The Jordanian founder and CEO of Aramex

Fadi Ghandour: Promoting the science of entrepreneurship

Aramex has had a busy summer this year. From rebranding to introducing environmentally friendly courier bags, the company has been busy making huge strides on so many levels. By creating the new post of “Chief Compliance and Suitability Officer,” Aramex seems to be continuing to lead the way in the field of corporate social responsibility, adding pressure on peer businesses still trying to figure out the difference between marketing stunts and CSR initiatives that can leave a long-term impact on society. Fadi Ghandour, CEO and founder of Aramex, speaks to Ruba Saqr about entrepreneurship and running an eco-socially-responsible business.

When Aramex decided to rebrand, was it to launch a new CSR-driven image and give “oomph” to its recent revelations (including increased prices)?

The re-branding was undertaken to put an image out there which reflects the essence of Aramex today. CSR is an important component, but only an aspect, a reflection of a much more comprehensive and holistic vision that we project today. We wanted to communicate the evolution of the brand over the past 26 years and communicate to our customers who we are and what we stand for. We believe that our most valuable asset and resource is our employees, they are the ones that innovated, customized and created solutions for customers, they are the ones that allowed us to be flexible, they embodied the spirit of entrepreneurship, innovation and beating the odds, transforming challenges to opportunities, and they are the ones that made Aramex what it is today. Being true to our essence, believing that human capital is the most important resource known to man is what guided us to invest in communities, education, sports, entrepreneurship, and others.

As for increasing prices, as you know, with the roaring fuel prices, and us being in the transportation industry, we had no choice but to reflect that in our prices. We have made important strategic shifts, however, such as turning to alternative clean energy resources, introducing hybrid cars into our operations, which will help reduce costs and prices.
On the other hand, we have introduced a monthly fuel surcharge on our International Express accounts that is linked to the Rotterdam International Fuel Index and are trying to manage our overheads more carefully to offset rising costs.

Some market observers say that Aramex’s introduction of the new post of Chief Compliance and Sustainability Officer (CCSO) comes as a smart move from Aramex to pave the way for an ISO CSR. Does Aramex plan to be one of the 1st to acquire this certificate in the Arab World, and maybe the world? How will this move the business forward?

Sustainability, good governance and CSR are a reflection of a corporation’s culture, values and essence, a manifestation of its comprehensive inclusive business model that takes into account all stakeholders and includes both financial and non-financial returns on investments.
At Aramex, we believe that bringing on board a Chief Compliance and Sustainability Officer is essential to ensure that our business model is inclusive, that our practices are in compliance with the guidelines and strategies we are committed to, and that we are actively engaged in finding solutions that impact all stakeholders.
We have not specifically set out to acquire an ISO 26000 certification, however we believe that there is a growing need for tools to help companies implement and regulate CSR programs. To this end, we were the first organization in the Middle East to publish a Corporate Sustainability Report, audited and credited by the Global Reporting Initiative GRI, and use this as a tool to benchmark our progress against international standards.

Do you think Arab corporations in general follow global trends and codes of ethics to ensure their success (from a pure business point of view), or are they trend-setters who have a role in changing the future of CSR?

I am a strong believer that the private sector has a bigger role to play in terms of development, bringing best practice and being a catalyst of change. I believe the private sector is an imperative pillar in the equation for economic and social development alongside the public sector and civil society. Unfortunately, until today, its role as a true partner for change and development is undermined and questioned, with many people still debating that the responsibility of business is to increase its profits only. The impact corporations have on societies and economies cannot be ignored: in light of the recent economic crisis, the fall down of reputable financial institutions in the US and Europe, one cannot but demand from the private sector to act responsibly and take all stakeholders into consideration. I believe that sustainable practices and ethical practices as you call them are in pure business terms a long term investment, and it is about time that we include both financial and non-financial returns in our balance sheets, and incorporate the triple bottom line (economic, environmental and social) in our strategies and measurement of success.
On the other hand, some private sector entities are also on their end still shying away from imposing themselves and assuming their role as active corporate global citizens, and the public and governments should encourage them and request from them to rise up to expectations and standards and do so.
At Aramex, we have decided that we will not be held back by the challenges and restrictions we face, nor will we be content with being observers and only provide cash donations. We have assumed our role as a responsible entity, as a stakeholder, as a catalyst for change and set to pro-actively engage in various initiatives that we believe are important to us and the regions we operate in. We have decided to partner up with communities, governmental and non-governmental institutions to find solutions to topics such as communities’ development, education, the environment, sports, entrepreneurship, and so on.
It is not a matter of trend setting; it is a matter of responsibility, of citizenship, of activism, and it is a learning process as it is in the case of all true partnerships, we leverage resources, transfer knowledge and share experiences in order to find the best solutions.

