Saudi Responsible Competitiveness Index

2. Saudi • Responsible • Competitiveness Index

3. What is Corporate Social Responsibility (CSR)? CSR is the business-wide approach to managing environmental, social, economic and governance issues.

4. What is Responsible Competitiveness? A Global Agenda • Responsible Competitiveness is the strategic application of Corporate Responsibility which includes leadership, and policies and practices that build sustainable development. • Evidence from 115 countries shows that Responsible Competitiveness is driving the performance of companies, sectors and nations. • Responsible approaches to doing business are increasingly recognized as routes to: – new sources of value creation – driving reputation – managing risks – enhancing productivity – unlocking both product and process innovation

5. What is the Saudi Responsible Competitiveness Index (RCI)? • The Saudi Responsible Competitiveness Index aims to: Assess how companies in the Kingdom are creating responsible business practices to build competitive advantage while supporting social development and building enduring economic competitiveness for the Kingdom.

6. Saudi RCI Overview The King Khalid Awards for Responsible Competitiveness • Started by SAGIA in 2009 with the prestigious King Khalid Foundation (KKF) and AccountAbility, the global leader in CSR research. • The RCI was launched to respond to the growing demand for a measurement tool for environmental, social and governance issues in the region. • Participation in the index has shown that Responsible Competitiveness performance is increasing, as returning applicants have shown marked improvement.

7. Saudi RCI Overview The King Khalid Awards for Responsible Competitiveness Experience and Expertise Regulatory Framework Funding & Advisory Services

8. Saudi RCI Structure in 2012 • BAE Systems Joins as a New Strategic Sponsor • Brings global multinational expertise in quality management and CSR best practice to Saudi RCI • New Additions to Advisory Board • KSU NCB CSR Chair – Academic Seat • King Abdullah Economic City (KAEC) – Corporate Competitiveness Seat

9. Saudi RCI Focus 2012 • Growth in Number of Participating Companies • Increasing Brand Equity • Augmenting Awareness • Identify Partnerships with Key Organizations to Expand Reach • KSU NCB CSR Chair • KAEC • Chambers of Commerce • Continuous Evolving Methodology • More relevant indicators to KSA • Simplified application process • Face to face workshop to share outcomes

10. Saudi RCI 2012 • The King Khalid Awards for Responsible Competitiveness

11. Saudi RCI Impact • Changing the way in which Saudi businesses operate – encouraging a decrease in environmental footprint, rewarding community enhancement, innovating through knowledge-sharing etc. • Creating competitive advantages that give an edge over peers • Ensuring companies are held liable for their actions/activities and rewarded for strong performance • Making Saudi Arabia’s businesses environment more responsible

12. Why Participate in the Saudi RCI? • Participation builds awareness and improves business practices thereby directly impacting the economy. • Public recognition in a prestigious index for your efforts toward becoming a Responsible Competitiveness leader in KSA. • Exclusive Strategy Seminars where you will be able to learn directly from global sustainability experts and engage with other Saudi companies to share best practices, discuss challenges, and build relationships. • Scorecard outlining your strengths, and areas with room for improvement, with suggestions on how to improve your performance.

13. Saudi RCI 2012 Performance Analysis

14. I. Building a Nationally Competitive Workforce Saudi RCI’s Core Areas – Reasons for Core Changes • II. Innovating Solutions for Social Development • Responsible Competitiveness • III. Empowering Local Vendors • IV. Making a Commitment to High Quality • V. Responsible Environmental Management • The fourth cycle took the Award to the “next level”, by incorporating feedback from companies participating over the previous 3 years. • We have: • Further focused on how company practices can serve the socio-economic needs of Saudi Arabia • Integrated the Award with other complementary measures (Such as the Nitaqat Index).

15. Performance Analysis Identifying areas of improvements

16. Top 10 Trends in Saudi RCI 2012 • Companies are taking “Saudization” very seriously and the vast majority of participants have achieved “excellent” or “green” ratings on the Nitaqat Index. • Many companies have made significant efforts to attract and develop local talent through partnerships with local universities and technical schools to hire and train fresh graduates. • Although Saudi companies have a strong tradition of generous charitable giving, more companies are developing an approach towards strategic community investment. • Companies are interested in the principles of CSR, and more are linking their CSR activities to their overall business strategy and competitiveness • The vast majority of participants are prioritizing purchasing from local vendors, and some companies are also prioritizing vendors who adhere to international environmental standards

17. Top 10 Trends in Saudi RCI 2012 • Nearly all companies prioritize customer & vendor satisfaction, but few have undertaken processes to regularly measure it. • Many companies have developed internal ‘green’ initiatives that encourage employees to conserve resources and recycle and reuse materials. • Particularly in the power and utility sector, many companies are engaged in spreading environmental messages throughout the community. • A key area for improvement and growth in the next year is responsible environmental management. Very few companies have developed rigorous processes to measure and reduce resource consumption. • More companies are working for international certifications in health, safety, and environmental standards.

