Covid-19: It is time for Impact finance to act now!

Sustainable development is more than ever relevant

The Covid-19 challenges are not only sanitary but also economic. The crisis has already plunged the world’s economy into a recession with negatives consequences on jobs and social stability. Low-income countries, particularly, face tremendous pressure to deal with the externalities of this crisis. In such a context, sustainable development goals have become more than ever critical (as shown in the following table). Moreover, a prolonged crisis would adversely influence the implementation of the 2030 Agenda and might wipe out the progress made in recent years in many SDGs.

SDGImpact of the crisis
Poverty (SDG1)Loss of income leading vulnerable segments of society and families to fall below poverty line
Health & wellbeing (SDG3)Devastating effect on health outcomes
Education (SDG4)Schools closed; remote learning less effective and not accessible for some
Decent work and economic growth (SDG8)Economic activities suspended, lower income, less work time, unemployment for certain occupations
Sustainable cities and communities (SDG 11)Population living in slums face higher risk of exposure to Covid-19 due to high population density and poor sanitation conditions

With all this economic mess, is impact finance pertinent now?

Impact finance is far from being immune from the current systemic crisis aside from very few sectors like technology and biotech. However, times of uncertainty and hardship create new opportunities for financiers to make an impact. Indeed, the necessity of finding solutions in providing healthcare supplies, ensuring continuous access to food and supporting small and medium-sized businesses can be a catalyst involvement in impact finance. Furthermore, it is fair to say that public sensitivity to social issues, and to a lesser extent, environmental issues will be stronger when things normalize. Islamic financial institutions will be obliged to deal with this new reality, especially that they mostly operates in low and medium income countries. Relying on isolated and sporadic social responsibility initiatives (donations, interest free loans…) will not be effective nor sustainable in the medium and long terms.

The role of digital technology going forward

The crisis has forced us to review several paradigms including the integration of digital technology in our daily life. It is true that before this crisis we had already entered the era of the fourth industrial revolution, in which the fusion of technologies blurs the boundaries between the physical, digital and biological spheres.  In the finance sector, technology has become a positive enabler to deal with the crisis’ impacts. Examples include mobile-first banking, digital currencies, crowd funding and blockchain-driven supply chain finance. For Islamic financial institutions, the crisis is, therefore, an opportunity to embrace technology at a larger scale and to roll out new tech-driven business models that address critical sustainability issues in countries where they operate. The digital transformation challenge lies in the organization’s ability to evolve its business model, to transform its processes and finally to conduct change.

This article was first published in IFN

Green financing : Turkey’s first Sukuk issuance

On 3 June 2020, Zorlu Energy made history by becoming the first green Sukuk issuer in Turkey. Zorlu Energy, a subsidiary of Zorlu Holding, operates in electricity generation, electricity and gas distribution, wholesale and trade in the energy sector. More specifically, the company has projects in sustainable infrastructure, clean transportation and renewable energy. The green Sukuk issue, which targeted qualified investors, is part of 450 M TL issuance program. The first issue has a one-year term and quarterly variable income payment. The issue’s proceeds will be directed to finance sustainable infrastructure and clean transportation investments.

Industrial Development Bank of Turkey (TKBB), the investment bank that structured Zorlu Energy green Sukuk, applied a sustainability framework aligned with the standards of the International Capital Markets Association (ICMA). Escarus acted as the external reviewer that provided the second party opinion on Zorlu Energy’s Sustainable Sukuk Framework.

Issuance elementsDetails
Program amount450 million TL
Issuance amount50 million TL
NatureDomestic
MaturityOne year
ReturnCorresponding Government Bond Yield + 4.5%
StructurerTKBB
Second opinionESCARUS
Nature of the placementPrivate
Underlying assetsSustainable infrastructure and clean transportation
Underlying contractIjara

Zorlu Energy green Sukuk : Technical details

Zorlu Energy green Sukuk is definitely a good news for impact finance for the following reasons:

