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Corporate Responsibility

Corporate responsibility is a term which describes the ethical approach that companies should incorporate into their business practices and products.  It covers a range of social, labour and environmental issues.

With respect to the environment, much of the work on corporate responsibility has happened in the context of "sustainable development", the term made popular by the World Commission on Environment and Development.  More recently, the public backlash against free trade and large corporations has also contributed to the call for greater transparency and accountability in corporate activities.

Corporate responsibility is a voluntary activity.  It is developed by individual companies, or through an association of like-minded businesses.  The better models are developed in cooperation with representatives of civil society and government.  If done well, programs for voluntary corporate leadership are an effective tool for achieving our overall environmental goals.

Below, we have presented summaries and links to some of the better examples of corporate responsibility programs in the environmental field, including sustainability principles, guidelines, and certification programs.  

As we build the Green Directory sections on Companies and Business Associations, we will be including more links to individual programs.  

INDEX

Current Approaches

Principles for Sustainable Development
Guidelines
Applications 
Corporate Environmental Reports 

What Else Could be Done?

Other initiatives that could be taken
Barriers and Negative Trends

Individual Action

What you can do to help.

Key Players

Who's working on the issue.
Other sources of information.

 

  

A) Principles for Sustainable Development

Numerous attempts have been made to develop guiding principles for environmentally sustainable development.  The best list (nearly 100) can be found at the International Institute for Sustainable Development (IISD). Some of the more better known ones on the list are the CERES principles, the Ontario Round Table on Environment and Development, the Whitehorse Mining Initiative and the Natural Step.  Some are general, while others are targeted at specific economic sectors (Whitehorse Mining Initiative).  You can search the list for the sectors you are interested in.

These principles were developed in the 10 year period following the 1986 World Commission on Environment and Development (or Brundtland Commission).  More recently, attention is being turned to applying these principles to guidelines for corporate responsibility.


B) Applications: Guidelines and Programs

New Directions Group
The New Directions Group has provided an informal forum to bring progressive Canadian businesses and environmental organizations together to discuss significant environment and economy issues since 1990.

In 1997, the group published  "Criteria and Principles for the Use of Voluntary or Non-regulatory Initiatives to Achieve Environmental Policy Objectives".  The paper states that credible and effective voluntary or non-regulatory initiatives (VNRIs): 

  1. are developed and implemented in a participatory manner that enables the interested and affected parties to contribute equitably 

  2. are transparent in their design and operation; 

  3. are performance-based with specified goals, measurable objectives and milestones; 

  4. clearly specify the rewards for good performance and the consequences of not meeting performance objectives; 

  5. encourage flexibility and innovation in meeting specified goals and objectives; 

  6. have prescribed monitoring and reporting requirements, including timetables; 

  7. include mechanisms for verifying the performance of all participants; and 

  8. encourage continual improvement of both participants and the programs themselves. 


ARET
(Accelerated Reduction / Elimination of Toxics)

The Accelerated Reduction/Elimination of Toxics (ARET) program was launched in 1994 in response to a federal government challenge to reduce and eliminate emissions of toxic substances. 

ARET is a voluntary, non-regulatory program that targets 117 toxic substances, including 30 that persist in the environment and may accumulate in living organisms. Its long-term goal is the virtual elimination of emissions of persistent, bioaccumulative toxic (PBT) substances and the reduction of emissions of other toxic substances to levels insufficient to cause harm. 

 

The Natural Step
The Natural Step (TNS) is a non-profit environmental education organization working to build an ecologically and economically sustainable society. TNS offers a framework that is based on science and serves as a compass for businesses, communities, academia, government entities and individuals working to redesign their activities to become more sustainable. 

The Natural Step encourages dialogue and consensus-building, a key process of learning organizations. It is based on systems thinking, focusing on first-order principles at the beginning of cause effect relationships. It recognizes that what happens in one part of a system affects every other part, often in unexpected ways. 

The Natural Step is a guide to thinking and acting in harmony with the earth's cyclical processes. It provides a pragmatic framework which can be used to guide social, environmental, and economic actions. It acts like a compass that can point individuals and organizations in the direction they want to go.


THE NATURAL STEP'S FOUR SYSTEM CONDITIONS 

  1. Nature's functions and diversity are not systematically subject to increasing concentrations of substances extracted from the earth's crust.

  2. Nature's functions and diversity are not systematically subject to increasing concentrations of substances produced by society.

  3. Nature's functions and diversity are not systematically impoverished by physical displacement, over-harvesting or other forms of ecosystem manipulation. 

  4. Resources are used fairly and efficiently in order to meet basic human needs globally.

Bench Marks Project

The Task Force on the Churches and Corporate Responsibility (TCCR) is the Canadian partner in "Bench Marks", an international project that outlines principles for global corporate responsibility and for measuring business performance.  Little information is available on their web site, but the document can be ordered by sending an e-mail request to the TCCR office. 

Bench Marks takes provides a more comprehensive approach to corporate responsibility, covering labour and social justice issues as well as the environment.   

3) Certification of Companies and Products

ISO 14000  (see also the Standards Council of Canada
The ISO 14000 series is a family of environmental management standards developed by the International Organization for Standardization (ISO), one of the world’s principal voluntary standards development bodies.

