Each year LBG Canada holds its Annual Benchmarking Meeting to discuss community investment trends with LBG Canada companies. This year’s meeting is taking place April 18 & 19 in Calgary and representing over 40 Canadian companies of various industries from oil & gas to retail.

The Benchmarking Meeting allows the network of companies an opportunity to discover what community investment and employee volunteering & giving program management trends are, within their industry and across the LBG Canada group as a whole.

The data for the Annual Benchmarking Meeting is collected through surveys and an annual audit that SiMPACT Strategy Group (SiMPACT), the facilitator of LBG Canada, conducts with each LBG Canada company. SiMPACT analyzes different approaches to portfolio management, for example, decision-making thresholds, inclusion of communications resources for flagship projects and effectiveness of employee volunteering programs.

Along with the Annual Benchmarking Meeting, SiMPACT also uses the annual audit and the surveys to create a customized Insights & Opportunities report for each LBG Canada company. The report offers in-depth insights into each LBG Canada company’s community investment portfolio highlighting both strengths and opportunities for improvement.

Ultimately, the results gleaned from the Annual Benchmarking Meeting and the customized Insights & Opportunities report ensure community investment is understood as a valuable and strategic activity by all LBG Canada companies – and sets the highest standard for management, performance measurement and reporting in Canada.

First Calgary Financial has embarked on a new journey, one filled with promises and commitments not only to their stakeholders, but to each other as employees and concerned corporate citizens. 

Historically, corporate social responsibly (CSR) initiatives have been led by a single department at First Calgary Financial - responsible for reporting, implementation and communication.  In the past year, the Board and Executive team underwent a strategic planning process to create a new five year strategic plan as well as a document containing the organization’s CSR commitments. While they underwent this process, they identified countless overlaps and began to realize how CSR was inseparable from their strategic plan.  As a result, the Executive Team crafted a strategic plan that embedded their CSR commitments into the core business functions and decision-making. Essentially, their strategic plan is their CSR document.

The strategic plan is based on three promises: social, environmental and economic. The three promises are together incorporated into First Calgary Financial’s decision-making framework. “CSR is not one department’s role; it’s how we do business,” states Dani DeBoice, Director of Corporate Citizenship. Now, the company’s economics are understood not only in financial terms, but also within social and environmental contexts. 

Social Promise: We have a deep respect for those who are committed to bettering the lives of those around us. As a socially aware organization, we make thoughtful choices that consider how our members, employees and communities are affected. It's a promise about people. It's who we are.

Although the Board and Executives were visionary about drafting these promises, they questioned how they were going to measure success. Eventually, SiMPACT was approached to identify metrics that will inform a social return on investment (SROI) valuation of the social promise commitments.

By conducting an SROI, First Calgary Financial is aiming to clearly understand the value of their business services contributing to achieving these promises. For example, is a $5 million line of credit to the Calgary Homeless Foundation creating a return for society that goes beyond just the value of the donation of the interest accrued back to the non-profit? What opportunities exist to further develop the local social finance agenda?  Over the next five years, key performance metrics will be established to capture and measure the results.

From an LBG Canada perspective, the social promise has elevated the role of community investment, clearly positioning investing in community as one key step on a spectrum of social impact. In addition, the LBG Canada approach enables First Calgary Financial to comfortably speak about the business and community value, using project and portfolio-specific data to demonstrate how their investments are a part of their larger social promise.

Overall, the strategic plan is an inspiring, forward thinking document.  First Calgary Financial hopes to see a more engaged, knowledgeable employee base with a stronger understanding of how these promises tie into everyday business practices and a stronger Calgary community. “By stating these promises, employees are empowered. We are actively looking for ways to leverage our business practices to achieve these promises to the best of our ability,” adds DeBoice. “In five years, we will be able to articulate our social impact and return proudly.”

Download the First Calgary Financial 2011-2015 Strategic Plan Highlights for more information.  

LBG Canada releases the 2011 Annual Benchmarking Report

With over $335 million invested into Canadian communities and 24,000 people contributing 238,689 volunteer hours across the country, the 2011 LBG (London Benchmarking Group) Canada benchmarking cycle represents significant growth.  Today, the 37 participating companies together set the highest standard in community investment management, performance measurement and reporting in Canada.

The 2011 Benchmarking Report is based on an annual audit that assists each company in identifying current portfolio strengths and opportunities for improvement, in comparison to emerging best practice. Three major trends highlighted in the report illustrate the role of community investment as a valuable, strategic corporate activity.