  • Door opener to other Turkish green and social Sukuk issuances:  After this successful maiden assurance, other Turkish companies may be interested to issue Sukuk to finance their sustainability projects in the future either in local or foreign currencies. Sustainable Sukuk allow particularly issuers to broaden their investors base to include both conventional and sharia compliant investors
  • Confirms Turkey’s ambition as a center for sustainable finance: It is true that the country has already issued several green bonds since 2016. However, the ambition of positioning Istanbul international center has a hub for sustainable and Islamic finance supposes first a diversity of structures (Sukuk, bonds, equity, REIT…). Second, a diversity of local and international investors and finally a variety of the underlying sustainable assets in sectors such as renewable energy, healthcare, education, water and transportation.  
  • Triggers sustainable Sukuk momentum globally: The first half of 2020 has been very calm in terms of green and Sukuk issuance compared to the same period in 2019. This performance is understandable as most issuers have been busy struggling with COVID19 crisis.  Now that the economic activity is slowly kicking off, Sukuk can play an important role in closing the financing gaps of government and business to offset Covid-19 aftereffects. To illustrate, the Indonesian Government raised recently $2.5b through global Covid19 Sukuk offering to address the pandemic deficit

This article was first published in IFN Volume 17 Issue 26 dated the 1st July 2020 

Au-delà de la Crise Covid-19 : Le Maroc qui fera la différence

Tanja Marina Bay international: Lancement de la commercialisation ...

Nous vivons une période qui va marquer l’histoire moderne de l’humanité. En l’espace de quelques semaines, le système économique mondial est remis en question. Notre compréhension –et approche– de la croissance, de la prospérité et de la résilience est brusquement mise à l’épreuve.

Nous cogitons sur les scénarios de l’après-crise, nous imaginons des futurs que l’on n’aurait pas osé appréhender il y a quelques mois, et nous nous retrouvons déconcertés face à notre incapacité de contrôler l’avenir, un avenir, nous le savons, immense en défis sociaux et économiques.

Les états seront confrontés à redresser des déficits budgétaires plus accentués, à rééquilibrer des taux de chômage plus élevés ; les entreprises seront amenées à reconstruire des chaînes de valeur paralysées, à réinventer parfois de nouveaux business modèles ; et les organisations de la société civile verront, de premier abord, une détérioration plus accrue d’une situation sociale déjà fragilisée.

Au Maroc, notre capacité d’agir vite, de manière agile, innovante et intégrée va déterminer notre propension à réussir ou pas ce défi.

Trois éléments primordiaux nous semblent indispensables à toute démarche adoptée par les autorités publiques pour faire face aux externalités de la crise COVID19 :

  • Une vision intégrée du développement post-Corona: Si le Maroc a brillamment mis en place une Stratégie Nationale pour le Développement Durable à l’horizon 2030, il est aujourd’hui impératif plus que jamais de définir un plan d’exécution de la stratégie de manière transverse et coordonnée à travers les trois piliers de développement : l’Etat, le secteur privé, et les organisations de la société civile. Le Maroc pendant et après cette crise doit faire appel à des mécanismes de gestion innovants où les entreprises se joignent à l’état pour traiter de la question sociale, où la société civile engendre des idées innovantes pour stimuler de nouveaux modèles de croissance, et où la réflexion en silos, qui a trop longtemps miné les efforts de développement, est remplacée par des stratégies, à petite et à grande échelles, fortement intégrées à travers les industries et les secteurs d’activité.

 

  • Des mécanismes hybrides : Les voies de relance de l’économie traditionnellement poursuivies dans les benchmarks du capitalisme moderne ne seront pas suffisantes à déployer une nouvelle vague de croissance à l’échelle nationale, ni internationale. Par ailleurs, notre patrimoine nous prodigue d’enseignements précieux en matière de systèmes de croissances hybrides où le social, l’environnemental et l’économique ne font qu’un et ne répondent qu’à un objectif commun et harmonieux : la croissance inclusive. Ainsi, le système du Waqf serait un excellent exemple de modèles de croissance qui allie performance financière, bien-être social et équilibre écologique. Le mécanisme de la Zakat, couplé aux technologies Fintech offrirait un autre levier de réduction des inégalités et de création d’opportunités d’autonomie financière, surtout pour les couches sociales les plus économiquement désavantagées.

 

  • Une communication réfléchie: Enfin, en temps de crise ou post-crise, il faut fédérer les voix, les efforts, l’attention autour d’une vision unie et d’un objectif commun : sortir gagnant du tunnel. Les autorités Marocaines déploient des mesures qui ont valu au pays l’admiration à l’international. Nous devons continuer de créer des canaux de communication où les Marocains et les Marocaines, toutes classes confondues, sont informés de la manière dont ils peuvent et doivent co-construire le Maroc de demain. Car ceci n’est pas une crise de l’Etat ou des entreprises, c’est une affaire qui commence et se termine par les citoyens.

