Introduction
For Assignment One, I did my research on Financial. The name of the company that I am focusing on for Assignment 2 is Sunlife. The focus of this assignment is an exploration of the legal aspects of the CSR challenges of companies in the same sector as my Assignment 2 Company, Manulife In this assignment I do the following:
(1) I identify and discuss my company’s CSR definition, and compare it with the ISO 26000 definition (using the same “whereas….” approach as set out in Assignment 1).
“Corporate social responsibility at Sun Life is committed to giving back to the local community, and since its establishment in 1998, it has made huge efforts in raising awareness and funds for local charities. Whereas “the ISO 26000 standard defines CSR as an organization’s responsibility for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that: – contributes to Sustainable Development, including health and the welfare of society; it takes into account the expectations of stakeholders.”
A keen analysis of the two definitions shows that the approach provided by ISO 26000 is wide and contains many activities when compared to what Sunlife provides. The wide approach to the definition is the most appropriate one since it should serve as a point of reference to many organizations who can and are willing to do different things in the name of CSR. While the definition and approach provided by Sunlife is specific to the company as the company attempts to abide by the law on CSR. Sunlife takes a legal-approach to CSR unlike the ISO 26000 which is not based on law. The greatest strength which Sunlife has in CSR over its competitors is the integrity with which it approaches CSR. The fact that the company has specialized in some aspects implies that the company is standing on better grounds when it comes to ensuring that these activities have been attended to most appropriately and all shall be well especially in terms of competition with other companies.
(2) I also identify and discuss a competitor of my company’s CSR definition, and compare it with the ISO 26000 definition, using the same approach as set out for Assignment 1.
Corporate Social Responsibility according to Manulife entails a strive to engage all clients in the commitment of the company to reduce footprint impact on the environment as a result of the operations of the company whereas “the ISO 26000 standard defines CSR as an organization’s responsibility for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that: – contributes to Sustainable Development, including health and the welfare of society; it takes into account the expectations of stakeholders.” Manulife is only concerned with an appropriate treatment of customers and clients which in turn reduces the impact on the environment. This approach to CSR does not appear to be as aggressive as that one taken by Sunlife and ISO 26000. While Sunlife is struggling to actively take part in community activities Manulife is concerned with reducing the impacts on the environment. This approach appears to be passive rather than active. At the same time, when a comparison is done between what ISO 26000 provides to what Manulife provides one will realize that Manulife takes a specific approach to CSR with some activities while ISO 26000 serves as a point of reference with all activities which can be done in the name of CSR. The definition provided by ISO 26000 has to remain wide because it serves companies while Manulife’s approach is specific since it only serves one company.
(3) I identify the stakeholder category which based on my research has the most significant environmental impact vulnerability from the activities, products, and services of companies in the same sector as my company, and I substantiate how I reached the conclusion I did about the stakeholder category that I have identified.
Stakeholder: Employees. The employees in the financial industry are the most vulnerable because if the company adopts technology that has negative impacts on the environment especially that used in the company’s premises then it will seriously affect those who work for the company. For instance, an environment which has suffered from thermal pollution as a result of machines used has high chances of getting the clients who visit the premise to suffer most. The extended hours of exposure to these machines as they serve clients negatively affect them. The green gas emissions which come from machines used like computers might be harmful to the employees. This is making it necessary for the company to ensure that appropriate steps have been taken to handle all these issues
(4) I identify the stakeholder category which based on my research has the most significant social impact vulnerability from the activities, products, and services of companies in the same sector as my company, and I substantiate how I reached the conclusion I did about the stakeholder category that I have identified.
Stakeholder: Community close to the company. The social life of those people who live close to the company premises is severely affected when the company’s choice of technology is becoming harmful to the environment. Increased temperatures, air pollution, and noise pollution will disrupt the lives of the community which is located close to the company’s premises thereby making them vulnerable. The community that either lives close to the company premises, those who work in the neighborhoods and other companies that are located adjacent to Sunlife will be affected. Take for instance if there is a fire breakout due to faulty in the power system then the neighbors will have to play active roles in either putting out the fire or ensuring that their premises are not consumed. When it comes to the issue of harmful emissions that might be done by the company, the group of individuals who will be affected most are the employees but the neighbors cannot be ignored since there are moments when employees will leave the company premises and go away.
(5) Based on my research, I identify the most significant environmental challenge faced by companies in the same sector as my company, and I substantiate how I reached the conclusion I did about the most significant environmental challenge I identified.
Environmental pollution from other industries which makes the industries premises inaccessible. If a company is located in an area which is generally polluted and there is no access to these premises then the company is at risk of losing the clients. This results in a market risk which is a very big threat to the continued existence of the company since no person will be going for services from such a company hence making its operations very much difficult. As a company, we are not located in isolation but rather it is close to other companies that might be emitting more harmful waste materials into the air and environment. People have a tendency of running away from a polluted environment and this will not be an exception for they will do the same thing. When these people start running away then there are high chances that something might go wrong and this should be avoided at all costs since it affects the company negatively.
