Sandra Stuart, President and CEO of HSBC Bank Canada, Wants Canadian Companies to Thrive on the World Stage
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Leaders, insights and challenges to Canadian business PwC Up front Up Up frontupfront.pwc.com Balancing profit and purpose COVER STORY p6 Sandra Stuart, President and CEO of HSBC Bank Canada, wants Canadian companies to thrive on the world stage published by PwC Canada Fall 2016 Fall Balancing profit and purpose / Issue 8 / Fall 2016 Hubert T. Lacroix, CBC/Radio-Canada p14 / David Miller, WWF-Canada p20 / Robert B. Issenman, Leader Auto Resources LAR p25 / Bruce Archibald and Carolina Giliberti, Canadian Food Inspection Agency p30 / Daryl Wilson, Hydrogenics p36 / Ellis Jacob, Cineplex p38 Up front Fall 2016 Balancing profit and purpose “Building trust in society and solving important problems” is the lens through which we make choices at PwC – the businesses we enter and the investments we select, the talent we hire, the community projects and causes we get involved in and the thought leadership we provide. In today’s world, businesses are becoming more aware that making money is only one criterion. We believe our work must be important to our clients and stakeholders, and to society at large, if we want to thrive over the long term. The Canadian results from our latest Global CEO Survey confirmed that we are on the right path. More than 90 per cent of Canadian CEOs think business success in the 21st century means looking beyond financial profit, and that living your values and purpose must be at the core of your strategy. Over the past few months, I’ve talked with a number of executives, and many of us are asking the same question: How do we build a broader, balanced and sustainable culture that resonates with our customers, investors, employees and society? It starts with a diverse workforce and an inclusive environment, where differences are celebrated and people are engaged and feel Losing the Signal wins the 2016 National empowered to make an impact. The conversations and stories in this issue of Business Book Award Up front offer some perspectives on these and other matters. Thank you to everyone who shared their Jacquie McNish and Sean Silcoff tell the riveting story of how BlackBerry time and insights. To our readers – enjoy, and give engineered a spectacular technology upset then lost its way, leading to us your feedback. the breakdown of one of the most successful partnerships in the history Bill McFarland of Canadian business. CEO and Senior Partner, www.nbbaward.com PwC Canada Presented by Media partner Magazine media partner Up front Fall 2016 1 Up front Publisher Tahir Ayub Up front Fall 2016 In this issue Managing Partner, Markets and Industries, PwC Canada Editors Nick Rockel The Globe and Mail Robert MacKay PwC Canada Contributors Bridgitte Anderson, Chris Atchison, Tahir Ayub, Sarah Barmak, Jason Boggs, Yves Bonin, Bryan Borzykowski, Brenda Bouw, Leigh Chalmers, Jim Crooks, Jeff Davidson, Chris Dulny, Karen Forward, Jennifer D. Foster, Tim Fraser, Blair Gable, Philip Haywood, Peter Holst, Marjo Johne, Christopher Korchin, Lila MacLellan, James Martin, Valérian Mazataud, Bill McFarland, Christinne Muschi, Howard Quon, Tracey Riley, Susan Smith, Josée St-Onge, Elisa Swern, Kevin Van Paassen, Lori Watson, Mel Wilson, Chris Young Blue sky Insights PwC Edge of tomorrow Bill McFarland Analysis and insight from respected professionals CEO and Senior Partner, PwC Canada The future, it seems, is upon us. A broader 4 In good company Looking beyond profit, businesses make social Kelly Nicoll definition of value is transforming 10 Talent, technology and the future of work responsibility a core value Creative Lead, Design, PwC Canada how, and why, businesses operate. To adapt to the work of tomorrow, talent leaders must Globe Edge Demographics are fundamentally champion technological skill, encourage innovation and changing consumer markets and workforce forge a new relationship with employees Teena Poirier dynamics. Advances in technology are The leaders Director, Globe Edge Sean Stanleigh leading to an explosion of data. Analytics Executives share their thoughts on championing innovation Social obligations 28 Managing Editor, Globe Edge Content Studio are fuelling innovation, and innovation is and giving organizations a strong sense of purpose In today’s peer-to-peer world, companies face growing public disrupting established industries. Society pressure to show that they make a difference. Here’s how to Simon Beck Senior Editor, Globe Edge Content Studio is demanding increased transparency leverage social media to engage consumers and build trust in 6 Sandra Stuart 25 Robert B. Issenman Lauren Heintzman and accountability. And corporate your brand responsibility is becoming core to strategy. President and CEO, President