This document summarizes corporate social responsibility and sustainability reporting practices in Israel. It provides background on Israel's population and economy. CSR is well-established through voluntary initiatives like the Maala ranking and Israeli Standard 10000. Sustainability reporting is increasing but still a small fraction of large companies. The Knesset proposed a law to mandate non-financial reporting for large companies. Jewish scripture and traditions emphasize charity and assisting the poor, influencing Israel's strong culture of philanthropy.

1. Sustainability Reporting,
CSR and Business Ethics
in Israel
Liad Ortar

2. Structure of presentation:
• Israel – some facts and figures
• Corporate Philanthropy – religious sources and
actual response
• The definition of a corporation – the legal aspect
• CSR guidelines:
• Maala ranking
• IS 10000
• GRI & sustainability reporting
• Mandatory non financial reporting law
proposal
• Another motive from Jewish literature…

3. The State of Israel –
some fact and figures
Size IL – 22,770 sq. KM
Size Baden Württemberg – 35,752 sq. KM
Population IL – 8.1 million
Population Baden Württemberg – 10.51 million
1570 1600
33243
44985
0
10000
20000
30000
40000
50000
Egypt Palestine Israel Germany
$GDP per capita in US
Population growth rate IL – 1.9%
Population growth rate DE – 0.4 %
Data from OECD site –
https://data.oecd.org/germany.htm /
https://data.oecd.org/israel.htm
Key characteristics –
 Small
 Geographically isolated but globally
connected (70% of all households are internet
connected. In DE – 85.5%)
 Rich
 Religious (only?) by definition and institutions
 High levels of income inequality (0.36 Gini
coefficient, DE – 0.29)
 Innovative “Start-Up Nation”
 Continues status of security challenges and
regional instability

4. "If there be among you a poor man of one of thy brethren
within any of thy gates in thy land which the LORD thy God
giveth thee, thou shalt not harden thine heart, nor shut thine
hand from thy poor brother:
But thou shalt open thine hand wide unto him, and shalt
surely lend him sufficient for his need, in that which he
wanteth." –
King James Bible "AuthorizedVersion", Cambridge Edition.
Deuteronomy 15:7,8
Two basic principles of Jewish philanthropy:
• It is a ‘Mitzva’ (command)
• It must be done secretly
The role of theological ethics in the business sector in Israel

5. One of the results…charity boxes on the
streets of Bnei-Brak

6. Some figures concerning philanthropy in Israel
Survey included 408 not-for-profit organizations
with a budget of over 500K NIS
50%
34%
2%
2%
7%
5%
2011
Government Income from sales and interest
Other transfers From other NGOs
Philantropy from abroad Philantropy from Israelis
1554, 27%
4026, 71%
100, 2%
2011
In million NIS and relative %
Corporations House holds legacies
Distribution of funding sources – total budgetDistribution of funding sources – only Israeli funding sources
Source: Israeli Central Bureau of Statistics, Philanthropy of Israeli 2009-2011 (2014)

7. To what purpose Israeli corporations
donate money to
3%
12%
6%
35%
17%
2%
25%
2011
Sport and culture Education & research Health
Welfare Environment, housing and advocay Religion
Volunteering
• Only 34% (!) of all corporate donations are
reported to the tax authorities for
recognition as an expense. (Article 46 ? )

8. "…to operate in accordance with business
considerations in realizing its profits, and within the
scope of such considerations, the interests of its
creditors, its employees and the public may inter alia be
taken into account;
similarly, the company may donate a reasonable sum
for a proper object, even if such donation is not within
the scope of business considerations as aforesaid, if a
provision for such is laid down in the articles of
association."
The Israeli Companies Law (1999), Chapter 11(a), p. 9
According to the Israeli law the goal of the corporation is to:

9. Corporate Social Responsibility in Israel is well founded in the
‘beyond compliance’ realm with voluntary managerial approaches:
 Sustainability Reporting (GRI based)
Israeli Standard 10000 (based on ISO
26000)
Maala Ranking
Mandatory ESG reporting – law proposal

10. • 85 Companies participated at the 2015
Maala CSR index
• 30% of them published a sustainability
report

11. The result -

12. Maala bond – 20 largest traded
companies:
Yearly yield
TA100 in comparison toTA Maala index (30 largest traded
companies participating in the Maala ranking)

13. Israeli Standard (IS) 10000–
Guidance on Social Responsibility of Organizations
“Attestation is done after implementation of an
intra-organizational process, in which the Social
Responsibility system, per the standard
requirements, is successfully implemented”
(from SII site)
ISO 26000 ?
Still only a managerial guide ?
In 2014 – out of 7 companies
holding the IS10000 certificate –
non had a sustainability report

14. 8
14
4
6
8
4
9
0
3
8
9
10
13
19
0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014
Already reported
First time reporters
Sustainability Reports in Israel
• G3 introduced in 2007 by
me with its translation to
Hebrew
Although there is a clear increase in the number of
sustainability reports being published in Israel, it is a
fraction of the total number of large (traded / governmental
/ private) companies.
But… in Israel there are:
• 300,000 registered LTD companies.
• 575 traded companies

15. The Knesset (the Israeli Parliament)
CSR Law Proposal (Obligatory Reporting) - 2014
• "Large Company" - public or private company that complies
with either one of the three following terms:
1. Employs over 250 people
2. It’s yearly revenue is at list 25 Million NIS (new Israeli
Shekel)
3. The ratio between the highest monthly salary to the
lowest one is larger than 30 times.
Article 6 –Timing of handing in a CSR report
The report will be handed in by the end of the first quarter of
the financial year and will cover the previous year.
The clerk in charge is allowed, according to the specified
conditions, to grand a delay of up to two months in the handing in
of the report to the companies requesting in doing so.
The minister is allowed to exempt a company from up to one
reporting period, according to the specified conditions.
Article 9 – Penalties
An obligated reporting company that did not hand in
its report accordingly will be fined in the rate of 1% of
its yearly revenue.
Before executing the fine as specified in article (A),
the clerk in charge is allowed to summon for hearing
the company's responsible manager.
Any company not handing in a report on time will not
be allowed to do any use of the reporting logo until
the report is handed in accordingly.
An obligated company not handing in a report will be
registered a violating company and this record will be
saved to a period of up to seven years.

16. Workplace Diversity
Yes/NoIs the organization a policy for the advancement of
disadvantaged populations in Israeli society?
AttachmentIf yes, complete and attach the policy document
TextIf no, please explain why there is no such policy
document
Please answer the following questions for each
population group: women, Arabs, ultra orthodox,
people with disabilities, elderly (45+), Ethiopian
PercentageWhat is the percentage of employees in each of these
groups out of the total employees in the organization?
PercentageWhat is the percentage of employees for each of
these groups that were hired by the organization
during the reporting period?
PercentageWhat is the percentage of employees in each of these
groups that hold management positions in the
organization?
PercentageWhat is the percentage of employees in the
organization from each of these groups are earning in
the top fifth (20% upper) of high wage recipients?
We developed in a multi-stakeholders
dialogue process a detailed guidelines for
non financial reporting.

17. The world is based on three pillars:
1. On the Bible
2. on the Work
3. And on Charity:
1. In money donations
2. In personal fiscal assistance
3. In one’s speaking out

18. Liad.ortar@gmail.com