Corporate Social Responsibility:
Lessons Learned
Final Summary Report
Corporate Social Responsibility: Lessons Learned Summary Report
Contents
Contents 2 Acknowledgements 3 1 Executive Summary 4 2 Study Context and Objectives 9 3 Methodology 12 4 Highlights of Company CSR Activities 17 5 CSR Program Areas 27 6 Business Case for CSR: Key Drivers and Benefits 35 6.1 Business Benefits of CSR ...... 35 6.2 Risks of Not Adopting CSR...... 40 7 Change Management: Success Factors and Challenges 44 Vision and High Level Commitment to CSR...... 45 Skills, Tools and Information...... 49 Incentives, Motivational Factors and Employee Buy-In...... 50 Resources ...... 51 8 Role of Government in Supporting CSR 54 9 Conclusion 57 Appendix 1: General CSR Interview Outline 59 Appendix 2: Company Contacts 63 Appendix 3: External Viewpoints 66 .
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Acknowledgements
This report was undertaken for the Interdepartmental Working Group on Corporate Social Responsibility. The Working Group – led by Natural Resources Canada – comprises a number of Federal Government Departments including Environment Canada, Fisheries and Oceans Canada, Industry Canada, Transport Canada, the Department of Foreign Affairs and International Trade, and the Policy Research Initiative. Kevin Brady, Wylie Thomas, and Jennifer Clipsham of Five Winds International, with the support of Malcolm Smith of Hemmera Envirochem, conducted the study.
The study was made possible through the generous cooperation of the participating companies who took the time to share their experiences and expertise. Their open sharing of information will assist the Working Group in working cooperatively with industry in the future to facilitate the adoption of corporate social responsibility within Canadian industry. The names of the individuals interviewed are contained in Appendix 2 of this report.
For more information on this study please contact:
Jim Frehs
Sustainable Development and International Affairs Corporate Policy and Portfolio Coordination Branch Natural Resources Canada [email protected]
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1 Executive Summary
This study documents the experience of companies that have developed programs or activities that address the elements of corporate social responsibility (CSR). The study is part of a larger federal Policy Research Initiative (PRI) on sustainable development, being undertaken to look at key policy issues facing Canada in the short and long term. The steering committee for the project is comprised of representatives from Natural Resources Canada, Industry Canada, Environment Canada, Department of Fisheries and Oceans, Department of Foreign Affairs and International Trade, Transport Canada and the Policy Research Initiative. The results of the study will assist to further guide industrial policies and program development to ensure a strong and competitive Canadian economy.
The purpose of the case study component of the project was to better understand the drivers, implementation approaches, challenges and barriers facing companies as they attempt to advance CSR, and to explore the role of government in promoting CSR. The report consists of two parts: 1) this summary report; and 2) ten individual company case studies. With the exception of the context section of this report, there has been no attempt to define CSR or look at broad drivers and trends other than those identified by the companies who participated. For detailed descriptions of the drivers, benefits, challenges and success factors, readers are encouraged to read the individual case studies. A companion paper to this study entitled Rising Expectations: Corporate Social Responsibility, explores these issues in more depth.
The framework for the study is based on a modified version of the Canadian Business for Social Responsibility guidelines on CSR, which organizes CSR into key program areas. The study proponents selected this framework and participating companies were asked to highlight the program areas where they felt they were particularly strong. The framework groups CSR activities into the following nine program areas: community and broader society; employees; customer or product stewardship; environment; stakeholder engagement; reporting and communications; shareholders; suppliers; governance / code of conduct. A more detailed description of CSR and examples of activities that make up these program headings are provided in Section 5 of this report.
Ten companies participated in the Box 1 study (box 1). The companies were Company Studied Sector selected to reflect a cross-section of Teck Cominco Metals and Mining sectors and a range of DuPont Canada Chemicals understanding and implementation Husky Injection Molding Manufacturing of CSR practices. For each case Home Depot Canada Retail study, initial research was Weyerhaeuser Canada Forestry conducted on the company, which Canadian Pacific Railway Transport was followed by interviews with Nutreco Canada Fisheries key managers, as well as external Syncrude Oil and Gas stakeholders. The information VanCity Credit Union Finance TELUS Telecommunications
4 / 68 Corporate Social Responsibility: Lessons Learned Summary Report gathered was written up in a case study format and reviewed by the companies for accuracy.
It is important to note that the study has not attempted to evaluate or judge the performance of participating companies. The independent verification of the information contained in the case studies was beyond the reach and resources of the current survey, and was not the aim of the research. Instead, the study is an attempt to document the experiences and challenges of implementing CSR from the perspective of the participating companies. It is hoped that these findings will make a contribution in understanding the issues facing companies from their perspective as they attempt to advance CSR.
The methodology of the study is described in detail later in this paper. Readers are encouraged to familiarize themselves with that section to better understand the scope of the study’s findings.
The study proponents recognize that no one company can exemplify best practice in CSR. By telling a range of stories from a cross-section of sectors, it is hoped that the study will help the reader understand the complexities, challenges and opportunities facing organizations as they implement CSR.
Key findings of the study were:
Terminology
There was a range of interpretations of CSR among companies, and each company is at a different stage of implementation. While some of the firms used the term CSR explicitly (e.g., VanCity, TELUS, Syncrude), many other terms were used including sustainable growth (Dupont), corporate responsibility (Teck Cominco, Nutreco), social responsibility (Home Depot, CPR), corporate citizenship (Weyerhaeuser). One company (Husky Injection Molding) did not have a preferred term, and instead referred to its CSR activities as living out its purpose and values.
CSR implementation
Companies have adopted a range of strategies, management systems, programs and tools to implement business practices that support CSR. These concepts and tools are most advanced in the environmental field. However, there is considerable activity related to community and stakeholder engagement. Each company was asked to highlight program areas where they believed they had good business practices or programs in place. Case study companies were asked to identify the CSR program areas in which they had some activity. All companies were active in the following areas: Employees; Communities and Broader Society; and, Environment. A majority of companies were also active in Reporting and Communications. For a large number of companies, Governance/Code of Conduct and Stakeholder Engagement had recently emerged as priority areas. Program areas that were less common, and most likely least developed, were Suppliers, Customers and Shareholders.
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Business Case
All of the companies had a strong understanding of the business case for CSR, and many had realized tangible results from their CSR efforts. The business benefits identified are shown in Box 2 and included cost savings due to efficiency improvements, enhanced employee morale and accelerated approvals processes, among others (see Section 6.1).
Box 2. Business Value: Drivers & Benefits for CSR
- Reputation / Brand Image (10 / 10) - Corporate Values “Right Thing To Do” (9/10) - Relations With Stakeholders / Dispute Resolution / Issues Management (8/10) - Improved Access to Markets / Customers (8/10) - Expedited Permitting / Relations with Regulators (8/10) - Compliance with Regulation (Environment) (8/10) - Social License to Operate or Grow (7/10) - Cost Savings / Improved Bottom Line (7/10) - Increased Employee Morale and Productivity (7/10) - Changing Stakeholder Expectations (6/10) - Attract and Maintain Skilled Employees (6/10) - Reduced Business Risk (4/10) - Improved Reputation with Investors, Bond Agencies, Banks (4/10) - Stimulate Innovation (4/10) - Input to Strategic Planning & Understanding SD (4/10)
Note: Brackets indicate the number of companies out of ten that identified the driver/benefit
The study revealed that the risks of not getting involved in CSR are also clear to many companies. These risks include loss of licence to operate and expand, inability to attracted quality employees and loss of brand reputation (see Section 6.2).
Success Factors
The case study companies identified a number of success factors for implementing CSR. These include: