Canadian Corporations and Social Responsibility
Total Page：16
File Type：pdf, Size：1020Kb
CANADIAN DEVELOPMENT REPORT 1998 C CANADIAN ANADIAN CORPORATIONS AND SOCIAL RESPONSIBILITY CANADIAN The private sector now dominates North-South D relations. But are trade and EVELOPMENT CORPORATIONS investment substitutes for foreign aid? What should corporations contribute to AND SOCIAL the welfare of the global community, particularly its poorest citizens? How should government trade R RESPONSIBILITY EPORT promotion programs support their efforts? In tackling these questions, 1998 this volume surveys the activities of Canadian corporations—in the financial, manufacturing, mining, infrastructure/ engineering, and management consulting sectors—in developing country markets, explores social and environmental responsibility issues, and examines the need for public and private sectors to work together for development. In addition, a 45-page statistical annex analyzes the full range of Canada’s relations with countries in the South. ISBN 1-896770-17-7 Printed in Canada Pages a-138 (152) 4/24/98 4:05 PM Page a CANADIAN DEVELOPMENT REPORT 1998 CANADIAN CORPORATIONS AND SOCIAL RESPONSIBILITY EDITED BY M ICHELLE H IBLER AND R OWENA B EAMISH Pages a-138 (152) 4/24/98 4:05 PM Page b THE NORTH-SOUTH INSTITUTE The Institute is a charitable, not-for-profit corporation established in 1976 to provide professional, policy-relevant research on “North-South” issues of relations between industrialized and developing countries. The results of this research are made available to policymakers, interested groups, and the general public to help generate greater understanding and informed discussion of development questions. The Institute is independent and nonpartisan and cooperates with a wide range of Canadian, overseas, and international organizations working in related activities. The contents of these essays represent the views and findings of the authors alone and not necessarily those of the North-South Institute’s directors, sponsors, or supporters, or those consulted in their preparation. CANADIAN CATALOGUING IN PUBLICATION DATA Main entry under title: Canadian corporations and social responsibility : Canadian development report, 1998 (Canadian development report, ISSN 1206-2308) Includes bibliographical references. ISBN 1-896770-17-7 1. Social responsibility of business—Developing countries. 2. Corporations, Canadian. 3. International economic relations. 4. Economic assistance, Canadian—Developing countries. 5. Sustainable development—Developing countries. I. Hibler, Michelle II. Beamish, Rowena III. North-South Institute (Ottawa, Ont.) IV. Series. HD60.5.D48C36 1998 306.3’4’091724 C98-900501-1 Editorial Team Rowena Beamish, Michelle Hibler (Editors) Anne Chevalier (Translation and Production Coordination) Design Paul Edwards Design Printing The Lowe-Martin Group © The North-South Institute/L’Institut Nord-Sud, 1998 Price $35.00 CD ROM $15.00 Available from Renouf Publishing Co. Ltd 5369 Canotek Road Ottawa, ON K1J 9J3 Tel.: (613) 745-2665 Fax: (613) 745-7660 World Wide Web: http://www.renoufbooks.com Pages a-138 (152) 4/24/98 4:05 PM Page c T HE N ORTH-SOUTH I NSTITUTE GRATEFULLY ACKNOWLEDGES THE GENEROUS FINANCIAL SUPPORT OF THE FOLLOWING DONORS IN THE PUBLICATION OF THE C ANADIAN D EVELOPMENT R EPORT 1998 Pages a-138 (152) 4/24/98 4:05 PM Page d D ONATION AND F UNDRAISING P OLICIES DONATION POLICY A registered charity, the North-South Institute accepts cash and in-kind donations from government departments, foundations, academic institutions, not-for-profit organizations, corporations, and individuals. These are accepted with the understanding that the donor gives them freely with no expectation of receiving benefits in return, and that the donation does not compromise the Institute’s independence in the way it undertakes research, the conclusions it reaches, the policy recommendations it makes, or the way it disseminates the results of its activities. FUNDRAISING POLICY The North-South Institute adheres to ethical principles and prac- tices with respect to donors’ rights, fundraising practices, and financial accountability. Copies of our most recent annual report and financial statement, a list of current members of the NSI Board of Directors, and a copy of our ethical fundraising code can be obtained by writing the Institute. Pages a-138 (152) 4/24/98 4:05 PM Page e P ATRONS (DONATIONS OF $10,000 OR MORE) Canadian International Agence canadienne de Development Agency développement international General Motors of Canada Limited IDRC CRDI INTERNATIONAL DEVELOPMENT RESEARCH CENTRE CENTRE DE RECHERCHES POUR LE DÉVELOPPEMENT INTERNATIONAL CANADA POWER CORPORATION OF CANADA Pages a-138 (152) 4/24/98 4:05 PM Page f S UPPORTERS (DONATIONS BETWEEN $5,000 AND $9,999) AGA KHAN FOUNDATION CANADA FONDATION AGA KHAN CANADA Department of Foreign Affairs Ministère des Affaires étrangères and International Trade et du Commerce international R. HOWARD WEBSTER FOUNDATION LA FONDATION R. HOWARD WEBSTER Pages a-138 (152) 5/1/98 1:47 PM Page g C ONTRIBUTORS (DONATIONS BETWEEN $1,000 AND $4,999) CANADIAN LABOUR CONGRESS CONGRÈS DU TRAVAIL