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SIO endorses national agenda on corporate responsibility and accountability

Canada must act now to keep pace with the US and Europe in the race to set new standards for corporate social responsibility, says a report by a group of high level experts from business, government and civil society released Jan. 29.

"Canada has built an enviable record in many quarters internationally for honest dealing and ethical business values," said Prof. Wesley Cragg of York University’s Schulich School of Business, "but government and business have failed to see that reputation as a valuable asset. And it may now be in jeopardy."

The consensus report, entitled "Corporate Responsibility and Accountability in the Global Marketplace," is the result of a six-month dialogue led by Prof. Cragg and involving leaders from the corporate, government, non-governmental and academic sectors.

Lisa Hayles, SIO's former Assistant Director, participated in the working group that developed the report, and SIO has formally endorsed its recommendations. "We particularly like the emphasis on making corporations more transparent and accountable through securities, stock listing and accounting standards," said SIO Executive Director Eugene Ellmen.

"There is so much public interest and support in this area that government needs to look at adopting new policies and work with business to set and implement new standards," said Prof. Cragg. "The Enron scandal has impacted Canadian institutions in serious ways," he added, while citing investigations by the US Securities & Exchange Commission and the introduction of new standards for corporate conduct by the Ontario Securities Commission as other reasons for timely action. "Businesses in Canada need to understand that ethical standards are a bottom line issue," said Prof. Cragg.

The group’s participants agreed that, by building on a reputation already highly regarded in many quarters, Canada and Canadian corporations have an opportunity to strengthen competitiveness, build confidence in capital markets and enhance human security internationally.

The report contains 12 recommendations for addressing current global concerns about corporate social responsibility directed at government, the private sector and civil society organizations as well as Canada’s universities, business schools and colleges.

Highlights

Business and Securities recommendations

	Improve disclosure and reporting in stock exchange listings and corporate reports
	Integrate ethical values into accounting and auditing procedures
	Promote positive competitive value of existing Canadian ethical standards

Government recommendations:

	Embed environmental, social and economic ethics criteria into government procurement policies
	Use incentive programs creatively to ensure firms who receive government assistance such as tax concessions and loans meet ethical standards

Academic recommendations

Integrate emerging national and international standards into all aspects of university, college and business school activities including procurement, curriculum development and educational programs

A copy of the report (PDF format) is available on the Internet at:

http://www.schulich.yorku.ca/ssb-extra/businessethics.nsf/allwebdocuments/links.htm

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