(6) Based on my research, I identify the most significant social challenge faced by companies in the same sector as my company, and I substantiate how I reached the conclusion I did about the most significant social challenge I identified.
Reputation risk. A company is likely to face a reputation risk resulting from negative publicity about the company’s contribution to environmental pollution activities. This makes clients and key stakeholders to a given company to start distancing themselves from the company. The company is feared and many people will try their best to ensure that they have reduced instanced when they come in contact with such a company. This will greatly impact the way the company is viewed or looked at because people will start looking at it from a perspective that it is not concerned with the welfare of people. Many agendas keep on getting spaces in public debates in relation to the same. In case a given discussion is painting a given company negatively then there are high chances that such a company may be looked at negatively by the most important stakeholders. This becomes a hurdle which the company will be struggling to cross over.
(7) I identify and discuss my company’s key commitments about the above-identified most significant environmental and social challenges faced by companies in the same sector as my company.
Since Sunlife was established and made its CSR active, the company has been at the forefront in giving back to society. They have done this by taking part in donations which have aided in the aversion of the negative impacts of environmental degradation. This has also played a crucial role in ensuring that the market risk and social distancing which the company is likely to suffer from when there is a direct association between the company and environmental pollution has been worked on.
(8) I identify and discuss the 2 most significant legal issues associated with the above-identified most significant environmental challenge faced by companies in the same sector as my company.
Legal liability, Canada’s Constitutional act 1867 states that bodies have to make sure that law has not been broken. Whenever a company goes against these requirements then they are likely to face fines or bear some forms of liability. This might end up costing the company some money since the fines which are imposed have to eat into the company’s profit share. This will happen when an individual goes against the emission standards which have been set up by the Canadian government.
Credit issues. There are moments when the financial partners of a company are not willing to be part of the company due to the environmental pollution issues. This will happen because many investors and other financial partners are always careful whenever they learn that a company’s license to operate faces risks of being revoked. This makes them start distancing themselves from such a company. One of the most common instances, where such a thing can happen, is when a company fails to conform to the set standards to ensure that there is no pollution of the environment.
(9) I identify and discuss the 2 most significant legal issues associated with the above-identified most significant social challenge faced by companies in the same sector as my company.
Social Responsibility of the company. The Canadian law directs that all companies have to remain socially responsible by protecting the environment to ensure that there is no pollution for the sake of workers and neighboring communities. A company that fails to meet these expectations is likely to face the law and this might be costly to the company.
Safe working conditions. The employees of a given company according to the labor laws in Canada provide that an employer should make sure that the working environment is safe and secure for the workers. This entails, it being free from pollution. An employer who wants their employees to work from a polluted environment is not taking these laws seriously and it is likely to face law unless they rectify the situation before the law catches up with them.
(10) I name and discuss two academic law journal articles that are specifically relevant to the most significant environmental CSR legal challenge I have identified for companies in my sector.
Journal of environmental law which publishes articles on all aspects which touch on or relate to environmental law. This is an academic journal which is published by Cambridge University now and then. The articles which are published allow an individual to learn more about what takes place in terms of the laws which encourage people to take care of the environment.
Journal of environmental impact and CSR is a second academic law journal which looks into the impacts on the environment which results from the operations of the company and what the company can do. The journals are published by Springer Link publishers. It appreciates the fact that it might not be easy for any given company to be in operation without interfering with the environment but looks into things that have to be done to ensure that such mess-ups have been rectified. The two articles provide scholarly information on the environmental challenges which have been identified.
(11) I name and discuss two academic law journal articles that are specifically relevant to the most significant social CSR legal challenge I have identified for companies in my sector.
Journal of Academic English publishes academic journals in matters relating to social CSR legal challenges but they are published in the English language. These aspects which are brought out by different publishers attempt to bring out different issues touching on these matters. The journal tends to be very much updated in a manner that the most recent aspects are addressed so that an individual will not be left uninformed but rather they will end up learning about many things which are related to this aspect. The only thing which an individual has to get to it and all shall be well.
The European Journal of Business management which addresses key issues touching on the social legal aspects of CSR and how they should be approached. The journal specializes in the publishing of the new things which come up in terms of social CSR legal challenges which keep on coming up now and then. These publications provide a clear explanation of how they should be approached so that a company can be able to ensure that CSR its legal matters have been addressed amicably. Nothing is left untouched so that all things can be addressed comprehensively.
(12) I name and discuss two Canadian court decisions that are specifically relevant to the most significant environmental CSR legal challenge I have identified for companies in my sector.
