s CSR portfolio encom-
passes the fields of education, health, women, and children, through donations, development projects, and partner-
ship development.
The Mokattam Recycling School. The project was an initiative by Community and Institutional Development
(CID) in 1998, when, shampoo-producing companies realized that they were incurring losses caused by the fact
that empty bottles of their products were in demand by fraudulent market operators who refilled them with a coun-
terfeit product.
P&G extended financial support to allow destitute adolescents among the garbage collectors’ community to pur-
chase these containers from the market before the fraudulent merchants got to the product. The adolescents deliv-
er the empty containers to a recycling school that was established specifically to prevent fraudulent brand name
trade. At the school run by the Spirit of Youth NGO for Environmental Services, the program combines a tech-
nical recycling, literacy, numeracy, health, recreation, industrial safety, legal literacy program with an income gen-
erating mechanism to provide income while recovering P&G’s specific brand of shampoo to protect it from being
refilled fraudulently. P&G leaves the revenue generated from the sale of the granulated plastic to the NGO to cover
the running costs of the school and teaching staff salaries. To date, almost one million shampoo bottles have been
recycled. The project continues today, and the older children from the area are now paid to transfer their recycling
expertise to other children in other communities.
P&G participates in INJAZ, an outreach program to foster and develop the life skills of young people prior to their
entering the workforce. Employees of P&G are encouraged to volunteer their talents and time to impart their voca-
tional knowledge to the beneficiary youth of the program.
P&G’s brand of baby diapers, Pampers, established a telephone hotline for mothers with questions regarding prop-
er hygienic care for their children. In addition, the brand has signed an agreement with the USAID funded health
project TAKAMOL to provide health awareness pamphlets at the medical clinics the initiative is renovating in vil-
lages throughout Upper Egypt.
P&G’s External Relations Department manages the company’s socially responsible initiatives. The funding for
these projects is a percentage of the company’s overall profit—that varies from country to country.
For the most part, the companies researched without considering whether this is the most
did not strongly align their pro-development effective use of resources, from either a business
activities to their business operations, in the or community perspective. The EMAK
sense that they do not capitalise on companies’ International Academy example given below,
core competencies nor take a long-term view of however, is a clear exception and illustrates the
development. Most companies, regardless of value of working with partners with comple-
size or origin, continue to make ad hoc grants mentary skills and resources.
EMAK ACADEMY
The Kharafi Group established EMAK International Academy in 2002. Its partners are Oracle Egypt and the Arab
Academy for Science, Technology, and Maritime Transport. EMAK Academy builds the technical capacity and
soft skills of employees. It gives students of modest backgrounds priority in its CSR activities
Partnerships: A Main Feature of EMAK’s CSR Program
Over the past five years, EMAK Academy has initiated three main CSR activities. The first is the Oracle Academic
Initiative for top students, in partnership with Oracle International and Egyptian universities e.g. Cairo University,
Ain Shams, Alexandria, and Minya Universities. Top students from these universities are nominated to attend
training on Oracle free of charge. EMAK draws up stringent selection criteria Academy staff volunteers their time 35
3
to teach students at locations provided by the universities while Oracle provides the training material free of charge.
500 to 600 top students undergo training each year through out Egypt. They undergo preparation for the local
and international job markets as many are recruited to work in the Gulf. Their remittances are valuable for their
families and the economy at large.
The second is a Training Initiative for university graduates in collaboration with the Future Foundation, and
Oracle. EMAK Academy covers half the costs, while Future foundation covers the other half. The Future
Foundation identifies students and EMAK staff provides the training and course materials.
The third initiative is Grants from Ministry of Communications and Information Technology. The ministry iden-
tifies trainees and EMAK carries out the training.
Management of CSR
The Executive manager and the different program heads who contribute lead CSR activities in EMAK Academy to
the CSR initiative through providing technical skills or trainers. They are able to identify the technical needs in
the Egyptian market and tailor training accordingly. Professional and certified trainers at EMAK academy volun-
teer their time to train youths.
Corporate and family foundations tend to be tion, religion remains the primary articulated
more focused and consistent. Egypt has a few motivation for giving among Egyptians of all
which offer good role models for other corpora- classes and faiths. In this context, any attempt
tions considering the establishment of such to understand how private sector efforts can be
structures. The Sawiris Foundation is the fore- mobilized for social purposes must take account
runner of this trend. They have gone through of the cultural traditions that have shaped phil-
several cycles of grant making helping them anthropic practice in Egypt. Below, some of
overcome the lack of professionalism that most the major factors contributing to the profile of
newly established foundations face. philanthropy at the present time are outlined.
Religious belief, the relationship of the state to
PHILANTHROPY IN EGYPT46 its citizens, and attitudes toward public recogni-
tion all play a part in shaping how and why
Traditional practices do not change overnight. Egyptians give and some of the challenges faced
It is likely that for some time to come business- by programs to expand and professionalize con-
es will continue to behave philanthropically, temporary giving are also discussed.
will give to rather than invest in communities,
and that engagement in CSR activities aligned Philanthropy is defined for present purposes as
to core business and in development-oriented the mobilization of private assets, whether
policy dialogue and advocacy will remain limit- material or human capital, for the public good.
ed. We therefore take an in-depth look at the
current predominant philanthropic model of RELIGION AND GIVING
CSR in Egypt.
Religion is a primary motivation for giving
Egypt has a long and venerable tradition of phi- around the world. Yet the form and extent of
lanthropy. Some of the world’s earliest forms of philanthropic practices is shaped by particular
institutionalized giving, such as the Islamic histories and religious beliefs. Thus, we find
endowment (waqf) and Coptic Christian tithe that Buddhism strongly encourages personal
(ushour) are rooted in Egyptian history. volunteering, and countries such as Thailand
Today, despite a century of secular moderniza- and Vietnam have very high rates of volun-
36 46Ibrahim, Barbara. John D. Gerhart Center for Philanthropy and Civic Engagement, AUC, May 2007
teerism compared to other areas of the world other assets were withdrawn from commercial

(Gallup 2005). The same survey found that circulation and dedicated to the support of a
voluntary activity is relatively low in the Middle public cause or the welfare of a family over
East (14%), including Egypt, but that the pro- time. Waqf endowments played an important
portion of individuals who give material sup- role throughout the Muslim world in maintain-
port for charity is quite high. According to a ing hospitals, orphanages, schools and other
2004 survey conducted by the Center for public institutions. That continues to be the
Development Services (CDS), 62% of adult case today in countries such as Turkey and
Egyptians contribute some amount of money Indonesia, but the practice, once flourishing,
or gifts to a social cause (Daly 2007, 173). has all but disappeared in Egypt. Nonetheless,
Because of a tendency to keep giving anony- the concepts of sadaqa jariya and waqf are
mous, the percentage of those who actually give enjoying renewed interest in recent years, with
is probably much higher. Even among a number of prominent individuals calling for
Egyptians with relatively modest incomes, char- the revival of these mechanisms because they
itable giving is widespread. allow for sustained support to social causes
(Gerhart Center seminar, Cairo, October
Muslims in Egypt give in a variety of forms, the 2005).
most common of which is zakat. This is an
obligatory distribution of 2.5% on accumulat- The demise of endowed giving has had the con-
ed wealth per year. As one of the five pillars of sequence of making most contemporary philan-
faith, all Muslims are expected to give zakat and thropy in Egypt charitable in nature. By this is
elaborate systems have developed for calculat- meant that giving is short-term in its benefits
ing how much is owed and how zakat may be rather than sustained and capable of supporting
distributed. Zakat al mal is of particular inter- developmental improvements in society.
est as it is a contribution incumbent on Typical of this kind of philanthropic giving is
Muslims who have achieved a certain level of food donations during Ramadan, clothing,
personal wealth, traditionally set at the equiva- blankets, and medicines for the poor, toys for
lent of 85 grams of gold. This type of giving is orphans and so forth. The distribution of con-
targeted largely to charitable causes and is usu- sumable goods meets the requirements of zakat
ally monetary rather than in-kind. Over 40% for the Muslim giver and assuages some of the
of Muslim Egyptians who report any philan- immediate needs of disadvantaged people.
thropic giving state that they pay zakat al mal Zakat is organized in Egypt through Al Azhar
(Daly 2007, 174). and tens of thousands of individual mosque
committees. It is a huge sector comprising large
Another category of giving is sadaqa, a more resources and literally millions of individual
voluntary and spontaneous form of generosity. donors. It provides significant levels of support
Sadaqa jariya are gifts of a lasting nature. to needy individuals and families who would
Popular expressions of this in Egypt are to build otherwise ‘fall through the cracks’ in Egypt.
or furnish a mosque, set up a public water foun-
tain, or print and distribute religious booklets. Egyptian Christians have strong traditions of
The later is a common way of commemorating giving. Coptic Christians are called upon to
a loved one at the time of death. After giving to give a tithe or ushour (meaning a tenth) of their
neighbors, it is reported as the second most income and wealth. In addition, Copts should
desirable form of philanthropic giving (Daly also tithe with their time, either through volun-
2007, 155). teering or through prayer. Churches are often
places of community gathering, for social and
For centuries, a flourishing aspect of sadaqa philanthropic activities beyond weekly devo-
jariya was the waqf system, whereby property or tional services. Adherents to the faith are 37
enjoined to apply the tithing calculation by the much giving makes it more difficult to measure
‘spirit of the law’ and not the ‘letter of the law’ and evaluate the scope of philanthropic giving
by extending the 10% to an unlimited percent- and it discourages collective activities or coop-
age of income if they are able and inclined to do eration. Finally, legal or policy incentives such
so from the heart. as tax deductions are unlikely to have a signifi-
cant impact on giving when many people are
Even though the exact percentages to be paid concerned that a monetary incentive under-
differ between Muslims and Christians, basic mines the purely spiritual nature of their gifts.
attitudes towards charitable as opposed to
developmental giving and beneficiaries of giv- The second factor that motivates philanthropy,
ing were found in the CDS survey to be similar although less prominent than spiritual piety, is
for both faiths. (Daly 2007, 141, 151). This helping one’s community or relieving the bur-
suggests the pervasive cultural weight of these dens of poverty and disadvantage. Egyptian
traditions for all Egyptians. respondents mention this aspect of giving less
frequently than religious motivations (Daly
SERVING GOD/ SERVING 2007, 144-145). However, it is worth noting
THE COMMUNITY that ideas of public service are more likely to be
mentioned as motivation for giving by residents
Religious motivations for giving contain two who live outside major cities and towns. It
elements: one that associates the gift with a spir- seems that identification with a local communi-
itual act, in other words, the gift is for God, and ty and sense of solidarity with neighbors is more
another that emphasizes the needs of others or highly developed in smaller communities.
benefits to the community. In Egypt, the for-
mer concept is stronger, the idea that giving is The balance between religious and community
mainly a devotional practice, something given service motivations for giving is no doubt diffi-
for God. When asked why they give, most peo- cult to disentangle, not only in Egypt but also
ple say that it is a personal religious act or that elsewhere. Philanthropy and its underlying
they are doing a religious duty for God. Third impulses are complex matters and not easily
is the idea that it is traditional or customary. captured in surveys. It is likely that multiple
Only fourth is any mention of responses related layers of factors motivate Egyptians, including a
to alleviating poverty or helping the communi- mix of spiritual, communitarian, and even
ty (Daly 2007, 144). A commonly mentioned patriotic impulses for giving. In the contempo-
reason for charitable giving and for volunteer- rary social climate, religious motivations are
ing of one’s time is thawab - the accumulation most often articulated. (Ibrahim 2006).
of good credit with God (Ibrahim 2007).
INSTITUTIONAL FORMS
This close association of philanthropy with OF PHILANTHROPY
service to God has a number of consequences.
One is that the giver may not be particularly While religion is cited as a major motivation for
focused on the worldly impact of his or her giv- giving in Egypt, not all of the forms that such
ing. Second, religiously motivated giving is giving takes are themselves religious in nature.
often accompanied by a desire for privacy or Dissatisfied with purely interpersonal, a grow-
secrecy. Both Muslim and Christian traditions ing number of Egyptians have channeled their
suggest that God does not bless gifts that are philanthropy through NGOs or have them-
publicly announced or bragged about. There is selves created new organizational structures that
also a strong feeling among Egyptians that one promise to offer more permanence and effec-
should not embarrass the recipient by drawing tiveness. We will not discuss general NGOs
38 attention to the gift. The anonymous aspect of here - there are nearly 18,000 registered
gameyaat, or private voluntary associations. by an individual, family, group of donors, or a

However, philanthropic organizations, defined company. The targets of their programs may be
as asset-bearing agencies that serve a public cultural, charitable, advocacy, social or develop-
cause are increasing rapidly in Egypt. From less mental in nature. They can operate by making
than 10 in 1990 there are now over 400 foun- grants, by administering their own programs
dations (in Arabic moasasaat) registered with in-house, or by establishing rotating loan pro-
the Ministry of Social Solidarity. grams. These organizations tend to have a
small, self-elected board structure of gover-
Sometimes modeled loosely on western founda- nance and many are beginning the practice of
tions or trusts, these are registered non-profits making public their assets, expenditures, and
characterized by a material asset base donated programs.
LEAD FOUNDATION 47
The Lead Foundation is an Egyptian NGO founded in 2003, under NGO law number 84/2002, by a group of
private sector businessmen, with contributions from the Egyptian private sector and the International Finance
Corporation (IFC), with support from the United States Agency for International Development (USAID). The
Mansour Group of companies is the Foundation’s key private sector partner.
The Lead Foundation’s mission is to support the expansion of Egypt’s small business sector, to raise employment
and earnings among low-income and poor groups, with a focus on women. The Lead Foundation delivers credit
and related business support services starting from the Greater Cairo area, and progressively expanding in areas
where needed. It started its activities with a pilot project providing market-led job skills training to underprivileged
people through the “Chance to Work” program, the SME Individual Lending Program and the Blossoms of
Goodwill Group Lending Program. In the first, loans start from as little as LE 1,000 ($170). Individuals have the
option of pursuing repeat loans, which can gradually increase in size, depending on the repayment performance and
the needs of the enterprise.
The second is directed to female-headed households located in disadvantaged areas using the Group Lending
Methodology. Program loans start from as little as LE 50 ($8), with the potential for subsequent bigger loans up
to a maximum of LE 1,000 ($170). If clients demonstrate efficient use of the loans, are able to expand their busi-
ness and demonstrate their business’ sustainability, they may be upgraded to the SME category and become eligi-
ble for individual loans.
The two programs combined were able to issue 89,327 loans and serve 49,210 clients. The LEAD Foundation
reached a monthly lending capacity of over LE 5 million in September 2005, equivalent to an annual lending capac-
ity of over LE 60 million.
47 www.lead.org.eg 39
At least four broad categories of non-religious foundations are often established in the name
philanthropic institutions can be noted: of a family member or an individual’s memory.

