As governments the world over struggle to macro-manage the economic tightropes of their respective nations, local communities have fallen through the cracks of neglect, while businesses continue to amass wealth. With the realization that the survival of industries depends solely on the endurance of a society, corporations have stepped in to take up their social responsibilities. Recently, Jordanian businesses have started to partake in similar activities, primarily through Ruwwad, an organization considered to be an emerging success story and a lesson in corporate social responsibility (CSR). Naseem Tarawnah explores the world of Ruwwad, as industry leader Fadi Ghandour sits down with Jordan Business in an exclusive interview to discuss the organization and the emerging science of CSR in Jordan.

The view from the hill depicts rapid progress. Here, atop Jabal il-Nathif, the cylindrical shape of the Le Royal Hotel is a picturesque landmark, while the skyscraping Royal Gates peak from across the skyline, and the frame of City Hall fills the canvas below. Here, far from the bustle of a commercialized Jabal Hussein and the rich culture of Jabal Amman, the hillside of il-Nathif is scattered with children who chase fruit trucks down the street when their football game is interrupted. Rundown schools blend in with rundown homes, their weather-torn colors faded to an inevitable olive green. Nestled in this condensed urban grayness is a building made spectacular with colors. In sharp contrast to its surroundings, the Ruwwad Center is a radiant midnight blue and tangerine orange on the outside, while inside there is a flurry of life as children run around a small playground. They shuffle chess pieces across checkered boards and learn the secrets of computers. The Shams il-Jabal library hosts reading and painting sessions, special-needs classes and creativity workshops, with 300 local children in attendance every day. One child watches a film while another finishes his homework at a nearby table, and a third attends a tutorial to help him strengthen his mathematical skills. Meanwhile, Ruwwad’s Shababeek initiative sees volunteers conducting creative learning workshops, where they teach students to spell, to think outside the box and discover the world on a globe.

With no community centers, public parks or playgrounds around, the Ruwwad Center has become a second home to the forsaken children of il-Nathif. Traditionally, many development projects of this variety have been dependent on donor funding, which is typically entangled in political strings. It is here that the Ruwwad model chooses the path not taken - one that has been locally uncharted. Funded completely by the local private sector, the non-profit organization is the first of its kind in the country and bypasses many of the typical obstacles that have hindered other similar initiatives in the past. No bureaucracy, no politics; just a strong sense of CSR.
“The idea was that there needs to be a project that is driven by national needs and funded locally or regionally,” said Raghda Butros, director of Ruwwad. “This comes at a time when a boom in the Arab world means that there is money out there to be accessed, and there is [also] a responsibility on the individuals who have that money to do something for their community.”

Violence, too, has been a major problem, and documents dating back to 1968 indicate the community’s requests for a police station, something that went unacknowledged until Ruwwad lobbied the government to establish one.

Ruwwad has physically been operating for only a year and a half. However, before its establishment, a great deal of time and energy was spent on researching troubled areas, primarily in East Amman. The findings pointed to Jabal il-Nathif as a representative sample of the broader eastern community. Rampant poverty, illiteracy, and unemployment nearly 50% higher than the national average, along with a lack of services and marginalization, has rendered the situation in il-Nathif a symbol of deteriorating conditions, far worse than its surrounding communities. For this reason alone, il-Nathif was chosen as the starting point for the Ruwwad project.

“With 120,000 people, you can really make an impact,” said Butros. “Whatever lessons we learn here can also be replicated elsewhere in smaller communities. This is why we took on the bigger challenge first.”

