CSR and Governance in Revolutionary Egypt: The Way Forward

I just attended a great event with Dr. Ashraf Gamal-Eldin, the Executive Director of The Egyptian Corporate Responsibility Center (ECRC) and The Egyptian Institute of Directors (EIOD). Dr. Gamal-Eldin is widely considered to be Egypt's top expert on issues of Corporate Social Responsibility and Corporate Governance. The talk was moderated by Dr. Ayman El Tarabishy, the Executive Director of the International Council for Small Business (ICSB). The event, hosted by the GW Corporate Governance & Responsibility Team (CGRT) was brought about to discuss the challenges and opportunities facing private sector firms in the wake of the recent revolution in Egypt.

Events discussed during the talk and subsequent Q&A included the emergency meeting held by the ECRC in February, the role of labor unions, the influence of social media over the past few months, as well as the role that women played in the events leading up to and during the revolution. The discussion which ensued following Dr. Gamal-Eldin's speaking points was very fruitful and brought up some very pertinent issues related to the the private sector companies looking to engage CSR during this new chapter in the country's history.

I thought it was fascinating to hear Dr. Gamal-Eldin speak about all the new initiatives that are taking place within the country during such a period of tumult. It seems quite aggressive to pursue thoughts of incorporating CSR more widely into their companies, but at the same time, the best moment to do so. Egypt is still in a period of interim governing until elections in the fall. Making sure that these issues are key talking points prior to elections may help steer the national conversation in a better direction.

Hopefully, with the work of people like Dr. Gamal-Eldin and the initiatives coming out of the EIOD, more businesses will work to successfully implement CSR into their strategy as a part of the "New Egypt".

Viable Solutions for Hunger

Two-thirds of the world's undernourished people live in seven countries (Bangladesh, China, the Democratic Republic of the Congo, Ethiopia, India, Indonesia and Pakistan) and over 40% live in China and India alone.

The proportion of undernourished people ( 30% in 2010) remains highest in Sub-Saharan Africa.

What can business students and the private sector do about this reality?

To answer this question lets look at some of the factors impeding progress that could also present commercial opportunities.

1) Food Price Volatility

Food prices reached a 30 year record high in 2008, collapsed the following winter, then rose again - rising 20-30% in this last year, threatening millions.

Moreover, the relative integration of the global economy implies that macroeconomic shocks can propagate to domestic commodity markets more quickly and with more impact than before.

2) Climate Change

An increase in extreme weather events, such as the recent floods in Pakistan and drought in Australia, can encourage hoarding of supply and increase the risks associated with harvest outcomes, particularly for countries with sectors dependent upon rainfall for irrigation, for example.

3) Import Dependence

Some countries, for example Senegal and its rice sector, depend on imports for ~90% of consumption. A given country's reliance on imports to meet domestic food needs increases its vulnerability to exchange rate volatility, foreign monetary policy shifts, and commodity market speculation.

So what are some viable solutions and what are ways to capitalize on opportunities, if any, provided by these factors?

1) With respect to combating hunger in the face of food price volatility and import dependence, one place to start is for businesses to work with governments in countries with the most undernourished populations to encourage increased investment in agriculture, apply western techniques to improve yield ratios, and partner with the public/NGO sector to enhance income generating activities for rural smallholder producers.

2) With respect to climate change clean technology and other innovations in agribusiness, such as solar powered drip irrigation systems, can offer both compelling business models as well as opportunities for impact-oriented investors.

Ultimately, the private sector and students of management should be equipped to collaborate to develop commercially viable solutions to hunger.