They have existed in Egypt since the 19th cen-
1) Family foundations, where bequests are from tury and are being revived today by successful
personal assets and management may stay at entrepreneurs, a process that began in the
least partially among family members. Such 1990s.
SAWIRIS FOUNDATION FOR SOCIAL DEVELOPMENT 48
The Sawiris Foundation for Social Development was founded in April 2001, with a family endowment from the
Sawiris family. It was the first grant-making family foundation dedicated to social development in Egypt. It focus-
es on job creation projects, by identifying job opportunities then training unemployed youth to take them up. Prior
commitment from employers is obtained to hire successful trainees. The Foundation fosters the spirit of entrepre-
neurship and the creation of self-employment opportunities. It funds training for potential entrepreneurs and pro-
vides seed money for the start-up of micro and small enterprises. The Foundation’s approach is based on three fun-
damental concepts: the backward model of job creation; partnerships; and leverage and replicability.
Partnership:
Projects funded by the Foundation are based on collaboration between civil society, the government, and the cor-
porate sector. The Foundation’s institutional partners function as implementing agencies and are sometimes
involved in the design and co-funding of projects. Implementing agencies include government bodies, non-gov-
ernmental and non-profit organizations, universities, and business enterprises. Thus, employment creation pro-
grams are implemented through partnerships involving institutions willing to undertake the training component;
businesses willing to host on-the-job training; and partners willing to participate in project funding or provide tech-
nological transfer.
The Foundation supports and develops projects that are innovative, answer socio-economic needs, demonstrate
potential for success, and can be promoted as a model to be replicated and adapted by other institutions. The
Foundation focuses on:
1. Health:
a. Improving the profession of home healthcare providers in Cairo Governorate: training is provided for
home healthcare providers to care for the elderly and people with special needs and their supervisors who are
placed in different healthcare institutions and NGOs across Egypt.
b. Improving the nursing profession in Qena Governorate: new nursing teachers in the nine Qena nursing
schools have been trained; the management and administrative skills of existing nursing teachers have been
upgraded. Ten NGOs have been mobilized to conduct community-based activities; an operational manual to
enable others to replicate and mainstream this project has been created.
c. Training special needs educators in Qalyoubiya Governorate: 125 university graduates have been trained to
work as special needs educators in both Cairo and Qalyoubiya Governorates.
2. Other vocational training: Examples of projects include:

a. Training printing technicians in Qalyoubiya Governorate: paper-printing, textiles printing has been given
to designers, photographers, printing technicians and quality controllers.
b. Employment unit in Mokattam in Cairo Governorate: focusing on two different professions: driving and
simple home repair skills and cooking, with banquet and catering services.
3. Small and micro businesses: Learn and Earn in Cairo Governorate: The project created employment for
women by expanding a micro-credit unit in Manshiet Nasser, allowing it to disburse 379 additional loans, and
establishing a new micro-credit unit in Masr al-Qadima to provide loans for 757 female-headed households.
4. Scholarships: The Sawiris Foundation Scholarship to Germany: Awards a full scholarship (fees and living
expenses) for two candidates from the Deutsche Evangelische Oberschule in Cairo (DEO) for a maximum of five years
to complete their undergraduate degree, either International (Bachelor/ Master) or National (Diploma) in Germany.
40 48 http://www.sawirisfoundation.org/en/index.htm

5. Educational and professional development:
a. Training development practitioners in Cairo Governorate: in areas such as planning, fundraising, project imple-
mentation, monitoring and evaluation and then employing them in different organizations. The training was
undertaken in four governorates: Cairo, Fayoum, Aswan and Beni Suef.
b. Training literacy instructors for the hearing impaired in Alexandria Governorate
2) Corporate giving (either legally autonomous mildly unpleasant causes and spurn support for
or within a division of a company) operating on worthy causes because they would not look
annual infusions of profit or shares from a par- ‘positive’ in the company newsletter. These
ent company. Corporate social responsibility attitudes may limit the scope of what private
(CSR) has gained prominence recently, with sector companies are willing to support. On
the establishment of a number of committees the other hand, a number of pioneering compa-
and support programs to spread the ideas. nies are undertaking truly innovative and
Often the motivation is PR and company may important social causes and committing signifi-
fear public criticism of any controversial or even cant resources to public benefit.
VODAFONE FOUNDATION
In 2003, the Vodafone Egypt Foundation was registered as a separate entity from Vodafone Corporation to make
social investments by sharing the benefits of developments in mobile communications technology and supporting
local communities.
The Vodafone Egypt Foundation has three main objectives:

- expand the impact of Vodafone’s corporate social responsibility initiatives
- actively coordinate with civil sector organizations to achieve sustainable development
- reach a wider segment of the Egyptian society through networking with local NGOs, government bodies, and
private sector entities.
Vodafone Egypt Foundation’s two main areas of concern are education and health.
To ensure transparency, the foundation adopts clear-cut criteria for selection. In collaboration with local NGOs,
UN agencies and international organizations, Vodafone Egypt Foundation implemented the following:
Reception center for street children

In partnership with Hope Village Society, it offers different services, trainings, literacy, and psychotherapy activi-
ties in Hagana.
Supporting ICT in education in partnership with CARE Egypt

LINC is designed to meet some of the educational needs of rural villages in Upper Egypt, empowering schools,
communities, and civil society using Information and Communication Technology (ICT).
Fostering Volunteerism
In partnership with the Youth Association for Population and Development (YAPD), it endorsed volunteerism
among’ primary, preparatory, and secondary students. This “Bader Project” (Volunteer), encourages students to
volunteer and participate in solving their most pressing problems.
Deaf and mute rehabilitation center

In partnership with Nedaa’ Association, the project rehabilitates children with sensory communication disorders
and provides them with diversified channels for social integration. The project established a fully equipped educa-
tion center for deaf and mute children and increases public awareness about handicap prevention through the early
diagnosis of deafness. It also offers social and medical services for their families.
41
3
Millennium Development Goals (MDG’s) Initiative

In coordination with UNDP, Vodafone Egypt Foundation contributed to the MDG’s initiative: an intensive edu-
cational campaign was conducted on poverty, education, primary education, gender equality, women’s empower-
ment, child mortality reduction, maternal health improvement, and global partnerships.
Establishing a computer center for blind and visually impaired youth in Minya
The ultimate goal of the project was to provide these youth with the necessary skills to join the workforce. The
project was implemented in partnership with the Arab Women Alliance in Minya, a national NGO.
Vocational training for youth with special needs

In partnership with the Right to Life Association, Vodafone Egypt Foundation funded a project aiming at rehabil-
itating youth with intellectual disabilities and enabling them to join the workforce.
Establishing a computer center for the Blind children in Old Cairo

In partnership with al Nour Foundation, it established a computer center in Old Cairo Area for blind children. A
communication and IT unit was established, providing special programs for the blind, in addition to offering free
medical care services in cooperation with the Maghraby Foundation.
3) Community foundations enable multiple 4) Finally, a sort of hybrid can be noted that we
small donors to pool their financial resources for might call the partners foundation model.
a common purpose, often directed to a specific Here a small group of individuals pledge found-
geographic area. This model operates informal- ing and/or annual amounts to a foundation and
ly in many parts of Egypt, in the form of tradi- serve on its board of trustees. Often these are
tional burial societies or NGOs in the name of a business people who have established relation-
local community. Registered CDAs are a rem- ships of trust and share a common vision for the
nant of the socialist era in Egypt - some are mere use of their philanthropy. The Food Bank in
extensions of government, but others have a Egypt is a recent example of this type of philan-
truly committed local membership. thropic organization.
EGYPTIAN FOOD BANK 49
The Egyptian Food Bank is a national non-governmental non-profit organization established under law number 84
for the year 2002. Its corporate members and individuals came together informally as friends concerned about a
common issue - the wasted food from a variety of sources, such as restaurants, supermarkets, bakeries, weddings
and large receptions that they felt could be directed towards orphanages, elders, widows, needy families, and per-
sons incapable of work or profit. The Egyptian Food Bank’s vision is to overcome hunger by supplying appropri-
ate food to the truly needy on a continuous basis.
The Egyptian Food Bank uses connections and in-kind resources, such as refrigerated trucks, staff, and knowledge
of needy groups to manage the program and reach the target.
42 49 http://www.egyptianfoodbank.com/
These various foundation models cannot easily it suggests the large potential for mobilizing pri-

fit a single profile but in some respects differ vate wealth toward sustained programs of social
from religiously based philanthropy. Many change.
state a principle of inclusion - the intention to
assist all people of a given community regardless The survey also confirmed that most Egyptians
of religion, gender, or sect. They are more like- feel comfortable giving close to home, for their
ly to apply professional management and scien- neighbors and people with whom they have a
tific knowledge to advance their chosen cause. face-to-face relationship. Therefore, in order to
Independent accounting and transparency in ‘capture’ some of the giving, trustworthy struc-
reporting are also increasingly recognized as tures must be developed for channeling
important aspects of stewardship. Attacking resources toward effective action. This would
inequality and the root causes of problems by provide a role for every scale of Egyptian enter-
empowering people is more likely to be part of prise, not simply the large national and multi-
the mission statement, if not the actual prac- national firms. This could also greatly augment
tices, of these foundations. We can categorize the financial resources available for sound
organizations that aspire to this kind of giving development and social justice programs. In
as ‘social justice philanthropy’, recognizing that this way, local CSR efforts on the part of the
in reality they live up to that standard to vary- Egyptian business community could become an
ing degrees. important catalyst for significant social change.
THE POTENTIAL IN EGYPT The Vodafone “Madrasty” case study below is

another example of focused grant making. It
The CDS survey mentioned above is a rich has deployed its extensive customer networks
source of data on attitudes to and the practice and marketing expertise to conduct a cause-
of Egyptian philanthropy. That survey has esti- related marketing campaign. It has channeled
mated that the total amount of private philan- donations through its foundation that has part-
thropic giving in Egypt is approximately 5.5 nered with strong community partners to
billion pounds annually (equivalent to US$950 achieve maximum positive long-term commu-
million). This is a rough estimate, of course, nity outcomes while gaining the company pro-
because much charitable giving remains anony- file as a good corporate citizen.
mous and therefore unreported. Nonetheless,
VODAFONE
Vodafone is one of the leading mobile telecommunications companies worldwide. Since 1998, it has been encour-
aging voluntarism among its employees, by inviting them to dedicate two working days per month to volunteer in
any of the company’s CSR initiatives. In partnership with Ashanek Ya Baladi NGO, a number of Vodafone
employees provide training in interpersonal skills for university students at public universities.
The Vodafone “Madrasty” project seeks to provide a healthy environment for underprivileged primary students
through rehabilitating infrastructure of schools in Egypt’s 27 governorates. The main funding source of this activ-
ity was one piaster per each minute that Vodafone users paid during the Holy month of Ramadan. To implement
this activity, Vodafone partnered with the Ministry of Education as well as several local NGOs, namely the Youth
Association for Population and Development, The Association for Development and Enhancement of Women
(ADEW), CARE, Resala, HEPCA, and Hemaya. An international agency, UNDP provided the technical design
of the CSR intervention, particularly its monitoring and evaluation component.
43
As highlighted in earlier research such profes- nity outreach to their core competence, training
sionalism – linking community activities to underprivileged and/or unemployed youths in

core business competencies - is likely to become their line of business and by using their compa-
more commonplace. As seen below, Mobinil ny’s technology to address a variety of commu-
and El Nekheily Brothers have linked community needs.
MOBINIL
For the past 5 years, Mobinil has engaged in a variety of CSR development activities utilizing its staff and commu-
nications technology. It targets health/disability, education, culture, industry, sports, environment, as well as other
sectors, as the need arises. It regularly sponsors Ramadan Good Will Caravan Activity. In 2006, it became involved
in INJAZ.
In coordination with UNICEF, Mobinil started a polio vaccination campaign in 2003, which has been ongoing
ever since. It utilizes its Voice Message Services (VMS) as well as its customer databases to narrow down demo-
graphics by age and send VMSs to customers reminding them of the campaign.
Mobinil lobbied the Ministry of Interior to establish a free emergency hotline and set up a countrywide campaign
to publicize the service.
Mobinil supports a number of cultural activities, such as Sakyet el Sawi, events in honor of Naguib Mahfouz, and
SOS concerts, Cairo International Film Festival.
Management of CSR
Mobinil has a (CSR and Donations) division under the (Events and Sponsorship) department, which tries to main-
tain a geographical outreach beyond Cairo. While using technology, such as IVR and VSMs, they are not neces-
sarily prerequisites for supporting a CSR activity.
Drivers of Mobinil’s CSR activities are company reputation, staff creativity, motivation and loyalty, and sharehold-
ers awareness in the importance of developing the community
EL NEKHEILY BROTHERS
El Nekeily Brothers Company is a local information systems and telecommunications company that manufactures
IT and electronic devices. Established in Egypt in 1972, El Nekeily Brothers Co. concentrates their CSR efforts
on the education sector where the core business of the company operates.
Their main initiative took place in 2006, with the installation and maintenance services of indoor electronic wire-
less internet and networking systems at Mansoura University. An assessment of the university’s needs preceded the
successful installation of the indoor electronic devices and wireless connection, selection and training of ten
Mansoura University students on the proper usage and maintenance of the electronic devices and systems installed,
and the promotion of the services offered by El Neikeily Brothers. The company expanded their operation to other
Egyptian governorates outside of Cairo. The total cost of the project was 50,000 LE that El Neikeily Brothers fund-
ed fully.
Management of CSR
El Nekeily has a specific department for the training seminars it offers students. No specific CSR budget is allo-
cated, as the amount fluctuates each fiscal year, depending on the company cash flow. Besides financial resources,
the company contributes its workforce volunteer time and expertise. The company considers them and its finan-
cial resources to be the main assets of its CSR programs.
The company’s primary criterion for choosing this CSR initiative was the desire to respond to a need in the com-
munity.
44

A number of foundations, banks, and manufac- The concept of social entrepreneurship is well-
turing firms have already made strategic choic- developed in Egypt and is a powerful force for
es of the sectors, segments, and regions in change. The SEKEM Group, Ashoka fellows
which they will operate. The Arab African and members of the Young Arab Leaders net-
International Bank has adopted the Abou El work are strong advocates for business solutions
Reesh Children’s Hospital and, based on its to key development issues.
experiences, plans to extend its program to
other health and education institutions A number of businessmen have channelled
throughout Egypt. They have established a their efforts through business associations,
foundation and are exploring the possibility of advising and funding young entrepreneurs
setting up endowments to support each hospi- through, for example, the Alexandria Small
tal they adopt. Business Association micro-finance project.
Over the past year or so, specialised CSR com-
Al Mazlawy group of companies concentrates mittees have been set up and become more
its programs on Sohag from where the compa- active in reaching out to the business commu-
ny owners originate. El Gouna Resorts have nity. The American Chamber of Commerce,
established their own training institute in order Egyptian Junior Business Association and
to groom unemployed graduates for work in British Egyptian Business Association are exam-
their own sector - tourism. ples. It seems likely that this trend will contin-
ue. To promote the take-up of mainstream
The trend for most companies is to increase CSR by SMEs, the Federation of Egyptian
their overall level of pro-development engage- Industries plans to provide technical and finan-
ment in the coming few years, pointing to the cial assistance to its broad membership base for
marked potential for the corporate sector to engagement in pro-development activities.
partner with other organizations towards the
attainment of the MDGs. Increasingly companies are also working
through international development agencies,
Advocacy and Public Policy Dialogue such as UNDP and the Global Compact office.
Many have extensive programs and expertise in
Our research identified many examples of com- tackling the MDGs, create neutral platforms for
panies, CEOs, and business associations taking a discussion between companies, government and
leading role in addressing, at both global and civil society groups, and, broker partnerships to
national level, issues such as health and the envi- achieve greater impact. National leadership and
ronment and influencing the enabling environ- an ability to see above personal agendas become
ment for the private sector to contribute to socio- all the more important in this context.
economic development. In Egypt too, compa-
nies can and do engage with the government and Partnership is a form of engagement which is
others on MDG issues, particularly youth still not very common in Egypt and which
employment and education and, generally, wel- many feel will grow in the coming years. There
come ministries’ greater openness to private sec- is evidence, however, that the high level of
tor involvement in establishing a better legal and awareness of the scale of the problems and a
regulatory environment for domestic and foreign strong tradition of giving back with no expecta-
private sector investment. Companies, however, tion of return, is beginning to speed up and
bemoan the pace of change and say that many catalyse business solutions for development.
more reforms are required if the entire economy With increased networking, improved gover-
– formal and popular – is to be energized nance, enabling the participation of previously
towards the achievement of that competitive excluded groups, the prospects are good.
edge in local and global markets. 45
The private sector in Egypt demonstrates a males in Egypt and certainly perpetuates inter-
strong commitment to addressing key issues generational poverty. At present scores of

inhibiting Egypt’s socio-economic develop- NGOs, provide children working in SMEs with
ment. However, while many are actively pursu- alternative opportunities for an education based
ing this agenda, most are not fully aware of on basic literacy, primary health care, nutrition,
their potential to influence poor communities. recreation, and support in emergencies.
Most view pro-development activities as an Companies can support and build on these
“add-on” voluntary activity rather than assess- efforts.
ing how they can have impact through their
core business and value chain and come togeth- Indeed, a number of success stories of corporate
er with other sectors to advocate and imple- engagement on this issue already exist in Egypt.
ment change on a grand scale. These interventions are donor-driven but involve
partnerships with local government, NGOs and
Given support, many SMEs express willingness the private sector. They provide valuable lessons
to improve their practice and efforts to improve that can feed into policy dialogue.
compliance in areas such as human and labor
rights and environmental standards. On this The Climate Change Initiative which was pilot-
basis and the fact that it is widely recognized ed with funds from the Canadian International
that this is where business can deploy most Development Agency (CIDA) is an example of
influence and resources for development, the how projects can be initiated through donor
Federation of Egyptian Industries should driven interventions but turn into investment
expand its planned training so that companies opportunities which include both value chain
have the greatest potential to impact the MDGs and social development aspects. The Clean
in a sustainable manner. Development Mechanism (CDM) which
allows companies to benefit from carbon trad-
Literature and international practice demon- ing is a potentially dynamic tool to attract large
strate the benefits of larger companies’ support investments into Egypt for reduced carbon
for suppliers in tackling a number of MDG- emissions on the one hand and improvement of
related issues. We discuss further the impor- socio-economic conditions for the poor on the
tance of business linkage models in an economy other. Attached to these investments are
sustained by small-scale informal enterprises monies available as ‘grant money’ for the
employing millions of unskilled and semi Egyptian government to use in pro develop-
skilled youths and adults in Chapter 4. Child ment activity. As Climate Change takes center
labor is another area for engagement that bene- stage on the global scene, businesses would do
fits businesses both directly and indirectly. The well to partner with foreign investors and local
ILO estimates that there are 2.7 million work- community groups for the design and execution
ing children in Egypt,50 many of whom live of Clean Development Mechanism projects.
with their single mothers. They account for the The government stands to gain substantial
largest category of female-headed households in funds which it can allocate towards its social
Egypt (estimated to be 25% of total house- development programs. Streamlining and coor-
holds). Their children often work in informal dinating government procedures are essential to
SMEs, and do not have access to education and make this happen.
other services. The impacts of their poor work-
ing conditions in early adulthood may be a con- Our research also highlighted examples of social
tributing factor to the low life expectancy of enterprises, such as SEKEM, described below.
46 50 www.ilo.org/childlabour

