In addition to increasing shareholder value, driving economic
growth and providing stable employment, businesses are being called on to
help ensure the ongoing social and environmental sustainability of the Fraser
Basin. Sustainable businesses create value for six stakeholder groups: customers,
employees, investors, vendors, communities, and the environment. Companies
frequently refer to these commitments as corporate social responsibility
(CSR), and these commitments help differentiate them from competitors by
building public trust, attracting and retaining the best employees, and
reducing environmental impacts and liabilities. Sustainable purchasing is
one approach to business that integrates social, ethical and environmental
considerations in the purchasing process. The Conference Board of Canada
has reported that corporations that voluntarily behave in a socially responsible
manner stand to benefit from those actions.1 Some of the benefits of CSR
include improved reputation and brand management; enhanced employee recruitment,
motivation and retention; greater access to capital; operational efficiency
and cost savings; greater social licence to operate; and improved relations
with regulators.
| Research
and Development |
|
GOOD
-Business expenditure on R&D was 3rd highest in Canada in 2004.
|
| Corporate
Social Responsibility |
|
GOOD
-Companies based in the Fraser Basin claimed 5 of the top 11 socially
responsible Canadian corporations as ranked by Stratos Inc. in 2005. |
| Environmental
Management |
|
FAIR/MIXED
RESULTS
- BC was 4th in the country in the number of ISO 14001 certificates
issued, but only 6th nationally in certificates per 1,000 enterprises
(6.7). |
Research and Development (1984-2004)3
Investing in research and development (R&D) is a good indicator of the
business sector's interest in improvement and innovation. A business can
invest in R&D to strengthen its competitiveness, viability, productivity
and resilience to ever-changing markets and regulatory environments. R&D
can support the sustainability of the business itself as well as a sustainable
economy. Between 1984 and 2005, the business sector's participation in domestic
Business Expenditure on R&D increased from 48% to 53%, peaking at 62%
in 2001. Between 2001 and 2004, the BC business sector's contribution to
R&D, as a percentage of provincial GDP, was 0.8% on average. By comparison
in Alberta, the contribution was 0.4%, Ontario 1.53 % and the rest of Canada
1.18 %.
Corporate Social Responsibility (CSR)
1, 4
CSR policies reflect a company's broader commitment to sustainability
and "triple bottom line" performance (social, economic and environmental).
The number of Canadian companies publishing reports on their environmental,
social and economic performance continues to grow-114 companies in 2004
compared to 100 in 2002. In its 2005 national benchmark CSR survey, Stratos
Inc. found that Vancity, TELUS and BC Hydro took the three top spots. Fraser
Basin-based companies claimed five of the top 11 spots in the rankings,
with Weyerhaeuser (7th) and Vancouver International Airport (11th) also
ranking very high nationally.
4
Environmental Management-ISO 14001 Certification (1996-2006)
5
ISO 14001 is among the most widely known of environmental
certification systems. In practical terms, an organization that receives
an ISO 14001 certificate has demonstrated that it has a system in place
to consider and manage those aspects of its operations that could potentially
affect the environment. In absolute numbers, 1,055 ISO 14001 certificates
have been issued in BC-the fourth highest number in the country. 672 of
these certificates were in the Fraser Basin (64% of the BC certificates).
When the number of certificates is divided by the number of enterprises
operating in the province in 2003, BC slips to sixth place in the country
(6.7 certificates for every 1,000 enterprises), well behind Ontario (22.6)
and Quebec (23.5).
The Next Generation-Sustainable Business, Engineering
and Law 6
Sustainability is being included in the curricula of business,
engineering and law schools across the province. The Corporate Knights Magazine
annual survey of Canadian Universities ranks business schools, law programs
and engineering schools in terms of how well they infuse social and environmental
impact management into their curricula, considering institutional capacity,
student-led initiatives, and course work. The UBC Engineering School (third
out of 36) and the Law Schools of the University of Victoria and UBC had
very favourable rankings in this survey (fourth and fifth out of 21 respectively).
Four BC university MBA programs ranked in the middle of the pack across
Canada, with rankings between 10 and 16 out of 25 schools in 2005 and between
8 and 22 out of 34 schools in 2006. Only UBC improved its MBA ranking in
this time period.
What is being done?
The Sustainable Purchasing
Network (SPN) helps organizations develop sustainable purchasing policies
through training, case studies, tools, guides and networking sessions. 75
individual organizations participated in workshops and learning circles
between October 2005 and June 2006: www.buysmartbc.com.
Westport Innovations
Inc. received the 2005 Leadership in Social Responsibility Award at the
Technology Impact Awards in recognition of its performance in integrating
CSR principles into its corporate culture and operations, and for contributions
the company and its employees have made to their communities
7. Westport develops environmental technologies to
allow vehicles to operate on clean-burning alternative fuels.
Natural Resources Canada's
Industrial Energy Audit Incentive covers up to 50% of the cost of an on-site
energy audit, to a maximum of $5,000.
What else can be done?
Pay employees a living
wage and provide work-life balance opportunities for employees, including
flex-time and job-sharing.
Join the Sustainable
Purchasing Network to learn how to advance sustainability through purchasing
decisions, such as post-consumer recycled paper, sustainable forest products,
Fair Trade coffee, and sourcing goods and services from businesses that
hire from vulnerable populations (e.g., youth-at-risk, Aboriginal people,
people with disabilities).
Avoid use of toxic products
and other "off-gassing" chemicals.
Invest in ethical funds
and companies that are advancing sustainability through consultation and
collaboration with local communities, partnerships with First Nations communities,
and sustainable resource management.
|
Investing in sustainability
|
Vancity,
through its Shared Success Program, has given back to its members
and local communities more than $69 million of profits since 1994. Among
its various sustainability successes are the EnviroFund VISA, support
for the SFU/UBC transit U-Pass program, low-interest loans for hybrid
cars, financing for energy-efficient home renovations, achievements
in energy efficiency certified by BC Hydro's Power Smart program, "extreme
green" branches that maximize energy efficiency and minimize their
environmental footprint, and the highest employee participation rate
in the Commuter Challenge over several years.9
|
| PHOTO:
Vancity CEO Dave Mowat hops on a Segway during Clean Air Day. |
REFERENCES
1. Conference Board of Canada. 2004. The National Corporate
Social Responsibility Report: Managing Risks, Leveraging Opportunities.
2. Ipsos Reid. Corporate Social Responsibility (CSR)
in Canada. 2006.
3. Statistics Canada. CANSIM, Domestic Spending on R&D,
Table No. 358-0001, Cat. No. 88F0006XIE. 2000-2004.
4. Stratos Inc. 2005. Corporate Sustainability Reporting
in Canada: Gaining Momentum.
5. QSU Publishing: see www.whosregistered.com.
6. Corporate Knights. The 2006 Knight School Survey.
7. Industry Canada. 2006. Corporate Social Responsibility:
see strategis.ic.gc.ca/
8. BC Ministry of Small Business, Tourism and Culture and
the Green Economy Secretariat. 2001. Greening Your Organization.
9. Vancity. 2003. Things Grow Here.
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