Studies - Agri Food Industry

Corporate Social Responsibility Strategy for the
Agro-Food Industry in Egypt

From Corporate
SocialResponsibilit
y to Corporate
Competitive
Advantage

May 2013

Corporate Social Responsibility Strategy for the Agro-Food Industry in Egypt

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This Corporate Social Responsibility Strategy for the Agro-Food Industry in Egyptwas created
as part of a Diagnostic Corporate Social Responsibility (CSR) study from Heliopolis University
for Sustainable Development along with ECRC/UNDP.

For any questions or remarks please contact: maximilian.abouleish@hu.edu.eg

Cairo, May 2013


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TABLE OF CONTENTS
ABREVEATIONS AND ACCRONYMS ............................................................................... 3
ABSTRACT ............................................................................................................................. 5
THE STRATEGIC PATH TOWARDS RENEWAL ........................................................... 7
PART ONE: BURNING ISSUE IDENTIFICATION............................................................................ 7
Background Information on Egypt in Relation to the Agricultural Sector ............................. 7
Challenges Around Integrated Food security ........................................................................ 9
Alarming Realities On The Ground ...................................................................................... 12
Stakeholder Analysis: The Egyptian Agri-Food Industry ...................................................... 16
PART TWO: STRATEGIC CSR AS DRIVER FOR COMPETITIVE ADVANTAGE............................... 19
Strategic CSR: The Relation between CSR, Sustainable Development and Competitive
Advantage ........................................................................................................................... 19
Good Governance: The Three Key Pillars of Sustainable Development .............................. 22
PART THREE: DESK STUDY, STAKEHOLDER CONSULTATION, QUESTIONNAIRE ...................... 27
Desk Study: Findings of Current CSR Practice in the Egyptian Agri-Food Industry .............. 27
Stakholder Consultation: Discussing Strategic CSR development in the Egyptian Agro-Food
Industry ................................................................................................................................ 29
Questionnaires among Industry Representatives ................................................................ 36
PART FOUR: CSR STRATEGY FORMULATION and IMPLEMENTATION TOOL ........................... 43
Architecture: Vision & Mission of the CSR Strategy ............................................................. 43
The Sustainability Flower: A Strategic Framework For Sustainable Development .............. 45
PART FIVE: ACTION PLAN FOR CSR STRATEGY IMPLEMENTATION ......................................... 51
1. Awareness Raising ........................................................................................................ 51
2. Capacity Building Events .............................................................................................. 51
3. Journal and Knowledge Transfer .................................................................................. 52
4. Quick Assessment of Sustainability Flower .................................................................. 52
5. Social Innovation Process (SIP) ..................................................................................... 55
CONCLUSION ...................................................................................................................... 59
Annex ................................................................................................................................... 60
CSR Questionnaire ............................................................................................................... 60
MEETING MINUTES April 8
th
2013 ....................................................................................... 67
th
2013 ..................................................................................... 69
MEETING MINUTES May 19
th
2013 ..................................................................................... 71
Quick Assessment Questionnaire ........................................................................................ 74
Bibliography ...................................................................................................................... 76


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ABREVEATIONS AND ACCRONYMS

AFI Agro-Food Industry
CSR Corporate Social Responsibility
ECRC The Egyptian Corporate Responsibility
Centre
ENCC Egyptian National Competitiveness Council
HU Heliopolis University for Sustainable
Development
IBSC Integrated balanced scorecard
IAP International Association for Partnership in
Ecology and Trade
KPI Key performance indicator
MDG Millennium Development Goals
NGO Non-governmental organization
PESTLE analysis Political, economic, social, technological,
legal, and environmental analysis
SD Sustainable Development
SF Sustainability Flower
UNDP United Nations Development Program
WBCSD World Business Council for Sustainable
Development


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Index and Tables
Figure 1: Elements affecting food security in Egypt (adapted by author) .............................. 11
Figure 2: Maximizing Philantrophy's Value ............................................................................. 21
Figure 3: Corporate Involvement in Society: A Strategic Approach ........................................ 22
Figure 4: Strategic Elements of Strategic CSR in the Agro-Food Industry ............................... 43
Figure 5: The Sustainability Flower Framework ...................................................................... 45
Figure 6: Sustainable Development Management Cycle ........................................................ 46
Figure 7: Sustainability Flower Balanced Scorecard System ................................................... 47
Figure 8: The Sustainability Flower Quick Assessment ........................................................... 53
Figure 9: Critical Steps for implementing the SF Quick Assessment ....................................... 54
Figure 10: Overview of SF Quick Assessment Outcome .......................................................... 54
Figure 11: Social Innovation Process Flow .............................................................................. 55
Figure 12: Examples of SF Quick Assessment Questions ........................................................ 74

Table 1: Alarming Realities in the Egyptian Agricultural Sector .............................................. 12
Table 2: Civil Society Stakeholders .......................................................................................... 17
Table 3: Public Sector Stakeholders ........................................................................................ 18
Table 4: Desk Study on CSR Communication ......................................................................... 28
Table 5: Questionnaire Population .......................................................................................... 36
Table 6: Sustainable Development Balance Score Card - Evaluation Methodology ............... 48


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ABSTRACT
The first part examines the societal needs of Egypt nowadays and identifies the most critical
burning issues that are related to the Agro-Food Industry (AFI), namely the Water-Energy-
Food nexus. The subsequent section highlights the systemic context in which the challenges
are embedded. This entails a mapping of all relevant stakeholders relevant for the AFI.
In the second part it is argued that strategic CSR can combine business and societal benefits.
It is assessed in how far CSR can be much more than philanthropy and even increase
corporate competitive advantage. This has a strong link to the concept of Sustainable
Development (SD). Furthermore, it is made clear how important good governance is in this
context and how this is constituted. A focus lies hereby on stakeholder communication and
SD reporting. As seen later communication practice and subsequent stakeholder dialogue is
still limited among the majority of AFI companies.
In the third part the results from the four general stakeholders consultation meetings, the
survey among industry representatives with 42 questionnaires and the online benchmark
study on CSR communication practice of local companies are presented. The general findings
are that CSR is not new to the industry but it can be used more strategically and also
standard application can be extended beyond the usual application relevant for export.
In the fourth part, concrete elements of the CSR strategy are presented including a
suggestion for a vision and missionthat came out of the stakeholder consultation meeting
and interviews with experts and opinion leaders in the field. To give a concrete example of
how an implementation of the strategyon company level can look like an integrated
balanced scorecard (IBSC) is presentedincluding specific key performance indicators (KPI).
This IBSC is called the Sustainability Flower framework.
Each chapter contains implications for a CSR strategy in terms of recommended actions and
priorities.In the last chapter a summary of the recommendations for the CSR strategy for the
Egyptian Agro-Food Industry is presented as follows:
1. A series of awareness raising events regarding CSR are to be held. Specific topics
that should be covered include "systemic interrelations of food security challenges"
as well as "integrated sustainability reporting schemes", including concepts like ISO
26000, GRI and its supplement framework for food processing, other frameworks
used in the industry like the Sustainability Flower framework currently applied by
Sekem.

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2. As indicated in a survey done in the industry, training events for companies that
want to adopt or improve their CSR programs should primarily cover the following
topics:
a. in the societal dimension of CSR: health and safety (priority A), employee
loyalty and motivation, labor rights;
b. in the environmental dimension: energy management (priority A), soil
management, animal and plant management;
c. in the economic dimension: product portfolio, customer responsibility and
relationship, marketing and brand management.
3. The companies of the AFI should be informed about local CSR best practices on a
regular basis and share their experiences and knowledge. Hence, a monthly journal
on CSR practices as well as sector-wide meetings and visitations are to be
introduced.
4. An industry wide introduction of the Sustainability Flower framework is
recommended based on a developed quick assessment tool on individual company
level. The participation is not mandatory and the quick assessment scope can be
adapted to the different company need. The quick assessment is linked to the wider
scope of the Sustainability Flower Balanced Scorecard and allows for an effective
and holistic assessment of company performance with regard to sustainability
issues. Based on that assessment future priorities and areas for collaboration can be
identified.
5. An industry-wide social innovation process is suggested, in order to address societal
challenges faced by the AFI. According to the industry survey the biggest challenge
for Egypt identified is energy scarcity. A social innovation process integrates key
stakeholders from different disciplines, cultures, sectors of society, and layers of
organization to solve related challenges within the industry and its related
stakeholders. The process ensures collaboration of these stakeholders throughout
the four phases of social innovation:
a. Problem Diagnostics,
b. Solution Finding,
c. Solution Testing,
d. Solution Up-Scaling.


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THE STRATEGIC PATH TOWARDS RENEWAL
PART ONE: BURNING ISSUE IDENTIFICATION
Background Information on Egypt in Relation to the Agricultural Sector
1

Egypt produces the following agricultural products: cotton, rice, corn, wheat, beans, fruits,
vegetables, cattle, water buffalo, sheep, and goats.
The economic situation is quite poor, as Egypt is still underdeveloped. Below are the facts on
the Egyptian economy:
GDP (ppp) = $537.8 billion
GDP/capita = $1,976
GDP annual growth rate = 2.2%
Unemployment rate = 13%
Youth Unemployment = 24.8%
Inflation rate = 7.59%
Interest rate = 9.75%
Agriculture as a % of GDP = 14.7% (of which 24.5% is derived from livestock)
The problems facing Egypts economy, in terms of its agriculture, are a lack of confidence
and cooperation between the owners of the land and the tenants, leading to low attention
given to land maintenance and deterioration in conditions. Further, the land markets are
marked by severe imbalance whilst investment in agriculture is dwindling.
Below are some relevant facts regarding Egyptian agricultural production:
Wheat production = 8.2 million Mt (metric tons)
Corn production = 5.87 million Mt
Cattle = 5 million
Buffalo = 4 million

1
If not stated otherwise, the information of this chapter has been drawn from FAOs country study on
Egypt (FAO 2011).

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Sheep = 5.5 million
Goats = 4.55 million
Poultry = 96 million
Regarding livestock, the vast majority is integrated into crop production, as 83% of cattle
and 94% of buffalo are kept on agricultural land.
Only 5% of animal feed comes from rangeland, whilst the majority is the Egyptian clover
(Berseem), to which 1 million hectares are dedicated to the cultivation of. Berseem is itself
not given enough attention to as it is vital to Egyptian agriculture, for the following
reasons:86% of Egypts seed exports are Berseem. It improves soil quality by releasing
nitrogen. Once mowed, it is used as manure. It fights desalination and has high salt
resistance. It does not require pesticides. It is the main forage crop for bees.