Tailor-Made Solutions
Butros spent nearly a year interacting with people and learning what their issues were, thereby setting a list of priorities to tackle the problems that concerned them the most. The list was endless, with many of the issues revolving around the lack of basic services and poor housing, while another set concerned children, education and unemployment. Violence, too, has been a major problem, and documents dating back to 1968 indicate the community’s requests for a police station, something that went unacknowledged until Ruwwad lobbied the government to establish one. The same can be said of the new post office and the soon-to-be open local health center. The idea was to undertake tailor-made initiatives that tackled problems the community itself deemed necessary, as opposed to organizations that have historically dictated solutions to generalized problems. When it came to education, for instance, the community identified the Atika Bint Zeid Primary School as a rundown facility with poor teaching standards. Founded in 1959, the school is home to roughly 700 students being taught in two shifts within a deteriorated rented building,  and whose school principal was expected to maintain with a JD700 annual budget. After inspections, Ruwwad renovated the entire building, initiated a teacher-training program and began a highly successful children’s summer camp.   

There is a lot of community spirit and a sense of belonging, but there is also the feeling that this is a place that is looked down on and they have to leave the first chance they get.

Access to higher education can be even more troublesome in il-Nathif. Ruwwad gives out 250 scholarships every year to deserving students, with the amount of every scholarship being reflective of the student’s particular financial situation assessed by the first year of university. There are, of course, strings attached. Every student is obligated, through the center, to volunteer in the community and their contributive work alone will determine the percentage of their scholarship in subsequent years. Jeeran al-Shabab is a program designed to facilitate the community work for these students, who venture into their neighborhoods with all the materials they need to renovate broken homes with their own two hands. In their third and fourth year at university, the students begin to work more closely in fields related to their studies, researching local businesses in order to identify those in need of the Ruwwad Center’s newly-established micro-venture capital fund. “The idea was to embed a sense of responsibility in the students and make them understand the responsibility toward their community,” said Butros. “There is a lot of community spirit and a sense of belonging, but there is also the feeling that this is a place that is looked down on and they have to leave the first chance they get.”

The Learning Process
In the daytime, in between all the programs that run their daily course, the center is a living and breathing entity. It takes part in an ongoing process of learning, adapting and adjusting to the new day-to-day elements that come its way; the unforeseen variables that defy the structure of a program or a syllabus. In her office, Butros listens to an elderly man who lays his grievances on her desk. His married son has burdensome hospital bills to pay, and their landlord has returned from his long absence in the Gulf with plans to evict the family and build rentable apartments in their place. These are the sorts of issues that one can hardly be prepared for; a case study as opposed to a textbook problem. There is no mass-produced, generic program that accounts for what this man’s family must deal with.
Butros listens to every detail the old man utters with great precision. His youngest son, Mohammad, was part of an on-the-job training program through the center, and Butros knows him well. She tells the father of eight sitting before her that she expects Mohammad will find a job soon and start helping out the family financially. She tells him that something can be worked out to cover the hospital bills, possibly an interest-free installment plan arranged through the center. Even now, Butros is eager to support the community but sidesteps the danger of creating a culture of dependency. As for the landlord, she tells him that mediation can be arranged.

Funding Progress And Corporate Responsibilities
With the process of fundraising beginning in 2005, it took nearly three years for the Ruwwad organization to spend the initially raised $1.2 million. “Donor-funded projects can sometimes spend upwards of $7 million on projects, spending our [total] budget just on salaries and the establishment phase,” said Butros. “In the end, you don’t really see the results, so it’s important to appreciate that a little bit of money can go a very long way.” The organization’s running budget for 2008 stands at just over JD500,000 - covering salaries, facilities such as the library, as well as the cost of workshops and renovations for schools and homes in the area. However, as the organization looks towards expanding the project to other needy communities, more funding will be required. Without a tradition of CSR, the extent to which the Ruwwad project can be financially sustained solely by Jordan’s private sector remains to be seen. Although in this, of all obstacles, the Ruwwad project may be at an advantage when one considers its primary leadership and the benefits of first entry.