SEKEM 51
SEKEM was founded in 1977 on 125 acres of desert land 60km northeast of Cairo. The SEKEM Initiative estab-
lished several specialized companies to ensure production and marketing of its products, which include phyto-phar-
maceuticals, organic foods, organic cultivation, organic cotton textiles, dried organic herbs and species, fresh organ-
ic products, and organic seedling.
SEKEM was established with the aim of contributing to the comprehensive development of the individual, socie-
ty, and environment. A holistic concept encompassing integrated economic, social, and cultural development
forms the cornerstone of SEKEM vision.
SEKEM takes on its responsibility by working for sustainable development locally and in the region through insti-
tutions in economics, organic agriculture, research and development, education and health care. In this respect,
SEKEM’s companies support the social and cultural enterprises like the institutions of education, research centers,
and hospitals.
CSR Initiatives
The SEKEM School was founded in 1989 and includes a primary and secondary school for 300 pupils. The pupils
represent all social levels coming mainly from the nearby town of Belbeis and the surrounding rural vicinities.
Although the SEKEM school is approved by the Egyptian Ministry of Education and is based on the Egyptian State
Curriculum, it also promotes new forms of pedagogic and social interaction. Thus, courses in crafts, drama, dance,
or music supplement conventional education. By combining traditional pedagogical methods with innovative prac-
tices, it is possible to nurture the maximum social, cultural, and educational development of the child.
As with all age levels, working and learning are inter-related and go hand in hand.
SEKEM’s Illiterate Children’s Program, provides classes for illiterate children between the ages of 10 and 14.
Curricula is designed to increase awareness, raise consciousness and introduce new experiences in order to help stu-
dents see themselves as part of the wider community, to facilitate them making a positive contribution.
The Handicapped Children’s Program includes children with all types of disabilities: general physical disabilities,
the deaf and dumb, and the mentally retarded. The program aims to improve the quality of the child’s life and to
integrate them as full members of society. Many handicapped individuals integrate successfully into the different
activities within the SEKEM group of companies.
Along the theme of education that SEKEM adopts, it established The Institute for Adult Education “Mahad”,
which offers general consciousness-raising programs for local adult residents in various areas through weekly semi-
nars and lectures using non-conventional methods with learning by doing as the basic principle. The Mahad’s pro-
gram includes literacy training (reading and writing), English language classes (incorporating computer literacy),
computer training, hygiene in the workplace, arts, music, and sports.
SEKEM’s Vocational Training Centre seeks to provide young people with specific skills for self-employment
because of the lack of opportunities that currently exist in the labor market. Fifty trainees participate each year in
a 2-3 year program that guides them in every aspect of their chosen profession. When they graduate, they are suf-
ficiently skilled either to start their own business or find employment.
Trainees are encouraged to gear their studies to the conditions and market needs that can be expected to exist when
they graduate. Through intensive course work the students are immediately involved in production. Thus, prac-
tical skills take precedence over theory. Training by professional teachers both foreign and local, takes place in fully
equipped workshops. The training offered includes biodynamic agriculture, carpentry, textiles, electrical Work,
and metalwork.
A new project that will in launched soon as part of SEKEM’s projects geared towards education is the establish-
ment of a new institution – the SEKEM University. Its focus will be the economic, social, and cultural empower-
ment of people to reach out for their country’s development through science. The University will not only offer
qualifications in key areas that are vital to the continuing development of Egypt, but will also incorporate SEKEM`s
philosophy and ideals.
Sekem is a member of the Global Compact and produces an annual corporate social responsibility report.
51 http://www.sekem.com/english/cultural/Foundation.aspx?PageID=1 47
Based on this and other models presented, we prosperity net by the 2015 deadline. The mag-
propose the following priorities for pro-devel- nitude and focus of this voluntary support can
opment engagement by business: provide a dynamic springboard for subsequent
• special employment schemes for youths in long-term development and is worthy of serious
marketing and distribution trades, as small consideration as a culture specific method of
labor contractors engaging business in development.
• further investment in schemes to enable dis-
advantaged young people to enter formal Our research shows that the existence of a ded-
sector employment icated person or team for the design, planning,
• large companies adapting products and serv- and execution of pro-development activities is a
ices to serve the BOP market –examples significant factor in the level of outreach,
include financial sector companies develop- engagement and targeting of needs. However,
ing pro-poor services – loans, insurance it is simply unreasonable to suppose that SMEs,
products, credit facilities to support business close to 60% of which operate in the informal
start-ups and popular economy, will allocate resources
• partnering with business to introduce tech- specifically to this task. We thus propose an
nology, quality and improved management entirely different role for them and suggest that
techniques they are viewed as a major conduit for larger
• new business ventures in the quarry industry firms and multinationals to reach the base of
(cement, marble, bricks etc) the pyramid, to upgrade industry, to expand
• new agribusiness opportunities linked to distribution networks and to reach unskilled
farming and rural communities and semi-skilled youths.
• revival of handicrafts to serve the tourism
industry Our research also identified international mod-
• health sector improvements that benefit the els that can help identify the benefits of such
pharmaceutical industry projects, both to the community and the busi-
ness itself. One such tool, the London
When such business models are developed, the Benchmarking Group (LBG) model, which
private sector can play a dynamic role in also measures the impacts of employee volun-
upgrading smaller businesses and, by inference, teering programs and commercial initiatives
the economy. such as cause-related marketing, is outlined
below.
Such core business models of pro-development
engagement offer the greatest long-term poten- Identifying the “win-wins” of voluntary activi-
tial for meeting the MDGs. However, to be ties by applying such management and meas-
mainstreamed a new mindset must be created urement techniques to community activities
in Egypt. Innovation and access to good prac- would help ensure that they are more sustain-
tice examples will be key, as will learning from, able, targeted, and development-oriented.
and engaging with, other sectors. Most impor- They can also facilitate partnerships by manag-
tantly, the government has to institute deep- ing expectations regarding the level of resources
seated and far-reaching structural changes in available and clarifying outputs sought.
the economy.
What are the drivers and inhibitors to
In the meantime, current voluntary forms of corporate engagement on the MDGs
community support are likely to predominate in Egypt?
and remain an important tool with which to
address the MDGs and bring the full 20% of The study revealed that many of the drivers of
48 the population who live in poverty into the responsible business practices and pro-develop-

THE LONDON BENCHMARKING GROUP
The London Benchmarking Group model (LBG) was developed in 1994 by the philanthropic staff of six global
corporations. It measures results and impacts so that corporate motivation is more clearly targeted. However, this
does not preclude the need for context specific impact assessment tools to be designed and assessment studies to be
undertaken with sensitivity to the local culture. However, it is a starting point to guide Egyptian businesses towards
measuring the effects of their new business models. The diagram shows that business benefits are greater at the bot-
tom of the triangle where engagement is neither ad hoc, nor driven by philanthropy but rather designed as an inte-
gral part of the core company purpose and process. The top part of the pyramid is the traditional philanthropic
energy of a corporation, while community investment and commercial initiatives in the community — are the first
seeds of CSR.
Intermittent support to a wide range of good causes in response to

the needs and appeals of charitable and community organizations,
increasingly through partnerships between the company. Its
Charitable
employees, customers and suppliers.
Gifts
Long-term strategic involvement in community partnerships

Community to address a limited range of social issues chosen by the
Investment company in order to protect its long-term corporate interests
and to enhance its reputation
Activities in the community, usually by commercial

departments, to support directly the success of the
Commercial Initiatives
company, promoting its corporate brand identities
in the Community
and other policies, in partnership with charities
and community-based organizations
The core business activities in meeting

society’s needs for cost effective goods and
Businiess Basics
services in a manner which is ethically,
socially and environmentally responsible
The London Benchmarking Group Model
Pruitt, Bettye. Working with the Business Sector: Pursuing Public Good with Private Partners. Grant Craft, 2004.
ment activities present in more developed mitment and desire to learn more about their
economies are not yet pertinent to Egypt. The potential role in achieving the MDGs derives
media and public are not sensitized around mostly from a cultural or religious base and an
development issues to the point where they seek acknowledgement of the scale of the problems
to influence corporate practices by, for example, and hence the clear and pressing need for all
campaigning for them to halt environmental sectors of society to take responsibility for
infringements. Workers have limited influence, Egypt’s development. They have not evolved a
being largely unorganized and unwilling to risk clearly defined “pro-development approach”.
dismissal by challenging employers when alter-
native jobs are hard to find. Despite the grow- The majority of SMEs and certainly the infor-
ing CSR debate in Egypt and the increasing mal sector are motivated by philanthropy
exposure and pressure on companies to con- inspired by religious and cultural mores.
form to standards, the incentive to take meas- Hence, we find family-run companies orienting
ures to manage companies’ social and environ- voluntary activities towards their home
mental impacts is weak because a failure to take province or local communities in the desire,
stock of and address these issues rarely jeopard- primarily, to share the fruits of prosperity with
izes or weakens their reputation. the less fortunate and alleviate poverty. They,
as larger companies, acknowledge the need to
The research highlighted that companies’ com- supplement government services. 49
Our research indicates that the most effective 2. The limited funds available to NGOs foster
programs are those that have adopted a partner- competition and isolation rather than coor-
ship approach and have responded directly to dination of efforts. This results in promot-
real community needs. We record a few below: ing to the private sector an incoherent pic-
ture of the problems, in which a particular
• On-site water and sanitation for small and NGOs mandate or goals are presented rather
remote communities than successful approaches and MDG tar-
• Community-based primary healthcare intro- gets
ducing preventive measures into the home
and community and with a strong focus on 3. Regulations restrict NGO networking and
immunization, hygiene, nutrition, training coalition building. As a result, their ability
of birth attendants, prevention of water to adopt one vision, one strategy, and uni-
borne diseases, and skin and eye infections fied approaches to present to the private sec-
• Micro-credit programs for water and sanita- tor is limited. The laws that govern the non-
tion projects, for income generation, for profit sector do not allow sufficient collec-
home and community-based enterprises and tive advocacy work of the kind that will sup-
housing improvements port the level of engagement required for the
• Revival of handicrafts through design, mar- next phase of the MDGs. NGOs need to be
keting and skills upgrading such as those in free to form coalitions, be represented on
Nagada, Sohag, Akhmim and Hagaza in policy committees and be equal partners
Upper Egypt with the private sector in shaping poverty
• Non-formal learning programs for out-of- policies and development programs
school youths and working children
• Adult literacy programs which do not focus 4. The same problem is noted for the business
exclusively on alphabet literacy but which sector where each company prefers to oper-
adopt a holistic, multiple literacies approach ate on its own rather than associate with a
• SME development through the provision of wider network of companies and work in a
technical assistance, financing and legal aid concerted manner towards a specific, long-
term goal. Each company prefers to design
Many of the best practices identified address a
and implement its own corporate social phi-
number of MDGs. Micro-credit for poor
lanthropy or corporate social community
households targeted families whose children
investment activity in isolation from other
were working. They benefit from the program
companies
by gaining access to literacy and learning
opportunities, health and safety measures,
5. To date, the government has not taken into
recreation, etc. These same projects included
account lessons learnt from grassroots mod-
the formalization of workshops, upgrading of
els implemented by NGOs when designing
health and safety standards, as well as the adop-
elements of the next phase of solutions for
tion of a gender strategy by the business.
human development in Egypt and the
As we explore the potential for business engage- attainment of the MDGs. For instance,
ment for human development in Egypt, we national literacy programs still call for the
note a number of serious obstacles facing the payment of a financial incentive to learners
achievement of the MDGs: while providing them with content that is
irrelevant to their real needs, with poorly
1. Partnerships between NGOs and the private trained facilitators and an examination
sector are not facilitated by a sufficiently net- which tests the ability to take an exam rather
worked NGO sector working topically or than the degree of empowerment to live
50 geographically fully and participate in community life
6. Donor-driven models and pilot projects • Competition between private sector compa-

which have involved partners from the pri- nies, meaning that they are unwilling to col-
vate sector, the government and NGOs and laborate or share information
which have yielded positive results are not
scaled up or integrated into national policies International research indicates that good gov-
ernance and, in particular, an organized civil
7. Many businesses still focus on specific popu- society sector, which includes labor unions,
lar themes and sectors in order to achieve youth clubs, women’s organizations, coopera-
publicity and visibility rather than assessing tives, etc, not just NGOs, are effective in
real human needs. This tends to direct enhancing businesses’ role in development.
funds and energy away from substantive Some of the obstacles listed above indicate that
issues and towards public relations and this does not exist in Egypt. This is reinforced
image building rather than community by the finding that, when asked how they were
investment and human development. informed about communities, groups, causes or
sectors in which to engage, the key sources of
The quantitative and qualitative phases of the business learning about potential pro-develop-
study also revealed that outreach to communi- ment activities were ‘employees’ and ‘media’,
ties is not trouble-free and that companies face while NGOs scored relatively low as sources of
common problems in implementing pro-devel- knowledge about potential activities (although
opment activities. Some of the obstacles most of course many employees may also be NGO
often cited by companies to further engagement representatives).
are:
• A lack of familiarity and buy-in for volun- Figure 16: Sources of Knowledge about Activities
teering programs by both management and
staff, coupled with heavy work commit- 50
Have been approached by them
45 Have been seeking them
ments 45 Total
• Lack of personnel to plan and implement 40 38
13
35
CSR initiatives, companies’ limited knowl- 30
9
28
edge of poverty issues and the development 25 24 23
12
sector and difficulty in identifying credible 20
15 32 14 13 13
partners and projects in which to invest 10
29
4 10 9 8
2 2
• A lack of professionalism in the NGO sec- 5
16
10 10 9
5 2
8 7 0
tor. Many do not develop clear strategies, 0 3 2
Employees
in the firm
Media
Civil Society
Labor Unions
Governemt
Shareholders
NGO’s
Other Firms
Advocates
UNDP
plans and targets to achieve maximum

results and demonstrate limited capacity to
communicate effectively
• The Ministry of Social Solidarity (MoSS)
may lack capacity to play the role of nation- Despite this finding, our research also indicates
al coordinator of pro development engage- that NGOs that had succeeded in bringing
ment their causes, projects and programs to the atten-
• Government bureaucracies do not always tion of corporate partners, and had been able to
facilitate the implementation of pro devel- demonstrate effectiveness, timeliness, trans-
opment activities. parency and good governance, had been able to
• Companies’ limited knowledge of good enter into long-term partnerships with them.
practice in the pro-development field and
resistance from management to the adoption Most NGOs that approach the private sector
of new ideas or allocation of sufficient funds do so to seek financing for specific projects on
for pro-development activities their agenda, or to seek technical support rather 51
play a watchdog role. Interestingly, one of the tifying, discussing, and resolving problems. By
specific recommendations made by businesses facilitating partnerships of this nature, they are
regarding how NGOs could promote pro- helping to overcome obstacles to wider impact
development corporate engagement was that and sustainability for pro-development activi-
they should collectively approach businesses ties and building trust and appreciation of the
with a common cause. The research team also contributions of different sectors. International
drew out the following recommendations for examples of such action are numerous, includ-
more private sector engagement with NGOs: ing on the thorny issue of corruption and can
inform local initiatives. In Slovakia, for exam-
• Strengthening incentives for positive corpo- ple, the NGO Integra works with SMEs and
rate action by recognizing (and partnering local communities to build awareness around
with) leadership companies and prevent corruption. Regionally,
• Establishing clear priorities for action, so Transparency International is working with the
companies can determine whether they International Business Leaders Forum (IBLF)
should partner with NGOs or not and other partners to move ahead its new pro-
• Investing in progressive alliances and scala- gram entitled “Business Principles for
bility of initiatives Countering Bribery”.52
• Establishing clear ‘rules of engagement’ to
protect their integrity and independence Such examples highlight the important role that
• Enhancing transparency and accountability, NGOs play in development. In Egypt, howev-
ensuring legitimacy by holding business, and er, they have yet to enjoy the freedom to oper-
particularly high-impact companies, govern- ate independently – networking and organizing
ment and other actors to account themselves effectively, campaigning against
• Publicizing and professionalizing their work social and economic imbalances and gathering
so companies can distinguish between active resources to support the scale-up and replica-
and inactive NGOs tion of innovative and effective grassroots pro-
• Acting as intermediaries between the private grams. Often they do not receive the recogni-
sector and the government tion they deserve for serving many community
• Conducting studies on community needs needs and are rarely viewed as sources of expert-
and assets per governorate, district, and vil- ise or potential partners.
lage, so establishing clear priorities for action
• Assisting the government in drafting a Many interviewees also highlighted the impor-
national CSR plan to propose to the private tant role the media can play with regard to the
sector for engagement, MDGs and pro-development business engage-
• Collaborating with the private sector in the ment in Egypt. It can bring potential commu-
design and implementation of pro-develop- nity partners to companies’ attention and
ment programs encourage a pro-development business stance
• Transferring their knowledge of local com- by giving companies positive press coverage
munities to the private sector where deserved and, conversely, highlighting
malpractice.
Many efforts are ongoing by international agen-
cies, business associations and others to rein- Without appropriate structural and systemic
force good governance in Egypt and promote measures – enforcing relevant legislation, fight-
the involvement of all sectors of society in iden- ing corruption, changing regulations affecting
52 From Transition to Accession: The Experience of Corporate Social Responsibility in Central and Eastern Europe. The
52 Prince of Wales International Business Leaders Forum, November 2002.
small businesses, providing tax incentives for

