TIRET Special Issue The MIDROC Ethiopia Group Corporate Magazine May 2018 Corporate Social Responsibility 1 www..midroc-ethiopia.com.et Shareholders or Investors General Employees Public or Workers Social Responsibility of Business towards.... Government Environment or its Administrative Bodies Local Community www..midroc-ethiopia.com.et 2 “I believe in giving back to the community” Sheikh Mohammed H. Ali Al-Amoudi Forbes, 2013 3 www..midroc-ethiopia.com.et TIRET is a bi-annual corporate magazine MIDROC: of MIDROC Ethiopia Investment Group in print since 1996. Mohammed PATRON International Teklu Haile Development EDITORIAL BOARD Melaku Beza (Chairman) Research and Alula Solomon Asrat Bulbula Organization Bizuneh Mulugeta ompanies Carl Gustavsson C Getachew Birbo Getachew Degefu Contents Page Mekonnen Teshome EDITOR-in-CHIEF - Editor’s Note ..................................... 5 Mekonnen Teshome - BACKGROUND .............................. 6 - What is Corporate Social SECRETARIAL SERVICE & Responsibility? ................................. 7 DISTRIBUTION - Sheikh Mohammed and Corporate Haimanot Negussie Martha Kassahun Social Responsibility ....................... 8 PHOTOGRAPHY Section I Kibrealem Yalew, Tadesse Demissie - Sheikh Mohammed: A Philanthropist ..... 10 - Emergency Relief and Rehabilitation .... 11 GRAPHICS DESIGN Kibrealem Yalew - Assistances in Health care ....................... 16 - Contributions to Education and Sports .. 20 PUBLISHED BY - Assistance to the Development of Arts, The Communication & Public Relations Science and Culture .................................. 26 Department of MIDROC Ethiopia - Support to Ethiopia to participate in Tel: +251 115 549 969 Fax: +251 115 549 936 Hannover Expo 2000 ................................ 30 P.O.Box: 8677 Addis Ababa [email protected] Section II www.midroc-ethiopia.com.et - CSR Practices of MIDROC Investment Group Companies ...................................... 32 MIDROC Ethiopia ©All rights reserved. Reproduction in part - Protecting the Environment .................... 32 or in whole is allowed with a written - Contributions to social development ..... 36 authorization of the Publisher - Water supply facilities ............................... 40 - Assistance in Agricultural Development 41 - Building Schools for communities ......... 43 - Constructing clinics and health centers .. 46 - Backing the development of sports ........ 48 - Supporting charitable and community-based organizations ........... 50 - Availing MIDROC facilities to the community ......................................... 54 MIDROC ETHIOPIA - Financial support to communities ......... 55 Committed to Development - Labor, compliance and tax ...................... 56 Cover Photo: Top - Kindergarten Students at Gemadro Coffee Estate Bottom Left - Sheikh Mohammed Al-Amoudi posing for photo with the Ethiopia National Football Team Bottom right - Sheikh Mohammed Al-Amoudi receiving a traditional cloth from residents of Holleta town www..midroc-ethiopia.com.et 4 Editor’s Note It is only the gist of our CSR Practices It is apparent that the MIDROC Ethiopia Investment Group is the biggest private business entity with significant economic and social contributions. Its owner and Chairman, Sheikh Mohammed Ali Al-Amoudi, is renowned for his philanthropic and social responsibility deeds in Ethiopia and beyond. MIDROC Ethiopia, through its Chairman, has expressed commitment to improving the lives of workers within the group companies and communities around them. Most of the companies have committed themselves in developing policies that integrate responsible practices Mekonnen Teshome into business operations. They report on the progress they make and the Editor-in-Chief practical accomplishments they have achieved. MIDROC Ethiopia has been making strides in discharging its social responsibilities by designing and implementing Corporate Social Responsibility (CSR) schemes. However, little is known about the many CSR activities of MIDROC Investment Group. Therefore, the main purpose of this publication is to give the gist of the CSR activities of MIDROC group companies. Here, I would not miss this opportunity to thank all who assisted our TIRET editorial team in availing all the necessary information and especially our companies for always being there to collaborate and provide their helping hands. Appreciation also goes to Ato Gadissa Taffa, from our Head Office who worked hard as a co-writer for this edition of the magazine. Finally, I wish you all enjoyable reading! 