At the apex of this private sector initiative stands Fadi Ghandour as Ruwwad’s chairman of the board. The organization’s board of directors represents the initial six companies who followed his lead, all of whom are, by all measures, considered industry leaders in the country. Widely acknowledged by the center and the community at large as the man behind the curtain, Ghandour has been accredited with playing a vital role in fundraising and encouraging a more active participation of the private sector in Jabal il-Nathif. In an exclusive interview with Jordan Business, Ghandour sat down to discuss the Ruwwad project and how CSR is destined to reshape community landscapes across Jordan.  

JB: How do you personally define CSR? Is the standard definition different within the Jordanian context?
FG: I believe that corporations have a duty and responsibility towards all their stakeholders, their employees, their business partners, their shareholders, as well as to the environment and to the wider communities in which they operate, all of whom are included in the notion of CSR. Dedication to such issues is not a fad, but rather part of a holistic commitment to sustainability that is essential to the success of both the business and the community.

The definition is not different in Jordan. However, the challenges faced are those related to how people view the private sector and its role and involvement in society on the one hand, and the tradition of charity and donations versus a real social investment on the other. There is still a misconception that lingers on in the Arab world, and I am sure elsewhere, that by making charitable contributions, a company is fulfilling its duty to the community. However, what is needed, and the way in which Aramex has approached this issue, is as a long-term strategic investment, as part of our responsibility as citizens and an extension of a long standing corporate culture of involvement and social activism.

JB: How did the idea for Ruwwad come about? With only a handful of companies originally involved in the project, how difficult was it to raise the initial capital for its establishment?
FG: The key components that played a role in the evolvement of the idea were the urgency to intervene and tackle long-standing issues and challenges that exist in marginalized communities as well as the lack of local private-sector driven initiatives in this field. Through Ruwwad, we believe we are providing a platform for individuals and companies to be active citizens and to give their time, effort, skills and money towards positive change.  

Initially, Ruwwad was fully funded by Aramex and myself. We only approached others for support once the project was up and running and the results had started to become more apparent on the ground. Once people could see how much impact had been achieved in a short period of time, and how much more could be achieved with additional contributions, it became much easier to receive support.

Of course, fundraising is a continuous process and we are now working on institutionalizing that process within Ruwwad to allow us to raise the needed funds to reach new communities, both within Jordan and beyond. 

Ruwwad was never, and will not ever be, a public relations-lead initiative but we feel that now that the model is at a stage where it can be replicated, it is important to spread the word…

JB: The business community in Jordan has not had an extensive history when it comes to CSR. Do you feel that this is something that is changing? If so, what is the driving force encouraging this new-found philanthropy?
FG: I believe that our region has an extensive history of charitable giving and donating money. What we lack is the institutional and strategic vision on how to invest these resources.

What we need to remind ourselves of is that these contributions form part of a necessary investment into our societies and are not mere charity. This will not only ensure that sustainable change can be achieved, but also that organizations responsible for utilizing these funds are more transparent and accountable. These investments, like any other that a company makes, should be strategic, sustainable and effective. In other words, they should not stem from a chief executive officer’s individual decision to donate or from a department in a corporation that offers contributions to good causes. We need to listen to the communities we live and operate in, and we need to engage them in a real partnership to find solutions and create opportunities. The business community needs to view its contributions to the community as high-return investments and sound business decisions rather than as marketing tools or “feel good” approaches.  

These changes are slowly taking place, and people are looking at sustainable models that will lead to continuity and, therefore, have more significant impact. In my opinion, the driving force has always been there, and people in this region have traditionally been generous in giving back. Recently however, the private sector started viewing itself as a more active agent for needed change and has taken its responsibility in this regard more seriously. Communities have also began to look to the private sector as an alternative, dedicated and credible partner that will ultimately make for a powerful tri-fold partnership between the private sector, government and the community, thus leading to a powerful and swift change.