The major role, however, in establishing community investment, partnering with NGOs
an enabling environment for pro-develop- as equal partners, particularly those with a
ment activity, lies with government. strong track record of working with disadvan-
Without appropriate structural and sys- taged communities, and providing legitimate
temic measures, progress towards the
platforms for debate, progress towards the
MDGs will be slow and the private sector
MDGs will be slow and the private sector unen-
unengaged.
gaged.
53
4
4
Analysis of
Business for
Development
Engagement
Egypt can either seize this opportunity to build on the momentum created by a new business climate, the
mounting social needs of the population and a reformist inclination in the political and government
arena, or go about its business as usual and face the risks involved in such an approach. This chapter calls
for industries and the private sector to create partnerships and synergies based on small-scale operations.
Although small, they have the potential to impact larger areas of the economy and reach that 20% at the
base of the Egyptian economic pyramid in ways that will significantly reduce the gap between them and
the top of the pyramid and to do so without losing or ‘giving away’ money or ‘giving out’ assistance.
Hitherto, the predominant thinking has been that the gered natural resources, improving health, education,
business sector should concern itself with productive and general infrastructure.
and profit-making activities, leaving issues of poverty
to the government and NGOs in partnership with Such an approach might be questioned. Why should
international development agencies. This conven- businesses bother? Are they not enjoined to make
tional thinking is now being challenged. It has profit, provide employment, comply with laws, pay
become clear that aid alone cannot pull nations out of taxes, and innovate within the confines of their busi-
under-development and into prosperity. A vibrant, ness boundaries? Why burden business with respon-
innovative business sector can play a critical role in sibilities that many perceive as falling well beyond
developing new models and solutions and in promot- their purview?
ing the scale-up of current best practices. The private
sector is confronting the challenge and opportunity of The answer has become clear for many. In order to
building strong foundations for the country’s eco- grow markets businesses need a healthy society where
nomic growth and contributing to long-term, wide- more than basic health, education and infrastructure
spread positive social impacts and poverty alleviation. needs are met. Communities need successful compa-
Priorities are creating sustainable livelihoods for nies as no social program can match the power of
Egypt’s youth, but also protecting scarce and endan- companies to create jobs, increase wealth, and inno-
vate to improve standards of living. To create Can this apply to the context in Egypt?
Analysis of Business for Development Engagement
this “win-win” scenario business needs to adopt

a new vision, one which takes into account the If the main motivations for CSR for leading
poverty map of Egypt, the MDG targets the MNC practitioners on the global stage are
country is pledged to achieve, and seeks out brand value, a desire to comply with clear and
opportunities and markets which, if developed, enforceable laws and consideration of an alert,
can meet both societal and business needs. organized, well-informed public represented by
strong, articulate pressure groups, should we
WHAT MOTIVATES MULTINATIONALS expect companies in Egypt to be influenced by
TO ENGAGE IN CSR? the same drivers? Our analysis leads us to the
conclusion that the motivation for CSR in
The research indicates that companies give, and Egypt will differ from that of MNCs operating
do so generously. MNCs are often influenced in an international context. Egyptian compa-
by international practices driven by reporting nies operate in an environment where compli-
requirements to stakeholders, brand loyalty, ance is mostly voluntary. Trade unions do not
and image-building motives. These practices negotiate for labor rights in the same manner,
are shaped in contexts where workers are aware or at the same level, as in other countries and
of their rights, where state legislation establish- legal, labor and environmental infractions are
es minimum standards for workers in areas such but loosely monitored by government agencies
as wages, industrial safety, job security and who struggle to build their capacities and fail to
worker compensation, and where unemploy- enforce laws recently enacted. NGOs are still
ment and welfare measures are in place and unable to access information or use it freely and
compliance is monitored by both the public publicly to the point of monitoring companies’
and state. In many MNCs’ home countries, labor and environmental violations. The gener-
shareholders and stakeholders enjoy high levels al context in which companies operate is one
of education and awareness around sensitive where levels of education remain low. Adult
issues, such as environmental infractions, illegal illiteracy is amongst the highest in the region,
exploitation of natural resources and human female illiteracy close to 50%, and the formal
rights infringements affecting both individuals school system, from primary grades all the way
and communities. In spite of this, cases of non- up to university, promotes rote memorization
compliance still occur but a vigilant civil socie- and penalizes critical thinking, questioning and
ty sector and free press often play a major role problem-solving.
in bringing to light violations. Under such legal
and democratic systems, non-compliant com-
It is highly unlikely in the current business
panies face prosecution, are forced to pay fines context in Egypt to expect national compa-
and compensation, or to cease illegal or unethi- nies to be motivated by the same drivers
cal practices, even business operations. which motivate MNC’s towards CSR
Many companies monitor such developments

and draw lessons from highly publicized cases. Poverty and unemployment are such that work-
However, while complying with the laws of ers are more desperate for work than a job that
countries where effective legal and public restric- guarantees their rights. Businesses circumvent
tions on activity exist, they operate to lower laws designed to protect workers from arbitrary
standards elsewhere. In many countries laws, termination of employment and adopt practices
labor unions, environmental agencies, consumer violating workers’ rights in order to protect
groups, etc are weak or incapable of playing them from having to keep on inefficient, non-
their watchdog role, the press is not free and performing workers who create a burden on
56 civil society monitoring is weak or non-existent. company performance and profitability. Civil

society organizations in Egypt do not play a NGOs as essential partnerships for develop-
watchdog role in any sector of the economy: ment, rather than being considered strictly
Restrictive laws proscribe their actions, they local, welfare and development-oriented, can
operate in a climate of mistrust and are orient- yield positive results.
ed towards welfare services rather than coali-
tion-building and a rights-based and advocacy In reality it will take a very long time for corpo-
approach. rate accountability to prevail in Egypt.
Meanwhile the 2015 deadline set for achieving
Thus what we generally see in terms of CSR in the MDGs approaches and alternative ways to
the private sector are actions which are accom- engage companies in the country’s develop-
panied by public relations and image-building ment, while achieving their own business devel-
campaigns rather than well-conceived and tar- opment agenda, must be found. The transfer
geted programs of action built around a careful and application of lessons and drivers from the
reading of business and social needs in the developed world to Egypt will require more
economy at large. Indigenous companies, driv- time than Egypt has. Thus the question
en by religious motives to give, engage less in becomes, what model of business engagement is
these PR activities. The drivers of their actions most suitable for Egypt, especially given its
discourage making a public display of their giv- present business context – over 38,000 local
ing. Neither SMEs nor large national compa- businesses registered with the Federation of
nies are accountable to shareholders or other Egyptian Industries, many more unregistered in
stakeholders, such as labor unions, even if they the informal sector, and only a minority of
react to cases of non-compliance to labor law or national large firms and a handful of MNCs?
the poor treatment of company employees. In What effective, indigenous models of CSR, tai-
the absence of strict, transparent law enforce- lored to large, medium and small enterprises
ment, companies are driven by motives that are might be deployed with the clear and focused
quite different from those governing MNCs purpose of achieving the MDGs?
and companies in the developed world. In
Egypt, motives largely derive from religious WHAT MOTIVATES LARGE NATIONAL
belief and, to a lesser extent, the desire to con- COMPANIES TO ENGAGE IN CSR?
tribute to Egypt’s development.
Businesses in this category subscribe to the full
International practice indicates that a serious menu of philanthropic activities described earli-
plan to engage businesses in pro- development er in this report. They also engage in longer-
activities in Egypt needs can start with the thor- term community investment, for example
ough review and transparent enforcement of building and refurbishing schools and clinics,
laws pertaining to business operations in Egypt supporting cultural activities and youth groups,
and a re-examination of labor representation extending credit to employees, granting schol-
and workers’ rights. A strong motivator would arships and training. They have been driven to
be establishing a level playing field for business do so partly out of a desire to ‘do good’, but also
and the widespread practice of transparency partly to improve their image, balancing their
and good governance inside private enterprises, focus on genuine outreach with getting market-
in NGOs and in the government and public ing mileage from the act of giving. On occa-
sector. sions the government directs them to give to
specific sectors and causes.
Further lessons can be drawn from internation-
al best practice regarding the government and If we are to capitalise on business engagement
others’ perception of NGOs’ role in monitoring to achieve the MDGs, clearly much deeper
and acting on public issues. A perception of interventions, which do not spring solely from 57
the desire to polish corporate image, respond to Others focus on the number of new business
shareholders or maintain customer loyalty are start-ups that their credit program facilitates.
required. The new models we are searching for
will spring from a deep sense of corporate WHAT MOTIVATES MICRO, SMALL
responsibility towards the country as a whole AND MEDIUM ENTERPRISES (M/SMEs)
and a deeper understanding of the economic TO ENGAGE IN CSR?
and social condition of the poor. The aim will
be sharing the fruits of prosperity enjoyed by SMEs undertake extensive activity contributing
the formal private sector with the masses still enormously to the indigent. They support
living below the poverty line. orphans, widows, finance students’ school uni-
forms, and tuition fees, feed preschoolers, and
Potential models might link small farmers, the elderly, and establish literacy classes,
informal sector workers and others with formal libraries, and computer literacy laboratories. It
businesses. Such models can address a number is undertaken in an ad hoc manner with no
of critical MDGs as they target poverty reduc- clear, business motivation, more out of concern
tion by creating livelihoods, not just employ- for local communities.
ment. They focus on partnerships between
SMEs in the informal rural and urban sectors, SMEs AS LEARNING LABS FOR
large firms, NGOs and labor representatives. ENTREPRENEURIAL LIVELIHOODS
They promote lifelong learning to compensate MODEL
for young people’s current poor educational
levels. They integrate learning with livelihoods One model for channelling business engage-
and provide education, in a much boarder sense ment towards the informal sector combines core
than the current conventional manner preva- business activity with a community investment
lent in the formal school and technical voca- approach. The Learning Labs for
tional education systems. Entrepreneurial Livelihoods Model links the
technical vocational education context of the
Most firms enter into short-term partnerships informal economy with production and formal
with short-term commitment, merely respond- enterprises’ value chain. It focuses on the poor
ing to the latest request or recommendation and encompasses a range of MDGs - poverty
made by a community group or trusted employ- eradication, education, gender equality, envi-
ee. Few firms have established committees ronmental sustainability and partnership. From
charged with corporate giving, report to share- this perspective it is unlike international models
holders on their community investments, or see motivated by brand recognition, image-building
the link between their brand reputation and or customer loyalty. It rather capitalises on
community investments. Most are driven by Egypt’s current preoccupation with employ-
the desire to ‘do good by the community’ or to ment for a broad base of youths seeking to enter
‘appear to be good’ to the government. When the workforce. This necessitates educational
private firms establish foundations, they articu- reform, inclusive partnership models with civil
late specific goals and giving criteria. The estab- society, improved environmental standards, and
lishment of the foundation forces them to define government actions and policies to promote a
their vision and mission and to draw up strate- climate of transparency and good governance.
gies and action plans to achieve them. It also
allows them to assign professional staff to imple- Where do the Poor Work?
ment the program, resulting in more targeted
outreach. The Sawiris Foundation, for example, The poor in the developing world own few
explicitly sets the number of new jobs created as assets besides their labor and depend on the
58 a determining factor when approving grants. informal economy for survival. This economy

currently employs millions of unskilled, semi- million Economic Units in 2003 to 3.5 million
skilled, and illiterate youths, adults, and chil- Economic Units in 2006. Furthermore, the
dren. The sector has grown exponentially in study documented the vibrancy of that market
Egypt for a number of reasons: with huge numbers of Economic Units entering
and exiting every day. The trend seemed to
• formal labor markets have generated insuffi- point to the new, efficient units replacing mar-
cient jobs and are unable to absorb a contin- ginal and inefficient ones.54
uously growing unskilled workforce
• the informal sector is an easier option for Table 4: The Size of Enterprises Employing
unskilled workers and is more suited to their Formal/Informal PNAWW in 1988,1998, 2006 (%)
skill level Number of Workers 1988 1998 2006
• the community-based nature of the informal % % %
economy makes information about work 1-4 45 48 50
5-9 9 17 14
opportunities in this sector more accessible
10-29 9 10 10
to the poor 30-49 2 4 5
• the complexity of registering businesses and 50+ 13 16 15
the uncertainty of the business’s sustainabil- Don’t Know 22 6 6
Total % 100% 100% 100%
ity which often extends the ‘trial’ period into
Total in thousands 2546 3995 6430
a more permanent status of informality
Source: Assad, R., ELMPSO6 data files
The informal economy thus provides

livelihood opportunities for those that The informal economy has proven to be vital in
have no other means to survive providing the poor with employment and
income when they have no other means to sur-
vive. The role of these workers is generally
HOW MANY M/SME JOBS ARE THERE underestimated in terms of their contribution
IN EGYPT (BY SIZE AND CATEGORY)? to production, services, and the formal sector
and the informal sector’s role in providing a
In 1996 small and micro firms provided around learning environment for workers has not been
80% of the jobs in the non-agricultural private calculated. Youths acquire technical, business
sector (more than 3 million jobs in the 1 to 9 and market skills but in a largely unstructured,
employee size in 1996 and generate 80% of under-valued, and unplanned manner. The
value added by that sector). This emphasizes quantitative phase of the study indicated that,
the importance of SME’s in creating jobs. while the formal private sector currently targets
Although the percentage increase is higher for unemployed youths, it does so with a view to
large enterprises than small ones, yet in 1996 providing them with jobs in the formal sector
small enterprises employed 3,483,542 persons rather than livelihoods in the informal SME
compared to 461,268 employed in large enter- sector. The two approaches need to converge
prises.53 to create a critical mass of activity that will gen-
erate a full menu of options for unemployed
A study conducted by the Economic Research youths to match their skill set and level of edu-
Forum revealed that the estimated numbers of cation with livelihood opportunities.
MSEs increased by 4.7% annually and from 2.5 Innovative thinking is required to empower the
53 The Ministry of Foreign Trade. Profile of M/SME’s in Egypt, The Small and Medium Enterprises Policy
Development Project.(SMEPoL) March 2003
54 Alia el Mahdi and Ali Rashed. The Changing Economic Environment and the Development of Micro and Small
Enterprises in Egypt 2006. The Economic Research Forum Working Paper Series #0706, Cairo 2007. 59
marginalized by: amount of money has been spent on formal

• increasing SMEs’ income earning potential technical and vocational schools, yet there is
• upgrading their technology growing evidence that the money has not been
• improving working conditions well spent.
• introducing industry safety measures
• offering literacy, in all senses - alphabet,
legal, health, culture and the arts, etc – in There is a need to move away from a cen-
keeping with UNESCO’s multiple literacies trally driven school-dominated model
approach. towards the informal sector learning lab
model
This will require collaboration amongst a size- Since most of Egypt’s working age people oper-
able range of stakeholders - grassroots organiza- ate outside the modern, formal economy and
tions in popular neighborhoods, the Ministries labor market, it is imperative to implement
of Labor, Education, Investment, Local skill-building and learning programs which
Development and Agriculture, Trade and integrate them. Private sector partners give gen-
Industry, local city councils, other government erously to educational causes. Support for such
agencies, the formal private sector and donor a model would perpetuate this giving but re-
agencies. There are important contributions direct it towards workplace learning programs,
that MNCs can make to the model, such as informal workshops, small rural communities
extending advice on best practice and good gov- and remote desert areas. The model further
ernance. proposes that businesses do not give randomly
but specifically support workshops and learning
The outcomes of such an approach could be the programs linked to its production, distribution
transformation of SMEs into Learning Labs for and sourcing, in other words align core business
Entrepreneurial Livelihoods wherein ‘liveli- and community investment. Such an approach
hoods’ are much broader than employment, might lead to advocacy engagement by formal
encompassing the manner in which youths in businesses as it would bring them face-to-face
developing countries organize their income- with problems undermining dynamic informal
earning activities for survival. enterprises which contribute significantly to the
economy by employing vast numbers of youths.
Why Learning Labs? This model derives from the success of the
Sekem and EQI models in Egypt which were
Today, vocational education and teacher train- tested in the agriculture, food processing, tex-
ing and methods in Egypt no longer match the tile, tourism and handicraft sectors.
speed of labor market developments. There is
an obvious mismatch between labor market This model proposes that formal companies
needs and the vocational skills and qualifica- invest in the community of informal sector
tions of current graduates from formal technical workshops which belong to their same sector
schools and centers. They are ill-equipped to and link up to them in a core business activity.
seek a livelihood in any place other than the This would be the main driver of the model,
informal, popular market. Teaching is over- rather than image building, brand product, or
whelmingly traditional and ‘on-the-job’ train- direct answering to shareholders, stakeholders,
ing schemes are potentially open only to those watchdog groups, the law or the press. It would
who are literate, skilled and in the formal job bring the formal private sector in a partnership
market already. The millions left behind need with the informal private sector where the
new options and a fresh conceptualization of majority of the poor work – a partnership for
where they are to learn, earn a living and be learning for the unskilled poor youths and earn-
60 entrepreneurial needs to emerge. An enormous ing for both formal and informal sectors.