5 www..midroc-ethiopia.com.et BACKGROUND Organizations around the world are being called upon to take responsibility for the ways their operations impact the social and natural environment. Corporate Social Responsibility (CSR), also referred to as ‘corporate citizenship’, is an organization’s activities that demonstrate the inclusion of social and environmental concerns in business operations. Essentially, CSR is inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: people, planet and profit. Organizations are required to apply sustainable development approaches in conducting their businesses. It is about contributing to a better future that would be achieved by developing and maintaining a responsible business that makes a positive difference – socially, environmentally and economically. Cognizant of the importance of social responsibilities, the MIDROC Ethiopia Investment Group companies are undertaking their works in a manner that incorporate social and environmental concerns in their business operations. With the motto – “Committed to Development”, the group companies are engaged in multifaceted investment undertakings contributing to the socio-economic development of the country. In line with the determination of the group’s Owner and Chairman – Sheikh Mohammed Hussein Ali Al-Amoudi– in pronouncing and running socially responsible businesses, the group companies have been striving to discharge their social responsibilities. The group’s Chairman, Sheikh Mohammed, is very well recognized in Ethiopia and elsewhere in the world for his positive interactions with communities. Here, the quotation from the Famous American Business Magazine Forbes in 2013: “In the Middle East and Africa, Sheikh Al-Amoudi is setting the standard for philanthropic giving” is a case in point. The group’s Chairman also says “I believe in giving back to the community”, as a reflection of his commitment to social responsibility. However, the group’s experiences in initiating CSR schemes and accomplishments have not been well communicated commensurately. Hence, the need is felt for building a comprehensive database on the CSR activities of MIDROC group companies and their modest accomplishments in discharging social responsibilities. This needs to be sustainabily strengthened. The building of the CSR activities database is found to be essential for the management of the group’s brand and image in general, and for documenting facts and evidences in particular. The CSR information would help bridge communication gaps in maintaining and protecting the group’s image and its brand. To this end, the National Mining Corporation plc in collaboration with MIDROC Ethiopia plc through the Communication and Public Relations Department have conducted a general assessment of CSR activities of all the group companies. www..midroc-ethiopia.com.et 6 What is Corporate Social Responsibility? While there is no single universally generally understood as a way through its stakeholder groups and in accepted definition of CSR, each which a company achieves a balance corporating their needs and values definition that currently exists of economic, environmental and within the strategic and day-to-day underpins the impact that businesses social imperatives (Triple-Bottom- decision-making processes. have on society at large and the Line Approach), while at the same societal expectations of them. time addressing the expectations The key stakeholders of companies Although the roots of CSR lie in of shareholders and stakeholders. are generally considered to be share philanthropic activities (such as With regard to this, it is important holders, employees, local donations, charity, relief work, etc.) to draw a distinction between CSR, communities, customers and of corporations, globally, the concept which can be a strategic business suppliers. Other stakeholders such as of CSR has evolved and now management concept, and charity, government, regulatory authorities encompasses all related concepts such sponsorships or philanthropy. Even and media are usually included in as Triple-Bottom-Line approach, though the latter can also make a their stakeholder management corporate citizenship, philanthropy, valuable contribution to poverty strategies. A key task for management shared values, corporate sustainability reduction, it will directly enhance is then, to identify these stakeholders and business responsibility. This is the reputation of a company and and understand their interests for evident in some of the definitions strengthen its brand. The concept of the strategic future of the business. presented below. CSR clearly goes beyond that. A common way of prioritizing stakeholders is by their power, The European Commission defines From the above definitions, it is clear urgency and legitimacy. CSR as "A concept whereby that: organizations integrate social and Recognizing how the importance environmental concerns in their - The CSR approach is holistic