Dodge v Ford Motor Company in which the court ruling permitted Ford Motor Company to stop paying large amounts of dividends for the sake of increasing the production of more affordable cars since this would increase the number of people employed by the company. This was seen by the court as a way of increasing employment opportunities for people. An increase in employment opportunities was therefore addressed like a form of CSR.
Teck Corp Ltd v Millar, 1972 in which the supreme court of Canada ruled out that Teck Corp Limited management could take into non-stakeholder welfare especially when this touches on matters of environmental CSR matters. The argument was based on the fact that the operations of a given company affect the entire environment which an individual has to take seriously. This will ensure that the environmental concerns and their relation to CSR are taken into consideration by the company.
(13) I name and discuss two Canadian court decisions that are specifically relevant to the most significant social CSR legal challenge I have identified for companies in my sector.
People’s Department Store Inc (Trustee of) v Wise, [2004] which was ruled by the Supreme Court of Canada concerning the extent to which the directors of a company should care. It was determined that the directors of a given company should be concerned about the level of taking part in the social CSR issues at hand. At the same time, it was also determined that even though this should be the case but some factors might affect the effectiveness of getting such things done in the right manner. There is no doubt that all companies or almost all companies might have vested interest in getting involved in CSR activities as spelled out by ISO 26000 but there are moments when the surrounding conditions and situations might remain challenging. These conditions should also be considered.
(14) To better understand the regulatory context in which my company operates, I identify the most significant:
(i) Environmental statute;
(ii) Corporate governance statute;
(iii) Worker statute;
(iv) Securities Statute;
(v) Consumer statute; and other relevant statutes applying to my company from a CSR-legal perspective. These statutes can be described as key components of the “regulatory backdrop” for the CSR activities of my company.
Canadian Environment Act 1999 which is aimed at protecting the environment and preventing pollution by all companies which are in operation. It also spells out measures to be taken to ensure the human safety of people who work with a given company, clients and those who visit the company premises. As a company in the finance sector, the kind of technology that is chosen by the company should be checked to ensure that the impacts which it has on the environment have been kept minimum. If this is done then all things will go on most appropriately.
Canadian Corporate laws outline the measures that should be taken to ensure that the governance standards which are taken by companies are in tandem with the law. Aspects relating to the election of directors, selection of management and the relationships which should be in existence between the management and the workers have spelt out in corporate laws of Canada. The corporate laws provide a guideline to the companies in the finance sector to make sure that the management and organization of the company are up to the standards. This ensures that operations and relationships between individuals at different levels have been taken care of.
Canadian Human Rights Act which contains provisions on the rights of workers. These laws and statutes contain provisions on how workers should be treated so that their rights are not infringed into. All companies which employ workers have to make sure that the Canadian Human Rights Act has been adhered to. When an employer fails to take these laws seriously then there are high chances that they might find themselves on the wrong side of the law. This can be avoided by taking into consideration all aspects which are stipulated in the act and all shall be well with the employer. The employees in the finance industry should have their rights upheld and protected most appropriately.
Personal Property Security Act carry provisions on the right to own a property of any kind as a person or as a company. This statute assures all the companies that there is safety when it comes to the ownership of what they have. This has been taken as a ground upon which employees’ property and even that of companies cannot be seized without proper reasons. This has to happen irrespective of what is on the ground or unless there are proper reasons as to why such a thing should happen. If there are no proper reasons then all Canadian citizens and companies are assured of security for the property they own. They can use it appropriately without being intimidated by any person, company or authority. As a finance company, ownership of property is protected by the law and therefore there is no reason as to why someone should be worried about any form of seizure.
Canadian Occupation health and work safety regulations are statues which aim at ensuring that all the workers are safe and have a conducive working environment. This will ensure that the employees’ health conditions are not endangered as a result of working with any of the companies. In case there are some conditions which endanger the safety or health condition of an employee then appropriate steps have to be taken to ensure that the employee receives maximum protection from such unfavorable conditions so that they can live for the longest time possible. The law does not allow companies to hire people in risky working environments where their life, health, and even safety have been threatened. The right thing should be done to ensure that all these things have been rectified. The safety of workers as spelled out in this statute is important to all companies irrespective of whether they are in the finance sector or not since all these companies hire some people to work for them and employed people must be safe.
Consumer product safety act and regulations which carry provisions on ensuring that the products brought on the market are properly labeled if they can cause harm. These products should also be safe for consumption by the general public or the target customers and children if the children are to use the products. The regulations also recommend that the products which are brought to the market should not be harmful to the environment. If by any chance they will be harmful to the environment then there is a need for the producing company to provide clear guidelines on how the adverse effects can be used. At the same time, for the service industry, all terms and conditions which should guide and govern the consumption of services provided by a given company should be spelled out so that the consumer does not feel disadvantaged by the fact that there is something which was not known by them. If this is addressed then there are high chances that inconveniences will be averted. The section on the clear terms and conditions which guide the provision of a set of services by a corporation is crucial to the finance sector.