Increased Spending into the Community

• Despite the changing economy, LBG Canada companies have seen a substantial increase in community investment budgets.  90% reported increasing or maintaining their overall investment budgets in 2011, up from 71% in 2009.  In addition, 21% of companies are expecting an increase in staff allocation.

Integration of Employee Volunteering and Giving Programs

• 96% of all LBG Canada companies support some form of employee giving and volunteering, demonstrating emerging awareness of involvement in community investment activities as an effective tool for employee engagement.

$90 Million Leveraged

• Close to $90 million in additional resources was leveraged for the benefit of community partners, through activities such as cause-marketing, in-kind donations and matched funding, from key stakeholders such as employees, suppliers, government etc.  By strategically focusing their convening power, companies within LBG Canada leveraged an average of $0.36 per $1 invested.

Overall, the size of community investment budgets benchmarked ranged from $100,000 to over $35 million in 2011. Clearly, the value of a high-impact and meaningful community investment program is as important to smaller companies as it is to the mid-size and the largest companies operating in Canada.  

Since 2006, the total amount of community investment benchmarked by LBG Canada companies has grown from $28 million to over $335 million. The group itself has grown from 10 members to 37 at present. This is an encouraging trend indicating that a growing number of companies are actively seeking to maximize the performance of community investment, demonstrate the strength of community partnerships, create measureable impact and report results with greater confidence, clarity and credibility. 

Download the 2011 LBG Canada Benchmarking Report.

In light of recent interest in SROI, SiMPACT shares our response to the social implications of the #torontobudget brought forward by the author Margaret Atwood in the article: Margaret Atwood fights against closure of Toronto libraries

Aug.8, 2011

An excellent article that articulates the social implications surrounding financial cut-backs.  Libraries and other cultural centers are more than just places of opportunity. They bring people together to create community cohesion that is necessary and vital for many individuals, families and those who are at-risk of social isolation.

Although the 350+ people who patiently waited to speak to Mayor Ford at the Toronto budget hearing spoke from their heart, it seems there is an assumption being made that social value can’t be quantified. We disagree.

Increasing use of the Social Return on Investment (SROI) methodology illustrates how to value the results of investment in social programs and infrastructure that supports and strengthens communities.  An SROI of a library, for example, would examine three forms of value -  financial, social and environmental.  The municipality of Calgary for example, has been committed to a triple bottom line since 2005, and is now taking steps to include an assessment of social and environmental value, alongside financial value, in all aspects of corporate decision-making.

It is only when you integrate the three elements of sustainability impact (financial, social, environmental) that a more complete picture of value creation is formed. Although the City of Toronto has some hard decisions ahead, there are tools that can value the implications of budget cut-backs in terms that illustrate that cost and value are linked but not interchangeable.  These tools will assist any leader to ensure that long term strength is not jeopardized by short term decision-making.

In light of recent events, many LBG Canada companies have expressed an interest in learning how corporations are responding to natural or man-made disasters. As it becomes increasingly evident that disaster response will be an ongoing part of community investment and CSR programming, the importance of establishing management systems to guide corporate response to local, national and global disasters has become more apparent.

In response, a short poll was conducted by SiMPACT of LBG Canada companies, and found 88% of respondents stated their community investment program has included a corporate disaster response. Within that group, however, only 29% stated they have a guideline or a policy in place to frame their decision-making process.

Sixteen companies within the LBG Canada group were polled. The results also demonstrate how companies are responding, whether through traditional fundraising campaigns, in-kind donations or perhaps by engaging employees through matched giving or volunteering programs. In addition, the results show a strong focus on short term, reactionary emergency relief rather than a trend towards a hands-on approach to disaster recovery.

To review the full results and highlights visit LBG Canada Reporting or read it here.  

Recently it was announced the American retail chain, Target, will be arriving in Canada. As consumers anxiously await the discount retailer’s arrival, Canadian companies such as Sears and HBC are preparing for the entrance of foreign retail competition. 

While companies look to differentiate themselves among their US rivals, LBG Canada believes investing in communities is a valuable way for established retailers to stand apart from foreign competitors. By demonstrating their links to the community, and effectively communicating the value of long term national partnerships and/or relationships with local groups, companies can attract and engage consumers in a powerful and more meaningful way.     

Understanding the competition is vital in the retail industry, and from an LBG Canada perspective, the annual benchmarking process can help companies understand where peers or other large national focussed companies are investing. The process is also highly effective in helping a company identify where they can achieve business benefits as well as community benefits. Understanding these benefits enable companies to communicate the results in a more engaging and tangible way.
 
