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5/6/11 CCCA_V5No2_StakeholderEngagement-FIN.qxd:CCCA_V1No1_DriversSeat-FIN.qxd Cover “It’s all about being the 12:06 AM Page 24 helps AstraZeneca:“The col- the value of an activity.” laborative solution is the best good neighbour, treating It made business sense for way to ensure the greatest Bombardier Inc., a global impact on people, as well as others how you want to be player in transportation our commercial success.” treated, and breaking down industry, which revamped its Ideally, engaging stake- corporate CSR governance holders — the groups and barriers and opening the structure in 2009. communities that are affect- lines of communication.” The company already had ed by a company’s activities a well-established history of and that, in turn, can impact Eric Miller, focusing on community the business itself – should be General counsel, Nexen Inc. issues, says Daniel Desjardins, an ongoing process, though senior vice-president and gen- it can require considerable resources. But there are times that eral counsel who chairs the CSR committee. But it wanted to require more focused attention:when launching a major project or improve its engagement with another set of stakeholders: its own setting up operations in a foreign country, for example.Then it’s employees.“They expect us to do something about the environ- practically a form of critical due diligence, and a necessary step ment,” he says.“Employees want to be proud of the company they before committing to a major investment. work for,so this initiative helps us retain our employees and recruit In the late 1980s, the global energy giant Nexen Inc. was set young talent.” So in an effort to reduce its carbon footprint, to begin a sour gas drilling program near its processing plant in Bombardier launched a Green Fund, and allocated $5-million Balzac,Alta. But before long the community voiced its opposi- annually over four years to encourage employees to come up with tion to the plan.As a result, Nexen launched a process involving innovative solutions for reducing the company’s CO2 footprint and “community consultation, and helping people understand what energy usage.In its first year,the company received 37 proposals,of the company was doing,” says Eric Miller, senior vice-president, which 19 qualified.As a result,the company is implementing a new general counsel and secretary.“At first, Nexen was facing serious lighting system, changing pumps and boilers, all in an effort to opposition, but then it was seen as a valuable member of the improve efficiency, Desjardins says.As well, Bombardier is installing community because of the way the company engaged with peo- a water-collection system in a plant in Mexico that will eliminate ple, with openness and transparency.” the use of potable water for unnecessary tasks. Born out of that experience was Nexen’s very successful “All 19 projects came in at a cost of close to $5-million, but stakeholder engagement process. “From there, as we moved they will produce savings of $1.5-million each year [perpetual- internationally, we took the same approach; we went to Yemen ly].They will remain sustainable and reduce our CO2 emissions and applied the same principles,” says Miller, who has been with by 6,000 tons, the equivalent of 1,000 mid-sized cars, and our Nexen since 1993.“Now, whether it’s inYemen, the oil sands [in water usage by 8-million litres [annually],” he says. Alberta], or the shale gas regions [in British Columbia], we have The challenges faced by Vancouver-based Eminata Group, one groups that consult with the communities before we start.” of the largest providers of private post-secondary education in “Until you show you care, the other side isn’t going to care,” Canada, are far different.“Our business is in a heavily regu- says Miller. “It’s all about being the good neighbour, treating lated environment, the result of governments and regula- others how you want to be treated, and breaking down barriers tors responding to stakeholder concerns,”says Royden and opening the lines of communication.” Trainor, the company’s vice-president and general Citing a more recent example, Miller says Nexen was involved counsel. “So, we could either wait for stake- in discussions with Alberta highway authorities and communities holders to engage with policymakers and that neighbour its oil sands projects about the company’s trans- wait for the result, or we could engage portation to and from the sites. During the process, the parties with them first and help them deter- agreed on measures such as finding different routes and repaving mine our internal processes.” Trainor, roads.“They were very small and inexpensive [measures],but peo- views stakeholder engagement as intel- ple appreciated that we cared and that we were trying to minimize ligence-gathering. “It enhances our the impact on their lives,” he notes. “Establishing goodwill is a ability to conduct continuous risk- MARNIE BURKHART, JAZHART STUDIOS risk-mitigation strategy. But companies aren’t [engaging with assessment and risk management.” stakeholders only] because they have to,but because it makes good By reaching out to students, private business sense. It gives a social licence to operate that maximizes education associations, regulators and 24 CCCA Canadian Corporate Counsel Association SUMMER 2011