Perhaps more importantly, Berseem is the
foundation of reclaimed lands. In order to
make the desert soil fertile farmers introduce a Berseem and livestock cropping system that
introduces nutrients into the soil, and this has become a rule of thumb for successfully
cultivating reclaimed lands. With this system fertile soil can be achieved in 3-5 years, faster
than any other system. However, Berseem is not invested in. If it were made more efficient,
more land usually kept for Berseem could be allocated to other crops such as wheat.
Below are the relevant social facts regarding the Egyptian population:
Population = 85 million
Population under 24 years of age = 50%
Population growth rate = 1.92%
Literacy = 72%
Urbanization = 43.4%
Agricultural workforce = 32% (of whom 60% are illiterate)

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The problem facing agriculture is the trend of young people to seek service-sector jobs,
often in the cities, contributing to an increasingly aged agricultural workforce. Older farmers
are less likely to adopt new technology. However, there is still a lack of work even in the
cities so the agricultural workforce does not face a particularly dire threat as of yet.
However, the Egyptian peasants (who work the farms) are among the poorest in the
population.

In Egypt, there are 89.700 tractors in use. This means on average 1 tractor per 929 feddan
which shows the strong technological underdevelopment.
Egypts total area is approximately 1 million square kilometers, of which only3.5% is arable.
Of the 3.5 million hectares of arable land, 3.276 are in the Nile Basin and Delta. The
remainder is rain-fed areas and oases.
Its weather is mostly arid, and has little rainfall. Carbon dioxide emissions currently stand at
196.5 million metric tons.
Of Egypts agricultural land, 94% is dedicated to annual and rotational crops, whilst 6% is
home to permanent crops. 3.53 million hectares are irrigated, representing 99.8% of
cropland. 3 million of these hectares use outdated surface irrigation.

Challenges Around Integrated Food security
2

The agricultural sector employs some 40 percent of Egypts workforce and contributes some
20 percent of GDP (MOP, 2012). Egypts food trade deficit of more than US$ 8 billion (CBE,
2011) has a direct impact on its low performance in the macroeconomic environment set of
GCI indicators. While policies that address FS&S are essential to reduce this food trade
deficit, they are taking on an additional high level of urgency as a result of the looming food
security crisis in Egypt.

2
This chapter is taken with kind permission from the Egyptian National Competitiveness Council
(ENCC) and its sub-council on Food Safety and Security (FSS) (ENCC, 2013).

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Increasing food prices coupled with reduced effective earnings have increased the
percentage of Egyptians living below the food poverty line (extreme poverty)
3
from 3.8
percent in 2004/05 to 6.7 percent in 2008/09 (World Bank, 2011). The development of the
agriculture sector is recognized as a prime contributor to inclusive growth and poverty
reduction (ENCC, 2008 and 2009), and to food safety, given that it relies on local goods and
services and as such indirectly stimulates economy in rural areas (Gavian et al., 2002).
The urgency of the need to improve the productivity of the agriculture sector is further
enhanced after the January 25 2011 revolution. The January 25 revolution had a few basic
simple demands for bread, freedom, dignity and social justice. The bread demand is a
reflection of the urgent need of the people to be able to provide decent food to their
families, i.e. at minimum, to guarantee food security. While the January 25 revolution was a
massive and peaceful revolt of the people, political analysts continue to warn of a second
Revolution of the Hungry; one that they anticipate will not be as peaceful. This second
revolution is believed to be inevitable if we do not immediately take concrete and significant
steps to reform agricultural and other policies that impede Egypts ability to ensure its own
national food security. At the heart of this security is the wellbeing of the smaller farmers
(4.8 acres or less) who operate 90 percent of the number of farms in Egypt
4
and who form
the foundation of this sector.
In recognition of the above, ENCCs Food Security & Safety (FS&S) sub-council hasidentified a
variety of factors that determine the performance of the agriculture sector in Egypt in
general and constitute real determinants for food security and safety in particular (see
Figure 1).
Government policies and the awareness (or lack of awareness) of the facts by some of the
stakeholders, parliamentarians and politicians determine the impact of these factors.

3
Extreme poverty is the inability to meet basic food needs (World Bank, 2011).
4
Some 90 percent of owners own less than 2 ha, 6 percent own between 2-5 ha, and 4 percent more
than 5ha (Booz Allen, 2008).

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Figure 1: Elements affecting food security in Egypt (adapted by author)


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Alarming Realities On The Ground
5

To date, the agricultural sector is one of the largest employers in the country, yet it has
failed to develop to its full potential over the last 50 years. The sector makes up some 20
percent of the gross domestic product and 20 percent of exports, employs about 40 percent
Egypts workforce, and is a source of income for about 55 percent of the population,
according to the Central Agency for Public Mobilization and Statistics. The most
alarmingalarming realties are presented in the table below:
Table 1: Alarming Realities in the Egyptian Agricultural Sector

5
This chapter is taken with kind permission from the Egyptian National Competitiveness Council
(ENCC) and its sub-council on Food Safety and Security (FSS) (ENCC, 2013).

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It is worth noting that - in addition to the above alarming signals - crop wastage in Egypt is
considered one of the highest in the world, both in grain and perishable crops, due to an
inadequate supply chain mechanism. Lack of mechanization in the field, improper handling,
insufficient cold storage and pack house facilities, in addition to the low intake of water and
the low intake of the food industry from agriculture produce. All these factors contribute to
the unjustified wastage up stream. In addition to that, improper channels of distribution and
refrigerated display contributes further to the wastage phenomena downstream. Only 1% of
retail outlets in Egypt are considered, organized modern trade, where as 99% of outlets
belong to the informal economy. A good part of the problem is land allocation for
developers of modern trade facilities close to population centers and likewise with regards
to logistic centers close to production areas. It is estimated that the reduction of wastage to
the internationality acknowledged levels can contribute up to 1% growth in Egypt GAP.
Handling procedures are not fully recognized in Egypt. Here agriculture may be characterized
as disjointed. Production is not linked with marketing. With perishable crops like fruits and
vegetables, storage, packaging, transport and handling technologies are practically non-
existent. Hence, considerable amounts of produce are lost. Thus, as more fresh fruits and

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vegetables are needed to supply the growing population in Egypt, and as more produce is
transported to non-producing areas, and as more commodities are stored longer to obtain a
year-round supply, post-harvest loss prevention technology measures become paramount. It
is distressing to note that so much time is being devoted to the culture of the plant, so
muchmoney spent on irrigation, fertilization and crop protection measures only to be
wasted about a week after harvest. It is therefore important that post-harvest procedures
be given as much attention as production practice; beginning with planting until the product
reaches the consuming public.
All these mentioned challenges are priorities to be tackled jointly from the private, public
and civil sector. It describes excellent field of engagement in terms of strategic CSR and it is
highly recommended to coordinate the actions of the AFI together with the ENCC sub-
council on FSS.


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Stakeholder Analysis: The Egyptian Agri-Food Industry
Private Sector
Companies Link
Alfa Misr www.alfamisroil.com
Al shams Group www.al-shams-group.com.eg
Aratco www.aratcoegypt.com
alAhram Beverages www.alahrambeverages.com
Belco www.belco.com.eg
Consukorra www.consukorra.com
Kraft Foods www.mondelezinternational.com
Daltex www.daltexcorp.com
Danone www.danone.com
Edita www.edita.com.eg
Farm Frites www.farmfrites.com.eg
Hashem Brothers for oil and aromatic products www.hashembrothers.com
Magrabiagri . MAFA www.magrabi-agriculture.com
Mansour Group for distribution www.mansourgroup.com
Nestle Egypt www.nestle.com.eg
Rich Bake www.richbake.com
Sekem www.sekem.com
Sobh for food industries & Cold stores www.sobh.com.eg
Unilever www.unileverme.com

Associations Link

CFI (Chamber of Food Industries)
www.egycfi.org.eg

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EBA (Egyptian Business Association)
www.eba.org.eg
EJB (Egyptian Junior Business
www.ejb.org.eg
Egyptian Federation of Industries www.fei.org.eg
GACIC (German Arab Chamber of Industry and
Commerce)
www.ahkmena.com
HEIA www.heiaegypt.com
Civil Society
Table 2: Civil Society Stakeholders
Civil Society Abbreviation Link
End Water Poverty
http://www.endwaterpoverty.
org/
Global Water http://www.globalw.com/
IRC International Water and Sanitation Centre IRC http://www.irc.nl/
WaterAid http://www.wateraid.org/uk
Food and Agriculture Organisation of the United
Nations, Egypt FAO- Egypt
http://www.fao.org/index_en.
htm
Deutsche
GesellschaftfrInternationaleZusammenarbeit,
Egypt GIZ-Egypt http://www.giz.de/en/
United Nations Development Programme UNDP
http://www.undp.org/content
/undp/en/home.html
International Fund for Agricultural Development IFAD http://www.ifad.org/
Arab Water Council AWC
http://www.arabwatercouncil.
org/
World Water Council
http://www.worldwatercounci
l.org/
United Nations Educational, Scientific and
Cultural Organization
UNESCO-
Cairo
http://www.unesco.org/new/
en/
International Center for Agricultural Research in
Dry Areas ICARDA http://www.icarda.org/
Japan International Cooperation Agency JICA http://www.jica.go.jp/english/

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Arab Region Environmental Information
Network AERIN http://www.irc.nl/page/6610
Centre for Environment and Development for
Arab Region and Europe CEDARE http://www3.cedare.int/
International Development Research Centre IDRC
http://www.idrc.ca/EN/Pages/
default.aspx
Holding Company for Drinking Water and
Wastewater HCWW
http://www.hcww.com.eg/en
/Content.aspx?ID=1
Nile Basin Capacity Building Network for River
Engineering NBCBN-RE http://www.nbcbn.com/
World Health Organisation Regional Office for
the Eastern Mediterranean EMRO http://www.emro.who.int/
United Nations Water http://www.unwater.org/
Egyptian National Competitiveness Council ENCC http://www.encc.org.eg/

