1. Maureen C. Shaw World Congress – Orlando, Fl 20051 Corporate Social Responsibility – An International Imperative XVIIth World Congress on Safety and Health Orlando, Florida September 21, 2005 Maureen C. Shaw, President & CEO IAPA (Industrial Accident Prevention Association) 207 Queens Quay West, Suite 550 Toronto, Ontario M5J 2Y3 www.iapa.ca 1 Click to edit Master title style 1 Maureen C. Shaw, President & CEO IAPA (Industrial Accident Prevention Association) 1-800-406-IAPA (4272) www.iapa.ca Corporate Social Responsibility – An International Imperative September 21, 2005

2. Maureen C. Shaw World Congress – Orlando, Fl 20052 A World where risks are controlled because everyone believes suffering and loss are morally, socially and economically unacceptable

3. Maureen C. Shaw World Congress – Orlando, Fl 20053 88 years of health & safety 225 committed, skilled employees 100 consultants / specialists 900 Volunteers 88 years of health & safety 225 committed, skilled employees 100 consultants / specialists 900 Volunteers “Alone we can do so little; together we can do so much.” Helen Keller “Alone we can do so little; together we can do so much.” Helen Keller

4. Maureen C. Shaw World Congress – Orlando, Fl 20054 Consulting & Technical Services Training and education Integrated Management System Over 100 products and services Consulting & Technical Services Training and education Integrated Management System Over 100 products and services “Divide each difficulty into as many pieces as is feasible and necessary to solve it.” Reńe Descartes “Divide each difficulty into as many pieces as is feasible and necessary to solve it.” Reńe Descartes

5. Maureen C. Shaw World Congress – Orlando, Fl 20055 Collaborating Centre – ILO-CIS / WHO National/International collaboration A focus on young and new workers Centre of Health & Safety Innovation Collaborating Centre – ILO-CIS / WHO National/International collaboration A focus on young and new workers Centre of Health & Safety Innovation “Coming together is a beginning; Keeping together is progress; Working together is success.” Henry Ford “Coming together is a beginning; Keeping together is progress; Working together is success.” Henry Ford

6. Maureen C. Shaw World Congress – Orlando, Fl 20056   More than 6,000 people die every day because of the work they do for a living   2.2 million global work related fatalities every year (estimated for year 2001)   Diseases related to work cause the most deaths among workers, hazardous substances cause 438, 489 deaths annually   268 million accidents per year worldwide   World economic losses are equal to 4% of world’s GNP Estimated Global Occupational Losses International Labour Organization Reports: Source: ILO World Day for S&H at Work 2005: A Background Paper

7. Maureen C. Shaw World Congress – Orlando, Fl 20057 Corporate Social Responsibility is not the latest bullet or business fad, it is not a philanthropic idea. It is an international imperative for both business and the countries we are operating in.

8. Maureen C. Shaw World Congress – Orlando, Fl 20058  LEADERSHIP  INTEGRITY  RESPECT  COMMITMENT  RELATIONSHIPS IT’S ABOUT RESPONSIBLE CITIZENSHIP Corporate Social Responsibility in a globalized industrial world is about making the business investment and the community promise sustainable for the company and for the communities we operate in, its people and environment. It demands responsible governance-based principles of:

9. Maureen C. Shaw World Congress – Orlando, Fl 20059 In “the good old days”, corporate social responsibility meant a gently paternalistic attitude toward employees, discreet donations towards worthy causes and the company name on little league hockey or soccer sweaters. Those were the days, assuming they ever really existed, when growth was good. The Conference Board of Canada asserts that corporate social responsibility has now become “a vital part of a long- term, comprehensive approach to business success.” Traditional Attitudes

10. Maureen C. Shaw World Congress – Orlando, Fl 200510 Traditional Corporate Responsibilities Ensuring Health, Safety, Wellness & Security of Employees Management of Natural Resources  Conservation Minimizing Waste  Recycling Minimizing Pollution Compliance with Regulations & Legislation Based on European Sustainable Cities Report Traditional Corporate Responsibilities

11. Maureen C. Shaw World Congress – Orlando, Fl 200511 Corporate Community & Workplace Leadership Imperatives Sharing Best Practices  Mentoring Concern for Individuals Colleagues & Neighbours Social Responsibility to Community & Workplace Activities Support of Cultural Heritage Political Influence Locally Nationally Maureen C. Shaw - IAPA Leadership Imperatives

