• Ethical finance

Ethical finance

The economic turmoil brought about by the financial crisis of 2008, compounded by the impacts of a food crisis and pending climate change, has exacerbated many of the existing development challenges in the Middle East and North Africa (MENA).

This paper explores the idea that inclusive, sustainable business partnerships hold the potential to address multiple development needs within MENA. Three reasons are put forward why inclusive and sustainable business practices and CSR-related partnerships may be timely and an important complement to private sector activity in the region include: 

• the global economic crisis and limitations of existing institutions and arrangements open the door for innovative approaches that can both encourage economic activity and address urgent development needs 
  
• private sector partnerships can address critical social and equity issues in news ways 
  
• CSR partnerships can contribute to increased competitiveness and economic dynamism.

The authors stress that inclusive and responsible business practices must be seen as being locally relevant and locally owned, and not a foreign model imposed by multinational firms or international donors. They cite numerous examples of successful practices.

Recommendations for ways forward include: 

• additional research into inclusive and sustainable business models and how CSR is applied in the MENA region is urgently needed, particularly local examples and empirical research 
  
• more awareness raising is required across the region for a range of stakeholders to build understanding of strategic CSR concepts, going beyond philanthropy 
  
• capacity development should be scaled up to equip the local private sector with the skills and knowledge to develop CSR strategies and promote CSR approaches as a tool for comparative advantage as well as enabling government and civil society to create an enabling environment for sustainable.
  

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