In 2009 the government of Canada launched a CSR strategy that was aimed at guiding the companies in the country when it comes to CSR. This strategy has been used as a starting point by many companies and even those that do not apply it in its entirety heavily draw from it to ensure that all things have been done in the right manner. This is done in terms of the kind and nature of activities which should be attended to by the company in its endeavors to serve the citizen’s.
(15) I identify and discuss one CSR-oriented shareholder proposal relevant to my company (not about gender/diversity), and the corporate governance law under which that shareholder proposal was made, and I describe the corporate governance structure of my company.
The community closes the company proposed that the company should be taking part in the general cleaning of the environment in the community. This was drawn from the Environmental Act of Canada. The stakeholders expect the company to be at the forefront in organizing community clean-up activities which can be done alongside the community members who will be available. This will ensure that environment has been kept clean and any mess that might be resulting from other activities in the environment has been averted.
(16) After that, drawing on all of the previous parts of this assignment, I identify one possible law reform that would specifically address the previously identified environmental CSR/legal challenge faced by companies in the same sector as my company, and one possible law reform that would specifically address the previously identified social CSR/legal challenge faced by companies in the same sector as my company.
The current provisions in the environment act only point out that companies should avoid pollutions and should keep it to the bare minimum. This appears to be very much generic because service industries that are not very much involved in the emission of waste materials are not appropriately addressed. The law should, therefore, be twirled so that there are specific provisions on what should be done to not only prevent environmental pollution but also to take part in ensuring that there is a healthy environment. For instance, if the law spelled out that companies should plant trees and make sure that the areas close to the company premises have been kept neat then it will resonate well with companies. This will provide them with a clear explanation of what has to be done so that all things which are related to the conservation of the environment can be taken care of.
An adjustment of law in this manner will keep all the companies in finance and other industries on toes to ensure that through CSR, the environment has been conserved and taken well of for the sake of future generations. Preservation of environment ensures that the future generations have a conducive environment in which they can get their things done. The current generation will end up handing over a clean and conducive environment to the next generation and this is necessary for the survival of human beings.
(17) Then, I compare the CSR approach of my Assignment 1 Company, with My Assignment 2 Company.
The CSR approach of my first company was only concerned with the environment such as clean-ups and any other activity which aims at making sure that the company gives back to society through conservation of the environment. Whereas in my assignment two, CSR has now been extended to donations and care of workers. The second company is doing more such that mercy appears to be starting from home. Sunlife has realized that if the safety of workers has not been addressed then it might not be possible for the company to go out and address other issues that are affecting the society. The company, therefore, brings employees into the equation of CSR by making sure that all their needs apart from the normal remuneration have been taken care of. The motivated employees will, therefore, end up taking tasks happily even as the company goes out to attend to CSR activities in the community as the company wishes to. The second company also takes CSR with a legal orientation such that there is a perfect outline in the law of what companies should do to ensure that CSR as a corporate responsibility has been attended to appropriately. If this is not done then there are chances that the company in question might bear legal liabilities. To avoid this, the company has now been motivated to take CSR without missing or re-thinking about it.
(18) Finally, I provide a conclusion to this assignment which summarizes what I have learned about the CSR-oriented legal dimensions of my company.
In conclusion, there is no doubt that CSR spans from taking care of the society in which a company is located to conserving that particular environment. Attempts to conserve the environment, treat workers well and provide contributions to the society’s course of action all amount to CSR which aids in creating a positive image of the organization. At the same time, the same CSR can be law-oriented in a manner that is strongly supported by law. For instance, the environmental act stipulates that companies have a duty and a responsibility of ensuring that the environment has been taken good care of. Apart from this the act on the safety of consumers also makes the company spell out dangers that their products have on the environment while at the same time supporting consumers and protecting them from harmful effects of the products and services provided by the company.
The headquarters of My Assignment 2 Company is York Street, Toronto Ontario M5J 0B6 Canada. For Assignment 2, I will focus on the laws from the province where my company is headquartered, as well as the federal laws applying to my company, but this does not mean that I will not and cannot refer to and discuss the laws of other provinces, or other jurisdictions if references and discussions of these other laws are relevant to this assignment. And if it supports the position taken in this assignment, and I provide an explanation for why I am doing so, I can refer to non-Canadian court decisions, not just Canadian court decisions, although the focus should be on Canadian court decisions. For Assignment 2, I will focus on the CSR commitments and activ ities and CSR legal issues that pertain to operations in Canada, but I can refer to the commitments and activities of other jurisdictions, and I can refer to laws and court decisions from other countries if any of this other material supports the arguments I am making about commitments and activities and CSR legal issues in Canada.