JB: Jabal il-Nathif in Amman is one area that is a representative sample of many other similar environments in Jordan that have been marginalized by both society and government while also being plagued by an assortment of problems related to underdevelopment. Is a CSR project such as Ruwwad aiming to fill the void created by government neglect? Do you believe there is one central problem to the overall deteriorating situation in such areas?
FG: I believe that the government is not the only entity responsible for the lack of development that exists in these areas. The private sector and the community at large also have a major role to play, both in the creation and resolution of the challenges that exist in these communities. Our partnership with the government and the community in Jabal il-Nathif is the formula that leads to the success of the model by integrating all stakeholders in the strategic planning and implementation of the solutions. We are all citizens, and it is our duty no matter where we stand in the professional spectrum, be it public, private or civil.

The deteriorating situation is an accumulation of challenges that, if not solved, will lead to an ever widening cycle of poverty, failing education systems and a lack of opportunities. By tackling these issues and their root causes, we are trying to break the cycle and allow people to have an opportunity to reach their full potential. By doing so, we will not only help them but also other people and communities around them.

JB: Traditionally, organizations that sought to help marginalized communities have either done so to achieve political aims or have offered merely transient assistance, which was not enough to see the project through. These two major reasons have generated a sense of skepticism amongst the local community. In your opinion, how can a private-sector initiative like Ruwwad overcome such suspicions and convince people that it is, in fact, dedicated to fixing social problems while having no ulterior motives of its own?
FG: This is, of course, a problem we faced at the beginning. People were suspicious of us and questioned who we were and why we wanted to be involved in responsibilities that traditionally rested with the government. This again is related to the present mentality that the private sector’s role is merely that of making profit.
As we spent time with the community and, more importantly perhaps, proved that we would put our words into action and meet the needs that they themselves identified and prioritized, trust started to be built and continues to grow. Relationship and trust building is, of course, an ongoing and challenging process but we have, from the start, been both willing and able to do the hard work needed.

Other factors that contributed to the trust-building process included the fact that we based our offices within the community; that we hired people from within the local community as much as possible, and that we engaged with people in an open and transparent manner that allowed them to present their issues honestly and with dignity.

JB: CSR has the ability to pool together the various resources of the private sector to create a powerful and unique collective voice. Do you feel that as the CSR movement develops in Jordan, representative organizations such as Ruwwad can become powerful lobbyists for social causes and reform? How essential is it to sustain a working relationship between Ruwwad and the government, and does such a relationship lay the foundations for future public-private partnerships?
FG: Ruwwad was created not only as a platform for community development, but also as a way to lend a voice to those whose voices could not otherwise reach decision makers. Entrepreneurs have access to officials and decision makers, and this access should be used not only to resolve business-related issues and policies, but to also contribute to development efforts in the areas that need it most such as education, health, employment and poverty reduction.

We believe in creating a powerful and solid partnership with the government as well as in lobbying for positive change and reform. We also believe in assisting the youth to find their own voice, to become active lobbyists for their own causes and to represent themselves. Our role is to train and equip them to do that rather than to represent them or speak on their behalf.

Our partnership with the government has been instrumental to the success of our work and after initial bureaucracy-related obstacles, we were successful in partnering with various government agencies to bring much-needed services to the community. These include a post office, a health center and a police station - all of
which had been long-standing demands by the community.

Public-private partnerships in this area are crucial so that public policies can be aligned with existing realities and needs, and so that all relevant stakeholders can be involved in policy making. These stakeholders are not just the government and the private sector, but also the members of the communities that these policies affect.

The private sector has been timid in its efforts to reach out to the public sector about these issues in the past, while the latter has had a tendency to be overly bureaucratic in its response. Ruwwad, however, is the model that works, showing how this partnership can succeed in serving the greater good.

JB: While Ruwwad depends mostly on funding from the private sector, it still feels as if it is one of Jordan’s best-kept secrets. Are there plans to promote the project through fundraising events, to encourage the wealthy business community to become more active in its development, or will funding remain within a specific circle of the private sector?
FG: We are not really a secret. We have people knocking on our doors every day to volunteer and partner with us, but we focus on delivering and creating change, not on promoting and advertising what we do.  

