CSR in Canada Goes Beyond PR to the Bottom Line

CSR in Canada Goes Beyond PR to the Bottom Line

In Canada, corporate social responsibility is evolving from public relations to a factor that affects the bottom line. So reports the Financial Post. On the risk side, companies are under increasing pressure to report on the execution of their CSR initiatives. However, greater disclosure and more transparency can lead to legal liabilities, if companies are proven to use CSR as PR rather than follow through with actual effort. From lawsuits based on human rights and environmental issues involving Canadian mining companies to actions about compliance with new government regulations, companies doing business in Canada can face legal consequences if they don’t live up to their CSR commitments. Securities class actions could follow from a successful lawsuit that damaged a company’s stock price. And a failure in this area could even threaten M & A deals. Standard due diligence by lawyers conducting pre-transaction analysis now includes reviews of a company’s public claims about CSR, and their fulfillment. On the opportunity side, companies that have effectively executed and reported their CSR initiatives will be seen to have managed risk and therefore created more value at the bottom line. I’m John Howell for 3BL Media.