Covid-19: What implications for the future of the banking sector?

Source : Velvet Chainsaw

With a large part of the world in forced confinement, the damage from the COVID crisis19 is mainly economic. This unprecedented situation has forced us to review several paradigms including the integration of technology in our daily life. It is true that before this crisis we had already entered the era of the fourth industrial revolution, in which the fusion of technologies blurs the boundaries between the physical, digital and biological spheres. However, the current crisis will have an accelerating effect on the generalization of this trend to all sectors of activity because, on the one hand, several psychological barriers related to digitalization will vanish. On the other hand, technology will be leveraged to prevent the effects of an upcoming crisis. We are already seeing the beginnings of these changes with examples such as the generalization of distance education, the use of telemedicine, teleworking and the distribution of public aids by smartphones. Changes that should take years (if not decades) happen now in a matter of days!

These conclusions apply to the banking sector as well. Digital channels are already emerging as the preferred distribution alternative especially with restrictions in terms of movement and in terms of staff availability. While ensuring continuity of service and addressing customer expectations, banks should take advantage of this opportunity to experience a radical overhaul of their operating models in order to adapt them to the new market reality when the crisis ends. The reliance on digital technologies and the limited use of physical branches currently will fast track the transformation of the banking landscape in the future by favoring banks with stronger digital capacities. Other external factors may further accelerate this trend. During this pandemic, banknotes have become a burden because facilitating virus transmission (some central banks disinfect banknotes). It is for this reason that the World Health Organization recommends the use of contactless payment. On the other hand, regulators could relax their requirements for Fintech during this period such as in South Korea.

Contrary to what one might think, the transition to digital and agile banking is not primarily a technological challenge because digital solutions are available on the market and, above all, have already been successfully implemented in several contexts. The challenge lies rather in the bank’s ability to evolve the business model, to transform processes, to adapt the organization and finally to conduct change.

Six takeaways from the event « Impact investing for SDGs: A new chapter for participative finance »

Al Akhdar Bank and The Islamic Corporation for the Development of the Private Sector (ICD) in partnership with UNDP Istanbul International Center for Private Sector in Development and Al Maali organized a conference and a series of master classes on « Impact investing for the Sustainable Development Goals (SDGs): A new chapter for participative Finance » on February 20th and 21st in Casablanca (Morocco).  The event saw the participation of national and international experts in impact finance and was attended by more than a hundred national and international professionals.

The main takeaways from the conference, the master classes and the interactions with the participants are presented below:

  • Closing the gap between finance and sustainable development 

According to the Sustainable Development Solutions Network, 1.5-2.5% of the global GDP may be needed to finance the achievement of the SDGs in all countries. The public sector alone will not be able to close such important gap especially in developing countries. The active contribution of the private sector is contingent upon the availability of effective impact investing tools. Hence, there is clearly a timely opportunity for participative finance. It will allow the industry to clarify its genuine value proposition based on its core values, serve customers’ expectations and channel funds to address social and environmental challenges especially in OIC countries. In the context of Morocco where the government has an ambitious strategy in sustainable development, the need for financing is more than ever critical to achieve the set targets in energy, health, education, youth empowerment to name a few. It is true that flagship sustainability projects have easily secured financings (nationally and internationally), but this is not the case for most small and medium size initiatives.

  • Leveraging conventional impact investing experiences

Participative impact investing does not need to start from a white sheet. In fact, impact investing has been successfully applied in various sectors (green energy, education, health, food…), in both developing and developed countries and with diversified financial instruments.  Such a rich conventional impact investing experience has to be leveraged and, if needed, adapted to the participative finance requirements.

For instance, the Global Impact Investing Network (GIIN) has developed a toolkit designed to help investors navigate the landscape of impact measurement and management tools. This open source knowledge, which comprises systems, methods, data and indicators, can be easily used in the participative impact Investing context.

  • Thinking globally and acting locally

Relying on international best practices is important but adapting them to the local context is critical. For instance, copy pasting a Malaysian social sukuk structure in Morocco may not necessarily work because the social, economic and legal contexts are not identical. 