Public Sector
Table 3: Public Sector Stakeholders
Public Sector Abbreviation Link
Ministry of Water Resources and Irrigation MWRI http://www.mwri.gov.eg/
National Water Research Centre NWRC http://www.nwrc-egypt.org/
Ministry of Agriculture and Land Reclamation MALR
http://www.agr-
egypt.gov.eg/En_Default.aspx
Ministry of State for Environmental Affairs EEAA http://www.eeaa.gov.eg/
National Association of Water Companies NAWC http://www.nawc.org/
Egyptian Public Authority for Drainage Projects EPADP http://www.epadp.org.eg/
Water User's Associations WUAs


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PART TWO: STRATEGIC CSR AS DRIVER FOR COMPETITIVE
ADVANTAGE
Strategic CSR: The Relation between CSR, Sustainable Development and
Competitive Advantage
There is an obvious connection between the private sector and its activities and the
sustainability of a nation. Companies can be considered as the main driver behind economic
growth and they affect natural resource depletion and social conditions in a society
substantially. In this section the focus lies on deriving an ethical need for companies to
adopt the genuine wealth approach that was discussed for the national level.
The social contract theoretical view of the corporation defines it as a group or a chain of
implicit and/or explicit contractions between individuals and groups.
6
The stakeholder
theory sees corporations involved in the social system and to the new social contract
7

which presents a mix of reciprocal expectations of the role and responsibilities of each of the
involved parties in a corporate and social environment. These expectations are for instance
articulated by the European Commission and ask corporations, in addition to economic and
legal rights or duties, to perform social, ethical and environmental responsibilities.
8
This
basically means that companies should also act in the interest of stakeholders.
9

Porter together with Kramer came up with an article on this topic called Strategy and
Society: The Link Between Competitive Advantage and Corporate Social Responsibility
(Porter, 2006). The authors basically see no inherent contradiction between improving the
companys competitive context and making sincere commitment to bettering society. They
criticize that many firm have an approach to CSR that is disconnected from business and
misses the greatest opportunities for companies to benefit society. For the authors the
more closely tied a social issue is to a companys business, the greater the opportunity to
leverage the firms resources and benefit society. (Porter, 2006, p.88)

6
Jensen (1976), p. 42
7
Carroll (1999), p. 43
8
European Commission (2001), p. 13
9
According to Freemans widely referred definition [a] stakeholder in an organization is (by
definition) any group or individual who can affect or is affected by the achievement of the
organization's objectives. Freemam (1984), p. 46

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The logic of the authors builds on Porter's concept of the National Diamond of
Competitiveness. The four elements of a national competitive diamond are: (1) Factor
Conditions; (2) Context for Strategy and Rivalry; (3) Related and Supporting Industries; and
(4) Demand Conditions.
Factor Conditions
High level of productivity depends on trained workers, high-quality scientific and
technological institutions, adequate physical infrastructure, transparent and efficient
administrative processes (such as company registration or permit requirements), and
available natural resources (like water).
Implication for CSR strategy: (1) Organize position papers and lobby work; (2) Engage in
water efficiency monitoring activities along the value chain
Demand Conditions:
With demand condition Porter describes the size of the local market, the appropriateness of
product standards, and the sophistication of local customers. Sophisticated customers
enhance a region's competitiveness by providing companies with insight into emerging
customer need and applying pressure for innovation.
Implication for CSR strategy: (1) Organize position papers and lobby work; (2) Start
customer education awareness on sustainability impact on products standard
development

Context for Strategy and Rivalry:
This dimension includes the rules, incentives and norms that govern competition in a region
or in a nation. These can have a great influence on productivity. Government policies that
encourage investments, protect intellectual property, open local markets to trade, break up
or prevent monopolies and cartels, and reduce corruption make a location more attractive
to business.
Related supporting Industries:
High quality supporting industries and services that are nearby can enhance a company's
productivity a lot. Using distant suppliers via outsourcing is of course possible in our
globalized world but using capable local suppliers of services, components, and machinery is
more efficient. The reason is because proximity enhances responsiveness, exchange of

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information, and innovation. This comes on top of the benefits of lower transportation and
inventory cost.
Implication for CSR strategy: (1)Include supply chain in the awareness and capacity
building processes and also report on total social and environmental product footprint.
Finding the best synergy between the two extremes of pure philanthropy and pure business
is one key for management to identify the what of corporate sustainability management.
The desired array of actions is illustrated in Figure 2 as the brightly shaded triangle area.
Figure 2: Maximizing Philantrophy's Value

Source: Porter (2006)
This synergetic value creation is also supported by the findings of Post: According to the
Stakeholder View, the critical challenge for contemporary management is recognition of the
mutual interests among the firm and its stakeholders, leading to the development of
consistent and supportive policies for dealing with them. (Porter, 2006, p. 91)
It becomes clear that Porter et al clearly do not see companies responsible for all the worlds
problems. In their eyes a companys main contribution for society is to contribute to a
prosperous economy.


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Figure 3: Corporate Involvement in Society: A Strategic Approach

Source: Porter, 2006, p. 88
In their analysis Porter and Kramer focus more on the social aspect of CSR and corporate
philanthropy. This is inherent in their external perspective because the improvements in the
competitive context are mainly related to social stakeholders. Still, Porter et al would rather
not agree to the social contract per se and see an ethical obligation to do CSR. Engaging in
this field is only justified by the motivation of maximizing profit which is in their eyes the
main task of a corporation. Porter and his colleague for instance did not point out the need
to incorporate the social dimension into the measurement of success. Their rationale is that
a healthy society creates expanding demand for business.
Good Governance: The Three Key Pillars of Sustainable Development
Hess' (2008) approach presents a New Governance regulation for firms that focuses on
decentralized, participatory, problem-solving-based approach to regulation that foresees
three necessary requirements for social reporting in order to be effective: disclosure of
material information, dialogue with stakeholders, and the moral development of the firm.
He considers social reporting as the crucial driver to make corporations more sustainable
provided it is done right.
Hess' governance based approach lies between the traditional command-and-control
regulations and private market approach (which would be only voluntary reporting).
10
In

10
"Using regulation to achieve sustainable economic development faces significant challenges. The
failings of traditional, command-and-control regulation have been covered extensively in the legal
literature and include arguments of inefficiency, over-deterrence, normative legitimacy, significant
time delays in responding to new harms or changing societal expectations, limitations of enforcement
(e.g., discovery of compliance failures), and focusing only on minimal, technical compliance with
regulatory standards rather than encouraging corporations to work toward higher goals that their

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response to the shortcomings of both markets and traditional regulation, he suggests a new
approach that complements and also replaces traditional regulation.
Disclosure and not Dissembling
This requirement asks companies report on all relevant and material information that is
related to the company's environmental and social performance and policies. This is the
basis for an "action cycle" This cycle starts with (1) the company discloses new information,
then (2) stakeholders process the information and then they (3) decide how to react on the
information. Afterwards, (4) companies take into account the alteration of behavior and (5)
respond accordingly. With each new report or disclosure action that reflects on the changes
made the action cycle starts again.
Proper disclosure fails when companies do not report true information, or only report what
is good for them and leave the bad news unreported, or do not provide enough context
information to interpret the presented information right. Hess calls this dissembling.
Another dissembling practice is to report on policies but not providing any information in
how far these policies got implemented. Empirical evidence shows that more and more
firms are dissembling their information in their social reports. Hess describes this as a "form
over substance problem" which interestingly comes from the stakeholder's demand for
information. "The greater the public intolerance for corporate irresponsibility, the greater
the costs to the firm if it discloses negative information. This leads to the ironic result that
the more stakeholders want information and tend to act upon it, the less willing firms are to
disclose such information." Often a firm's voluntary disclosure about their social and
environmental performance has nothing to do with their actual social and environmental
performance.
Gray remarks that in practice many companies issue a superficial presentation of data that
does not cover all aspects of sustainable development and therefore no sensible judgement
on the basis of an organizations reporting in their Sustainability Reports on whether or not
the organization was unsustainable.
Standardization yes but mandatory? Hess also recognizes the danger in the existing
voluntary reporting frameworks like GRI. They could actually prevent the establishment of
stronger mechanisms like stronger regulation that make some social and environmental

capabilities make attainable." At the other extreme, markets have well-known failings of their own.
Simply stated, the general concern is that "private markets cannot be relied on to give appropriate
weight to public interests over private ones without active public involvement."'"

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information disclosure mandatory. The big danger is that companies can freely select what
they disclose.
The application of reporting standards and the completeness of that reporting are, at best,
uneven. Therefore the widespread upbeat claims about the quality, diversity and incidence
of reporting on sustainability that are not carefully qualified might be thought to be, at
best, misleading. Equally, any report which only covers selected elements of an
organizations activity around a concept that it blatantly fails to define might, and not
entirely unkindly, be thought a trifle dishonest, perhaps?
Paul Hawkenanalysed the socially responsible investment (SRI) industry and found out that
the existing SRI mutual funds have no common standard, definitions, or codes of practices.
Even companies like Enron, McDonalds, General Electric, Lockheed Martin, and over 90
percent of Fortune 500 companies could be found on the lists of SRI funds. In other words,
the cumulative investment portfolio of the combined SRI mutual funds was virtually no
different than the combined portfolio of conventional mutual funds. (Hawken, 2004, p.17)
Implication for CSR strategy: (1) Improve CSR reporting and in the best case integrate this
into sustainable development reporting scheme on company level; (2) Harmonize the
reporting standards and frameworks among AFI companies and assure comparability of
selected indicators to allow for benchmarking as well as best practice exchange.
Dialogue and not Directing
The element of dialogue between the company and its stakeholders is focused on problem-
solving and continual improvement. It is important that throughout the dialogue process
consensus building about the underlying norms and goals of the company's operations takes
place. This is currently not addressed through the traditional reporting frameworks. There
should be a reflection of what the stakeholders suggest and a transparent determination
which suggestions are implemented and which not. The dialogue should provide
justifications for the company's actions. In other word the companies should address their
legitimacy to operate in society.
Unfortunately, the reality looks different. The KMPG surveyof large corporations in 2009
found out that 32 percent of firms search feedback from their stakeholder and only eight
percent gave feedback to them in public. This leaves the meaningfulness of the remaining 92
percent companies with their stakeholder questionable. Hess actually concludes that
companies are directing the process of stakeholder dialogue to limit stakeholder

