AAIB: The first signatory in Egypt to UN Global Compact
In the year 2005, AAIB announced its commitment to the UN Global Compact; an international guidance for embracing the Corporate Social Responsibility. Ever since then, the Global Compact's ten principles have provided a guiding framework for AAIB CSR efforts & activities.
Since adopting the UNGC in the year 2005, AAIB is officially committed to preserve human and labor rights with subsidiaries, suppliers and outsourced support staff. The bank’s commitment extends through the Equator Principles to incorporate prevent child labor thought conducting assessment to project lending operation of 10 Million U.S $ or more and bridge loans of 2 Million U.S $.
AAIB is Recognized as Best Practices in UNGC Yearbook
Since 2011, AAIB has been annually recognized by the United Nations Global Compact as “Best Practice” Financial Institution in Sustainability Practices, within the International Annual GC Yearbook. (http://international-yearbook.com/.).
Every year, AAIB shares a success story - an area of best practice – reflecting the Bank’s business practice in affecting its sustainability strategy.
Best Practice in 2011: AAIB addressed its focus on health and education through sharing its foundation for social development, the first foundation established by a Bank, “We Owe it to Egypt” - the first of its kind In the region.
Best Practice in 2012: AAIB emphasized the role of the private sector in promoting education, equality and community development in the surroundings and environment where business operates.
Best Practice in 2013: AAIB’s Best Practice focused on transparency and credibility, two major components in achieving effective “Corporate Governance”. The article presented AAIB’s Auditing structure, as well as the bank’s Internal Committees and Compliance Management.
Best Practice in 2014: This issue displayed a synopsis from AAIB’s Carbon Footprint Initiative, Report and Awareness Campaign among its employees. Being the first bank in Egypt to publish its carbon footprint report, and to measure its carbon footprint; as a step towards introducing an effective emissions and waste reduction strategy hence contributing to conserving its environment.
Best Practice in 2015: AAIB is recognized for its unique sustainability practice "MOSTADAM platform: More than just Finance". for more details please see this link: http://www.adecco.com/en-US/csr/Documents/global-compact-yearbook-2015.pdf
Best Practice in 2016: AAIB is recognized for introducing Sustainability reports according to global standards.
Annual Disclosure: Communication on Progress (COP)
On July 2013, AAIB has published its 7th Communication On Progress (COP). The report presents AAIB practice on presenting successful case studies and partnerships that embraces the UNGC four principles in the period between 2005 and 2013.
It is worth mentioning that the UNGC has launched a new reporting structure for the nonprofit organization and non-private sectors. The report relies on a Communication on Engagement (COE) approach that is meant to report on the organization’s services and the engagement activities of different stakeholders.
About UNGC Four Guiding Principles
AAIB has declared its commitment to embrace the four basic principles in its banking operation and stakeholders’ management practice; the four major areas are:
Human & Labor Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2: Business should make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: The elimination of all forms of forced and compulsory labor;
Principle 5: The effective abolition of child labor; and
Principle 6: The elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater environmental responsibility; and
Principle 9: Encourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Read more, Link: http://www.unglobalcompact.org/index.html
From Principles to Practice
Human Rights & Labor Rights
Human rights have traditionally been the concern of States, and international human rights instruments are addressed to them. However, in the lead up to, and following the endorsement of, the Guiding Principles on Business and Human Rights by the Human Rights Council in 2011, more businesses are coming to realize their need to address human rights issues within their own activities and their stakeholders’ relationships.
Believing in the right of all citizens to live, thrive and develop, in 2007 Arab African International Bank created the first foundation for social development by a financial institution in Egypt and the Middle East, the “We Owe It to Egypt’s Foundation”. It is the first operating foundation for upgrading Health and Education registered by the ministry of social solidarity. Although established by a financial institution, the foundation’s scope and goals extend beyond banks’ role of targeting profits; it aspires nation-wide initiatives that mobilizes the private sector towards a positive difference in the field of public health and education in Egypt.
Deeping sustainability in business operations requires strong and effective policies of monitor and fighting corruption. The Sustainability Unit has initiated the task to introduce a new Anti-Corruption campaign; the campaign was executed with the cooperation of relevant stakeholders in the bank.
A taskforce from various functions was created, including Sustainability Unit, Compliance Department and Top Management Technical Office. The task force succeeded in creating an Anti-Corruption Policy and a Communication Campaign to create the necessary awareness and processes to fight corruption in business operations and daily practice.
The policy aims at:
Safeguarding AAIB’s integrity
Increasing transparency of AAIB’s financial system
Facilitating the detection, investigation and prosecution of corruption and money laundering and the recovery of stolen assets.
This policy has been designed to be consistent with:
The Anti-Money Laundering Law promulgated by Law No. 80, the Presidential Decree No. 164regarding the Money Laundering Combating Unit dated 2002
UN Global Compact Anti-Corruption 10th Principle
Financial Act Task force (FATF)recommendations of Anti-Corruption
Diligently, the policy was followed by a communication campaign to the employees emerging from the importance of engaging all employees and communicating to them in a friendly and simple manner rules and regulations relevant to their function. “Stop, Comply Apply” is the slogan for this “new” internal campaign to establish a Compliance Culture. The campaign is about instilling simple steps into employees’ mindset that promote integrity, accountability and trust. These traits have always been an integral part of the AAIB brand. The communication aims at transforming perception of rules and regulations from a burden to a benefit that protects employees in their job, at the same time mitigate risks of the bank, and safeguard its interests.
With a commitment to the UN Global Compact principles to preserve the environment, AAIB has undertook several initiatives/steps to promote environmental responsibility and awareness.
- Joining the Equator principles.
- Promoting Earth Day (since 2013).