  • Empowering Waqf through blended finance mechanisms

Morocco prides itself on its rich millennial Waqf heritage whether it be in education, health and poverty alleviation. Thereby, Waqf can definitely bring value to the impact-investing field. For example, directing cash Waqf funds (which is now possible under a new Waqf law) to support social entrepreneurs can generate a much higher social return compared to simple cash donations. Cash Waqf use include co-financing, subsidizing or guaranteeing equity investments.

  • Building supportive ecosystems

The development of participative impact investing requires a supportive ecosystem that comprises assets owner (Participative finance institutions, high net worth individuals…), assets managers (investment advisors, government investment programs…), demand side players (social enterprises, cooperatives…) and service providers (consultants, auditors, research institutions…). Building the ecosystem will naturally take time but the industry has to start somewhere

  • Embracing Fintech

It is hard to image the emergence of participative impact investing without a strong focus on technology. Today, technology provides tremendous possibilities to make financial services affordable, scalable, customizable and effective (smart phones, peer-to-peer platforms, Blockchain, artificial intelligence…). The recent Fintech initiative in the Moroccan market (Crowdfunding, Digital financial services…) are encouraging and it is fair to expect more traction in the near future.

La Pandémie du Bonheur !

Image result for be optimistic

C’est une première dans l’histoire moderne de l’Homme. Un arrêt forcé, toutes activités confondues. Le monde est en pause. Les enfants jubilent devant leurs écrans ; ils découvrent un nouveau mode de schooling. Les parents s’affolent ; entre télétravail, explication de cours à leurs enfants, garde des tous petits…. Il est évident que ce système nous fait découvrir de nouveaux modes de vie. Et comme la sagesse universelle l’aurait voulu, nous regarderons le verre à moitié plein. Voyons donc, qu’y a-t-il de si « cool » – comme dirait ma fille – dans la situation ?

D’abord, la petite famille est réunie. Pour le bien et pour le pire. Grâce au couvre-feu, nous passons vingt quatre heures de la journée ensemble. Nous apprenons à nous connaître, mine de rien. Nous cuisinons ensemble, un plat ou deux par jour, nous nous parlons un plus, nous nous efforçons à garder notre calme, car on sait que la situation peut durer et qu’il ne sert à rien de perdre les pédales, du moins de sitôt. Nous reconstruisons donc le cadre familial dont la vie effrénée nous avait un peu dérobés.

Ensuite, nous sommes plus créatifs ! Face à la question « Papa je m’ennuie ! Qu’est ce que je vais faire maintenant ? », on est bien obligés de trouver des alternatives – et je ne parle pas ici bien-sûr de la télévision ou des jeux vidéo, car ce n’en sont pas – On invente alors des jeux bizarres, on s’efforce à trouver le temps pour ces jeux, sinon on le paierait de toute façon par des comportements inappropriés (embêtants en langage parental) des enfants. Ces derniers passent alors plus de temps à dessiner, à jouer à des jeux de société, à inventer des histoires, à créer leurs mondes imaginaires. On aura donc transformé leur ennui en une opportunité de développement et de créativité inédite.

Enfin, cette mise en quarantaine est certainement l’occasion de passer plus de temps avec soi-même. Dans cette pause forcée, nous trouverons quelques minutes dans la journée où nous rééquilibrerons les aiguilles de nos horloges biologiques et psychologiques. Nous nous parlerons à nous-mêmes de ce qui va bien et ce qui va moins bien, nous prendrons peut-être de nouvelles résolutions, et au mieux, nous nous mettrons à les appliquer. Dans cette halte insoupçonnée, nous sommes pris de court, face à notre conscience, à ce que l’on aurait pu donner de mieux à ce monde, et à ce que l’on devrait réellement donner. Ceci est une aubaine, en réalité. Une aubaine pour repenser un nouveau système mondial, pour faire partie de la transformation radicale que subira le monde de l’après-pandémie, et pour faire de tout notre possible pour que cette transformation apporte plus d’égalité, plus de justice sociale et plus de bien-être écologique, pour tous, tous.

Maroc Durable : Responsabilité de tous !

Image result for stratégie nationale de développement durable maroc

La gestion efficace de la transition du Maroc vers une économie verte et durable appelle à une coordination du plus haut niveau entre les différentes instances de prise de décision et de politiques publiques. Ceci est d’autant plus important en période de crise écologique où les précipitations se raréfient et la sécheresse s’intensifie. En ce mois de mars, on assiste à une augmentation atypique de la température avec une absence inquiétante de pluie. Si ce scénario continue, l’année agricole sera compromise ainsi que l’approvisionnement ininterrompu de la population en eau potable.