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participation and power. But without power stakeholder cannot effect change from
dialogue. Hess remarks a tendency of corporation to even ignore comments of less-powerful
stakeholders. The problem is that without a proper dialogue it is not possible to guide a
multi-stakeholder, open-ended discussion about the company's progress towards
sustainable development.
Implication for CSR strategy: (1)Establish platform for stakeholder dialogue based on
reporting initiatives; (2) come up with process for industry wide coordination of activities
through mutual priority setting based on stakeholder needs assessments.
Development and not Decoupling
The aim of the New Governance Reporting is to improve corporate sustainable
development. It relies on the assumption that a huge part of corporate sustainable
development is not only enforced by external pressure but must come from inside the
company through a self-critical reflection of its behavior, processes and organizational
norms that are the basis for decision making. Hess speaks of the "moral development" that
should be part of the strategic management that takes information from the environmental
and social accounting process into account. This development is also part of the criteria for
internal resource-based competitive advantage described in section 3.5.2.
The pillar development requires that companies incorporate social and environmental
information into their policies and practices in a meaningful way. It is a big problem if
companies use reporting only for cosmetic reasons and that the information is decoupled
from their actual operations. One form of decoupling is known as "Greenwashing" which
reduces social reporting to a superficial public relation (PR) strategy.
Hess points out that this decoupling cannot only create external distortion but also may
cause a false impression internally. A sign of decoupling is when people from insight and also
from outside the company attest that the corporations communication and reality are two
different worlds.
Disclosure, Dialogue and Development should work closely together to create an effective
form of New Governance regulation. What could have been seen is that the current
tendencies of dissembling, directing and decoupling are counterproductive forces that
prevent companies form becoming sustainable.

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Implication for CSR strategy: (1)Incorporate sustainability indictors into company
governance and receive assistance and training to do so; (2) come up with integrated
Balanced Scorecard System to track development over time.


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PART THREE: DESK STUDY, STAKEHOLDER CONSULTATION,
QUESTIONNAIRE
Desk Study: Findings of Current CSR Practice in the Egyptian Agri-Food
Industry

A comparative study of international and Egyptian
companies in the agro-food industry within the scope of
the CSR Diagnostics study showed that:
International companies are dealing with CSR on
corporate level regardless the sustainability of their core
business model,
The majority of Egyptian companies have rather a
philanthropical approach rather than a strategic CSR
approach,
The majority of Egyptian companies in the Agro-
Food industry do not have a published report on social, environmental and
economic data,
The majority of Egyptian companies in the Agro-Food industry do not have any
communication about their CSR activities in form of a document
Only some Egyptian companies in the Agro-Food industry report on their CSR
activities online,
In general, there is no coordination between companies CSR activities in one
industry,

See overview on findings coming out of the online desk studybelow:


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Table 4: Desk Study on CSR Communication

Implications for the CSR strategy: There is an urgent need for communication on the
companies CSR activities. This requires adequate documentation and measurement
activities about the CSR activities among the companies in the Egyptian AFI.


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Stakholder Consultation: Discussing Strategic CSR development in the
Egyptian Agro-Food Industry
The following events took place in order to come up with the content of the CSR strategy. It
has to be mentioned that Heliopolis University, through its strong partnership together with
Sekem Holding, has a long history of engaging with CSR in the Agro-Food Industry.
Workshop 1: International Stakeholder Meeting
Date: 18-20
th
January 2013
Participants:
International Association for Partnership in Ecology and Trade (IAP): In 1996, the network
was established by SEKEM and several of its long-term European business partners to create
a dynamic interaction between farmers, producers, and traders with the goal to provide
consumers with high quality organic products. The IAP is a cooperation forum for organic
agriculture that enhances commitment to nature and a higher food quality. The partners
have cooperated since 1984 to strengthen the basis for biodynamic and organic agriculture
world-wide. IAP members exchange market information, plan strategic initiatives for
marketing of organic products, finance new projects and strengthen existing ones. These
actions are taken to facilitate the development of organic cultivation movements across the
world. The partners try to meet four times annually to evaluate progress, implement
decisions, and discuss new strategies. Currently, there are 14 constant members who are all
high-level businessmen in their respected companies.

Outcome:
Discussion of the challenges of the current economic system and the need for a
paradigm shift,
Formulation of the need to define agriculture in wider terms and to see behind the
basis for societal development (see later vision& mission of agriculture for the
future),
Commitment to support the movement beyond the organic communities and to
search for open dialoguewith any other form of agriculture.


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Workshop 2: Local Stakeholder Meeting I
Date: 8
th
April 2013
Participants:
AminaGhanem ENCC Executive Director
Maryam El Masry HU Fundraising Specialist
EssamSelim IBIS Chairman
MamdouhAboulEish ISIS General Manager
AshrafAdawy Al Rashidi El Mizan Maintenance
ImanTawfik El Agroudy Cesam Foods- Supply Chain Manager
Mohamed Riad Chamber of Food Industries
Technical Specialist
Khaled Gasser Egreen - General manager
Heba Ibrahim Aratco Export Manager Assistant
Ibrahim Saad ISIS
Ahmed Rashad Sekem for Land reclamation general
manager
Abdel Dayem Libra General Manager
Ismail Aoul el eish ISIS Food Factory manager
Sameh Abdel Hamid El Mizan Production Manager
Gehad Salem Lotus Organic General manager
HatemShafie Sekem Holding CFO
Kadria Abdel Motaal HU research Director
Naglaa Ahmed Eco Tech, sustainable Development
AkramMarwan ECRC/ UNDP UNGC officer
RashaWahieb HU Lecturer

Outcome:
CSR strategy was presented to workshop participants by HelmyAbouleish (see
Annex),
In the discussion it came out that:
o There should be a quick win situation for both the company and employees.
This means to help employees to get more involving in applying CSR
activities instead of enforcing them.
o Awareness campaign should be arranges for companies to apply CSR, this
will clarify advantages for example:
The company will gain a good reputation in local and international
markets
Resources management improvements

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o Awareness campaign should focus on strategic CSR: how to gain profit but
also to serve the society,
o Government should participate also in CSR application,
o Bigger companies can contract small farmers for long term period and help
them to improve cultivation practices and in order to get better selling
prices,
o Decoding of CSR to reach all levels from labors to higher level of
management in each company is necessary.

Workshop 3: Local Stakeholder Meeting II
Date: 18
th
of April 2013
Participants:
Mr. Maximilian Abouleish, Social Innovation Centre, Heliopolis
University
Mrs. Naglaa Ahmed, Sustainable Development Department,
Sekem
Mr. Yousry El Tenawy, Food Sector managing Director , CFI
Mr. Mohamed Riad, Technical specialist CFI
Mr. Youssef Maher, Export Manager, Al Ahram Beverages
Mr. Ahmed Refaay, Operation Manager , Farm Frites Egypt
Eng. Yossef Ali, Quality Management Daltex
Mrs. Ola Lotfy, Corporate affairs Manager , Kraft Foods
Mr. MahmoudGhanem, Kraft Foods
Mr. FathiGaber, Arama

Outcome:
CSR strategy was presented to workshop participants by Maximilian Abouleish
It was offered that Heliopolis University and other members can use CFI as a
marketing platform for marketing CSR idea through CFI network,
CFI can provide communication channel such as journal and newsletter to spread
information about CSR activities,
A CSR initiative would allow for pooling resources and distributing competences
according to strengths of partners,
Kraft foods, discussed the support of establishing a factory for recycling paper,

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Introducing the Sustainability Flower network through a Quick Assessment would
help participants in the CSR initiative to establish a learning framework hat helps for
mutual learning, benchmark and communication,
It was agreed to have regular monthly meetings with a rotating host organization,
CFI invites all CSR initiative members to provide information about own CSR best
practice in order to come up with a CSR best practice catalogue of the Agro-Food
Industry,
The strategy needs to be further discussed and simplified in order to be able to
communicate it to all levels of employees,
Need for further discussing the Sustainability Flower framework,
Heliopolis University can offer trainings or summer school for CSR and technical
support for implementing Sustainability Flower framework, especially with the data
collection (e.g. soil assessment)


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Workshop 4: Local Stakeholder Meeting III
Date: 19
th
of May 2013
Participants:

Mr. HelmyAbouleish, Sekem Vice President & CEO
Mr. HatemElShafie, CFO
Mr. Max Abouleish , Sustainable Development Manager
Mrs. Naglaa Ahmed, Sustainability Department
Mrs. RashaWahieb, Lecturer Heliopolis University

The following members of ECRC were present : -

Mrs. SherineElShorbagy
Mr. AkramMarawan
Miss Sara ElRafie
Miss Alia Wagih

Te following attendance from Agro Food companies and other sectors were present : -

Mis Mona Fouad , Kraft Foods
Mr. MohmoudGanem , Kraft foods
Mr. Ahmed Refaai, farm Frites
Mr. KhalilNasrallah, Wadi foods
Mr. Mohamed Riad , CFI
Miss Christine Samir, Consukurra
Miss Nancy Gerges, Al Ahram Beverages
Mr. MufaddalSeifEldin, Wahba

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Mr. Ali Hussien, Wahba
Mr. Mohamed Fares, Wahba
Mr. Omar Abdin, Leafs Egypt
Mrs. SherifaRashad , Leafs Egypt
Mr. Bernard Rohkemper, GIZ
Mr. GregorSchueler, GIZ

Outcome:
CSR can be much administrated, through the sustainable development flower
framework which reduce effort while offer a tool
What is the entity to promote sustainable development flower
Is there a point to share experiences of companies which have CSR
One of the comments to indicate water , child labour, labour rights etc. are important
issues , how to deal with it ?
We need to know what are the other projects of CSR to avoid duplication
ECRC involved in the CSR sharing by government , but private sector has to
concentrate on their role as a stakeholder.
Activities, measurements have to be developed .its not essential at this stage to
involve government at lease to gather ideas and strategy to start with. Where is the
policy angel.
Resource pooling & benchmark are required to map best approaches to avoid
double efforts
To start CSR initiatives from bottom to top levels of management and also to be more
easier for understanding
Do we have possibility of how we continue CSR approach in umbrella of CFI which
can play a role to its member behave
Many of the international clients asked to fulfill some requirements indicated under
CSR like water & carbon footprint. There must be compliance with some standards
most of the exporter see that this is additional cost and efforts and not increasing
sales
Is it a way of competitiveness ?of course yes, as you will learn to use it as a tool for
business sustainability for the future. Competitiveness is to stay longer in the market
at the same time it is a way of change
To start each company its priority and how to get use of CSR pillars in the industry
and all companies to form a cluster.