12. Maureen C. Shaw World Congress – Orlando, Fl 200512 “Work is an indispensable basis of society, and furthermore the process of work should be optimized by guaranteeing decent working conditions for all.” “The goal of the global community should be to guarantee a universal minimum level in working conditions and in occupational safety and health for all working people with the help of global strategies. The goal should be especially, to protect the most vulnerable groups, such as children, migrant workers, disabled people, aging workers, women and illiterate workers.” Dr. Professor Jorma Rantanen, Finnish Institute of Occupational Health Corporate International Imperatives

13. Maureen C. Shaw World Congress – Orlando, Fl 200513 Traditional / Legal Structure of Corporations The legally defined mandate of today’s corporation is to pursue relentlessly and without exception, its own self interest, regardless of the often harmful consequences it might cause to others. Currently, the most widely-used model in business is the stockholder model, championed by Milton Friedman who said “the business of business is business”.. Basically, profits are everything.

14. Maureen C. Shaw World Congress – Orlando, Fl 200514 The obstacle to making any significant, broad-based progress in improving factory health and safety conditions, not to mention wages, hours, harassment and discrimination in the global economy, is not a lack of guidelines or management CSR command- and-control systems, or certification schemes. The real obstacles are:

15. Maureen C. Shaw World Congress – Orlando, Fl 200515   Lack of political will by corporations to refrain from taking advantage of vulnerable countries and desperate workers.   Lack of political will and perhaps lack of genuine options, on the part of governments in the developing world to enforce regulations and establish new ones.   Lack of resources (financial, informational and political) of sweatshop workers – to know what their rights are, to know how to protect themselves on the job, and to be able to “operationalize” such knowledge.

16. Maureen C. Shaw World Congress – Orlando, Fl 200516 Ten Drivers of CSR  Reputation and brand management  Business risk management  Employee recruitment, motivation and retention  Access to capital  Learning and innovation  Cost savings and operational efficiency In 2002, the Conference Board of Canada examined the rationale behind social responsibility initiatives among Canadian companies. The National Corporate Social Responsibility Report “Managing Risks, Leveraging Opportunities” identifies nine common drivers that are the motivators:

17. Maureen C. Shaw World Congress – Orlando, Fl 200517  Competitiveness and market positioning  Social licence to operate  Improved relations with regulators  Organizational transformation and continued improvement Ten Drivers of CSR (Cont’d)

18. Maureen C. Shaw World Congress – Orlando, Fl 200518 Corporate Citizenship  A diversified technology, media and financial services company with 300,000 employees and customers on more than 100 countries.  An environment, health and safety (EHS) management system that applies to all GE businesses  A consistent expectations of EHS performance at all locations  A standardized compliance auditing and task management that provide consistent reporting and measurement  A supplier compliance program General Electric (G.E.)

19. Maureen C. Shaw World Congress – Orlando, Fl 200519 Corporate Citizenship  Dofasco is Canada’s most successful steel producer and a global industry leader with operations in Monterrey, Mexico  For 91 years they have focused on building enduring relationships with customers, shareholders, employees, suppliers and communities.  Committed to the principles of sustainability and corporate social responsibility. Dofasco

20. Maureen C. Shaw World Congress – Orlando, Fl 200520 Corporate Citizenship  Dofasco is listed on the Dow Jones Sustainability World Index, one of only 13 Canadian Companies. “Sustainability-driven companies achieve their business goals by integrating economic, environmental, and social growth opportunities into their strategies.  Dofasco has been recognized as a top 50 employer in Canada. Received the National Quality Institute Healthy Workplace Award in 2002. Dofasco (cont.)

