Your customers take note of your behaviour

Written by Shirley Lichti for The Record, May 16, 2007

Corporate social responsibility has been called the business issue of the 21st century by the Conference Board of Canada. In the wake of recent corporate scandals, much greater attention is being paid to the responsibility of companies to behave ethically.

However, corporate social responsibility (CSR) goes beyond ethics. It also requires companies to contribute to economic development while improving the lives of employees and their families - as well helping the local community and society at large.

A 2003 Ipsos Reid poll showed that the majority of Canadians have rewarded or punished a company for its corporate citizenship. About 55 per cent consciously bought products or services from companies they identified as good corporate citizens. More importantly, 52 per cent refused to support companies they felt were not socially responsible.

This trend shows no signs of abating. In April 2006, Ipsos Reid reported poll results showing that 68% of Canadians pay attention to issues related to corporate social responsibility.

Expectations for corporate social responsibility have grown across the world according to Globe Scan (formerly Environics International.) Its most recent CSR Monitor notes that protecting the environment and giving back to the community rank among the top four things a company can do to be seen as socially responsible.

Consumers increasingly want to purchase products and services from companies that act in socially responsible ways. Most large companies understand this and actively promote their efforts.

The Royal Bank of Canada, for example, states that its sustainable long-term economic success depends on a sound environment and healthy communities. Its Corporate Responsibility Report and Public Accountability Statement lists numerous results from program initiatives including a decrease in year-over-year company generated greenhouse gas emissions by seven per cent and a reduction in paper consumption of about 20 tonnes by providing clients the option of "turning off" paper statements.

Bell Canada's website notes its commitment to advancing economic growth responsibly, shrinking its environmental footprint, and partnering to build stronger communities. It also invests in charitable programs such as Kids Help Phone, Canada's only 24-hour, toll-free, bilingual and anonymous phone counselling, referral and Internet service for children and youth. The line is staffed by professional counsellors who answer over 1,000,000 calls and online questions every year.

Mountain Equipment Co-op, headquartered in Vancouver, combines corporate social responsibility with ethical consumerism messages. It donates one per cent of all sales revenues to support Canadian environmental causes and has instituted an ethical sourcing program to improve conditions in factories where its products are made.

The company educates customers and encourages them to protect the outdoors. And its recycling program lets customers return worn-out polyester garments to be recycled into new items.

A co-operatively owned insurance company, Guelph-based The Co-operators, has built a reputation for caring about its members' needs and the quality of life in their communities. Safety-related events such as car-seat inspection clinics and bike safety rodeos, anti-drinking and driving initiatives and sponsorship of the Block Parent Program of Canada are funded by its Community Economic Development program.

But corporate social responsibility initiatives are not just for large companies.

Eastwood Printing Inc. of Kitchener has 21 employees. Its controller, Diana Veenstra, says the company recycles all its paper and aluminum printing plates and uses as many environmentally-friendly products as possible. It also uses vegetable-based inks and has eliminated chemicals involved in processing plates prior to printing.

Eastwood is also working to get Forestry Stewardship Council certification so its customers can choose paper they know comes from producers who practice sustainable forestry.

The company supports numerous community initiatives and charities from sponsoring the Manulife Bike & Hike for Heart and printing the directory for the Waterloo Arts Council to supporting the St. Mary's Hospital drive to raise funds for digital mammography. It embraces causes revolving around health issues such as heart ailments and cancer.

Eastwood also sponsors mission trips identified by employees. Veenstra, for example, will travel to the Ukraine to help construct farm buildings. Two other employees are being sponsored to work on a Habitat for Humanity build in South Africa.

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