and CEO, Art Director Exciting times and, for many, uncharted HSBC Bank Canada Leader Auto Resources LAR Liz Massicotte territory. Balancing the demands of Program Manager, Globe Edge investors and customers Jennifer Reynolds 30 Bruce Archibald Challenges Isobelle Cabral while meeting the changing 12 President and CEO, and Carolina Giliberti Case studies from Canadian businesses Production Co-ordinator, The Globe and Mail expectations of employees, Women in Capital Markets President and Executive Cover photo society and government will Vice-President, Canadian 23 Doing it right Peter Holst be a challenge. Yet relevance Food Inspection Agency Mr. Lube finds the ideal buyer for the nationwide oil-change Up front magazine is designed and produced by The Globe and Mail tomorrow requires action today. Custom Content Group on behalf of PricewaterhouseCoopers LLP. 14 Hubert T. Lacroix franchise business All correspondence: In this issue of Up front, we PwC Tower Attention: Robert MacKay President and CEO, 18 York Street, Suite 2600 talk to leaders of public and 36 Daryl Wilson Strength in numbers Toronto, Ont. M5J 0B2 CBC/Radio-Canada 34 [email protected] private businesses, government President and CEO, Vancouver-based FrontFundr and other equity crowdfunding upfront.pwc.com and not-for-profits about the Hydrogenics Printing and Pre-press by DM Digital+1 platforms are a new frontier for startups and investors © 2016 PricewaterhouseCoopers LLP, an Ontario limited liability Tahir Ayub trends they’re watching and how partnership. All rights reserved. PwC refers to the Canadian member 18 Peter Mansbridge firm, and may sometimes refer to the PwC network. Each member Managing Partner, they’re focusing innovation to Chief Correspondent, firm is a separate legal entity. Please see www.pwc.com/structure for Markets and 38 Ellis Jacob further details. prepare their organizations for CBC News PwC Canada helps organizations and individuals create the value Industries, President and CEO, Cineplex they’re looking for. More than 6,500 partners and staff in offices the future. across the country are committed to delivering quality in assurance, PwC Canada End game tax, consulting and deals services. PwC Canada is a member of the I hope you find these PwC network of firms with close to 195,000 people in 157 countries. Find out more by visiting us at www.pwc.com/ca. conversations as interesting and 20 David Miller 42 Scott Tinker 44 Peer-to-peer lending pioneer Jessica Jackley urges informative as we did. President and CEO, CEO, Tinker Energy companies to make a difference to society by embracing WWF-Canada Associates causes they believe in 2 Up front Fall 2016 Up front Fall 2016 3 Creating a strong business and building a better world are not Global 40% conflicting goals – premium 42% EUROPE NORTH AMERICA they are both essential A poll of 30,000 consumers in 60 countries reveals that some parts of ingredients for long- the world are more willing to pay extra Blue sky for a product or service from a socially 63% term success. responsible brand. MIDDLE EAST 64% 63% AND AFRICA ASIA-PACIFIC LATIN William Clay Ford Jr., Global Survey on Corporate Social AMERICA Just watch us Executive Chairman, Ford Motor Co. Responsibility (Nielsen Co., 2014) Websites and apps make it a breeze to buy goods and services. Technology is also making it easier than ever to research who you’re buying from – and We hear you Causes Responsible the impact they’re having on the environment and society. Over the next five years, CEOs think tech Eighty per cent of CEOs say they’re making changes for environmental, social for concern “All company will play a major role in transforming stakeholder and governance (ESG) reasons. When it comes to setting those strategies, investments expectations of their businesses. With that in mind, stakeholders have a bigger voice in the boardroom than ever – even if only half Where should companies direct their 51 per cent plan to significantly change how their of chief executives think ESG increases profitability. sustainability efforts? Consumers are most bosses want Researchers at Harvard Business School and London companies use technology to assess and deliver on likely to pay a premium for products that help Business School tracked 180 U.S. companies over those expectations. Who’s influencing my strategy? to support these causes: a policy on 18 years. Half of those businesses had strong environmental, social and governance (ESG) systems Global Investor Survey (PwC, 2016) Increasing access to corporate social and practices; the other half, not so much. When it clean water came to stock or accounting performance, the first 1 responsibility. group outpaced their low-sustainability peers. Ensuring environmental The positive “It takes 20 years to sustainability Evolution of $1 (U.S.) invested in the stock