The Organisation for Economic Co-operation and Development (OECD) has launched the Arabic version of its guidelines for responsible business conduct for multinational enterprises at an event hosted by Egypt’s General Authority for Investment and Free Zones (GAFI).
GAFI, which chairs the Egyptian National Contact Point for Responsible Business Conduct, plays a pivotal role in coordinating efforts to promote sustainable business practices across Egypt. The National Contact Points (NCPs) for Responsible Business Conduct, which number 52 globally, facilitate collaboration between state institutions to meet sustainability standards. They are responsible for raising awareness of the OECD guidelines, building capacity, and engaging in continuous dialogue with businesses and stakeholders to encourage adherence to recommended practices.
The event highlighted Egypt’s ongoing commitment to sustainable business practices, with panel discussions focusing on the role of responsible business conduct in corporate success, competitiveness, sustainable development, and the creation of sustainable value chains. The discussions also addressed the EU’s corporate due diligence directive, which requires companies to safeguard human rights within their supply chains. This directive is expected to impact companies operating in Egypt and their access to European and other advanced markets.
Investment and Foreign Trade Minister Hassan El-Khatib emphasized Egypt’s efforts to align its Vision 2030 sustainable development strategy with the United Nations’ Sustainable Development Goals. He reiterated the government’s commitment to advancing sustainable development and responsible business practices.
Mohamed Farid, Chairperson of the Financial Regulatory Authority, stressed the importance of sustainability initiatives in Egypt’s non-banking financial sector and efforts to improve corporate disclosures on social responsibility.
UN Special Envoy on Financing the 2030 Agenda for Sustainable Development, Mahmoud Mohieldin, emphasized that adopting responsible business conduct is crucial for businesses to thrive and maintain long-term success in a changing global economy.
GAFI Chairperson Hossam Heiba underscored Egypt’s role as the first Arab and African country to sign the OECD Declaration on Investment in 2007 and establish a National Contact Point. He emphasized Egypt’s ongoing commitment to fostering investments that support sustainable economic growth.
Alan Lerberg Jorgensen, Head of the OECD Centre for Responsible Business Conduct, praised Egypt’s integration of responsible business practices into its policies. He cited initiatives such as mandatory governance and environmental reporting for listed companies and the drafting of a corporate social responsibility strategy. Jorgensen noted that many global sustainability regulations are based on OECD guidelines, making Egypt’s alignment with these tools essential to enhancing competitiveness.
The updated OECD guidelines for responsible business conduct cover areas such as human rights, labor rights, environmental protection, disclosure, anti-corruption, consumer interests, competition protection, and taxation. The 2023 revisions include new recommendations on climate change, biodiversity, technology, business safety, and supply chain due diligence, as well as updated implementation measures for National Contact Points.
Ali Aouni, Director of the John D. Gerhart Center for Philanthropy, Civic Engagement, and Responsible Business at the American University in Cairo, stressed the need for collaboration between civil society, businesses, government, and academia to promote responsible business practices. He regarded the Arabic version of the guidelines as a crucial step towards their adoption in Egypt.
Sherif El-Masry, President of the International Federation of Trade Unions, described the OECD guidelines as a vital standard for ensuring that businesses fulfill their responsibilities to workers, society, and the environment, while balancing profitability with social responsibility.
Hesham Badr, Assistant Minister of Planning and Economic Development for Strategic Partnerships, reaffirmed the government’s commitment to integrating corporate social responsibility into development efforts and fostering a collaborative environment across sectors under Egypt’s Vision 2030.
Mohamed Mamdouh, Chairperson of the Economic Committee at the National Council for Human Rights, highlighted the importance of multi-stakeholder dialogue in creating balanced relationships between employers and workers, with input from businesses, trade unions, and civil society.
Mohamed Motamed, Assistant Minister of Environment for Planning, Investment, and Institutional Support, discussed the government’s support for environmental compliance and green transition, providing financial and technical incentives to encourage green investments and boost the competitiveness of the private sector.
During a session on practical insights into responsible business practices, executives from leading companies shared their perspectives on the challenges small and medium-sized enterprises face in complying with these guidelines. They emphasized the importance of raising awareness and enhancing the capacity of businesses and stakeholders to adopt responsible business practices effectively.
