In response to a lack of credible insightful research into how businesses are operating in the region, the Pearl Initiative launched the first report in its series on Corporate Good Practices. This is truly independent report focuses on the implementation of integrity-related policies as well as efforts towards integrated reporting. The report aims at demonstrating that high standards of accountability and transparency can enable long term direct value creation. Added to this is the opportunity to share experiences and provide practical lessons from GCC based companies that are ahead of the curve in implementing good practices.
The initial research for the report was undertaken by a team of MBA students drawn from the American University of Sharjah, UAE and the Judge Business School at the University of Cambridge, UK, The student team carried out extensive desk research, conceptual theme development and face-to-face and telephone interviews with executives of a long list of companies deemed to have good practices.
A further four months of research and interviews led to the inclusion of eight good practice case studies from across the GCC including those at Abraaj Capital, Agility, Aluminium Bahrain, Aramex, Gulftainer, National Bank of Abu Dhabi, Savola and TDIC
The good practice examples illustrate efforts made by a selection of companies that appear to be working and are therefore worth sharing, with the wider business community. The case studies included in this first Report are just the first step in building up a comprehensive knowledge base of good practices in operation right around the region.
The research indicated a number of success factors that other companies would be well advised to adopt. Regarding the implementation of integrity-related practices, common themes include; visionary leadership, stakeholder viewpoints, local and cultural context, accessibility. On the issue of integrated reporting; understanding stakeholder priorities, qualitative and quantitative data generation, and credibility are key to effective implementation.
“Both the public and private sectors will benefit from the launch of this report, the first of its kind in the GCC. We have produced a truly independent report that will influence the thinking and the behaviour of the wider business community across the GCC. We produced this as a response to the lack of credible insightful data available on corporate practices in GCC companies,” Imelda Dunlop, Executive Director, Pearl Initiative, said.
“The Pearl Initiative seeks to catalyze joint action from the private and public sectors to create an environment where there are genuine incentives for raising the standard of corporate practices. We believe that implementing better standards of accountability and transparency will raise the level of talent in an organisation, improve standing within the business community and ultimately make a company a more attractive investment proposition.”
“In order for the Pearl Initiative to make a difference to the public and private sector companies operating across the Bahrain we must show clear business benefits for introducing integrated reporting, integrity-related policies, higher standards of corporate accountability and transparency. All of the companies that have been independently researched within this report are well known and leading companies within their respective markets and the region. We hope that other companies will follow their example and join on this journey towards more responsible business practices,” Badr Jafar, Co-Founder of the Pearl Initiative, said.
Within the report, “Implementation of Integrity-Related policies” covers the implementation and embedding of ethics and integrity-related policies in areas of ethical labour practices, anti-bribery and corruption, human rights, supply chain and responsible investing. “Integrated Reporting” demonstrates the shift towards bringing financial, sustainability and governance reporting all into one document or process for the benefit of stakeholders.
“Most companies seek to build their reputation on trust and integrity, but unless backed up by action, these are just words. In an increasingly competitive business environment, where access to information is easier than ever and stakeholders expect so much more of companies, the business case is clear. Greater integrity and more comprehensive alignment of business strategies and objectives will lead to higher corporate performance,” Sara Bahman, a co-author of the Report and AUS MBA graduate, added.
“It is vital that we develop further research-based analysis and insight on corporate practices within the GCC. This work demonstrates the added-value of university and private sector collaboration; and the direct involvement of students in the research is very advantageous for their overall skills development,” Dr Peter Heath, Chancellor of the American University of Sharjah, said.