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Each company can stick a label of CSR initiatives like ( i.e. product has carbon
footprint less, not using child labour ). Product tracing tools including sustainable
development flower and KPIs. ISO and global compact can develop indicators
There are principals and standards to follow but the problem is that the companies
dont know where to start
There is no certain definition of CSR but for example if you apply ISO 26000
guidelines you can define your CSR activities like what you can do to develop water
and labors
How much this comprehensive work on this meeting to find a way to increase
productivity and apply CSR
Examples : water scarcity and growing organic
If you grow organic and will find that you are using less quantity of water comparing to
conventional growing.
There will be CO2 tax and this will increase competitiveness
Most of the companies who dont have time or team to work on CSR so they can hire
NGO to apply it


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Questionnaires among Industry Representatives
This chapter presents the findings from the questionnaire distributed to different companies
from the AFI. The sample size was 69 individuals from 11 companies.
Table 5: Questionnaire Population
Company Name
Number of
Questionnaires
Aratco 5
ATOS 5
Daltex 1
El Shams Group 4
ISIS Foods 6
ISIS Herbs 6
Juhayana 7
Magrabi 1
NatureTex 7
Total 42

Pending
Questionnaires 78
Status: 01.05.13
Comment: The original questionnaire can be found in the Annex.
Q3: The majority of the respondents of the questionnaires (75%) were
manufacturers, followed by (17%) suppliers and the remaining 6% were farmers and
2% retailers.

- Q5: The majority of the respondents of the questionnaires (43%) work in companies
with 201-500 employees, followed by 38% of the companies employing between 51
and 200 people, then 15% employing more than 1000 and only 2% between 501 and
1000 employees.


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- Q6: Concerning the concept of CSR, 37% of respondents replied that they already
have a CSR program and 20% stated that they actively think about it and aim to
establish one. 22% of stated that they have been exerting some effort to better
understand its pros and cons. Only 10% mentioned to have only little knowledge
about the subject and 12% said that they have no idea of what CSR is.
Implication for CSR strategy: General CSR awareness and clarification session
needed for almost half of the companies

- Q7: Almost half of the respondents believe that CSR in companies should be
implemented in a cross functional department collaboration manner, followed by
33% who think that the CSR department should exist as an independent
department, the remaining 18% have no precise organizational structure for a CSR
department in mind.

- Q8: The majority of 32% of respondents have the opinion that CSR should be
addressed towards the companys employees, followed by 23% who find that local
communities should have priority in CSR activities, 14% think CSR should go towards
the companys customers, and the remaining 10% think the government needs
should be addressed, 9% think shareholders needs should be prioritized, 7% believe
that CSR should address the companys suppliers, and 5% vote for NGO support.
Implication for CSR strategy:Focus of CSR actions on companys employees and
community relevant for company.

- Q 9: Regarding the question of why the respective company of the respondents is
interested in applying CSR, 17 % checked that this would improve their business
performance, followed by 16 % who want to increase their competiveness, 12%
indicate that CSR would be aimed to charity and for environmental concerns relating
to products or services, 10% checked that this would solve social concerns related to
products and services, 8% want to attract new investors, 7% would do it for legal or
regulatory obligations, 6% want to use it as a differentiation opportunity, 5%
because of customers demand and another 5% because of community pressure, and
the remaining 2% want to do CSR because of information demand by stakeholders


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- Q 10: Regarding the objective of CSR activities with respect to the addressed
stakeholders, the majority of 24% chose that it will be for social care and workers,
followed by 19% to internal business performance improvement, 15% for social and
environmental impact assessment and another 15% for attracting and/or retaining
talented personnel, then 14% for analyzing stakeholders needs and expectations, 5%
for the provision of a holistic reporting effort, and the remaining 8% are divided into
two equal groups, first for the provision of a future oriented business perspective
and second for benchmarking.
Implication for CSR strategy: CSR activities should achieve the following:
Benefit the social conditions of workers
Improve business performance
Be transparent on companys social and environmental impact on
community and environment

- Q11: Regarding the qualitative objective of CSR activities with respect to their
company, the response of the majority of 23% of respondents was to enhance
innovation potential and creativity, followed by 22% of respondents was
strengthening the corporate culture, 21% to enhance employee commitment, 16%
to enhance as internal and external communication tool, 10% internal and external
information provision, and 7% input on strategy formulation and assessment.

- Q 12: Concerning the quantitative objective of the CSR activities with respect to their
company, the majority of the respondents of 24% checked to increase productivity
efficiency, followed by 19% to increase resource efficiency, 17% to reduce
customers complaints, 12% to reduce accident, 10% to improve the energy balance,
9% to increase stakeholder engagement, 4% to reduce rejects, and 4% to increase
delivery reliability.
Implication for CSR strategy: CSR activity should target productivity and
resource efficiency

- Q 13: The majority of 81% of respondents said that their companies adopted and
implement a code of ethics or code of conduct, the remaining 19% negated this.

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Implication for CSR strategy: Workshop for benchmarking Code of Ethics or Code
of Conduct among Companies to learn from each other and to come up with
industry-wide guidance document.

- Q 14: The majority of 91% of interviewees said that their company has drawn up an
environmental friendliness policy and objectives, while 9% negated this.
Implication for CSR strategy:Rotating show-case events forbenchmarking
environmental friendliness policies and objectives to learn from each other and to
spread best practices.

- Q 15: The majority of 97% of interviewees said that their reporting system already
encompasses environmental and/or social and/or sustainability indicators, the
remaining 3% negated this.
Implication for CSR strategy: Workshop forbenchmarking environmental and/or
to learn from each other and to come up with industry-wide guidance document.

- Q 16: The majority of 33% of interviewees adhere to ISO 9001 standards in the field
of environmental, social and human rights, followed by 27% who adhere to the
OSHAS 18001, followed by 22% who are ISO 14001 certified, 4% adhere to the UN
Global compact, another 4% to the universal declaration of human rights, 3% follow
ISO 26000, another 3% GRI, and the remaining 1% follow the OECD guidelines.
Implication for CSR strategy: Awareness event for other standards related to
CSR, sustainability and agriculture other than ISO 9001, OHSAS 18001 and ISO
14001. Furthermore, assistance of implementation of other standards is needed.

- Q 17: About the social dimension in the CSR activities of the respective company,
13% chose health and safety, 12% employee loyalty and motivation, 11% labor
rights, 10% training and education, 8% diversity and equality, another 8% awareness
raising and policy management, 7% employee self-fulfillment and vitality, another
7% cultural rights, 6% research and development, another 6% communication and
reporting activities, 5% community management and another 5% charity
management, and the last 3% chose governance and compliance.

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Implication for CSR strategy: Concerning social dimension for related training
events health and safety has been prioritized, followed by employee loyalty
and motivation and labor rights

- Q 18: About the economic dimension in the CSR activities of the respective
company, 14% chose product portfolio, 13% customer responsibility and
relationship, 12% marketing and brand management, another 12% formulation of
corporate vision, mission and values, 10% innovation management, another 10%
economic value distribution, 9% partner and supply chain management, another 9%
business expansion and investor attraction, then 6% organizational process
management, and the last 4% chose enhancement of corporate governance.
Implication for CSR strategy:Concerning economic dimension for related training
events product portfolio has been prioritized, followed by customer
responsibility and relationship and marketing and brand management

- Q 19: About the environmental dimension in the CSR activities of the respective
company, 19% chose energy management, 15% soil management, 14% plants and
animal management, 12% water management, 11% waste and hazardous materials
management, 10% communication and reporting of environmental performance,
another 10% chose the establishment / support for an environmental management
system, and the last 9% chose management of greenhouse gas emissions and
mitigation of climate change.
Implication for CSR strategy:Concerning environmental dimension for related
training events product portfolio has been prioritized, followed by customer
responsibility and relationship and marketing and brand management

- Q 20: Regarding the issue of whether the respective company has interest in joining
a National CSR Network, 56% checked that it is very much interested, 44% chose
perhaps, and no respondents ticked no.
Implication for CSR strategy:Huge interest in National CSR network.

- Q21: Regarding the question of what the respondent expects from joining a National
CSR Network in terms of benefits, 16% chose sharing experience and case studies,
another 16% anticipate CSR assessment and consultancy to develop CSR strategy,

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15% chose training workshops, 14% cooperation among organizations and another
14% anticipate CSR certifications, 9% ticked information on CSR, another 9% on
starting coordinated industry initiative on CSR, and the remaining 6% chose
management tool.
Implication for CSR strategy: Focus CSR activities on:
1. Sharing experience and case studies
2. CSR assessment and consultancy to develop CSR strategy
3. Chose training workshops

- Q 22: Regarding the question of how and whether the interviewee expects CSR to
pay back, 45% believe by both decreasing production cost and adding value, 26%
think by improving company image in general, 13% ticked by adding value to
products, 6% think by decreasing production cost per unit, and only 10% dont
expect CSR efforts to pay back.

- Q23: Regarding whether companies should align their business model to the needs
of the society in order to stay competitive, 55% of the interviewees fully, 38% partly
agreed, 3.5% did not agree, the last and 3.5% did not know. Regarding the
statement that CSR and the concept of corporate sustainable development are the
same, 28% indicated they did not know, about 38% partly agreed to that statement
and another 35% agreed fully. The statement that a company that serves the need
of society does not need CSR was refused by 44.5% of respondents, 17.4% did not
have an opinion, 9% partly agreed, and about 31% fully agreed to this statement.