Pourtant, certains aspects de gestion de cette conjoncture laissent à désirer. On s’étonne à voir, par exemple, l’arrosage des espaces publiques à un moment de pic de chaleur de la journée, engendrant la perte instantanée d’un pourcentage non-négligeable de l’eau utilisée. On s’étonne, en ces circonstances critiques de pénurie d’eau à l’échelle nationale, de voir continuer les habitudes de lavage des voitures sans considération aucune pour la consommation raisonnable et responsable de l’eau.

En ces temps d’incertitudes et de déséquilibre climatique, on s’attend à voir naître et appliquer des lois et régulations qui régissent le comportement individuel et organisationnel en termes d’utilisation des ressources en eau. Au niveau de l’industrie, les niveaux de consommation relative en eau doivent être mesurés, contrôlés et sanctionnés en cas d’excès. Idem au niveau des institutions publiques. Enfin, et non des moindres, un effort particulier doit être déployé pour rééduquer le comportement individuel et sensibiliser à la responsabilité environnementale de tous.

Les nappes phréatiques ne sont pas la propriété d’une entité privée ou publique, et la capacité de payer sa facture en eau ne devrait, sous aucun prétexte, justifier une consommation démesurée, égoïstique, et irresponsable de ce bien universel.

A note on the recently published “UAE Guiding principles on sustainable finance”

General context

The world is struggling with systemic challenges including slow economic growth, lack of infrastructure, inadequate technological development and a growing youth population. The economic impacts of these developments are far-reaching, and require targeted responses if countries are to meet their Sustainable Development Goals (SDG) commitments. In fact, the huge financing requirement to implement the SDG has increased from billions to trillions of US$, exceeding the capacity of any single institution or state. The public sector alone will not be able to close such important gap.

UAE has demonstrated its commitment to the pursuit of a sustainable growth pathway, including addressing climate change, through signing the Paris Agreement in 2016 and championing a number of initiatives, such as the UAE Green Agenda 2015-2030, the National Climate Change Plan (2017-2050), the Dubai Declaration (2016), and the Abu Dhabi Sustainable Finance Declaration (2019).

The UAE Guiding principles on sustainable finance aim to facilitate the country’s transition to a more sustainable economy and help organizations to develop strategies which re-orientate and diversify the economy, help mitigate risks of reduced global demand for oil, adapt to the physical risks of climate change and explore the new investment opportunities it presents. These voluntary principles represent the shared views of the financial regulatory authorities in the UAE including the Central Bank of the, Dubai Financial Services Authority and the Insurance Authority.

Summary of the Guiding principles

Principle 1: Integration of ESG Factors into Governance, Strategy and Risk Management

Financial companies are encouraged to incorporate ESG factors into their governance, risk management framework and strategies by:

  • Identifying and considering opportunities, as well as any associated risks and threats, afforded by ESG-compliant investing.
  • Integrating consideration of opportunities and risks from ESG factors at all levels of organizations’ businesses, strategy and financial planning where such information is material; and
  • Enhancing the organization’s ESG performance through the development and enhancement of suitable products, services and otherwise promoting sustainability in all organizations’ activities.

Principle 2: Minimum Eligibility Requirements

This principle clarifies the minimum components that should be present in a product categorized as ‘sustainable.

  • Process for Project Evaluation/Selection
  • Use of Proceeds
  • Management of Proceeds
  • Recording, disclosing and reporting:

Principle 3: Promotion of Appropriate ESG-Related Reporting and Disclosures

This principle seeks to encourage financial organizations to produce timely and relevant information on key ESG metrics. Such reporting would aim to disclose ESG-specific risks, processes, initiatives and performance, in accordance with internationally recognized reporting standards of financially, environmentally or socially material information

The way forward

UAE Sustainable finance taxonomy

The Guiding Principles encourage issuers to rely on internationally recognized standards and taxonomies such as the Principles for Responsible Banking, the Principles for Responsible Investment and The Green Bonds Principles. In the future, the UAE Authorities shall adopt a specific taxonomy Sustainable finance for in the country.

Moving from voluntary to compulsory

The Guiding Principles are so far voluntary. Next steps may include more compulsory guidelines and policies, to encourage the UAE financial firms to develop strategies to incorporate ESG considerations into their core business activities.

