Why Responsible Business Conduct?
Responsible business conduct (RBC) - the contribution of the private sector to the economic, social and environmental progress with a view of achieving sustainable development – encompasses the whole range of actions that businesses take in their business operations and in their interaction with stakeholders to comply with laws; such as those on respecting human rights, environmental protection, labor relations and financial accountability; as well as those they take on voluntary basis to respond to societal expectations and referred to as corporate social responsibility. Priority areas considered as most relevant to the MENA region include business integrity and anti-corruption; education, youth employment and labor standards; health and environment.
The underlying reason for responsible business conduct in these areas is to enhance the business climate in MENA countries in order to attract investments - an essential ingredient for creating growth and employment in the region.
 Governments, society and the private sector have all interest in a more transparent, reliable and inclusive market, where the effective enforcement of laws and the benefits deriving from a more dynamic private sector are addressed to the development of the country as a whole.
Businesses that adhere to high responsible business conduct standards are more likely to protect their reputation, gain a strategic advantage over competitors, attract and retain the best employees, develop the strongest customer base and maintain good relationships with stakeholders and society in which they operate.
Governments also have interest in keeping and attracting high quality investors, achieving high growth rates and creating employment opportunities in the region.
Investors and society, nowadays, have a growing interest in how companies perform on the environmental, social and government (ESG) issues. For example, communities surrounding major projects are interested to know how companies manage environmental issues.
 It is worth mentioning that business and government roles need to be distinct and cannot substitute for one another. The role of the government should be to look after the collective interests of their citizens, working with all actors – companies, civil society organizations and trade unions – to create an enabling environment for responsible business conduct. The business sector’s role has different channels for contributing to social and economic development, the most important of which is the way business is conducted.
Governments can put into place appropriate policies to reinforce the business case for responsible business conduct such as policies to promote dialogue on norms for business conduct, provide an adequate framework for corporate disclosure, support companies’ efforts to comply with the law, promote partnerships between companies and civil society organizations and provide information about responsible business practices to consumers and the public.
Companies can participate in policy advocacy and dialogue, make social investments by providing financial support and contributing volunteers or expertise and develop models to integrate in their core business to create employment, foster entrepreneurship, implement social, environmental or ethical standards and provide appropriate and affordable goods and services.
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