Under this model formal companies’ current 88 and are a mounting threat to internal securi-
charitable contributions towards education ty and stability. The need to engage young peo-
would go further towards serving business and ple in the economy and in the country’s growth
community interests because it would be driven and prosperity is not just the responsibility of
by the combined interests of the two. the government, but of everybody, including
the private business sector.
Egypt’s youth have burgeoning needs which
threaten the attainment of the MDGs. Young The belief that economic growth is an effective
people are concentrated in urban centers which path to employment generation in all countries
offer the poor the best opportunities for and all levels of society overlooks the immediate
employment, shelter and development. and short-term problems facing those living in
However, when urban agglomerations house poverty. They cannot make the leap from their
mounting numbers of unemployed youths, present condition to reap the benefits of policy
they become breeding grounds for discontent, approaches that only facilitate formal sector job
extremism, and violence. The number of infor- opportunities.
mal settlements in Egypt has reached 1,221. In
Greater Cairo alone they number an estimated
61
5
Towards an
Enabling
Environment for
Partnerships
A significant finding of this report has been the importance of partnerships for development. Numerous
international examples exist to demonstrate the variety and diversity of these. In Egypt, the question
becomes: How can the three sectors – private, non-profit and government – design a partnership based
on a shared vision, shared values, and benefits? Can we institute a partnership of peers with each part-
ner contributing skills and resources to achieve a winning idea – the development of enterprise and pros-
perity for all Egyptians? The fruits of development take time to grow. Are we able to enter into long-
term and collaborative action with a commitment to achieving the MDGs and more?
These are the central questions of this report. EU and Barclays-USAID) to complex networks of
organizations and partnerships with NGOs.
Both the quantitative and qualitative phases of the Examples of the latter include:
study revealed that a number of companies are part-
nering with other entities in philanthrophic or com- • Barclays – Resala, Hope Village
munity projects. These partnerships are between gov- • Hashem Brothers – Egyptian Association for
ernment, civil society organizations and other private Environment and Community Service
sector firms, and include Apache’s partnership with • BG - Nahdet El Mahrousa, Association for the
UNICEF and NCCM and several firms’ partnership Protection of the Environment (APE)
with INJAZ. • Marriot – AFNCI
• EMAK – Future Generation Foundation
The qualitative phase of the study focused on compa- • Kandil Egypt – Ezbet Senouda Association for
nies with a track record of social investments in the Community Development
community. It highlighted the large number and var- • Hazem Hasan – Future Generation Foundation
ied nature of partnerships involving all three sectors. • Unilever – Consumer Protection Society, Rachid
They range from simple two-party partnerships Foundation for Cultural and Social Development,
between one private sector firm and a donor (ABB- Egyptian Literacy Society
• Vodafone – Youth Association for • Kandil Egypt – Mubarak Kohl Program

Towards an Enabling Environment for Partnerships
Population and Development, ADEW, • BP – Ministries of Education and Interior

Resala, Hepca, Hemaya, Alashanek Ya • EMAK – Ministry of Communications and
Balady Information Technology
• NATGAS – Resala • Faisal Islamic Bank – Ministry of Social
• Tetrapak,– Association for the Protection of Solidarity
the Environment (APE), Horus Foundation, • Maghraby Group – Ministry of Health
Friends of the Environment Association, • Vodafone – Ministry of Education
Alexandria • Mobinil – Ministry of Interior, Ministry of
Culture
Some firms have opted for partnerships with • Tetrapak – Ministries of Education, Health,
intermediaries such as business associations and Environment, Industry and Trade
international organizations. Examples are: • Nestle – Ministry of Education
• City Gas – Social Fund for Development,
• ABB – Egyptian Industries Association Governorate of Suez
• Hazem Hasan – Egyptian Association for • Unilever – Governorate of Alexandria
Auditing and Finance
• Unilever – Rotary Club of Alexandria, The main reasons cited by companies for not
Scientific Society for Food Industries partnering with other actors were that they had
• Vodafone – Rotary never been approached, lacked knowledge
• AAIB – CDS about other groups’ activities, or did not know
• BG – Save the Children how to approach and partner with others. A
• Maghraby Group – Social Research Center further reason given was that the activities/proj-
(AUC), International Trachoma Initiative ects which the firm had selected did not require
• Vodafone – NGO Service Center, CARE, cooperation with other organizations.
UNDP
• Mobinil - UNICEF There are many areas where partnership can
develop and trust be built:
Others see merit and sustainability for future
generations in partnering with universities and • As previously highlighted, NGOs have valu-
schools: able experience in tackling child labor and
are promising and essential partners for the
• AAIB – Cairo University new design of business solutions towards the
• El Nekheily Brothers – Mansoura University achievement of the MDGs.
• Maghraby Group – BC Center for
Epidemiology – University of British • Vital changes in regulations relating to, for
Colombia example, licensing, zoning, land encroach-
• Unilever – Arab Academy for Science and ment, environmental infringements can only
Technology be achieved through advocacy with national
• Vodafone – Misr Language School government and municipalities and would
have important knock-on effects on devel-
A few have entered into public private partner- opment
ships (PPPs), with either quasi-governmental
agencies or government ministries: • Individual companies cannot, in the main,
fund business incubators and support cen-
64 • Astra Zeneca – NCCM ters or provide sufficient mentoring support

for young entrepreneurs. Scaling up and ago by the Alexandria Business Association.
replicating successful partnership models in Along the same lines the Ismailiya Business
such areas provide the only means to move Association, the Port Said Business
from the current practice of dependency, Association, the Dakahleya Business
particularly amongst youth, toward a vibrant Association, the Assuit Business Association,
economy. They also have the potential to etc. have all engaged in partnerships with
halt the growth of the alarming number of donors to provide much-needed funds to
discontented, idle youths in Egypt existing SMEs at the local level. Non-finan-
cial services have also been channeled to
• Business leaders, business associations and hundreds and thousands of small businesses.
chambers of commerce also have an especial- These include assistance in product design,
ly important role to play in addressing marketing, pricing, promotion, and one-
through policy dialogue the bureaucratic stop shops for business registration. Many
processes which face small companies trying have become autonomous from the original
to register and the insecurity of land tenure donors and have generated funds from the
in informal settlements (where workers of fast turnaround of their revolving loan
the formal private sector live) funds. They have spun off special credit
lines for women in general, for female-head-
• The situation with the current high levels of ed households in particular, and for micro
illiteracy can only be tackled through part- businesses at large.
nerships with experienced NGOs, the Adult
Education Authority and all stakeholders. b. American Chamber of Commerce
(AmCham)
This will require a major paradigm shift from The American Chamber of Commerce’s
‘project focus’ to national policy focus. CSR Committee was established in 2006
with the goal of creating a forum to raise
THE ROLE OF INTERMEDIARIES awareness and promote constructive dia-
logue on CSR. It also seeks to facilitate
The results of the quantitative and qualitative cross-sector partnerships and foster effective
research and the review of international best and mutually beneficial relationships
practice suggest that intermediaries promoting between businesses and the communities in
and facilitating partnerships play an important which they operate. The committee plans to
role. They help identify suitable partners, plan institute an annual CSR award for good
and implement collaboratively and design proj- practices for large companies and SMEs, as
ects that are more comprehensive. In Egypt, well as initiating dialogue with the Ministry
intermediaries include business associations, of Social Solidarity with a view to creating a
chambers of industry and commerce, interna- national CSR agenda.
tional organizations, local and international
NGOs and public private partnerships. The CSR Committee’s greatest strength lies
in the fact that AmCham in Egypt is one of
1. Business Associations the largest and most active overseas affiliates
of the US Chamber of Commerce. It
a. Development Financing and Technical currently has over 1,300 members consisting
Support Associations of US companies doing business in Egypt
A large variety of these exists with the pio- and Egyptian companies doing business in
neering work begun more than two decades the US. 65
c. Federation of Egyptian Industries (FEI) ing sector infrastructure. Ashoka is building an

Egyptian entrepreneurs established FEI in infrastructure that supports the growth and
1922. Today it has 16 chambers and 12 expansion of the field of social entrepreneur-
decision support committees that are con- ship, including seed financing and capital,
stantly developing programs and services to bridges to the business and academic sectors,
tackle barriers to enterprise development and strategic partnerships that deliver social and
and strengthen the entire industrial sector. financial value. Ashoka launched its Cairo
FEI’s vision is to develop realistic, value-rich office in March 2003. It is a hub for operations
programs designed to enhance the perform- in North Africa and the Middle East, engaging
ance and global competitiveness of Egypt’s regionally-based social entrepreneurs in all
industrial sector. major fields of social concern. These include
education, health, women’s empowerment,
The largest business association in Egypt, human rights, peace and conflict resolution,
FEI launched the UN Global Compact democracy, environment, economic develop-
(UNGC) initiative in February 2004, ment, agriculture, water, disability, early child-
declaring Egypt to be the first Arab country hood development and children’s rights.
to embrace formally the notion of CSR. In
April 2007, FEI officially became a UNGC In Egypt, Ashoka creates a ‘space’ and platform
member. for dialogue between the business and NGO
sectors. Forging a strategic partnership with the
By disseminating knowledge and best prac- Egyptian Junior Business Association (EJBA)
tices, developing practical tools tailored to and Young Presidents’ Organization estab-
the local environment and providing other lished an entry point to the private sector and
means of support, FEI will help Egyptian introduced members to the concept of social
companies develop CSR strategies and entrepreneurship. With its partners, Ashoka
mainstream CSR principles within various holds roundtable events where speakers from
industrial sectors. FEI collaborates closely the private sector and civil society share their
with the government, international donors, experiences of collaboration for community
other business associations, and civil society. development.
2. International Social Entrepreneurship The “Business Plan Competition” is a nine-

Groups: Ashoka month training program for NGOs on how to
be financially sustainable. The initiative is sup-
Ashoka is an international association of the ported by a number of private sector compa-
world’s leading social entrepreneurs. A leading nies, such as Citibank and Barclays Bank, in
social entrepreneur is a mass recruiter of local addition to the EJBA. These organizations vol-
change-makers, a role model, proving that citi- unteer staff time to assist NGOs in developing
zens who channel their passion into action can self-sustainable projects.
attain remarkable achievements.
Ashoka attempts to raise awareness of CSR
Since 1981, Ashoka has elected over 1,800 lead- through the media. It regularly translates and
ing Ashoka Fellows, creating a global network circulates, among a wide network of journalists
of peers in more than 60 countries. Ashoka’s and key figures in the media, international arti-
methodology revolves around three main cles on CSR and corporate engagement in
approaches: supporting social entrepreneurs, development.
66 promoting global entrepreneurship and build-

3. UNDP and the Global Compact in Egypt The emergence of the Global Compact in
Egypt at a time when CSR was not a frequent
The Egyptian national network of the Global topic for discussion, and subsequent develop-
Compact was formally launched on February 9, ments leading up to the current situation where
2004, following a year of dedicated work by a CSR is commonly discussed, provides a unique
multi-stakeholder committee under UNDP opportunity for engaging, monitoring and eval-
leadership, with the UN Executive Office of the uating the enabling environment for social
Secretary General’s Chief of Staff representing engagement in Egypt. This is an aggregate of
the UN Secretary General. Some 200 partici- several factors.
pants from government, the private sector,
chambers of commerce, academia and civil GOVERNANCE FACTOR
society attended the event and 62 companies
have since become members. The launch was The recent raft of regulations, designed to
preceded by a series of workshops and a nation- improve the investment climate, have not been
al event to popularize the Global Compact and accompanied by regulations to promote social
the concept of CSR in Egypt. engagement or CSR. Private sector companies
often voice their dissatisfaction regarding out-
In its attempt to strengthen further the imple- dated regulations hindering their social engage-
mentation and outreach of the Global Compact ment, citing in particular tax exemption regula-
in Egypt, the Egyptian Global Compact net- tions and registration procedures for private
work held a national event, under the patronage sector foundations. Despite officials expressing
of the Prime Minister, to mark its first anniver- commitment to CSR, it is yet unclear how the
sary in Egypt and fifth anniversary since its government will address this issue.
global launch. The national event, jointly
sponsored by the UN in Egypt and Mansour LEARNING, MONITORING
Group, a leading Egyptian company, took place AND EVALUATION FACTOR
at the Library of Alexandria on 16 June 2005.
Attended by more than 250 business represen- • There is a pressing need for an annual CSR
tatives, it succeeded in increasing awareness of auditing tool and reporting system to moni-
the Global Compact in Egypt and recognizing tor and evaluate companies’ engagement
the efforts made by a number of active Egyptian
• Very few CSR promoters in Egypt have the
companies in implementing its principles.
necessary background and technical capacity
Egyptian Global Compact members showcased
to carry out their work
some CSR best practices and discussed with
other stakeholders how to enhance the private
• Social engagement in Egypt is poorly man-
sector’s contribution to national development
aged, usually unplanned and ad hoc with no
priorities.
identified benchmarks
The Egyptian network is currently working to • Very few academic institutions in Egypt
establish what will be called the National teach business ethics and social engagement.
Global Compact and CSR Foundation in The American University in Cairo (AUC) is
Egypt. The newly created institution will one of the few that does.
become a vehicle for enhancing and encourag-
ing business contributions to development and • MNCs have sophisticated monitoring and
internal CSR compliance. evaluation systems but they are insufficient-
ly tailored to the local culture 67
INTERMEDIARY (NEUTRAL GROUND) dents. Courses are based on a participatory