For Canadian retailers facing foreign competition, identifying areas to invest strategically can also help companies highlight impactful stories that demonstrate the importance of being a good corporate citizen - reminding consumers their business is here to stay and is an important part of the fabric of society.

For more information on the introduction of foreign retailers to Canada view http://www.theglobeandmail.com/globe-investor/sears-canada-ceo-resigns/article2072155/ 

As the facilitator of LBG Canada, SiMPACT is aware of the many challenges community investment professionals often face day-to-day. Whether it is lack of staff support or handling a large number of requests for funding, a common stressor we also hear from professionals is how to respond when their CEO asks: What is the ROI of our community contributions?

Although this question seems straightforward, where the frustrations lie is in trying to find a value that represents a diverse portfolio with numerous investments - and communicating that value in terms understood by senior management.

Although community investment professionals often understand the added business benefits to investing in the community, i.e. building rapport, engaging new employees, etc.- executives, on the other hand, want more tangible results, in a language they can understand, such as return on investment (ROI).

To help clarify what is intended by the ROI Question, we encourage community investment professionals to first determine clear objectives and agree with management on what the company is trying to achieve overall. 

When a company approaches us to join LBG Canada, we often start our conversation with them by asking the following three questions:

1. As a contributor to society, does your company want to be known as a responder, i.e. someone who is there to provide help immediately, or do you want to be known for making long-term societal change? Can your portfolio sustain both?
2. Based on the above, how can you focus your investments so they are making the greatest impact in the business and the community? How many focus areas should you have, and how will they be prioritized?
3. Who can you involve to help reach your objectives? Can you leverage any external resources through suppliers, clients, and employees etc. to have the greatest impact?

By determining the objectives that direct company contributions, the community investment team can then begin to put metrics in place to measure a return on investment. Although it can be difficult to measure something as subjective as social change, many LBG Canada companies find the results from their annual benchmarking gives professionals the language and evidence needed to make a strong business case for investing in the community.

Corporate Knights recently released The Best 50 Corporate Citizens in Canada ratings for their 10th Anniversary report. Relying on the adage "What get's measured get managed" to calibrate corporate impact, it is not surprising to see twelve (12) LBG Canada companies recognized in the top 50 list:

• BC Hydro & Power Authority
• Vancity Credit Union
• Enmax
• Nexen Inc.
• Enbridge Inc.
• Cenovus Energy Inc.
• Talisman Energy Inc.
• TD Bank Financial Group
• Suncor Energy Inc.
• Hydro-Quebec
• TransCanada Corporation
• Telus Corporation

To view the complete ratings, visit: http://bit.ly/kmoA4X 

Check out the article first, and let us know what you think. http://tinyurl.com/3mu9cyy

Read our response:

Those 45% of executives are missing out on a great opportunity. LBG Canada companies (www.lbg-canada.ca) believe if you know the motivations behind your corporate community investments, you will understand the benefits for both the community and business better.

Brett Wilson did a great job explaining the benefits of philanthropic giving, but there are also social and commercial investments which provide both community and business benefits as well. In LBG Canada terms, social investment requires a longer term commitment by the business and results in more impactful change over time (i.e- improving literacy in a community, which in turn might increase the potential pool of employees available to the business in the future). On the other hand, commercial investments are designed to address a business problem. They are designed to create real community value, in order to address the business issue at hand.

36 Canadian companies are part of LBG Canada. Over the past four years of LBG Canada activity, there has been a noticeable shift in how companies are investing into the community. In 2010, philanthropic investments made up 26% of the investment portfolio, a significant increase from 9% in 2006. Some might be surprised to hear that social investments are the largest piece of the pie at 54%, with commercially-motivated investments landing at 19% in 2010. Whatever drives the motivation behind a community investment, they all have the potential for a true “give-and-get” partnership.

Re: Sustainability performance a new essential

Often the primary focus of sustainability is environmental progress, but as the article states, social and governance are just as important to understanding a company’s overall management quality. Readers may not be aware, but there is a growing network of Canadian companies who come together to put the appropriate metrics in place to measure social performance indicators, around community investment and employee volunteering programs in particular.

35 companies are part of LBG Canada, which provides the tools & resources to improve the way community investment teams plan, evaluate and articulate the value of their investments and employee volunteering programs. Companies within the group use their involvement in LBG Canada to enhance transparency and credibility of reporting on social performance within their CSR and Sustainability reports.  The recent examples of Hydro-Quebec and TD Bank Financial Group illustrate the importance of clarity in social performance reporting, alongside environmental and governance indicators. The overall result? A stronger more effective report that truly reflects a company’s commitment “to the wellbeing of our communities.”