AMMAN -- Corporate governance and social responsibility is in need of updated regulations and faces major obstacles according to the organisers of a new forum held on Tuesday at the Dead Sea Movenpick Hotel.
The forum, intended to bring together business leaders from across the Middle East and North Africa region (MENA), was designed to launch Schema, the first privately held Corporate Governance and Responsibility advisory practice in the region.
Majied Qasem, chairman of Schema, evoked the example of the Dutch East India Company, the first multinational corporation in the world and the first company to issue stock, as an example as why the local public sector should become more involved with the corporate governance movement. The company, after 200 years of profit, became bankrupt due to poor governance.
"We want to remind people that corporate social responsibility [CSR] isn't a new concept. Theses concepts are as old as corporations themselves," said Qasem. "I am sharing this example to raise the level of awareness and urgency. These problems cannot be solved by governments alone, we need the business sector to step up."
Graham Minter, the current co-chair of the steering group of the MENA-OECD Investment Programme, said that "business is a member of society that is assigned a role to make capital work and to make a contribution to society."
He discussed the role of corporate social responsibility in the sustainability of companies and how that helps develop a competitive advantage. Minter also suggested that there is the "ethical case" for companies to become more socially responsible.
"Mission statements don't say that the company's only aim is to make money. But making money is an essential requirement," Minter told The Jordan Times.
Phillippe Vogheller, the chief strategy officer and secretary general of the Jordan Telecom Group said that CSR shouldn't be confused with charity.
"We [Jordan Telecom Group] are not a charity and we don't want to be. We are looking for sustainable development. Does anyone care? Well, we do and we show it by looking for opportunities to give money in a sustainable way," said Vogheller.
"You need governance in CSR; publish your priorities, form committees to decide what type of projects we want to support," added Vogheller.
Jordan Telecom Group has so far spent JD10 million in corporate social responsibility and has sponsored such events like an Internet bus that has reached 100,000 children and has been continuing for nearly four years.
Schema, a division of RAZORView, hosted the forum as a regional platform for business leaders representing various industries to share their expertise and knowledge. RAZORView Advisors is a firm that supports the needs of the MENA region for reform, development and growth.
The Corporate Governance and Responsibility Forum is a regional forum, bringing together the business community to develop a framework and models for corporate governance and corporate responsibility. The forum is the first in a series that is being held at the Movenpick Dead Sea. The forum concludes on March 15.
By Ramsey G. Tesdell
© Jordan Times 2007