The ISO 14000 standards are designed to provide an internationally recognized framework for environmental management, measurement, evaluation and auditing. They do not prescribe environmental performance targets, but instead provide organizations with the tools to assess and control the environmental impact of their activities, products or services. The standards are designed to be flexible enough to be used by any organization of any size and in any field. They
address the following subjects:

• environmental management systems;
• environmental auditing;
• environmental labels and declarations;
• environmental performance evaluation; and
• life cycle assessment.

The ISO information Centre includes a list of ISO 14000 registered companies.

ISO 14000 is by far the largest effort to develop a standard approach to corporate responsibility and the environment.  The lack of performance or ecological measurements has lead to criticism of the process and spawned at least one rival process -- the Forest Stewardship Council. 

Forest Stewardship Council
The Forest Stewardship Council is an international non-profit organization founded in 1993 to support environmentally appropriate, socially beneficial, and economically viable management of the world's forests.  It is controlled by an elected Board which consists of people from industry, conservation groups, indigenous people's representatives and others. It's head office is in Oaxaca, Mexico. 

Mission Statement

The FSC shall promote environmentally appropriate, socially beneficial, and ecologically viable management of the world's forests

The Forest Stewardship Council is introducing an international labelling scheme for forest products, which provides a credible guarantee that the product comes from a well managed forest.
All forest products carrying the FSC logo have been independently certified as coming from forests that meet the internationally recognized FSC Principles and Criteria of Forest Stewardship. In this way FSC provides an incentive in the market place for good forest stewardship (see also how can you help?) The forest inspections are carried out by a number of FSC accredited certification bodies, which are evaluated and monitored to ensure their competence and credibility. 

FSC also supports the development of national and local standards that implement the international Principles and Criteria of Forest Stewardship at the local level. These standards are developed by national and regional working groups which work to achieve consensus amongst the wide range of people and organizations involved in forest management and conservation in each part of the world. FSC has developed Guidelines for developing regional certification standards to guide working groups in this process.

Environmental Choice Program
(Ecologo)

Mission: 
To encourage the supply of products and services that are more environmentally responsible, and to help consumers and organizations buy "green".

One final program of note is the Environmental Choice Program.   Owned by Environment Canada, Environmental Choice, is operated from the private sector by TerraChoice Environmental Services Inc.

Products and services certified by the Environmental Choice Program are proven to have less of an impact on the environment because of how they are manufactured, consumed or disposed of. Certification of products and services is based on compliance with stringent environmental criteria that are established in consultation with industry, environmental groups, and independent experts and are based on research into the life-cycle impacts of a product or service. 

The Program's official symbol of certification - the EcoLogo - is a registered mark of Environment Canada. It may only be used in association with products and services that are certified by Environmental Choice. 


4) Corporate Environmental Reports
An increasing number of companies are publishing annual environmental reports. The International Institute for Sustainable Development (IISD) has an excellent section on environmental reporting, including links to resources and lists of companies that publish environmental reports.

 

Corporate responsibility is becoming a cost-effective tool in achieving environmental goals.  While it is not to be seen as a substitute for regulation or a comprehensive strategy, it should be further developed as a standard business practice. 

Clearer recognition of the requirements for corporate responsibility 

Government, corporate and NGO recognition of a standard approach to corporate environmental responsibility, developed in partnership with all stakeholders, would help to eliminate the confusion and overlap between different processes.


Stronger buy-in and leadership from business and professional organizations

The initial commitment to environmental reporting from major companies is encouraging, but it is a long way from becoming standard practice.  


Independent review of corporate responsibility

An independent review of the results of voluntary programs and environmental reports, using common performance and ecological criteria, would improve the public credibility and accountability of these processes.

 

Help promote corporate responsibility

 

 

Bone up

  • Read and comment on the environmental reports that fit your areas of interest.

Buy Green

  • Look for Ecologo, the FSC symbol, and other marks that denote environmentally-preferred products

  • Look for labels for socially-responsible companies, such as "fair trade coffee" and "Rug Mark" rugs (see Buy Green: Green Labels for details). 

 

Business Associations World Business Council for Sustainable Development: The WBCSD is a coalition of 125 international
companies united by a shared commitment to the environment and to the principles of economic
growth and sustainable development. 

Accelerated Reduction / Elimination of Toxics (ARET): reports on the progress of over 300 facilities in reducing environmental contaminants.

Voluntary Challenge and Registry: VCR Inc. is a stand-alone, not-for-profit corporation dedicated to encouraging private and public sector organizations to voluntarily limit their net greenhouse gas emissions, as a step towards meeting Canada's climate change goals. 

Organizations New Directions Group: a leader in defining corporate responsibility in Canada. 

International Institute for Sustainable Development (IISD): they have an excellent database of support material and links regarding corporate responsibility.

Social Investment Organization (SIO): a leader in analyzing corporate performance and responsibility 

Task Force on the Churches and Corporate Responsibility (TCCR): Bench Marks is their guide to the requirements for corporate responsibility.  TCCR also brings shareholder resolutions forward at corporate annual meetings.

Ethicscan Canada Limited: a Toronto-based business ethics, research and consulting clearing-house that monitors the social and environmental performance of 1500 companies in Canada. The companies researched and tracked include public and private Canadian corporations in forty-three activity sectors, 
as well as transnationals operating in Canada.. 

Canadian Council for International Cooperation:  See the "In Common Campaign" for a 10 Point agenda to eliminate poverty, including "promoting corporate social and environmental responsibility".

 

 

The Conservation Council of Ontario
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