FACTOR learning approach which fosters creative think-

ing, critical problem-solving and improved
• A mediator or trustworthy neutral partner is interpersonal communication skills. The proj-
essential to establish multi-stakeholder ect is structured to reinforce company volun-
forums capable of overcoming competitive teers’ commitment and individual empower-
and PR elements in CSR practices in Egypt ment. It does this by fostering a sense of soli-
darity and highlighting the organization’s cred-
• The mediator can play a crucial role in con- ibility and neutrality.
necting the private sector to other stakehold-
ers such as the government and civil society UNDP and Save the Children agreed to grant
UN Volunteer Associate (UNVA) status to over
• The mediator should be an independent 130 employees from participating companies
development organization, a business associ- teaching entrepreneurial skills and providing
ation or business development service unit careers advice in Egyptian governmental
4. International NGO Partnership preparatory schools for children between the
Programs - INJAZ ages of 10 and 13. UNVA status also gives cor-
porate volunteers access to a worldwide net-
INJAZ started up in Egypt in 2003 under the work of volunteer organizations.
umbrella of the international NGO Save the
Children. INJAZ, meaning “Achievement” in 5. Academia: John D. Gerhart Center for
Arabic, is licensed to use Junior Achievement Philanthropy and Civic Engagement,
International curricula to enhance young peo- American University in Cairo
ple’s job market and entrepreneurial skills.
The Gerhart center is a university-based institu-
The INJAZ vision derives from the realization tion offering resources for the promotion of
that school graduates are ill prepared for the philanthropy and civic engagement in the Arab
challenges they will face when seeking employ- world. Established in 2006, the center aims to
ment and aims to close the gap between the further the American University in Cairo’s
skills acquired in the Egyptian education system (AUC) mission to advance social responsibility
and those demanded by the private sector. and active citizenship. The center’s mission is to
promote social change in the Arab region
The private sector’s support of INJAZ is not through building a culture of effective giving
purely financial, but more importantly, and civic responsibility.
involves employee volunteers. INJAZ has
formed a board of directors represented by the The center’s work on civic engagement includes
CEOs of leading private sector companies and interfacing with Arab universities to become
is registered as an independent private sector- more engaged with their surrounding commu-
led Egyptian Foundation. It is supported by nities and promoting cross-cultural understand-
Mobinil, Citigroup, Americana Group, British ing and diversity through international pro-
Gas, British Petroleum, Mansour Group, grams with a focus on local community service.
ExxonMobil, Barclays Bank, Pepsi, Shell, and The center encourages community based learn-
Procter & Gamble. ing (CBL) as a fundamental approach to effec-
tive teaching and fosters social innovation
Private sector volunteers commit 10 hours per through student leadership programs, seminars
68 month to reach out and inspire a class of stu- for young professionals, and programs to link

government institutions with civil society around 820,000 young people in 2,000 schools
organizations. and 300 universities as well as to develop the
capacity of the local IT industry to adopt inno-
On philanthropy the center acts as a catalyst vative learning solutions.
providing technical consulting services to start-
up and expand philanthropic institutions in the EXAMPLES OF GLOBAL COLLECTIVE
Arab region. The center also works with the pri- ACTION 55
vate sector to deepen the understanding of the
principles of Corporate Social Responsibility The Global Compact
(CSR). The center’s staff document the status
of Arab philanthropy while highlighting best In an address to the World Economic Forum
practices, and promote networking opportuni- on 31 January 1999, the former Secretary
ties and strategic alliances for enhanced philan- General of the United Nations, Kofi Annan,
thropy in the Arab region and internationally. challenged business leaders to join an interna-
tional initiative – the Global Compact – that
The Gerhart Center also engages in research would bring companies together with UN
and documentation on subjects ranging from agencies, labor, and civil society to support uni-
motivations of youth activism to mapping of versal environmental and social principles. The
Arab philanthropy and disseminates informa- Global Compact’s operational phase was
tion widely through a quarterly newsletter, a launched at UN Headquarters in New York on
series of scholarly working papers and website. 26 July 2000. Today, thousands of companies
6. Public Private Partnerships - Egypt from all regions of the world, international
Education Initiative labor and civil society organizations are engaged
in the Global Compact, working to advance ten
The Egypt Education Initiative (EEI) is a pub- universal principles in the areas of human
lic private partnership (PPP) under the auspices rights, labor, the environment and anti-corrup-
of First Lady, Mrs. Suzanne Mubarak, and tion.
Prime Minister Dr. Ahmed Mahmoud Nazif.
It aims to improve education in Egypt through Through the power of collective action, the
the effective use of information and communi- Global Compact seeks to promote responsible
cation technology (ICT). EEI brings together corporate citizenship so that business can be
the Ministries of Communications and part of the solution to the challenges of global-
Information Technology, Education and ization. The private sector, in partnership with
Higher Education, donors and MNCs, other social actors, can help realize the previous
amongst them eight World Economic Forum Secretary General’s vision: a more sustainable
member companies. These are Cisco, HP, and inclusive global economy.
IBM, Intel, Microsoft, Oracle, CA and
Siemens. They, along with all other partners, The Global Compact is a purely voluntary ini-
have assisted in formulating the initiative to tiative with two objectives:
meet national challenges and needs. EEI has
four tracks - pre-university education, higher • Mainstream the ten principles in business
education, lifelong learning, and e-learning activities around the world
industry development. It hopes to benefit • Catalyze actions in support of UN goals
55 Davies, Robert and Nelson, Jane. The Buck Stops Where? Managing the Boundaries of Business Engagement in
Global Development Challenges, The Prince of Wales International Business Leaders Forum, Policy Paper No. 2,
January 2003. 69
To achieve these objectives, the Global The GBC works from the principle that
Compact offers facilitation and engagement HIV/AIDS should be a core business issue for
through several mechanisms: policy dialogues, every company, particularly those with interests
learning, country/regional networks, and part- in heavily affected countries. With the support
nership projects. http://www.unglobalcom- of global leaders in government, business, and
pact.org civil society, the GBC promotes greater part-
nerships in the global response to HIV/AIDS,
Business Partners for Development (BPD) identifying innovative opportunities for the
business sector to join the growing global
Business Partners for Development (BPD), movement against this terrible disease.
completed in 2002, was a project-based initia- http://www.gbcaids.com
tive set up by the World Bank to study, sup-
port, and promote strategic examples of cross- Digital Partnership
sector partnerships to develop communities
around the world. It was created in the belief The international Digital Partnership involves
that such partnerships could provide long-term IT users and suppliers, educators and commu-
financial benefits to the business sector and nity leaders with the aim of promoting socio-
meet the objectives of civil society and the state economic development in developing and
by creating stable societies. BPD worked in emerging market economies. It facilitates
four areas -natural resources, water & sanita- affordable access to technology, training, and
tion, youth development and road safety the internet by providing ICT skills training in
http://www.bpdweb.org disadvantaged communities. An initial pilot
Voluntary Principles on Human Rights was launched in South Africa in June 2002.
http://www.digitalpartnership.org
The US and UK governments, NGOs and Extractive Industries Transparency Initiative
companies in the extractive and energy sectors
have developed a set of voluntary principles to The Extractive Industries Transparency
guide companies in maintaining the safety and Initiative was announced in 2002 by UK Prime
security of their operations within a framework Minister Tony Blair at the World Summit on
guaranteeing respect for human rights and fun- Sustainable Development in Johannesburg.
damental freedoms. These principles are Bringing international NGOs, national govern-
designed to provide practical guidance that will ments and international mining and mineral
strengthen human rights safeguards in compa- companies together, this initiative aims to
ny security arrangements in the extractive sec- increase transparency over payments by compa-
tor. They are the basis of a global standard for nies to governments and government-linked
the extractive sector. entities, as well as transparency over revenues by
http://www.iblf.org/csr/csrwebassist.nsf/con- host country governments.
tent/a1a2a3d4a5.html http://www.dfid.gov.uk/Pubs/files/extractive_i
ndustries_transparen.htm
Global Business Coalition on HIV/AIDS
The Global Business Coalition on HIV/AIDS Marine Stewardship Council

(GBC) is a rapidly expanding alliance of inter-
national businesses dedicated to combating the The Marine Stewardship Council (MSC) is an
AIDS epidemic through the deployment of the independent, global NGO working to reverse
70 business sector’s unique skills and expertise. the continued decline in the world’s fisheries.

The MSC is seeking to harness consumer pur- commitment to improve conditions for people
chasing power to generate change and promote at the base of the pyramid in Egypt, as encapsu-
environmentally responsible stewardship of the lated in the MDGs, they cannot do so effective-
world’s most important renewable food source. ly and in a sustainable manner unless certain
First established by Unilever and WWF in conditions prevail. They need to be able to
1997 the MSC program works through a operate in an environment that provides a min-
multi-stakeholder partnership approach, taking imum of structure, due process, and good gov-
into account the views of all those seeking to ernance; to operate in partnership with the gov-
secure a sustainable future. ernment and civil society; and to enjoy incen-
http://www.msc.org tives for long-term, innovative engagement.
New development solutions will often require
PARTNERSHIPS NEED STRONG, major investments and these will not be forth-
TRANSPARENT GOVERNANCE coming without guarantees that companies,
STRUCTURES and the communities they partner with, will
reap the benefits and that the risks to their busi-
The discussion above leads to the conclusion nesses are minimized.
that, if Egypt wants to establish sound founda-
tions for a strong formal and socially responsi- Streamlining registration procedures for
ble business sector, it will have to create new NGOs, be they community-based development
institutions, undertake legal reforms and facili- NGOs or foundations, is equally important.
tate the establishment of multi-stakeholder The current legal process for registering foun-
partnerships. Measures include the enactment dations is outlined below.
of new laws to help formalize small businesses,
promote their compliance with health and safe- Law 84 of 2002 governs the registration of
ty standards, prohibit the employment of chil- NGOs and foundations. Those intending to
dren and raise the quality of production to register either such institution purchase the rel-
guarantee consumer safety. evant forms from the Federation of NGOs at
At present, the private sector in many countries governorate level. The Federation issues an
around the world, faces the following chal- internal bye-laws document and forms requir-
lenges to engaging in development activities: ing the founding members to provide personal
details such as their full name, date of birth,
• Inadequate legal frameworks and gover- occupation, address, highest degree attained,
nance structures to ensure a level playing national identity number, etc. The legal
field for business address given can be either owned or rented by
• Weak, authoritarian and failing public sector the organization and is verified by a Ministry of
institutions Social Solidarity employee. A foundation is
• Bribery and corruption required to deposit a minimum sum of LE
• Human rights violations 10,000 in a bank account, whereas NGOs are
• High levels of poverty and inequality in the only obliged to open up a bank account con-
distribution of resources and livelihood taining a few hundred pounds. The registration
opportunities documents must state the proposed activities of
• Lack of access to basic services such as edu- the organisation - social, development, reli-
cation, healthcare, energy, water, sanitation gious, cultural, etc - and the applicants must
and telecommunications verify that no other non-profit has registered
under the name proposed. Once these docu-
While the private sector expresses a desire and ments are submitted to the local Directorate of 71
Social Solidarity the entire file passes to the IBLF’s 2002 report Business and Poverty:
security agencies who must give approval for all Bridging the Gap, states that, for companies to
nominees to engage in non-profit activities and get more actively involved in tackling poverty,
to become members of a registered NGO. This the following must be present and that business
step may take as little as two months or as long benefits accrue56:
as two years. When proposed members receive
security clearance, the file is returned to the • Secure business environment - Ensuring
Ministry of Social Solidarity which, in turn, good governance, a strong economy and a
issues the group with a registration number. competent workforce can help companies
The establishment of the new organization, be and the poor to prosper
it NGO or foundation, appears in the Egyptian • Bottom-line benefits - Action on poverty
legal bulletin: al wathaa’eq al masreyya. can contribute to profitability for individual
companies
The governance structure of foundations and • Market development – Innovation unlocks
NGOs differs. NGOs are required to nominate commercial opportunities while meeting the
a minimum of ten founding members with the needs of the poor
oldest founding member appointed head of the
first board until registration is complete and Private sector interviewees in Egypt suggested
elections take place. NGOs must also deter- how the government could facilitate business
mine at the outset how many members they engagement in development.
plan to have on the board. It has to be an odd
number of no less than five to enable majority • Reduce bureaucracy and red tape (e.g.
voting. Foundations must nominate three peo- licensing procedures and approvals)
ple to their leadership posts and can register • Understand and promote CSR, actively
either an individual or group as founders. encouraging the private sector to participate
Foundation board membership does not need in the country’s development by supporting
to rotate, whereas NGOs need to renew one their efforts and co-financing projects
third of their board annually or every two years. • Gain the trust of the private sector by
demonstrating that government is a trans-
Once established, NGOs must hold quarterly parent, efficient partner
board meetings and request approval from the • Establish a focal point in a relevant ministry
Ministry of Social Solidarity to receive foreign with members of the private sector and civil
funds, a rule to which foundations are also society forming its advisory group
bound. Both may receive donations from • Create synergies between pro-development
Egyptian nationals or corporations. The business engagement and UNDP's Social
Ministry of Social Solidarity must clear Contract Project, implemented by the
fundraising activities, the start and completion Information Decision Support Center
of which must be stipulated, and numbered (IDSC), the Prime Minister’s Office
receipts must be provided. There is evidence • Give tax breaks and other incentives to pri-
that this framework is not conducive to an envi- vate sector donors
ronment which promotes partnerships. • Draw up a map of needs, gaps, etc and pres-
ent a clear development plan and ready pro-
56 Forstater, Maya, MacDonald, Jacqui and Raynard, Peter. Business and Poverty: Bridging the Gap. Resource Center
for the Social Dimension of Business Practice, The Prince of Wales International Business Leaders Forum, December
72 2002.

posals to interested business and community At present communication channels between
members the private sector, NGOs and the government
• Establish a CSR partnership monitoring and are weak. This is due to NGOs’ limited capa-
evaluation system to ensure programs are bility to approach potential private sector part-
implemented fully and effectively and that ners appropriately and to a general mistrust
effective solutions and gaps are identified between the three sectors. The media has a
• Co-design specific activities with private major role to play in bringing the private and
companies, particularly those related to basic non-profit sectors closer together, yet it too is
needs in the areas of healthcare, food securi- poorly informed and reports inaccurately about
ty, and education. In other words, the gov- events, partners, actions, and programs.
ernment should make sure that CSR initia-
tives complement its own Improved dialogue among stakeholders requires
• Help create a clear vision with regards to the a strong and articulate civil society sector that
achievement of national development goals demands public accountability from business,
in which effort and investment are equally monitors, and reports on environmental
distributed, duplication is avoided and con- infringements and influences decision-making
crete impacts are identified regarding the allocation of public funds. As
• The Ministry of Social Solidarity should be previously stated, this requires that general gov-
proactive in providing direction and support ernance is improved and all sectors become
for CSR and pro-development programs, more accountable, transparent, inclusive, and
encouraging the growing role of NGOs and ethical.
amending legislation to empower them
• Identify best practice and replicate / scale up Egypt has signed and ratified major interna-
successful models tional instruments fighting corruption and
• Provide reliable baseline data on Egypt’s reinforces their implementation through the
performance on the MDGs and poverty Egyptian Penal Code. The Ministry of
indicators Investment and Egypt’s UNDP country office
have also embarked on a challenging program
The private sector in Egypt is clearly looking for to support transparency and anti-corruption
a closer engagement with government on CSR measures by establishing a transparency center
matters and would strongly welcome a at the Ministry. The initiative will have three
roadmap, a proposal, or a strategy on develop- main thrusts:
ment issues.
a) Support the drafting and issuing of the legal
document on Freedom of Information
Further aspects that the study explored are the
current level and degree of stakeholder partici- The project will focus on providing technical
pation in development issues in Egypt, and of assistance to the Ministry’s legal department in
transparency, accountability and public report- the provision and drafting of the sections which
ing and the environment in which such engage- follow the mandate of the Ministry, in the legal
ment takes place. This is based on the premise document on Freedom of Information
that, if the business sector in Egypt is to assume
a groundbreaking, significant, and innovative There are four strategic areas of intervention:
role in the development of sustainable liveli-
hoods, then transparent and strong stakeholder 1. Legal framework of access to information
relationships are a prerequisite. 2. Capacity strengthening of the media 73
3. Raising awareness regarding the right to offi- within the private sector as well as priorities
cial information and strengthening mecha- for stronger private corporate governance
nisms to provide such information and use it upon which the MoI and UNDP might
4. Strengthening communication mechanisms want to base a strategy for anti corruption
for vulnerable groups inside the private sector.
• To build an alliance for a stronger presence
b) Public Awareness and Stakeholder of Global Compact, the UN agreement on
Engagement Corporate Social Responsibility, in the anti
corruption campaign.
The project will also focus on increasing public
awareness in order to support the enhanced c) Capacity Building and Knowledge
transparency process. Management
Strategic and long term interventions are fea- The project will support the institute of
tured in two components: the supply side of Directors in developing training courses and
information and the demand side thereof. On training of trainers programs on anti-corrup-
the supply side, interventions will be designed tion to be included in their curricula on good
to offer assistance in the process of generation governance. The project will also conduct
of information and its accessibility on the part much needed research and reform the current
of government agencies. On the demand side, knowledge management system utilized by
they will seek to provide assistance in promot- MOI.
ing demand for information and build capacity
to use information for informed policy dia- d) Investment promotion through enhancing
logue. Finally, the project seeks to assist in cre- transparency
ating platforms of multi stakeholders who will
use the transparent access to information for The purpose of this output is to improve the
the purpose of engaging in policy dialogue. investment climate and stimulate more invest-
The project hopes to increase responsiveness via ment by improving the performance of the
such platforms. Ministry of Investment through the reduction
of bureaucracy and increased transparency.
Including the private sector is imperative in the
implementation of successful anti corruption CONCLUSION
strategies. The positive relationship between
the Ministry of Investment (MoI) and the pri- It is clear from the above discussion that the
vate sector should be utilized for the following search for the right intermediary and umbrella
purposes: group under which the private sector can come
together and collaborate has begun. Some
• To provide a constructive forum for the pri- companies choose their own business associa-
vate sector to voice their concerns about the tions, others international development agen-
embedded incentives for rent-seeking in the cies or neutral agencies with a broad agenda,
public sector; this would assist the MoI and others prefer to operate under the umbrella of a
UNDP to design relevant strategic entry national program, hoping that they will be able
points for anti corruption initiatives. to impact positively an issue which the govern-
• To provide a constructive platform for the ment has targeted but has few resources to
private sector to voice their concerns about address. The international examples offered
74 issues surrounding lack of transparency above demonstrate the breadth and scope of