DU CANADA SOCIAL JUSTICE FUND LE FONDS DE JUSTICE SOCIALE Steelworkers Humanity Fund Fonds Humanitaire des Métallos Pages a-138 (152) 4/24/98 4:05 PM Page h Pages a-138 (152) 4/24/98 4:05 PM Page i C ANADIAN D EVELOPMENT R EPORT 1998 TABLE OF CONTENTS FOREWORD i The Right Honourable Joe Clark ACKNOWLEDGEMENTS iii Roy Culpeper OVERVIEW 1 CHAPTER ONE THE CORPORATE STAKE IN SOCIAL RESPONSIBILITY 13 Roy Culpeper and Gail Whiteman CHAPTER TWO MAKING ECONOMIES SERVE PEOPLE 35 T HE F INANCIAL S ECTOR Robert Walker and Marc de Sousa-Shields CHAPTER THREE ETHICS IN THE MARKETPLACE 55 T HE M ANUFACTURING S ECTOR Ann Weston CHAPTER FOUR BEYOND BEST PRACTICE 73 T HE M INING S ECTOR Moira Hutchinson CHAPTER FIVE PURSUING SUSTAINABLE DEVELOPMENT 91 I NFRASTRUCTURE AND E NGINEERING Gail Whiteman and Susan Brandum CHAPTER SIX THE BUSINESS OF DEVELOPMENT? 109 M ANAGEMENT C ONSULTING Marlene Benmergui CHAPTER SEVEN SELLING CANADIAN VALUES 117 E NCOURAGING P RIVATE S ECTOR A CTIVITY IN THE S OUTH Ted Paterson LIST OF CONTACTS 135 STATISTICAL ANNEX 139 Pages a-138 (152) 4/24/98 4:05 PM Page j Pages a-138 (152) 4/24/98 4:45 PM Page i FOREWORD here has recently been much discussion as made by adhering to the lowest possible Tto what constitutes appropriate behaviour standards for workers, the community, or the for Canadian corporations operating interna- natural environment. And there may, indeed, be tionally. The actions of corporations flying the lost commercial opportunities in adhering to Canadian flag help define Canada’s reputation higher standards. But there are two extremely abroad, just as the actions of governments good reasons for aiming considerably higher establish the policy, legal, and regulatory than the lowest common denominator. framework within which corporations act. The first relates to our values as Canadians. As the capacity of nation-states becomes more At home, we treat issues such as human rights, restricted, however, the imprint of global workplace standards, and responsible stewardship business is becoming more pronounced. Given over the natural environment very seriously. The that the role and influence of multinational importance we attach to these values is integral corporations continue to grow, and that the to our international reputation as a fair and power of governments to compel is diminishing, democratic society. It is no doubt also reflected the question arises as to whether or not in Canada’s consistently high ranking at or near the responsibility of business should grow the top of the United Nations’ Human concomitantly with its influence. Development Index. In our conduct abroad, our standards should be no less than those we This edition of the North-South Institute’s strive to achieve at home. Indeed, what coun- Canadian Development Report considers the tries are better placed than Canada to defend question of corporate responsibility in the these values in the global marketplace? global marketplace to be a leading issue for the 21st century. The report focuses on the activities Second, ethically and environmentally respon- of Canadian corporations in the developing sible conduct can actually be good for business. world, where the challenges of social and Canada is a trusted country, a respected country, environmental responsibility are apt to be most and those attributes are of benefit to corporations acute. In keeping with the Institute’s approach, doing business in its name. More to the point, the report seeks a balanced judgment on both however, firms striving to enhance their work- what Canadian firms have achieved in the past place, community, and environmental standards and what they may strive to achieve in the actually strengthen the climate for business. future. It does this by lauding the good corpo- By contributing to the well-being of their rate practices (and there are many examples) stakeholders and the sustainability of the as well as identifying the bad. And it makes natural environment, firms invest in their several recommendations to corporations, own long-term profitability. governments, and the Canadian public, aimed The Canadian Development Report 1998 conveys at enhancing the social and environmental these and related messages with insight, convic- performance standards of Canadian businesses. tion, and considerable persuasion. I commend Striving for higher levels of social and environ- the Institute’s staff and collaborating authors for mental performance does come at a cost. Some a timely and highly useful contribution to a set might say that such efforts impair the competi- of issues that is bound to attract the increasing tiveness of Canadian businesses in the global attention of corporate decisionmakers, public marketplace. To be sure, there are profits to be policymakers, and citizens in general. The Right Honourable Joe Clark i Pages a-138 (152) 4/24/98 4:45 PM Page ii ii Pages a-138 (152) 4/24/98 4:45 PM Page iii ACKNOWLEDGEMENTS his second volume in the North-South case, the final text was a product of internal and TInstitute’s annual series investigating external peer review and much internal discus- Canada’s dynamic relationship with the sion.