4Th Annual Communication on Progress Report
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4th annual Communication on Progress Report Submitted: April 11th , 2011 1 Message from CEO “With a constantly maturing understanding of corporate social responsibility, we become more and more inclined to believe it is about value creation.” Dear Stakeholders, UN Global Compact companies, and the principles that comprise financial services sector in Our commitment to the essence of human particular, can go beyond Corporate Social rights, labour laws, profit-making to bring Responsibility (CSR) environmental and anti- about sustainable started in 2002 to coincide corruption guidelines. The improvements in the with the bank’s adoption of more we develop a deeper community. From their an aggressive growth understanding of these feedback, we have also strategy that ultimately principles, the more we gained a wealth of fresh made it the fastest growing realize that financial ideas as to how we can bank in terms of size and institutions should work develop an innovative and profitability for five hard to interpret their distinctive approach to consecutive years. At that implementations within the living up to our point, we felt a duty that confines of their specific responsibilities - one that we should not only grow industry. To this end, we is uniquely tailored to the financially but also develop have been working Egyptian context. We are a deeper commitment to diligently to come up with committed to taking these help the growth of the industry best practices. forward over the coming community. We believe months and years. With a that our role goes beyond For many in Egypt, CSR is constantly maturing profit-making to include a a concept that is rapidly understanding of corporate moral mission to society. gaining acceptance and social responsibility, we Joining the Global the private sector’s become more and more Compact in 2005, we tremendous potential to inclined to believe it is learnt that CSR involves contribute to sustainable about value creation. CSR much more than sincere development remains is more an opportunity and philanthropy. It is about insufficiently explored. an investment rather than building content, Over the past months, we a risk and a cost as substance and structure, have invested heavily in originally assumed. much of which has been building our employees’ inspired and guided by the understanding of how 2 In many ways, CSR is not profitability. This report employees but also others a zero sum game but an signals our openness to in the business effective formula to establish a dialogue and community. I and others at generate a win-win engagement with the wider AAIB embrace this scenario to all community as well as our endeavor with the stakeholders. In time, we determination to be fully eagerness and passion are experiencing an accountable for our that has underpinned our evolving business actions. While we have success to date and invite rationale that correlates made some notable you to work with us - to transparency, integrity and achievements, we are enact our belief that CSR positive societal and eager to learn more and to is about value creation. environmental impact with build our efforts in a way core competency and that not only inspires our Hassan Abdalla Chief Executive Officer 3 I. STAKEHOLDERS DIALOGUE 4 AAIB: The 1st Bank in Egypt to publish a Sustainability Report AAIB realizes that environmental perspective. environment, business Sustainability reporting It comes within deep partners, and our has become a „business realization that AAIB‟s community. critical‟ rather than a growth will only be „business optional‟ issue. sustained when we all The E-Report AAIB is the first financial embrace the paradigm of An electronic version of institution to publish its first sustainability as a fountain the report will be posted sustainability report of value creation to each on the bank‟s website. entitled, Finance with AAIB stakeholder: our This is to facilitate the Value Creation on employees, clients, accessibility of the report December 2010, marking shareholders, to all our stakeholders. the first sustainability report to be issued by a financial institution in Egypt. Finance with Value Creation sustainability report is a new layer of internal as well as external transparency. It acts as a vital channel that highlights financial and non-financial progress and impact made by the bank to each of AAIB‟s stakeholders, from a social, economic and 5 AAIB Abides By International Frameworks [1] AAIB „Best Practice‟ in UN Global Compact Yearbook 2011 AAIB: The only bank in Egypt case in the Global Compact International chosen by GC as Year Book. This step has Best Practice attested the keenness of AAIB to spread awareness The UN Global Compact and encourage CSR has contributed much to globally. The significance Over the past decade, this development through of the contribution comes companies in the United the UN Global Compact from its global distribution Nations have done much International Year Book. It to various multi-national to advance the corporate