intermediaries that exist in Egypt. For example, Likewise, indigenous people and the rapidly
it is conceivable that a group of large national expanding tourist industry could work togeth-
agribusiness firms will form a coalition to pre- er, under an umbrella intermediary, to promote
vent environmental and human damage caused eco-tourism and curb the fast growing destruc-
by pesticide use. This would bring small farm- tion of coral reefs, waterways, and marine bio-
ers and large landowners together in a serious diversity. The field is wide open for partner-
discussion. Such business engagement could ships to address Egypt’s myriad development
increase Egypt’s competitive position in the needs and concerns.
export markets for agricultural produce.
75
6
6 The Way
Forward
The final chapter of this report focuses on actions that the private sector can take to help meet the first
three MDGs. They serve as examples that could be applied to the full scope of the eight MDGs. They
offer engagement options along the continuum running from mainstream core business practices to pol-
icy, advocacy and philanthropic and voluntary contributions.
The last decade began with the promise that globaliza-

tion and the elimination of trade barriers would con-
tribute to global prosperity. This has not happened
for billions of the world’s poor. The world is now
probing for ways to bring the masses of people at the
BOP into the development net. The global commu-
nity has reassessed its pursuit of globalization as an end
to poverty and concluded that a new paradigm of busi-
ness and development is urgently needed, particularly
in light of global warming and its potentially devastat-
ing effects on those at the BOP. The global debate
Program 1: Investment and Employment
Program 4: Building an Information Society
Program 7: Expanding Basic Public Services
Core Business Engagement by Providing Affordable

Products and Services
Model 1: The poor in Egypt lack access to water, san-

itation, and affordable housing. Mexican firms
Cemex and Construmex provide us with models to
improve housing which Egyptian private sector firms
now perceives them to be the main consumers of could replicate, both in rural and urban areas and par-
goods and services produced by business and stresses ticularly in Upper Egypt. The rural poor seek access
the importance of improving their standard of living. to credit to install on-site sanitation and, when grant-
ed, have good repayment rates. There is further scope
GOAL 1: ERADICATE EXTREME POVERTY for banks, contractors, and producers of plumbing,
AND HUNGER tiling, etc to partner in an innovative way to bring
these products to the poor. Such improvements
Corresponding Government Ten Point would have very positive repercussions on the health
Program: of people at the BOP, as, for example, dirt floors and
the lack of toilets often account for low stan- and low-cost market and product information
The Way Forward
dards of hygiene in rural homes. The Grameen that, evidence suggests, is currently highly
Bank asserts that repayment rates on loans to sought and greatly lacking. Such information
cover dirt floors with cement have reached 98% could greatly enhance the competitiveness of
worldwide, indicating that banks would be small producers, workshop owners, and female-
exposed to minimum or very low risk were they headed households who have limited mobility
to offer special products for small borrowers in and access to such information.
such areas. Easy delivery terms and linkages
with NGOs experienced in implementing Other Models: 57
micro-credit programs can be designed through • Manufacturing, food and beverage and con-
which companies would generate profits and sumer goods companies can source raw mate-
living conditions be upgraded. rials from local suppliers
• Agribusiness companies can work with small
farmers in global supply chains to provide
Banks credit, improve productivity and food quali-
ty
• All large companies can outsource or subcon-
tract support activities to local entrepreneurs
Construction Co. NGOs • Consumer goods companies can use SMEs to
distribute their products
Voluntary Contributions
Model 2: Information technology has been At the other end of the CSR continuum, busi-
used innovatively in many parts of the develop- nesses can sustain their religiously and cultural-
ing world to generate incomes (e.g. using ly motivated modes of giving. Supporting
mobile telephony to connect small farmers in orphanages, feeding the poor during Ramadan,
India to distant agricultural commodity mar- distributing food and clothing to the needy,
kets). Egypt ranks as the one of the world’s providing free medical care, etc are all impor-
major users of mobile phone technology rela- tant activities that meet the poor’s everyday and
tive to population, suggesting that IT products emergency needs.
could be used here to provide people with rapid
The business sector can expand or initiate
mainstream CSR and community investment
Mobile Phone Co.’s programs, such as workplace training to gradu-
ates, school construction, equipping of comput-
er labs, upgrading health clinics, etc.
Export Markets Stock

Market Pharmaceutical firms, hospitals and the health-
care sector in general have a major role to play
in a country where many people are still unable
Small Farmers, traders to access adequate health services and where the
SME workshops lack of health education has devastating affects
on the poor. Training midwives, nurses, rural
57 Prescott, Dave and Nelson, Jane. Business and the Millennium Development Goals: A Framework for Action. The
Prince of Wales International Business Leaders Forum in Collaboration with the United Nations Development
78 Program, 2003
doctors, and generally communicating more intermediaries who can pool the contributions
The Way Forward

widely on relevant health issues could bring of a number of scattered efforts and direct them
about significant improvements. to one region (e.g. Upper Egypt) or education
level (e.g. primary). Collectively or individual-
GOAL 2: ACHIEVE UNIVERSAL ly, companies can organize programs to mentor
PRIMARY EDUCATION students and link them to the world of work.
Those with well-established management sys-
Corresponding Ten Point tems can transfer skills to school principals and
Government Program: administrators. Such interventions are particu-
Program 4: Building an larly timely, as Egypt has just concluded its
Information Society National Education Strategy that focuses
Program 5: Developing Education and strongly on quality and accrediting schools
Scientific Research according to newly established national stan-
dards.
Voluntary Contributions
4. Harnessing Technology for Education:
1. Facilitate the education of employees’ chil- Under the umbrella of the Egypt Education
dren: Although a number of Egyptian firms are Initiative, IT companies, the Ministry of
already active in this field, current government Education and a number of experimental
and others’ efforts to upgrade human resources schools have already come together to form a
will remain inadequate without further support public private partnership to this end.
from the private sector. Extending scholar- However, the program is limited in its geo-
ships, providing summer school opportunities graphic scope and must be targeted to, in par-
for workers’ children and helping low-income ticular, the poorer segments of rural Egypt.
workers to cover expenses relating to, for exam- The Ministry of Education’s continued
ple, tuition, uniforms and books are all means involvement will be key in facilitating the pro-
by which companies can help. liferation and use of IT products in public
schools.
2. Support school feeding programs:
Companies in the agribusiness sector can tap 5. Provide pre-school and daycare services for
into the expertise of the World Food Program children of all company employees, not just
(WFP) which implements school feeding pro- women. Such services can make a major con-
grams in Egypt. With its extensive knowledge tribution, both to higher worker productivity
of areas of greatest need, effective distribution
options, and experience of overcoming obsta-
NGO’s
cles, WFP can link companies to those areas of
most need and facilitate partnerships with the
Ministry of Education that can also facilitate
private sector food contributions by instituting Ministry of Ministry of
streamlined processes that overcome the current Education Social
Solidarity
cumbersome procurement system. Companies
3. Invest in local schools or support the work

of NGOs and international organizations
specializing in education: This can be through
financial or in-kind contributions (e.g. books, Workers– The Food
technology and equipment) to schools, to Male and Bank
Female
NGOs working in the field of education or via 79
resulting from reassurance about their chil- In rural Egypt, women are a mainstay of the
The Way Forward
dren’s whereabouts, and to meeting the critical agricultural workforce, putting in endless hours
development and preparation needs of children of unpaid manual labor and working with
below the age of six. The Ministry of archaic tools and implements. There are many
Education has set the target of raising pre- ways in which businesses can, and do, support
school enrollment from 18% to 60% by the women who make valuable contributions to
year 2012. Large and medium firms can play a household incomes, both in rural and urban
major role by offering their employees this informal enterprises. Many NGOs have a long
essential basic service at subsidized cost by, for track record of lending to female-headed house-
example, partnering with NGOs experts in holds and to other rural and urban women pro-
training young, unemployed youths to become ducers. These models can be easily replicated
qualified pre-school teachers. The pre-school and scaled up by banks and lending institu-
model is flexible and can incorporate, amongst tions. There is also room for agricultural inno-
other things providing nutritional supplements vation and design e.g. solar drying of food
for preschoolers. products, growing new crops for export markets
(e.g. herbs, etc), linking small farmers to these
Advocacy and Policy Dialogue export markets and high-end value chains, as
well as in the design of home-based rural hand-
Develop national partnerships with educa- icrafts by leading designers and marketing
tors around quality of education issues: firms. The model can be as simple or as com-
Replicating the Instituto Qualidade no Ensino plex as the situation allows. Egypt already has
model from Brazil, which was instituted by the tried and tested examples of this type of engage-
American Chamber of Commerce’s 3000 ment in Sekem, EQI and Shahira Mehrez’s
members in São Paulo, businesses can collabo- development of the handicrafts workers of the
rate with the Ministry of Education in con- North Sinai. Potential partners in this model
tributing to this much-needed aspect of educa- are large businesses, small producers, banks,
tion reform. Business associations in Egypt consultants and donors.
present ready intermediaries to play a similar
role, basing their program on a needs mapping Advocacy and Policy Dialogue
exercise undertaken by intermediaries e.g. large
NGO’s
national NGOs or international agencies such
Do no r s
as UNDP, CIDA, UNICEF, and / or
s A ss oc i a t i o
UNESCO while the appropriate targeting of sin e s ns
Bu
M OE
resources can be facilitated by the Ministry of
Egypt’s
Education. Youth
GOAL 3: PROMOTE GENDER

EQUALITY AND EMPOWER WOMEN
Corresponding Government Ten

Point Program: At present technical vocational education for
Program 1: Investment and the millions of workers in the informal sector –
Employment both men and women - who wish to enter the
formal labor market but do not possess the req-
Core Business Engagement uisite skills and qualifications is being debated.
The ministries involved have a major and
Millions of women of all income and education urgent facilitator role, engaging in particular
80 levels contribute to their families’ well-being. the private sector, which, after all, is most
affected by the current skills deficit amongst
The Way Forward

young men and women, but also ensuring that Businesses
inter-ministerial boundaries of responsibility
and authority do not stall progress. An analysis Adult
of the current skill levels and growth potential NGOs Donors Education
of different business sectors in Egypt, in the Authority
context of global markets, would help ensure
that relevant standards are designed and imple-
mented by government-run technical vocation- Egypt’s development targets in the coming ten
al schools. years is national engagement of all partners to
address low female adult literacy rates. Since
Donors such as GTZ and CIDA could support the needs are vast and nationwide, it will be
this effort by providing Egypt with best practice crucially important to work through intermedi-
from other countries that have already devised aries and address the issue collectively rather
and implemented skills building and qualifica- than, as is currently the case, through fragment-
tion programs. NGOs with previous experi- ed efforts. Businesses can work outwards, first
ence in this field could also be valuable part- running literacy classes for their adult work-
ners, ensuring flexibility and adaptability force and then conducting wider efforts in their
according to Egypt’s institutional structure and business sector and local communities. They
culture. will need to partner with leading NGOs with a
track record in the field as well as with the
Putting the poor at the center of the value Adult Education Authority that administers
chain adult literacy examinations.
R&D Raw
Materials
Production Distribution Marketing End User While the needs of women at the BOP can in
part be met by providing goods and services,
The poor play an information about good health practices is
active role in the duction Distrib
Pro
creation of value uti
equally important. Egypt’s performance on the
from
Buy
on
MDG relating to maternal mortality is lacking.

ly
Ma
Supp
rk et in g
Business
partners Information on reproductive health, legal aid
Customers
and support and counseling services can be pro-
vided through call centers and must supple-
Sell to
Consumption The poor benefit from

ment continued investment in mobile clinics,
the supply of appropriate free health care from private hospitals etc. The
products and services
distribution of pharmaceutical and health aids
Doing Business with the Poor: A Field Guide. World Business
to poor women can also provide a vehicle for
Council for Sustainable Development, Geneva, March 2004.
advertising agencies to contribute their expert-
ise and resources by disseminating public health
Voluntary Contributions messages in areas relevant to the MDGs.
Worldwide evidence that an educated mother is For businesses to grow they need healthy, well-
the key to an educated nation has led countries nourished and educated communities. Since
to focus on designing programs that support governments are often unable to provide good
women’s advancement and well-being. Many basic services, health care and education to bur-
countries are now reaping the benefits of these geoning populations, the private sector must
approaches by having well-educated youths, explore ways to bridge the gap. This realization
well-nourished children and well cared-for is shared, by both the private sector and govern-
infants. A prerequisite to any achievement of ment of Egypt and has created expectations and 81
pressure that the former augment its role in 3. The Enabling Environment: Take individ-
The Way Forward
building schools, equipping hospitals and ual and collective action:

restoring decaying neighborhoods. • Work with governments to improve social
infrastructure –- supporting reform and
SPECIFIC RECOMMENDATIONS FOR quality improvements in the health and edu-
BUSINESSES 58 cation sectors
• Address environmental regulatory and fiscal
1. Mobilize core competencies and resources policies with government and civil society
such as money, products, skills, premises, and • Engage in global dialogue on issues such as
people to strengthen local communities. climate change and biodiversity
Particular recommendations are to: • Support local and national governments to
• Support education, training, youth develop- eliminate bribery and corruption, inefficient
ment, environmental, health and nutrition public administration and service delivery;
projects in local communities fair and transparent regulations and respect
• Build the capacity of community leaders and for human rights
social entrepreneurs
• Train local technical specialists in environ- SPECIFIC RECOMMENDATIONS FOR
mental management CIVIL SOCIETY ORGANIZATIONS AND
• Build the governance capacity and voice of INTERMEDIARIES 59
local civil society groups and media organi-
zations • Help the private sector set clear priorities for
• Support multi-cultural education programs their interventions
• Assist with voter education initiatives • Assist companies to comply with labor and
• Establish and support micro-credit programs environmental standards as partners in
and small business support Egypt’s development by enhancing trans-
parency and accountability
2. Internal Compliance: Obey the law, man- • Invest in long-term alliances with other part-
age risks, minimize negative social and environ- ners in the non-profit sector and with clus-
mental impacts, and create positive value for host ters of businesses and/or with intermediaries
countries and communities. Companies should: • Adopt transparent and democratic practices
• Pay fair wages, taxes, dividends and make to protect their own integrity and independ-
timely payments to suppliers ence
• Encourage and facilitate positive organized • Consult companies on how to reach out to
labor relations communities and achieve the MDGs
• Develop their own people through training, • Grassroots organizations have the greatest
skills development, health and safety in the insights into community needs. Larger
workplace NGOs can build bridges between them and
• Spread responsible business standards and local and international businesses to ensure
practices in the areas of environment, health maximum impact derive from corporate
and safety, human rights, ethics, quality etc engagement on the MDGs
• Invest in cleaner and safer production sys- • Business associations and international
tems and transfer to smaller SMEs development agencies have a major interme-
58 Nelson, Jane and Prescott, Dave. Business and the Millennium Development Goals: A Framework for Action. The
Prince of Wales International Business Leaders Forum in Collaboration with the United Nations Development
Program. 2003
59 Gearing Up: From Corporate Responsibility to Good Governance and Scalable Solutions. Sustainability and the
82 Global Compact, 2004.
diary role, bringing clusters of companies • Public investment in facilitating land titling,
The Way Forward