- Q24: By mistake the same as Q23

- Q 25: The question of the biggest challenges for the respective company in the
coming 5 years, the majority of the respondents of 26% checked raising raw material
and other input costs, followed by 25% who think it will be stronger competition on
the market, 21% who think it will be finding qualified employees, 20% raising energy
costs, 4% think its decreasing demand, and only 3% think that the biggest challenge
in the next 5 years will be stronger social and environmental laws and regulations.
Implication for CSR strategy:In order to solve biggest company challenges with
CSR activities the focus should lie on:

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1. Reduce raw material and other input cost
2. Distinguish Company from (international) competitor

- Q 26: To the question of what the biggest current challenge is that Egypt is facing,
the majority of 27% chose energy scarcity as the currently biggest challenges for
Egypt, followed by 21% who chose high unemployment, 19% who think its education
quality, 17% water scarcity, and the remaining 15% food scarcity.
Implication for CSR strategy:In order to solve biggest challenges from Egypt with
CSR activities the focus should lie on:
1. Energy scarcity
2. High Unemployment

- Q27: To the statement that various organic agricultural methods contribute to the
high carbon sequestration rate of soils and to minimized emissions, the majority of
39% fully agreed, 32% did not know, and 29% partly agreed. To the statement of
whether Organic Agriculture makes farms and people more resilient to climate
change, due to its water efficiency, resilience to extreme weather events and lower
risk of complete crop failure, 50% fully agreed, 20% did not know, and 20% partly
agreed whereas 10% did not agree. To the statement that Organic Agriculture builds
up soil instead of fostering land degradation and therefore contributes to global
Food security, 63% of the respondents fully agreed, 22% partly agreed, and 16% did
not know. The last statement that Organic Agriculture is in the long run more
competitive than conventional agriculture, was fully agreed to by 62% of
respondents, while 15% partly agreed, 15% did not know, and the final 9%
disagreed.
Implication for CSR strategy:Consider Organic agriculture as a strategic mean to
solve societal burning issues and to contribute to companys
futurecompetitiveness.


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PART FOUR: CSR STRATEGY FORMULATION and IMPLEMENTATION
TOOL
Architecture: Vision&Mission of the CSR Strategy
The following description came out of the different focus group workshops and is a basis for
further development and discussions.
Figure 4: Strategic Elements of Strategic CSR in the Agro-Food Industry

Vision
Our business:
Advances the regeneration and sustainable development of the earth through the
human
Impels and empowers people to unfold their individual potential and develop their
consciousness
Produces high-quality wholesome food and other agricultural products, that nourish
body, soul and spirit
Fosters people to live and work together in dignity and mutual respect and tolerance


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Mission
In order to achieve our vision, we want to
ensure for sustainable soil enlivenment and fertility
counteract the tendency of the degradation of the earth and advocate the
regeneration of destroyed natural habitat of animals and plants
do problem-oriented and transdisciplinary work and research in order to find social
and technological innovations that solve our challenges
embrace traditional, organic, spiritual and alternative cultivation methods and
beyond that be in open dialogue with modern and conventional forms of agriculture
in order to learn from each other
advocate and support costumer education and awareness-raising and create
customer responsibility
provide farmers with schooling and capacity building in order to improve the quality
of work
continuously work and develop our vision, mission and principles together with all
relevant stakeholders
stop the unsustainable use of resources in production as well as consumption
create and foster cooperation and partnerships along the whole value chain,
supporting industries and the civil society
apply technology consciously only when it serves our goals and does not harm the
living
support members of our movement to open up new markets
develop and nurse individual communities that conduct agriculture embedded in
their specific context
advocate and do political consulting for the creation of parameters that encourage
sustainable development (currently especially the establishment of a price structure
which is based on the true costs of production)
formulate standards and guidelines in order to develop a trustworthy label that is
certified and protected


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The Sustainability Flower: A Strategic Framework For Sustainable
Development
The Sustainability Flower represents a management, assessment and communication tool
symbolizing the concept of sustainable development in its four dimensions. In the dimension
ECONOMIC LIFE, an organization reflects what kind of products it sells and in which way it
distributes values along the value chain. In SOCIETAL LIFE, the protection and regulation of
human rights is in the focus. CULTURAL LIFE concentrates on the question of how to support
the development of the individual. These three areas of society are surrounded by the six
sub- dimensions of ECOLOGY: SOIL, PLANTS, ANIMALS, ENERGY, AIR, and WATER; to
understand the positive and negative impact on the environment.
Figure 5: The Sustainability Flower Framework

Each dimension consists of several performance aspects, defined in detail through
performance indicators. These are, wherever possible and applicable, linked on the
international standard for sustainability reporting, the GRI G3.1 of the Global Reporting
Initiative or the ISO 26000 guideline and are also conform with the Global Compact
principles.
The SF framework is applicable for all stakeholders of the food chain who ever want to learn
more about the aspects of being not only sustainable but resilient in a holistic approach,
such as
Farmers
Processors

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Traders
Retailers
The SF supports companies in:
Understanding all important development processes, setting targets and taking
action accordingly,
Making development transparent for all stakeholders (clients, employees,
customers, investors, business partners, media etc.),
Giving a platform to disclose companys self-concept as a responsible company and,
thus, make it possible that the company serves as a role model for other
organizations that aim at sustainable development,
If applied as a shared assessment tool within a common CSR initiative in the AFI, the SF
would:
Guide the CSR partner companies to develop a shared understanding of sustainable
development
Provide a framework for common action and measurement that can be continuously
developed,
Allow for benchmark to identify best practice among companies and allow for
targeted learning
Allow for effective marketing with the SF as a differentiation tool
For the annual evaluation process, strategic, tangible targets aligned with an organizations
vision, mission and policies need to be formulated. The continuously ongoing data collection
on economic, social, cultural and ecological performance results in a Sustainable

Figure 6: Sustainable Development Management Cycle


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Figure 7: Sustainability Flower Balanced Scorecard System

Info: This SBSC is an example applied by Sekem
In order to assess its overall performance of continuous sustainable development and
regeneration, the Sustainable Development Balance Score Card (SBSC) can be used.
Basically, the evaluation steps are represented in the traffic light colors green stands for
excellence, red for no action or negative impact and yellow means that awareness exists and
actions have been taken, but that there is room for improvement. Each aspect has its own
logic:


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Table 6: Sustainable Development Balance Score Card - Evaluation Methodology


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PART FIVE: ACTION PLAN FOR CSR STRATEGY IMPLEMENTATION
1. Awareness Raising
Awareness raising events regarding CSR are to be held before the end of 2013. Specific
topics that should be covered include "systemic interrelations of food security challenges" as
well as "integrated sustainability reporting", including concepts like ISO 26000, GRI, other
frameworks used in the industry such as the Sustainability Flower framework.
An external expert will help to organize and design at least two events covering the
mentioned topics.
2. Capacity Building Events
Three capacity building events will be held before the end of 2013. Based on the industry's
interests assessed in a survey, the training sessions should cover three dimensions and
specific topics related to them:
Training 1: Social Dimension
In the social dimension of CSR:
o Priority A: health and safety: Labor conditions, H&S management, health
services to the community, etc.
o Priority B: employee loyalty and motivation: employee fluctuation, intrinsic
and extrinsic employees motivation mechanisms, etc.
o Priority C: labor rights: social workers, compliance with ILO and UN Global
Compact requirements, Fairtrade schemes, etc.

Training 2: Economic Dimension
In the economic dimension:
o Priority A: product portfolio: eco- and socio-friendliness of product portfolio
proven by labels and certificates, etc.
o Priority B: customer responsibility and relationship: customer relationship
management, consumer research, distribution channels, etc.
o Priority C: marketing and brand management (focus on CSR)

Training 3: Environmental Dimension
In the environmental dimension:
o Priority A: energy management: energy efficiency, renewable energy
sources, etc.

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o Priority B: soil management: soil quality, composting, soil use, etc.
o Priority C: animal and plant management: crop rotation, climate and salt
resistant plants, species-appropriate treatment, etc.

3. Journal and Knowledge Transfer
A monthly or quarterly journal on best CSR practices as well as sector-wide meetings and
visitations should be introduced to promote knowledge transfer within the industry. The
Chamber of Food Industries (CFI) can provide communication platform via regular meetings
and also publishes already an industry journal in Arabic language that could be used as a
communication channel.
4. Quick Assessment of Sustainability Flower
The Sustainability Flower Quick Assessment is a first step to apply the SF framework. This
framework is holistically reflecting on all relevant dimensions that effect sustainable
development in general and hence the CSR performance of a company. The scope of this
assignment was not sufficient enough to carry out a CSR quick assessment for all voluntary
companies. This activity is proposed for a later phase and would represent a structured
approach of identifying strength and weaknesses of companies based on a sophisticated set
of indicators and the Sustainability Balanced Scorecard logic that easily allows for tracking
improvements. It is recommended to continuously develop the framework in the future
according to the needs of the companies. In an ideal scenario the industry will possess an
anonymous data base for average performance values in different aspects so each individual
company can easily assess if it needs improvement or not. Accordingly, future capacity
building activities can be tailored and also the top-management of each company can easily
incorporate CSR into its overall strategic management. It is recommended that Heliopolis
University for Sustainable Development is involved in the execution of the Quick Assessment
to provide assistance and to facilitate further development. The Sustainability Flower
Framework is kindly provided from the International Association for Partnership for free
usage.


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Figure 8: The Sustainability Flower Quick Assessment

Comment: To see examples for questions from the Quick Assessment please see in the
Appendix.