18. The Way Forward for Responsible Competitiveness in the Kingdom What can your company do?

19. The Way Forward What your company can do: Work to close the remaining gaps in environmental management, governance systems, and labor practices – build upon the momentum already building in KSA Embed a culture of compliance with Environment, Health, and Safety standards in all workplaces, and consider adopting and engaging with international standards Transfer good practice on leading firms to the family-owned and small/medium sized businesses Continue to invest in product and service innovation: become a global innovator Scale up initiatives on building talent for future sustainability and stability - rise to the challenge of addressing the Kingdom’s employment needs

20. أول مبيعات للطائرات في الستينات الميلادية. مسؤولة عن جميع نواحي أنشطة بي آيه إي سيستمز ووجودها على المدى الطويل في السوق المحلي للسعودية شركة بي آيه إي سيستمز السعودية إضافة إلى الشركات السعودية الشريكة: أكثر من 7,800موظف مبيعات سنوية بقيمة 14 مليار ريال سعودي ماذا تعني السعودية بالنسبة لبي آيه إي سيستمز؟

21. نحن نريد أن نُعرف كشركة ملتزمة بتطوير ثقافة الأداء الكلي، و التركيز ليس فقط على ما نقوم به بل كيف نقوم به أيضاً. سنشرح أهمية مسؤولية الشركات باستخدام بعض معايير التحكيم SARCI: بناء قوة عمل قادرة على المنافسة على الصعيد الوطني حلول مبتكرة لتحقيق التنمية الاجتماعية تشجيع الموردين المحليين الالتزام بالجودة العالية إدارة بيئية مسئولة ماذا تعني مسؤولية الشركات بالنسبة لبي آيه إي سيستمز؟

22. أحد أكبر القطاعات الموظفة للسعوديين في المملكة حوالي 60% سعوديين إلتزام كبير بالتدريب و التطوير موظفي بيآيه إي سيستمز العاملين في قطاعات أخرى أكثر من 2,000 طيار وأفراد الطاقم الأرضي وفنيي القوات الجوية الملكية السعودية خبراء في تطوير القوى العاملة بناء قوى عاملة وطنية منافسة

23. نحن نمارس دوراً مهماً في المجتمع دعم التعليم الترويج لقضايا الصحة و السلامة دعم شئون البيئة دعم البحث والهندسة برنامج بحث ما بعد الدكتوراه الإلتزام بنقل المعارف والخبرات والقدرات حلول مبتكرة للتطوير الاجتماعي

24. إدارة سلسة التموين 90 % من التكلفة الأساسية لبي ايه أي سيستمز مرتبطة بالبضائع والخدمات المحلية أنفقنا ما يزيد على 18 مليار ريال سعودي مع الموردين في المملكة العربية السعودية خلال الخمس سنوات الماضية تشجيع الموردين المحليين

25. يعني الأداء الكلي كل جانب من جوانب أسلوب عملنا التركيز على العميل الأداء المالي إنجاز البرنامج السلوك المسئول توجه تنظيمي للعمليات التجارية والحوكمة إنجاز فعال للبرنامج المشاركة في المعرفة والمهارات وأفضل الممارسات، ومساعدة المشاريع للرفع من قدراتنا الدولية الحلول الموثوق بها والتي يمكن التنبؤ بنتائجها وتكرارها والتي تقدم المنافع لعملائنا. الالتزام بالجودة العالية

26. نقوم وعلى نحو متصاعد بتطوير ممارساتنا في كيفية الحد من التأثير على البيئة وكيفية مساعدة الموردين في القيام بالمثل. إدارة مسئولة للشئون البيئية

27. نحن ملتزمون بتطوير استراتيجيتنا لمسؤولية الشركات تساعد مسؤولية الشركات على بناء علاقات قوية مع شركاؤنا والحفاظ عليها العملاء المنظمون المستثمرون الموردون الموظفون المجتمعات وهذا من شأنه تحسين السمعة والمساهمة في رفع الإنتاجية والفعالية التشغيلية والحد من المخاطر على أعمالنا أهمية مسئولية الشركات

28. حــوار ونـقــاش