Development, Education, Sustainability: Lead thoughts from lead players

Fadwa MACECE

I had the pleasure this week to speak at a panel organized by the Moroccan American Commission for Educational and Cultural Exchange (MACECE) for graduating MBA students from the Fox School of Business at Temple University in Philadelphia. Besides the honor of being part of high-profile panelists from large impact organizations (the Millennium Challenge Corporation, Stevens’ Initiative of the Aspen Institute; Women’s Artisans of Morocco Network), I took pleasure in sharing and discussing around development, education and impact. Here are the key take-aways:

  • Bold local initiatives by global investors: In achieving its march towards inclusive education for all, the Moroccan Ministry of Education benefits today from a 2.5 million USD grant by the Millenium Challenge Corporation targeted towards vocational training and capacity building programs to bridge the university-market gap across the country. Several hundreds of young Moroccans have been part of this high scale initiative which is running for the next two years. In a similar vein, another initiative, launched by the Aspen Institute, Stevens’ Initiative, and the Bezos Foundation, focuses on deploying a platform for on-line exchange program for public university students in Marrakech and Casablanca regions. Heavily based on the latest technological advances, this experience, although uncommon to both students and the educational body at large, remains an interesting and quite intriguing one.
  • New patterns for education of the future: The fourth industrial revolution is increasingly calling for revisiting business models across industries. Education is no exception. In a highly unsustainable world marked by stark and even more widening inequalities, novel educational models can and should be used to lift underprivileged economies up the ladder of development. A possible pathway for such a lift-up is the “leapfrogging” model from the grassroots up through social strata. In such models, technology plays a pivotal role in interconnecting excluded areas with top-notch educational programs across the globe. Learners pick and select their curricula according to their own, quick-win needs, to integrate an increasingly conscious job market of these new channels. Model fine-tuning is still required for African and some MENA region countries.
  • Stronger women, stronger societies: Female entrepreneurship is taking crisper shape in the Moroccan handicraft sector, with bottom-up initiatives organizing the industry in a self-emergent pattern. This association in Marrakech headed by a female artisan and employing a large number of women from the region voices some of the unspoken concerns/needs of handicraft female entrepreneurs: the right to express herself at both national and international instances, the right to generate income and to be independent, the right to exist as an essential and unequivocal pillar of society, not just as a spouse or a mother, but also as an agent of economic development.

Corporate Responsibility: less numbers, more impact

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2020 has come, and yet another challenging year is ahead of us to intensify efforts towards bending the emissions curve, achieving more global equality, and managing resources more sustainably. If governments have failed to efficiently address the planetary challenges that marked the previous decade including climate change, rising inequalities and global political turmoil, the corporate sector is called upon now more than ever to take an ethical stand with respect to its responsibility towards the planet and its inhabitants. Corporate social responsibility, which has arisen over the past decade as the flagship “quick-win” answer to solving all kinds of social and environmental problems, has only left a bitter taste of dissatisfaction, incompleteness, and almost failure. Why? We believe this is more related to how the concept has been adopted than to its core essence.

In attempting to lessen their negative externalities, firms find generally safe harbor in starting various scattered initiatives around local communities, with the hope to enhance corporate image and to be more engaged in improving society. However, little might be expected of such initiatives in the absence of a holistic sustainability strategy that has a tangible link with the firm’s business and a measurable impact on the environment and society.

Creating positive and lasting impact goes beyond crafting an annual CSR program with half a dozen well-rounded local actions with a nice marketing campaign and a catchy annual report. More strikingly, corporate managers tend to confuse “impact” with “output” when it comes to social and environmental action. Numbers are good, yes, but they need to tell the things that matter most. It is good, for example, to learn that company X has provided 500 children in the icy mountains of the Atlas with a hot meal and some warm clothes. It is better, however, to assess the impact of such an initiative on transforming the lives of these kids and on making their existence more meaningful. No less important is, of course, the benefit of such actions on enhancing the firm’s public image and, collaterally, generating more revenue.

There are multiple misfunctioning elements in our approach to corporate responsibility, and now is the time to embrace a new form of truly ethical CSR. This new form of responsibility must recognize the limits of our existing development models and must challenge our understanding of achievement and impact. This must be an approach that replaces short-term actions with long-term strategies, punctual benefit with life-long effect, and calculated outputs with equilibrium, meaning, and impact.

 

Fadwa Chaker

Educator and Social Entrepreneur