shows the wide scope of and international responsibility agenda and what businesses are doing corporations worldwide. support the mission of the to turn principles into United Nations. practice. The first issue Despite the fact the Egypt was published in the year is a developing country; As environmental and 2000 and the up-coming AAIB succeeded to be social concerns have issue in which AAIB will presented by the UN become more prominent, represent a model of Global Compact Advisory businesses are beginning turning the UN Global Board as Best Practice in to understand the tangible Compact principles into Financial Markets in their value of responsible practice and is considered annual yearbook, which practices – for their own the first financial institution reflects the awareness of long-term success and for from Egypt to represent a developing countries to the benefit of societies and CSR and Sustainability. markets everywhere. 6 [2] AAIB & EP: Two Years .. Two Reports The year 2010 has AAIB in engaging with Egypt to join the EP in witnessed the first report responsible businesses Egypt and the second in submitted by AAIB to the that are preconditioned the region, while the Equator Principles (EP) socially and following year marks the incorporating the cases environmentally first EP report submitted executed under the new determined. by a financial institution in social and environmental Egypt. Whereas policies introduced to the committed to seeking bank‟s financial policies in The first bank profitability in accordance 2009. in Egypt to join the Corporate Social EP Responsibility, Arab This year the report is African International Bank presented in a different in 2009 is about to issue its portrait with global second EP report due in measures and epitome. April 2011. The year 2009 marks The report will incorporate AAIB as the first bank in the deity intentions of 7 The First Informative CSR Website in Egypt 2011 has witnessed the communication channel to facilitate the interaction launch of a newly updated with all bank stakeholders. and communication to all CSR section on AAIB‟s users. website. This section AAIB is the first bank in reflects the complexity and Egypt to create a wide- The new website is fully extensiveness of the CSR ranging, ample and informative and linking all activities that took place edifying CSR website in stakeholders, and strives during the last couple of Egypt that is portrayed to exceed all stakeholders years, while establishing a with user-friendly features expectations. For feedback, kindly contact us on: [email protected] Website: http://aaib.com/CorporateSocialRes/default.aspx 8 Promoting Dialogue and Policy Advocacy As AAIB is keen on its presence in the financial arena, 2010 has witnessed an active engagement for the bank in various events that attested AAIB‟s role in enhancing the financial performance both regionally and globally. This presence was supported by AAIB‟s participation in several conferences such as the 15th Euromoney Conference on September 2010 and Third Annual CSR conference; while hosting the 2nd roundtable for the UN Global Compact in coordination with the ECRC (Egyptian Corporate Responsibility Center) as one of the main local networks in promoting CSR in Egypt. [1] AAIB‟s Workshop in the 15th Euromoney Conference AAIB hosted a workshop sustainable finance water scarcity, financial at the 15th Euromoney proactively tapping new exclusion, poverty, and Conference in Egypt, prospects for value corruption. There is a need which was held on creation, there is a need to to develop an integrated September 28-29, rethink finance. framework that links 2010. The workshop titled environmental and social Sustainable Finance: The financial industry has capital, with economic and The New Engine for Value to play by new rules. It can financial capital. Creation addressed the no longer ignore Sustainable finance is a issue of Financial impending realities in our key to developing sustainability. world from climate change sustainable corporate Sustainable to ecosystem degradation, business and economies. Finance: The New Engine for Value Creation From defensive finance trying to contain the repercussions of the global financial crisis, to Hassan Abdalla, AAIB Vice Chairman and Managing Director presenting among panel speakers 9 [2] AAIB: Third Annual Participation in CSR Conference Along AAIB‟s strategy of now considered a rich should report on; the role adopting CSR strategy of source of information for of transparency and Corporate Social consumer, investor and disclosure in building the Responsibility, AAIB employee. It focused on trust and accountability to participated in the 3rd sustainable reporting and reach the sustainability annual conference on its importance; the key goals and benefit out of its CSR. The conference areas that business sector advantages. addressed significant topic, “Transparency and Reporting on CSR practices: Towards Sustainable Competitive Environment”. It highlighted how sustainability reporting became an essential part of management practices for successful organization of all sizes worldwide.