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Figure 9: Critical Steps for implementing the SF Quick Assessment

Figure 10: Overview of SF Quick Assessment Outcome


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5. Social Innovation Process (SIP)
The suggested Social Innovation Process for the next phase can be facilitated by the
Heliopolis University for Sustainable Development (HU). The HU will work on bringing
together all relevant stakeholders to promote an innovation process regarding the energy
challenges identified and faced by the agricultural sector.
The social innovation process consists of four phases, each characterized by collaborative
stakeholder workshops with differing participants, adapted to the stage of the process. The
HU will facilitate the workshops and invite the stakeholders for each phase. Hence, while
each workshop addresses a different challenge and will be attended by different
stakeholders, the HU will ensure that the whole process is coordinated, cooperative, and
holistic. Throughout the process, stakeholders will come from:
relevant disciplines (trans-disciplinary),
various cultural backgrounds (trans-cultural),
different societal sectors (trans-boundary),
different layers of organization (trans-personal).
Figure11: Social Innovation ProcessFlow


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SIP Phase 1: Problem Diagnostic
Objectives:
Facilitate discussion on Energy Challenges faced by agricultural sector.
Stakeholder Workshop will be held in March to facilitate a discussion on energy
challenged from different disciplines, opening up new perspectives.
Participants: local, national, and international stakeholders regarding agriculture and energy
(stakeholder for this phaseare identified in Part One).
Tools: Stakeholder Analysis, Problem Analysis, Causal Loop Diagrams, Visioning, Cooperative
Inquiry
Outcomes: Clear understanding of problems as base for Phase 2.
SIP Phase 2: Solution Finding
Objectives:
Facilitate co-creative process of finding solutions to the identified problems.
Workshop will be held in June to facilitate a co-creative space for innovation
Participants: local, national, and international stakeholders as well as experts who bring in
experience and know-how regarding the identified problems
Tools: PESTLE, Presencing (Theory U)
Outcomes: Come up with solutions that can be prototyped and tested in Phase 3
SIP Phase 3: Solution Testing
Objectives:
Prototyping, Testing, and Implementing solutions
Workshop will be held to develop prototypes, indicators and implementation plan
Participants: local and national implementation partners for the identified solutions
Tools: SWOT and Risk Analysis, indicator development, implementation plan (Logframe,
Sustainability Matrix)

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Outcomes: Assess viability of solutions through prototyping, develop indicators to measure
success/failure as basis forfurther development, come up with implementation plan for
Phase 4
SIP Phase 4: Solution Up-Scaling
Objectives:
work on scaling up solutions
Workshop will be held to develop action plan, business model, policy framework and
come up with an evaluation timeline
Participants: local and national implementation partners, relevant experts and stakeholders
from Egyptian Research, Business, and Politics
Tools: Discussions and activities to create action plan, business model, and policy framework
Outcomes: Comprehensive plan to Scale-up solutions based on 4-dimensional consensus
(trans-disciplinary, -cultural, -boundary, -personal); evaluation timeline based on indicators
from previous phase.


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Time overview


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CONCLUSION
The CSR strategy calls for an industry initiative among the companies that already have been
consulted during the focus group interviews or that were involved with the questionnaires.
The major aim is to coordinate efforts for strategic CSR, learn from each other and to spread
best practices. It became clear that the demand for further collaboration is high and that this
strategy outline is just the basis for further action on the ground. Organizations like the
Chamber of Food Industries (CFI), the Egyptian Corporate Responsibility Center (ECRC), the
GIZ Inclusive Business Hub MENA and Heliopolis University for Sustainable Development can
play an important role to further support the underlying industry dynamic and initiative.
Next to the proposed capacity building and training events to further increase awareness
and technical expertise for relevant CSR topics a common communication platform (such as
a journal) is established to foster the spread of best practices among the companies. To
support that process, the introduction of a commonly used sustainability indicator
framework is recommended. Best practices in the industry have been identified and need to
be further consolidated.
For the long-term improvement and positive impact of the industry on societal burning
issues the so-called social innovation process has been proposed. The aim is to come up with
a unique trans-disciplinary, trans-cultural and trans-sectoral approach that allows
stakeholders to mutually define problems and co-create successful solutions together.


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Annex
CSR Questionnaire
1- Name of the company: _______________________________
2- To which industry does your company belong to?
________________________________________________________________________
_________
3- What is the companys role in the supply chain?
3.1- Supplier
3.2- Manufacturer
3.3- Wholesaler
3.4- Retailer
3.5- Farmer

4- What is your companys registered capital?
_____________________________________________

5- How many employees does your company have?
5.1- <50
5.2- 51 - 200
5.3- 201 500
5.4- 501 1000
5.5- >1000

6- Concerning Corporate Social Responsibility (CSR),
6.1- I have no idea of what it is
6.2- I have only little knowledge about the subject
6.3- I have been exerting some effort to better understand its pros and
cons

6.4- I think actively on it and it is an aim to my organization
6.5- I already have a CSR Program

7- How is CSR organized in your company, or how is its implementation planned to be?
7.1- No organizational CSR structure
7.2- Cross-functional Collaboration
7.3- Own CSR Department

8- Which Stakeholders does your company want to address through CSR initiatives? (If you
checked more than one answer, give a mark of max 10 according to the priority of each choice to
your company)
8.1- Employees
8.2- Government
8.3- Customer

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8.4- Suppliers
8.5- Shareholders
8.6- Local communities
8.7- Non-Governmental Organizations (NGOs)
Others, please specify,
______________________________________________________________

9- Why is your company interested in applying CSR? (If you checked more than one answer,
give a mark of max 10 according to the priority of each choice to your company)
9.1- Legal- or regulatory obligations
9.2- Attraction of new investors
9.3- Customers
9.4- Charity
9.5- Information demand by stakeholders
9.6- Increase of competitiveness
9.7- Differentiation opportunities
9.8- Community pressure
9.9- Environmental concerns relating to products or service
9.10- Social concerns relating to products or service
9.11- Improving Business Performance

10- What will be the objective of the CSR activities with respect to the addressed
Stakeholders? (If you checked more than one answer, give a mark of max 10 according to the
priority of each choice to your company)
10.1- Social and environmental impact assessment
10.2- Attracting/retaining talented personnel
10.3- Internal business performance improvement
10.4- Provision of a forward-looking business perspective
10.5- Provision of a holistic reporting effort
10.6- Benchmarking
10.7- Social care for workers
10.8- Analysis of Stakeholder needs and expectations

Other: ______________________________________________________
What will be the qualitative objective of the CSR activities with respect to your company? (If
you checked more than one answer, give a mark of max 10 according to the priority of each
choice to your company)
Internal and external information provision
Input on strategy formulation and assessment
Enhance internal and external communication Tool
Enhance employee commitment
Strengthening of the corporate culture
Enhance innovation potential and creativity

Other: ______________________________________________________

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What will be the quantitative objective of the CSR activities with respect to your company?
(If you checked more than one answer, give a mark of max 10 according to the priority of
each choice to your company)
12.1- Reduction of accidents
12.2- Reduction of customer complaints
12.3- Reduction of rejects
12.4- Increase resource efficiency
12.5- Increase production efficiency
12.6- Increase stakeholder engagement
12.7- Increase delivery reliability
12.8- Improvement of energy balance

Other: ______________________________________________________

Has your company adopted and implemented a code of ethics or code of conduct?
Yes
No

Has your company drawn up an environmental friendliness policy and objectives?
Yes
No

Does your reporting system already encompasses environmental, and/or social and/or
sustainability reporting?
Yes
No

Does your company formally adhere to one of the following initiatives/ standards/ indexes in
the fields of environment, social and human rights, or is planning on doing so?


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Standards/Initiatives
Already
implemented
Planned to be
implemented
No Plan to be
implemented
ISO 9001
ISO 14001
ISO 26000
Global Reporting Initiative (GRI)
OSHAS 18001
UN Global Compact
OECD Guidelines
International Labor Organization (ILO) -
Declaration on fundamental principles and rights
at work

Universal Declaration of human rights

On the Social petal, where shall be the thematic focus of your CSR activity? (If you checked
more than one answer, give a mark of max 10 according to the priority of each choice to
your company)
Social Standards/Initiatives
Labor Rights

Health and Safety
Diversity and Equality
Employee Loyalty and Motivation
Governance and Compliance
Awareness Raising and Policy Engagement
Training and Education
Employee Self-fulfillment and Vitality
Cultural Rights
Research and Development
Community Management
Charity Management
Communication and Reporting Activities

Other: ______________________________________________________

On the Economical petal, where shall be the thematic focus of your CSR activity? (If you
checked more than one answer, give a mark of max 10 according to the priority of each
Economical Standards/Initiatives
1- Product Portfolio

2- Customer Responsibility and Relationship
3- Innovation Management
4- Organizational Process Management
5- Partner and Supply Chain Management

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6- Economic Value Distribution
7- Marketing and Brand Management
8- Formulation of Corporate Vision, Mission and Values
9- Enhancement of Corporate Governance
10- Business expansion and investor attraction

Other: ______________________________________________________

On the Environmental petal, where shall be the thematic focus of your CSR activity? (If you
checked more than one answer, give a mark of max 10 according to the priority of each
Environmental Standards/Initiatives
1- Soil Management

2- Plants and Animal Management
3- Energy Management
4- Management of Greenhouse Gas Emissions and mitigation
of Climate Change

5- Water Management
6- Waste and Hazardous Materials Management
7- Communication & Reporting of Environmental Performance
8- Establishment/Support for an Environmental Management System

Other: ______________________________________________________

Your organization has some kind of interest in joining a National CSR Network?
1- Yes, it is very much interested
2- No, it is not much interested
3- Perhaps

Which would be the expected advantages of a CSR Network? (If you checked more than one
answer, give a mark of max 10 according to the priority of each choice to your company)
1- Information on the CSR
2- Management Tools
3- Cooperation among organizations
4- CSR Certifications
5- Training workshops
6- Sharing experiences and case studies
7- CSR assessment and consultancy to develop CSR strategy
8- Starting coordinated industry initiative on CSR

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Other: ______________________________________________________

Do you expect CSR to pay back?
1- Yes, by decreasing production cost per unit
2- yes, by adding value to products
3- Both, by decreasing production cost unit and adding value
4- Yes, by improving company image in general
5- I dont expect CSR efforts to pay back

Do you agree with the following statements? (Indicate a number accordingly: (0) I dont
know; (1) I dont agree; (2) I partly agree; (3) I fully agree)
1- Companies should align their business model to the needs of
the society in order to stay competitive

2- CSR and the concept of corporate sustainable development
are the same

3- A company that serves the need of society does not need
CSR

1- Companies should align their business model to the needs of
the society in order to stay competitive

2- CSR and the concept of corporate sustainable development are
the same

3- A company that serves the need of society does not need CSR

What are the biggest challenges for your company in the next 5 years? (If you checked more
than one answer, give a mark of max 10 according to the priority of each choice to your
company)
1- Qualified employees
2- Raising energy costs
3- Raising raw material and other input costs
4- Stronger competition on the market
5- Decreasing demand
6- Stronger social and environmental laws and regulation

Other: ______________________________________________________

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What are currently the biggest challenges for Egypt? (If you checked more than one answer,
give a mark of max 10 according to the priority of each choice to your company)
1- High unemployment
2- Water Scarcity
3- Energy Scarcity
4- Food Scarcity
5- Education Quality

Other: ______________________________________________________

1- Various organic agricultural methods contribute to the high
carbon sequestration rate of soils and to minimized emissions.