Ruwwad was never, and will not ever be, a public relations-led initiative but we feel that now that the model is at a stage where it can be replicated, it is important to spread the word so that more companies and individuals get involved. We will be going nationwide with the Ruwwad model in 2008, and then onto Palestine, Egypt, Lebanon and other countries in the region that are in need of the Ruwwad solution.

We welcome the involvement of everyone, especially as we have now set the wheels in motion to expand both nationwide and regionally. We seek the support, not only of the business community, but of every person or organization who can contribute their time, skills, ideas or anything else they think may be of value. Our doors are open to anyone who believes, as we do, that change is everyone’s responsibility.
JB: Projects such as Ruwwad’s micro venture capital fund have sought to support income-generating ventures within the community. With a growing gap between the rich and poor, how essential is it for the big-business community to help out the country’s small-business environment, especially in less-fortunate areas?
FG: What you are referring to is a social capital fund. It is important to note that it is not only about addressing the income distribution gap, but also about creating opportunities, taking calculated risks and investing in our young and talented entrepreneurs. It essentially gives people the opportunity to strive, succeed and reach their potential.

It is imperative for the private sector to be involved in such projects as these provide everyone involved with opportunities to grow. This is particularly true in light of growing unemployment among youth, many of whom have tremendous potential and creativity but few avenues through which to meet their potential or exercise their creativity. Big businesses should view this as an investment opportunity with a social message and social return, in addition to the more traditional financial return.

JB: CSR covers a vast array of roles, with most organizations opting to choose one specific issue to tackle. With Ruwwad targeting a wide variety of projects, do you feel that given its limited budget, the organization would have a greater impact on the community if it instead chose to carve out a niche by centering on and undertaking one particular social issue?
FG: We chose to focus on the issues that the community felt were most urgent and pressing, rather than on a pre-conceived notion of what needed to be done and how. This has meant that the scope of  work is indeed large, but it is also doable and has proved to be highly successful despite the very short period of time that we have been in operation. Challenges in these communities are highly interrelated and, as such, success on one front leads to success on other fronts. Sometimes, opting to tackle one issue in isolation does not achieve the desired long-term results.

In other communities, the needs may be different and our focus may be needed more in one area than in another. However, we cannot know that before we do our due diligence in each of the communities we operate in, hearing from the people themselves what they believe are top priorities. The fundamentals we insist on, however, are those of sustainability and building people’s capacity to solve their own problems. This is why we place a high emphasis on the issues of education, child development, youth empowerment, employment and entrepreneurial support, as well as on the concepts of volunteerism and citizenship that encourage self-dependence, while maintaining the spirit of community and collaboration.

JB: On a personal note, after Ruwwad takes off, will you be branching out to establish similar organizations or other CSR-related projects?
FG: We are already in the process of identifying other areas to replicate the model across Jordan and the Arab world more generally. I strongly believe that these strategic social investments are the solution to many of the challenges facing the region today, all of which are shared across the different countries of the Arab world. We have strong networks of friends across the region and they are interested in partnering with us to replicate the model and to work with us to achieve the kind of change that is vital for the future of this region.  

Broad Shoulders
As Jordan’s private sector moves into the uncultivated realms of CSR, one can only wonder about the extent to which such on-the-ground projects can be sustained in the long term. The historically absent spirit of philanthropy in Jordan will be difficult to construct, and even more difficult to maintain. With time, as projects such as Ruwwad continue to thrive, that spirit may become emboldened and, in the process, encourage more corporations to follow where others have led. Meanwhile, given the enormity and importance of the private sector, it will be interesting to see how such corporate-led projects can develop to become a powerful lobbying voice for the voiceless.

However, given this era of economic uncertainty, a time when Jordanian communities have been left in dire straits, one thing is clear: the emergence of private-sector social initiatives is indeed timely. While the government will continue to be concerned with the macro issues the country faces, it will be Jordan’s corporate world, along with non- government organizations, that fill the micro void and insist on its importance.