The interest of investment corporations is increasing in the social and environmental performance of corporations and their method of risk management, for moral reasons and because of their focus on the ability of their investments to increase and maintain the value of what the shareholders own. Studies have recently shown a relationship between the moral practice of business and financial performance. The financial performance of the corporations that are committed to ethics was better on the long run than the performance of other corporations that lacked that commitment. Thus investment decisions are based on company reports, the social and environmental monitoring by classification agencies and sustainability measurement figures, such as the measuring figures known as the KLD Domini 400 Social Index and the FTSE 4 GOOD Index. These measurement figures follow the financial performance of the corporations that use sustainability as the main engine for their work performance strategy.


Moreover, the number and size of morally committed investment funds is increasing, although they still represent a small percentage of the total stocks subject to management. Social responsibility investment is viewed as an upward trend that unifies investors seeking to attain financial and social returns on their investments.


Among the pioneer initiatives in the area of social responsibility investment is the Equator Principles Initiative. These principles were drafted in 2003 and were signed by dozens of entities. They were edited and released once again in July of 2006. The Equator Principles are signed today by more than 40 banks and other financial corporations, about 85% of the financing of projects throughout the world.

The Equator Principles are a voluntary framework to address the social and environmental risks associated with financing projects with a capital exceeding $10 millions. Signatory corporations are requested to follow the performance criteria set by the International Financing Institution, updated in April 2006, which obligate creditors to abide by various social and environmental practices. These criteria are based on processes and not compliance, i.e. their provisions relate to the measures the clients must follow so that their practices are good ones. These criteria cover eight general areas: social and environmental assessment and administrative systems; preventing pollution and reducing its severity; social safety and health; possession of lands and involuntarily settlement; maintaining biodiversity and sustainable management of natural resources; native peoples; cultural heritage; workers and working conditions .

About the Social Security Investment Unit:

SSIU was established pursuant to regulation No. 111 of 2001 “Regulation on Investing the Funds of the Social Security Corporation”. It started its work in early 2003 after the approval of the investment strategies governing its work. The Social Security Investment Commission ( SSIC) oversees the work of SSIU within a comprehensive system of management, guidance and monitoring, to guarantee the independence and soundness of the bases for investment decision making and the implementation of decisions to serve the interest of the subscribers and beneficiaries of the Social Security Corporation services and programs. ( SSIC) consists of nine members, chaired by the Chairman of the Commission. It members include the Director General of the Social Security Corporation, as Vice-Chairman, and two members, one representing the workers and the other representing business owners, named by the board from among its members, in addition to five members with experience and qualifications appointed by the Council of Ministers. SSIU aims at managing the investments of the Social Security Corporation in a manner that guarantees the development of its financial resources, while abiding by the following principles:

• Maintaining the true value of the Corporation’s assets by sustaining feasible and regular returns.

• Reducing the risks by diversifying the Corporation’s investments through the various investment tools.

• Providing the necessary solvency to meet the obligations of the Corporation.

• International criteria in managing security funds.

In light of the belief of the Social Security’s Investment Unit in the need for dialogue with the stakeholders, and specifically the private sector, it convened, in partnership with the Excellence Company for Corporate Development the “Social Responsibility Conference for Corporations: Culture and Methodology” in April 2009. The conference aimed at creating a vital environment for dialogue and constructive discussion on the concept of the social responsibility of corporations among the participants from the economic and social work sectors, in addition to representatives of the public sector, the media and members of the local community.

Due to the increasing demand among the Jordanian corporations for credible information and examples on the social responsibility of corporations, SSIU felt responsible for issuing a guide rich with credible information on the concept, principles and practices of responsibility. It planned and distributed it to all entities that attended the conference. This guide was completed within the strategy of the SSIU , in response to the needs of its partners to offer essential information on social responsibility in order to deepen the knowledge of these partners on the applied practice, adopt the concept and enhance sustainable Corporate development.

Vision

Investing to secure Generations’ Future” .

Mission:

“Maximize the returns on the funds allocated for investment by the Social Security Corporation (SSC)”

 to enable it  to meet its future

Values:

We invest responsibly:-

• We take pride in our independence in making investment decisions.

• We adopt best practices and performance indicators.

• We adopt risk adjusted economic feasibility as the basis of our investment.

  We work professionally:-

• We are committed to integrity, objectivity,  and the ability of our employees to make the right decisions.
• We cooperate on all levels to realize our mission and strategic objectives.
• We adhere to an environment conducive to outstanding performance and we continuously aim to develop our technical and professional capabilities.
•  

We believe in Organizational Governance:-

• Our decisions are based on methodologies that reflect the utmost levels of transparency.
• Corporate Social Responsibility enhances the Investment environment.
• We adopt an organizational framework and structure that  ensures conformance to  legislation and policies.

 Definition of Social Responsibility:

The definitions of social responsibility are typically characterized by simplicity and excellence. Thus, the following definition, adopted by SSIU, was agreed upon: “Ethical investment and contributing to the sustainable development that serves the community and the environment while achieving feasible returns on investment”. To support its vision SSIU relies on the following pillars :

First: : Transparency and integrity in investment decision making processes, through:
A. Separating and delegating authorities for all who work on investment decisions.
B. Transparency in disclosing financial statements by issuing quarterly press releases, publishing detailed semi-annual financial statements and issuing annual reports with full analysis of SSIU’s financial performance.
C. Adopting social responsibility as one of the investment criteria and principles applied at SSIU.

Second: Contribute in sustainable development to serve the community and the environment, by giving priority to feasible national investment. SSIU, in set this priority, relies on Royal initiatives to achieve sustainable social and economic development. It also seeks to instill the environment’s importance in the business world. It believes there are many simple solutions that protect the environment and do not merely constitute environmental projects.

Third: Equality in the rights of individuals and equal opportunities in gender. SSIU drafted a special methodology for selection and appointment that guarantees this among the competitors and guarantees equality before the law in rights and duties.

Target Groups:

1. SSIU Employees

2. Partners: The institutions and organizations linked to SSIU in the achievement of its strategic goals and that share in offering its services, as well as are affected by and affect SSIU with common decisions.

3. Service Recipients: Everyone who directly comes into contact or deals with SSIU to receive a service or product.

Duties of the Corporate Communications Department:

1. Draft and implement the SSIU’s plan on social responsibility.

2. Increase awareness and enhance the culture of social responsibility among the relevant parties.

3. Implement social responsibility in the work procedures of SSIU and its investment policies.

4. Seek partnership opportunities to enhance the concept of social responsibility.

Work Methodology:

SSIU seeks distinction in all that it undertakes through adopting the best and most modern work methodologies. In implementation of this principle, we have designed a special work methodology on social responsibility that focuses on taking into consideration the interest of the relevant groups (Appendix A).

Communications Plan:

The communications plan on social responsibility for the Corporate Communications Department aims at achieving a state of community interaction and participation in the direction of accomplishing the goals and programs of SSIU. The accomplishment of this goal necessarily needs a long term work plan with multiple phases. It also necessarily includes a number of parallel and consecutive activities.