2- Organic Agriculture makes farms and people more resilient to
climate change, mainly due to its water efficiency, resilience to
extreme weather events and lower risk of complete crop failure.

3- Organic Agriculture builds up soil instead of fostering land
degradation and therefore contributes to global Food security.

4- Organic Agriculture is in the long run more competitive than
conventional agriculture.

I would like to add something I consider important to be mentioned
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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th
2013
The following is the details of Meeting with companies who are working in th the agro food
industry, on April 8, 2013 at Heliopolis University , Business faculty Meeting room Cairo
Subject : Brain storming meeting regarding CSR UNDP project
Attendees
AminaGhanem ENCC Executive Director
Maryam El Masry HU Fundraising Specialist
EssamSelim IBIS Chairman
MamdouhAboulEish ISIS General Manager
AshrafAdawy Al Rashidi El Mizan Maintenance
ImanTawfik El Agroudy Cesam Foods- Supply Chain Manager
Mohamed Riad Chamber of Food Industries
Technical Specialist
Khaled Gasser Egreen - General manager
Heba Ibrahim Aratco Export Manager Assistant
Ibrahim Saad ISIS
Ahmed Rashad Sekem for Land reclamation general
manager
Abdel Dayem Libra General Manager
Ismail Aoul el eish ISIS Food Factory manager
Sameh Abdel Hamid El Mizan Production Manager
Gehad Salem Lotus Organic General manager
HatemShafie Sekem Holding CFO
Kadria Abdel Motaal HU research Director
Naglaa Ahmed Eco Tech, sustainable Development
AkramMarwan ECRC/ UNDP UNGC officer
RashaWahieb HU Lecturer
Meeting objective
This meeting was held in order to:

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1. Introduce CSR activities to the members
2. Introduce Sustainable Development Flower
3. Open discussion abt. applied activities of CSR
4. Distribute CSR questionnaires among the members
5. To end up with CSR Industry Strategy
Topics of Discussion & Notes
CSR strategy was presented to workshop participants by HelmyAbouleish
In the discussion it came out that:
o There should be a quick win situation for both the company and employees.
This means to help employees to get more involving in applying CSR
activities instead of enforcing them.
o Awareness campaign should be arranges for companies to apply CSR, this
will clarify advantages for example:
The company will gain a good reputation in local and international
markets
Resources management improvements
o Awareness campaign should focus on strategic CSR: how to gain profit but
also to serve the society,
o Government should participate also in CSR application,
o Bigger companies can contract small farmers for long term period and help
them to improve cultivation practices and in order to get better selling
prices,
o Decoding of CSR to reach all levels from labors to higher level of
management in each company is necessary.


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th
2013
The following is the details of Meeting with 5 companies who are members of Chamber of
Food Industries, on April 18, 2013 at CFI office Cairo
Subject : Brain storming meeting regarding CSR UNDP project
Attendees
Mr. Maximilian Abouleish, Social Innovation Centre, Heliopolis
University
Mrs. Naglaa Ahmed, Sustainable Development Department,
Sekem
Mr. Yousry El Tenawy, Food Sector managing Director , CFI
Mr. Mohamed Riad, Technical specialist CFI
Mr. Youssef Maher, Export Manager, Al Ahram Beverages
Mr. Ahmed Refaay, Operation Manager , Farm Frites Egypt
Eng. Yossef Ali, Quality Management Daltex
Mrs. Ola Lotfy, Corporate affairs Manager , Kraft Foods
Mr. MahmoudGhanem, Kraft Foods
Mr. FathiGaber, Arama

Meeting objective
Introduce CSR activities to the members
Introduce Sustainable Development Flower
Distribute CSR questionnaires among the members
Set a plan for the coming meeting and way of cooperation
Discussing the idea to have CSR committee through CFI

Topics of Discussion &Notes :

It was offered that Heliopolis University and other members can use CFI as a
marketing platform for marketing CSR idea through CFI network,
CFI can provide communication channel such as journal and newsletter to spread
information about CSR activities,
A CSR initiative would allow for pooling resources and distributing competences
according to strengths of partners,
Kraft foods, discussed the support of establishing a factory for recycling paper,

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Introducing the Sustainability Flower network through a Quick Assessment would
help participants in the CSR initiative to establish a learning framework hat helps for
mutual learning, benchmark and communication,
It was agreed to have regular monthly meetings with a rotating host organization,
CFI invites all CSR initiative members to provide information about own CSR best
practice in order to come up with a CSR best practice catalogue of the Agro-Food
Industry,
The strategy needs to be further discussed and simplified in order to be able to
communicate it to all levels of employees,
Need for further discussing the Sustainability Flower framework,
Heliopolis University can offer trainings or summer school for CSR and technical
support for implementing Sustainability Flower framework, especially with the data
collection (e.g. soil assessment)

There are running activities in each company of CSR such as:
1) Daltex: they offered small famers best practices of growing
potatoes, Daltexgot good production and exported for the small
farmers beneficiary
2) Tetra Pack arranged an awareness meeting at the garbage area to
teach people best practices of collecting garbage
3) CFI arranged through the last four years awareness campaign in
cooperation with Dairy producers abt. the benefit of better
consuming pack then the loose milk
4) Kraft: sponsored universities through project with SIFE / ENACTUS
applied a business studies in community services these studies
should be carried out in one of poorer areas students
encourages farmers to cultivate Jojoba with the best practices and
they are now even able to export it
5) Aram Academy for vocational training center to train graduates on
different skills so that they can apply for a vacancy in Arma, if they
passed the test they will be hires and if not they got a certificate with
the trainings
6) FarmFrites participated with Wayana association to carry out some
activities for the handicapped


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MEETING MINUTES May 19
th
2013

The following is the details of Meeting on May 19, 2013 at Mariott Hotel Zamalek, Cairo
Subject : Presenting CSR Strategy in agro Food Sector prepared by Heliopolis University
Attendees
The following members of Heliopolis University staff were present

Member 1 : Mr. HelmyAbouleish, Sekem Vice President & CEO
Member 2 : Mr. HatemElShafie, CFO
Member 3 : Mr. Max Abouleish , Sustainable Development Manager
Member 4 : Mrs. Naglaa Ahmed, Sustainability Department
Member 5 : Mrs. RashaWahieb, Lecturer Heliopolis University

The following members of ECRC were present : -

Member 1 : Mrs. SherineElShorbagy
Member 2 : Mr. AkramMarawan
Member 3 : Miss Sara ElRafie
Member 4 : Miss Alia Wagih
Member 5 :

Te following attendance from Agro Food companies and other sectors were present : -

Member 1 : Mis Mona Fouad , Kraft Foods
Member 2 : Mr. MohmoudGanem , Kraft foods
Member 3 : Mr. Ahmed Refaai, farm Frites
Member 4 : Mr. KhalilNasrallah, Wadi foods

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Member 5 : Mr. Mohamed Riad , CFI
Member 6 : Miss Christine Samir, Consukurra
Member 7 : Miss Nancy Gerges, Al Ahram Beverages
Member 8 : Mr. MufaddalSeifEldin, Wahba
Member 9 : Mr. Ali Hussien, Wahba
Member 10 Mr. Mohamed Fares, Wahba
Member 11 : Mr. Omar Abdin, Leafs Egypt
Member 12 : Mrs. SherifaRashad , Leafs Egypt
Member 13 : Mr. Bernard Rohkemper, GIZ
Member 14 : Mr. GregorSchueler, GIZ

Meeting objective

Introduce CSR activities to the members who werent participated in
last meetings.
Introduce Sustainable Development Flower
Findings from the recent CSR Diagnosis of Social Responsibility in the Agro
Food Sector in Egypt,
Discuss the assessment findings with representatives from the private sector
To deliberate on possible activities for a collective, voluntary industry
initiative to advance international CSR standards and the introduction of the
Environment, Social and in Egypt; and
Get indication of which institutions, local and international, are interested
in being involved, and agree on steps and resources for kick-starting
activities in 2013, paving the way for an initiative secure the sustainability of
the Agro Food sector in Egypt.

Topics of Discussion &Notes :

- CSR can be much administrated, through the sustainable
development flower framework which reduce effort while offer a tool
- What is the entity to promote sustainable development flower
- Is there a point to share experiences of companies which have CSR
- One of the comments to indicate water , child labour, labour rights
etc. are important issues , how to deal with it ?

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- We need to know what are the other projects of CSR to avoid
duplication
- ECRC involved in the CSR sharing by government , but private
sector has to concentrate on their role as a stakeholder.
- Activities, measurements have to be developed .its not essential at
this stage to involve government at lease to gather ideas and
strategy to start with. Where is the policy angel.
- Resource pooling & benchmark are required to map best
approaches to avoid double efforts
- To start CSR initiatives from bottom to top levels of management
and also to be more easier for understanding
- Do we have possibility of how we continue CSR approach in
umbrella of CFI which can play a role to its member behave
- Many of the international clients asked to fulfill some requirements
indicated under CSR like water & carbon footprint. There must be
compliance with some standards most of the exporter see that this
is additional cost and efforts and not increasing sales
- Is it a way of competitiveness ?of course yes, as you will learn to
use it as a tool for business sustainability for the future.
Competitiveness is to stay longer in the market at the same time it is
a way of change
- To start each company its priority and how to get use of CSR pillars
in the industry and all companies to form a cluster.
- Each company can stick a label of CSR initiatives like ( i.e. product
has carbon footprint less, not using child labour ). Product tracing
tools including sustainable development flower and KPIs. ISO and
global compact can develop indicators
- There are principals and standards to follow but the problem is that
the companies dont know where to start
- There is no certain definition of CSR but for example if you apply
ISO 28000 guidelines you can define your CSR activities like what
you can do to develop water and labours
- How much this comprehensive work on this meeting to find a way
to increase productivity and apply CSR
Examples : water scarcity and growing organic
If you grow organic and will find that you are using less
quantity of water comparing to conventional growing.
There will be CO2 tax and this will increase competitiveness
- Most of the companies who dont have time or team to work on CSR
so they can hire NGO to apply it

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Quick Assessment Questionnaire

Figure 12: Examples of SF Quick Assessment Questions


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