As an entrepreneur with great access to global knowledge in the field of corporate culture, what do you think Arab entrepreneurs have or lack? Are there any Arab (or Syrian) success stories that have caught our attention lately?

Entrepreneurship in the Arab World is a solution and an answer to the burgeoning young population and the need for job creation. Governments cannot answer alone to the immense and urgent need to create 100 million jobs in the Middle East by 2020. The private sector has a role to play and needs to be an engaged participant in order to face this challenge. The private sector has the capital, resources, skills, network, expertise and knowledge to empower and guide young entrepreneurs. We really need to look at how we can prepare our youth to become successful entrepreneurs: there needs to be reform for the educational system to prepare the youth from a young age to acquire skills and tools that will enable them to create their own opportunities. Financing ventures are crucial to support entrepreneurs, but not nearly enough to guarantee their success. Guidance and mentorship are crucial for the development of ventures and translating ideas to successful business models. The private sector in the Middle East needs to invest in its youth and nurture them in order to assist them to create their own future and compete in the global market.
The private sector has become more engaged but not nearly enough, and there is a real need for us to look at ourselves as a stakeholder along with civil society and the public sector and therefore actively engage in supporting entrepreneurship, not only by financing but by educating and mentoring as well.
Perseverance, flexibility, innovation, creativity and passion are critical for success. But there also needs to be an enabling legal and investment-friendly environment. Furthermore we need to fulfill an equation of investing in research and development departments in universities, create partnerships and ties between educational institutions and private sector entities and Venture Capital Funds in order to facilitate investments in innovative ideas. Young Arab entrepreneurs are the future of this region, they are the answer to the youth bulge that requires the creation of employment opportunities, they are the job generators, they will, with their innovative and creative ideas have an impact on the direction our economies will take, hopefully towards knowledge based economies and creative industries.
There are many success stories in the Arab world, some global, others regional and local. Some examples of successful entrepreneurial stories are: Hikma pharmaceuticals, Rubicon, Fine, Maktoob, and Orascom, to name a few.

Some developmentalists argue Aramex project in Jabal Natheef (as part of its CSR drive), has isolated the community from its “true” surroundings by making it more “posh” rather than working on a more in-depth program that can actually eradicate poverty on a larger scale. Of course the latter is globally argued to be the business of the government, hand in hand with the private sector and NGOs. Do you think the private sector is still experimenting with striking the right chord in the field of human development, or do you think it’s after face-value, tangible outcomes that create immediate good media and image?

Those developmentalists have not visited our project in Natheef. There is nothing posh about it, and it was from its inception and remains to be a grassroots project that is operated in full cooperation with the community. The model is based on a partnership with the communities we operate in, so there is no “isolation,” on the contrary, there is full cooperation, partnership and collaboration.
One of the challenges is the public perception of the role of the private sector in community development. A lot of people would assume there is no role for the private sector to play. Our goal is to build a model based on trust and showcase the responsibility of the private sector and the impact it can make.
Some of the problems and needs we address can be overwhelming as we are tackling major issues such as unemployment, education and poverty. The importance of cooperation and partnership cannot be underestimated and all stakeholders must work together cohesively to achieve defined goals.
There is still a lack of CSR awareness within the private sector in the Middle East and how it can benefit both the community and satisfy shareholders. The implementation of some of our CSR initiatives has not always been easy. However, we are inspired by challenges and hope that we can set an example within the region. Our approach is not one where we isolate or dictate change, it is based on a partnership approach with various stakeholders; rather than simply making a donation, we truly engage the community to find solutions for their problems and challenges. We apply our business practices and know-how to our social work, viewing each initiative as a long-term, investment into the communities in which we operate. Communities we work in identify their needs and demands, and we work together on providing tools and solutions to face these challenges.
As I have mentioned before, we do not believe in PR good media image, we believe in showcasing successful models, sharing experience and knowledge and learning from each other.

Developmental critics say most private sector companies in the Arab World mix up face-value philanthropy with CSR, a more in-depth approach to change. What do you think?

I believe that corporations should build comprehensive inclusive strategies and business models, taking into account all stakeholders. The impact corporations have on societies, the environment, business partners and employees are part of the equation and should be taken into account by companies. CSR is a long term human, social and economic investment, that is a result of building a sustainable business model, and the ability to generate revenues and attract volunteers, instead of relying solely on donations. We believe in leveraging resources, knowledge and partnerships to achieve best results.

When do you think Syria should expect the arrival of the new Aramex logo?

We have indeed introduced Aramex new image and logo to the Syrian market. The implementation process of introducing our new logo is underway and entails a lot of effort due to the attention to details and the importance of a standardized image across the network.

Ruba Saqr is associate editor of Forward Magazine