When it comes to the growing importance placed on corporate social responsibility (CSR), how can companies in the Middle East's sea freight industry ensure their current business practices are up-to-date?
In global business circles, corporate social responsibility (CSR) continues to move onto another level. No longer simply acknowledged under the sole remit of doing good deeds to earn industry reputation points, CSR is fast evolving into an imperative component of any successful business in the 21st century.
Whilst the sea freight sector has generally been acknowledged as one of the most environmentally sound methods of transporting goods around the world, companies in the region are waking up to why adopting a more cohesive approach to CSR is part and parcel of a successful global strategy.
"A more holistic and complete approach to awareness about the impacts of the respective business is essential," maintains Ralph Thurm, associate director business engagement and development, Global Reporting Initiative (GRI).
Apart from some early movers such as Aramex, Middle East companies are just starting to understand the benefits of the CR logic."
An international body, always on hand to provide advice to companies wishing to up the ante with their CSR, GRI recently visited Dubai to share its expertise with the region's businesses.
Thurm strongly believes that efficient CR, the term he prefers, relies upon a genuine commitment from management.
"From a management perspective, it is imperative that sustainability really gets into the DNA of the company. Sustainability management as an add-on will fail and requires both the bottom-up engagement as well as getting necessary top management attention," he recommends.
Indeed, as Thurm pointed out, the 'early mover' Aramex has been very proactive in pushing itself forward as a leader in CSR within the transportation sector.
The company was recently the first in the region to participate in the United Nations ‘Global Compact' initiative, created to engage the private sector in positive global corporate practices covering human rights, labour, the environment, transparency and anti-corruption. Furthermore Aramex's Corporate Sustainability Report 2006 has been another first of its kind in the Middle East.
"By adopting sustainability reporting we are sending a clear message to our stakeholders: community development is a strategic responsibility for which we will hold ourselves accountable," explains Fadi Ghandour, CEO of Aramex.
Respecting our environmental surroundings is a principle that is deeply ingrained in our corporate culture, and our ambitious goals in that area are a reflection of how seriously we take the issue.
The report is audited through benchmarks set by the GRI, allowing companies to measure and report their economic, environmental and social performance. "Whilst we have our own specific commitments towards specific solutions, we feel this can be used as an example to the Middle East transport sector in general," he adds.
For a major global player such as Aramex, sustainability is a key part of its future development and direction. "Sustainability fits. It fits with our goal of creating long-term values for our investors by being the company of all our key stakeholders.
It fits with our corporate culture, which has always focused on entrepreneurship and innovation, opportunities for growth and development, diversity across our global network and respect for others," says Ghandour.
However, smaller more local companies in the region have also been taking steps to heighten CSR within the sector. One example of this can be found in the Arab Shipbuilding and Repair Yard (ASRY), winner of the employee care award at last year's Supply Chain and Transport Awards (SCATA) in Dubai. The Bahrain-based company has worked hard to improve the living and working conditions of its largely expatriate workforce.
The management of the ASRY views its corporate social responsibility very seriously and therefore places great importance on the following welfare measures of the employees," emphasises Dr Salman Karim, personnel manager, ASRY.
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