21. Maureen C. Shaw World Congress – Orlando, Fl 200521 Corporate Citizenship  Canada’s largest independent nuclear generating station with 3,600 employees  Achieved 9.6 million hours without an acute lost-time injury  Its corporate values statement reads in part “We will…  Always place nuclear safety as the overriding priority  Accept personal responsibility for our own and others’ conventional and radiological safety  Always take into account the environmental implications of what we do  Always place safety before commercial gain  Strive for continuous improvement in safety awareness and performance Bruce Power

22. Maureen C. Shaw World Congress – Orlando, Fl 200522 “Reputation is not yours. Someone else gives it to you based on your performance.” Duncan Hawthorne, President & CEO Bruce Power

23. Maureen C. Shaw World Congress – Orlando, Fl 200523 While the achievements of the previous organizations are unique to each of them they are not operating in isolation. Many factors and forces are working to help businesses to assume greater CSR. New corporate models: New corporate models: Virtue Matrix corporate model New International Standards: New International Standards: ISO 26000 social responsibility guidelines New Legislation: New Legislation: Canadian Bill C-45 New corporate Initiatives: New corporate Initiatives: Canadian CEO Health and Safety Leadership Charter Growing Support

24. Maureen C. Shaw World Congress – Orlando, Fl 200524 Leverage Corporate CSR Opportunities  Governance and management practices  Human resources management  Environment, health and safety  Community investment and involvement, and  Human rights Understand the footprint your organization leaves in the world around you the following framework:

25. Maureen C. Shaw World Congress – Orlando, Fl 200525 Understand your options Figure out what you can do better. Conduct a cost / benefit analysis of doing things better versus just staying the course and build a strategic plan. State your intentions Create a social responsibility policy or adapt existing vision, mission and value statements to reflect your organizational commitment. Involve your best people in the process and demonstrate top-level commitment Leverage Corporate CSR Opportunities

26. Maureen C. Shaw World Congress – Orlando, Fl 200526 Set Expectations Shift organizational efforts from achieving to exceeding the minimum standards set by regulatory agencies. Identify, establish and work towards more ambitious corporate standards of performance Create your own markets Stimulate commerce and development at the bottom of the World’s economic pyramid – the position of most workers in developing countries. Leverage Corporate CSR Opportunities

27. Maureen C. Shaw World Congress – Orlando, Fl 200527 100 2,000 4,000 Population in millions $20,000 plus $2,000-20,000 Less than $2,000 The World Pyramid Purchasing power in US dollars Most companies target consumers of the upper tiers of the economic pyramid completely overlooking the business potential at its base – the people at the bottom of the pyramid make up a colossal market

28. Maureen C. Shaw World Congress – Orlando, Fl 200528 Set Expectations Shift organizational efforts from achieving to exceeding the minimum standards set by regulatory agencies. Identify, establish and work towards more ambitious corporate standards of performance. Create smart partnerships Work with industry groups and/or other organizations to create and promote voluntary standards. Share your own successes with others. Seek out organizations that can help you achieve your social responsibility goals. Leverage Corporate CSR Opportunities

29. Maureen C. Shaw World Congress – Orlando, Fl 200529 Encourage greater accountability at all levels of society  Workplaces have to show responsibility, but so do individuals, communities, institutions and governments. More transparency and accountability  Just being socially responsible is no longer enough. Corporations have to make the process visible and accountable. Voluntary reporting is a core component of CSR. Leverage Corporate CSR Opportunities

30. Maureen C. Shaw World Congress – Orlando, Fl 200530 “In organizations, real power and energy is generated through relationships. The patterns of relationships and the capacities to form them are more important than tasks, functions, roles, and position.” Margaret Wheatly Leadership and the New Science

31. Maureen C. Shaw World Congress – Orlando, Fl 200531 1. 1. Bakan, Joel, The Corporation: the Pathological Pursuit of Profit and Power, Penguin Canada, 2004. 2. 2. GE 2005 Citizenship Report, http://www.ge.com/en/citizenship. 3. 3. Martin, Roger, "The Virtue Matrix," Harvard Business Review on Corporate Responsibility, Harvard Business School Publishing Corporation, 2003. 4. 4. Garrett Brown, article to be published in Industrial Safety Hygiene News, September 2005 5. 5. The National Corporate Social Responsibility Report: Managing Risks, Leveraging Opportunities, Conference Board of Canada, http://www.conferenceboard.ca/documents/607-04NationalCSR-RPT.pdf. 6. 6. Prahalad, C.K. and Allen Hammond, "Serving the World's Poor, Profitably," Harvard Business Review on Corporate Responsibility, Harvard Business School Publishing Corporation, 2003. References

32. “A World where risks are controlled because everyone believes suffering and loss are morally, socially and economically unacceptable.” Jennifer Quintal – Age 9 Maureen C. Shaw NSC – Orlando, Fl 2005