together with clusters of smaller community land tenure and registration of businesses in
development associations (CDAs), collabo- informal settlements and the informal econ-
ratively drawing up specific business sector omy
plans, obtaining relevant data and validating
needs etc There will be obstacles along the way. These
can in part be overcome by:
SPECIFIC RECOMMENDATIONS FOR
GOVERNMENT 1. Creating space for profit and non-profit
organizations to come together to forge link-
To promote CSR the government should: ages, exchange experiences and build trust.
This process is essential for the two sides to
• Actively seek participation from civil society come to a common understanding and agree-
and business as equal partners ment on shared interests, goals, and values.
• Reduce and simplify regulations and proce- Clearly, this is a time-consuming approach,
dures affecting businesses wishing to register but without it a solid basis for designing and
and operate in Egypt sustaining long-term business interventions
• Build and encourage innovation, ingenuity for development will not be built
and pragmatic, scalable solutions
• Reward good corporate performance with 2. Approaching partnership with an open
instruments such as fiscal incentives, pro- mind, acknowledging that there are deep-
curement policies, endorsements, labeling, rooted cultural and ideological differences
training and information between the way businesses operate and the
• Develop and enforce laws, rules and regula- way the popular economy or non-profits
tions that mandate appropriate business operate. Such differences impact on the way
behavior (for example, creating and enforc- the two sectors perceive problems, design
ing legal requirements for mining companies solutions, and determine workable plans
to eliminate negative environmental
impacts) 3. Taking the long-term view. Just as business-
• Facilitate private sector CSR programs (e.g. es take time to become firmly grounded in
developing codes and standards that serve as the market, so do partnerships geared
a guide/ direction for CSR activities) towards business success and sustainable
• Step in to encourage private financial insti- livelihoods. Partners must develop a work-
tutions to provide services to informal settle- ing relationship, adapt working methods,
ments, rural and underserved areas acquire new skills, and build on experiences
83
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and International Business Leaders Forum. Prepared for the Brookings Blum Roundtable: The
Private Sector in the Fight against Global Poverty, August 2005.
Prakash-Mani, Kavita, Thorpe, Jodie and Zollinger, Peter. Developing Value: The Business Case for
Sustainability in Emerging Markets. Sustainability, the International Finance Corporation and the
Ethos Institute, 2003.
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Prescott, Dave and Nelson, Jane. Business and the Millennium Development Goals: A Framework
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for Action. The Prince of Wales International Business Leaders Forum in Collaboration with the
United Nations Development Program, 2003
Pruitt, Bettye. Working with the Business Sector: Pursuing Public Good with Private Partners. Grant
Craft, 2004.
Sustainability Management and Reporting: Benefits for Financial Institutions in Developing and
Emerging Economies. United Nations Environment Programme (UNEP) Finance Initiative.
December 2006
The Egyptian Economy – Towards new Frontiers. The Ministry of Investment Report on the
Egyptian Economy, Cairo, September 2007.
The Ministry of Foreign Trade. The Small and Medium Enterprises Policy Development
Project.(SMEPoL) Profile of M/SME’s in Egypt, October 2005.
The World Bank. Doing Business in Egypt. http://www.doingbusiness.org/ EconomyRankings/
Internet Resources:
• Accountability: www.accountability21.net/aa1000/default.asp
• Casas Bahia: http://www.icmr.icfai.org
• Cemex: http://www.cemex.com/cc/cc_cm.asp
• Egyptian Food Bank: http://www.egyptianfoodbank.com/
• Environmental Quality International: http://www.eqi.com.eg.
• Extractive Industries Transparency Initiative: www.eitransparency.org
• Ethical Trading Initiative: www.ethicaltrade.org
• Forest Stewardship Council: www.fscus.org
• Global Alliance for Improved Nutrition: www.gainhealth.org
• Global Reporting Initiative: www.globalreporting.org
• ICICI Bnak: www.icicibank.com/Pfsuser/loans/farmequip/fehome.htm
• Information and Decision Support Center (IDSC). www.idsc.gov.eg
• Infosys: www.infosys.com/infosys_foundation/index.htm
• International Cocoa Initiative: www.cocoainitiative.org
• International Labor Organization: www.ilo.org/childlabour
• Jordan Education Initiative: www.jei.org.jo
• Kenya Agricultural Commodities Exchange: www.kacekenya.com
• Lead Foundation: www.lead.org.eg
• London Benchmarking Group: www.lbg-online.net
• Publish What You Pay: www.publishwhatyoupay.org
• Sawiris Foundation for Social Development: http://www.sawirisfoundation.org
• Sekem: www.sekem.com
• Sustainable Agricultural Initiative Platform: www.saiplatform.org
• The Equator Principles: www.equator-principles.com
• The Prince of Wales International Business Leaders Forum: www.iblf.org
• United Nations Development Program: www.undp.org/partners/business/gsb/
• World Economic Forum: www.weforum.org/en/initiatives/globalhealth/index.htm
86
Appendix 1: The Millennium Development Goals

Appendix I:
The Millennium Development Goals (MDGs) 60
Goals and Targets Indicators for monitoring progress
(from the Millennium Declaration)
Goal 1: Eradicate extreme poverty and hunger
Target 1: Halve, between 1990 and 2015, the propor- 1. Proportion of population below $1 (PPP) per day
tion of people whose income is less than one dollar a 2. Poverty gap ratio [incidence x depth of poverty]
day 3. Share of poorest quintile in national consumption
Target 2: Halve, between 1990 and 2015, the propor- 4. Prevalence of underweight children under-five years
tion of people who suffer from hunger of age
5. Proportion of population below minimum level of
dietary energy consumption
Goal 2: Achieve universal primary education
Target 3: Ensure that, by 2015, children everywhere, 6. Net enrolment ratio in primary education
boys and girls alike, will be able to complete a full 7. Proportion of pupils starting grade 1 who reach
course of primary schooling grade 5
8. Literacy rate of 15-24 year-olds
Goal 3: Promote gender equality and empower women
Target 4: Eliminate gender disparity in primary and 9. Ratios of girls to boys in primary, secondary and ter-
secondary education preferably by 2005 and to all lev- tiary education
els of education no later than 2015 10. Ratio of literate females to males of 15-24 year-olds
11. Share of women in wage employment in the nona-
gricultural sector
12. Proportion of seats held by women in national par-
liament
Goal 4: Reduce child mortality

Target 5: Reduce by two-thirds, between 1990 and 13. Under-five mortality rate
2015, the under-five mortality rate 14. Infant mortality rate
15. Proportion of 1 year-old children immunized
against measles
Goal 5: Improve maternal health

Target 6: Reduce by three-quarters, between 1990 and 16. Maternal mortality ratio
2015, the maternal mortality ratio 17. Proportion of births attended by skilled health per-
sonnel
Goal 6: Combat HIV/AIDS, malaria and other diseases

Target 7: Have halted by 2015 and begun to reverse 18. HIV prevalence among 15-24 year old pregnant
the spread of HIV/AIDS women
19. Condom use rate of the contraceptive prevalencerated
20. Number of children orphaned by HIV/AIDS
60 Millennium Development Goals Indicators – The Official United Nations Site for the MDG Indicators.
http://millenniumindicators.un.org/unsd/mdg/Host.aspx?Content=Indicators/OfficialList.htm 87
Appendix 1: The Millennium Development Goals Business Solutions for Human Development Report 2007
Target 8: Have halted by 2015 and begun to reverse 21. Prevalence and death rates associated with malaria
the incidence of malaria and other major diseases 22. Proportion of population in malaria risk areas using
effective malaria prevention and treatment measured
23. Prevalence and death rates associated with tubercu-
losis
24. Proportion of tuberculosis cases detected and cured
under directly observed treatment short course
(DOTS)
Goal 7: Ensure environmental sustainability

Target 9: Integrate the principles of sustainable devel- 25. Proportion of land area covered by forest
opment into country policies and programmes and 26. Ratio of area protected to maintain biological
reverse the loss of environmental resources diversity to surface area
27. Energy use (kg oil equivalent) per $1 GDP (PPP)
28. Carbon dioxide emissions (per capita) and con-
sumption of ozone-depleting CFCs (ODP tons)
29. Proportion of population using solid fuels
Target 10: Halve, by 2015, the proportion of people 30. Proportion of population with sustainable access to
without sustainable access to safe drinking water an improved water source, urban and rural
Target 11 By 2020, to have achieved a significant 31. Proportion of urban population with access to
improvement in the lives of at least 100 million slum improved sanitation
dwellers 32. Proportion of households with access to secure
tenure (owned or rented)
Goal 8: Develop a global partnership for development

Target 12: Develop further an open, rule-based, pre- Some of the indicators listed below are monitored sepa-
dictable, non-discriminatory trading and financial sys- rately for the least developed countries (LDCs), Africa,
tem. landlocked countries and small island developing States.
Includes a commitment to good governance, develop- Official development assistance

ment, and poverty reduction – both nationally and
internationally 33. Net ODA, total and to LDCs, as percentage of
OECD/DAC donors’ gross national income
Target 13: Address the special needs of the least devel-
oped countries 34. Proportion of total bilateral, sector-allocable ODA
of OECD/DAC donors to basic social services (basic
Includes: tariff and quota free access for least developed education, primary health care, nutrition, safe water
countries' exports; enhanced programme of debt relief and sanitation)
for HIPC and cancellation of official bilateral debt; and
more generous ODA for countries committed to pover- 35. Proportion of bilateral ODA of OECD/DAC
ty reduction donors that is untied
Target 14: Address the special needs of landlocked 36. ODA received in landlocked countries as propor-
countries and small island developing States (through tion of their GNIs
the Programme of Action for the Sustainable
Development of Small Island Developing States and 37. ODA received in small island developing States as
the outcome of the twenty-second special session of the proportion of their GNIs
General Assembly)
88
Appendix 1: The Millennium Development Goals

Target 15: Deal comprehensively with the debt prob- Market access
lems of developing countries
through national and international 38. Proportion of total developed country imports (by
measures in order to make debt value and excluding arms) from developing countries
sustainable in the long term and LDCs, admitted free of duties
39. Average tariffs imposed by developed countries on

agricultural products and textiles and clothing from
developing countries
40. Agricultural support estimate for OECD countries

as percentage of their GDP
41. Proportion of ODA provided to help build trade

capacity
Debt sustainability
42. Total number of countries that have reached their

HIPC decision points and number that have reached
their HIPC
completion points (cumulative)
43. Debt relief committed under HIPC initiative, US$
44. Debt service as a percentage of exports of goods

and services
Target 16: In co-operation with developing countries, 45. Unemployment rate of 15-24 year-olds, each sex
develop and implement strategies for decent and pro- and total
ductive work for youth
Target 17: In co-operation with pharmaceutical com- 46. Proportion of population with access to affordable
panies, provide access to affordable, essential drugs in essential drugs on a sustainable basis
developing countries
Target 18: In co-operation with the private sector, 47. Telephone lines and cellular subscribers per 100
make available the benefits of new technologies, espe- population
cially information and communications
48. Personal computers in use per 100 population and
Internet users per 100 population
89
Appendix 2: The Interview Protocol Used Business Solutions for Human Development Report 2007
Appendix 2:
The Interview Protocol Used
Framework for CSR Actions
1. How does the company define the CSR concept?
2. Why did your company choose to implement CSR activities?
3. What is their targeted impact on the company and on the community?
4. How does the company conceptualizes their responsibility towards the following areas:
a. the workplace
b. the marketplace
c. the supply chain
d. the community
5. Does the company’s code of conduct articulate this responsibility towards 1) the workplace 2)
the marketplace 3) supply chain and 4) the community? If yes, how?
Management of CSR
1. What is the structure of the CSR workforce?
2. What are the educational or training background of CSR staff (e.g. development business,
CSR, etc)?
3. What are the company’s criteria for choosing a potential initiative?
4. To what extent the CSR initiative is related or unrelated to the company’s core business
(brands, products, management skills, etc)
5. What are the company’s strengths to implement these CSR initiatives?
6. What are the challenges faced by the company in implementing these CSR initiatives?
Ability to Tackle the MDGs

1. What are the company’s main areas of focus? (education, health, environment, etc)
2. Is the company familiar with the Millennium Development Goals?
3. Does the company relate these issues and their CSR initiatives to the MDGs?
If yes, how? If No, why not?
Level of Engagement
1. What size of the company budget is allocated to implementation of the CSR initiative?
2. Is it part of the overall budget or a percentage drawn from a particular department (e.g. mar-
keting, public relations, etc.)?
3. What is the company’s level of contribution (cash, time, in-kind) to the implementation of
their CSR initiatives? Why they prefer this sort of contribution?
4. On a company level, how aware are employees of CSR? Is there any educational or other for-
mal training on CSR available for employees outside the company’s CSR component?
90
Partnerships
Appendix 2: The Interview Protocol Used

1. Do you partner with other stakeholders (civil society organizations/private sector/govern-
ment/media) to implement CSR initiatives? Why or why not?
2. Please list those who you have partnered with.
3. If yes, what are the criteria according to which a company selects partners? What are the
terms of these partnerships? What does a company gain from partnering with specific stake-
holders?
4. What are the obstacles/challenges you face in cooperating with these partners?
Best Practices
1. Identify at least two specific initiatives.
2. Collect the following information about the initiative.
a. Objectives
b. Steps of implementation
c. Initiative’s activities
d. Partnerships
e. Outcomes
f. Lessons learned
Enabling Environment
1. How do you feel these stakeholders may better promote and encourage the implementation
of CSR concept?
a. the public sector
b. civil society organizations
c. private companies
d. Media
2. Are there any challenges in the Egyptian environment (be it political, economic or social) that
the company faces in implementing sustainable development initiatives contributing to the
country development? If yes, in your opinion how can these challenges be overcome?
Future Plans
What is the future vision for CSR in your company?
This may include: CSR activities internal or external, future partnerships, internal structural
CSR workforce, level of engagement, MDGs)
91

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Editor Ms. Janet Breeze

CHAPTER ONE: Evolution of Corporate Social Engagement in Development

CHAPTER TWO: Millennium Development Goals

CHAPTER THREE: Dimensions of Business Solutions for Human Development

CHAPTER FOUR: Analysis of Business for Development Engagement

CHAPTER FIVE: Towards an Enabling Environment for Partnerships

3. UNDP and the Global Compact in Egypt

CHAPTER SIX: The Way Forward

Appendix 1 – The Millennium Development Goals

Appendix 2 - The Interview Protocol Used

SOY Spirit of Youth Association for Environmental Services

Chapter 5 focuses on intermediaries such as NGOs, business associations, chambers of commerce,

Through this process, the study succeeded in:

Some of the critical issues that the report explores are:

DEFINITIONS tion with them and brand equity established

through years of serving the same communities

as AA10004 and reporting frameworks such as considerable additional community benefits by

Evolution of Corporate Social Engagement in Development

VALUE CHAIN lights its wider positive economic impacts, gen-

Evolution of Corporate Social Engagement in Development

ADVOCACY, POLICY DIALOGUE AND PROSPECTS FOR BUSINESS

10 www.iblf.org/re.g.ions/asia/vietnam.jswww.gainhealth.org. In 1999 shoe manufacturers, governments, multi-lat-

Evolution of Corporate Social Engagement in Development

The MDGs address extreme poverty in its many

The MDGs set out below need to be achieved at the

GOAL 1: REDUCE POVERTY AND SOCIAL

In 2002, the number of poor in Egypt was approxi-

poor less than $1 a day. The table below illus- 20

from below the poverty line and then sank back 0

Millennium Development Goals

Millennium Development Goals

GOAL 5: IMPROVE MATERNAL MDG Goal 6 should be tailored more to

HEALTH Egypt’s needs and not dictated by international

34 Ministry of Health, National Maternal Mortality Surveillance System. 2006.

Table 1: Largest Mega Slums Worldwide

Millennium Development Goals

Millennium Development Goals

Program 1: Investment and Employment

Program 2: Enhancing Economic Performance

Program 3: Freeing the Market Economy

Program 4: Building an Information Society

Program 5: Developing Education and Scientific Research

Program 6: Modernizing Government Organizations

Program 7: Expanding Basic Public Services

Program 8: Modernizing Health Services and Controlling Population Growth

Program 9: Cultivating the Political and Legislative Environment

Program 10: Management of Natural Resources

Source: Ministry of Economic Development Source: Ministry of Economic Development

Millennium Development Goals

Table 2: Overview of companies involved in quantitative phase of research

Sectors %Sample Total

Manufacturing 48% 276

Figure 5: Scope of Operations Figure 6: Locations of Operations

Figure 7: Company Origin Figure 8: Business Sector

Dimensions of Business Solutions for Human Development

Figure 9: Major Contribution Area Cited by Companies

Companies Interviewed 574 (100%) All figures indexed to 100

Companies involved in pro- Companies not involved in pro-

Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Goal 7 Goal 8 Others