Making Good Corp. Citizenship Pay Off.

Making Good Corp. Citizenship Pay Off.
In the depths of recession, it’s tough for companies to think about something as removed from the bottom line as being a good corporate citizen. Yet doing so actually improves P&L. – By Isaac Rudik

A sure sign that the world is changing comes from a study done by the Centre for Corporate Citizenship at Boston College. Nearly one-third of companies surveyed said good “corporate citizenship” is a key component in recruiting and retaining quality employees. Yet just five years earlier, less than 10% of companies in a similar study said it was important.

Moreover, other surveys of customers, investors or lenders, and other stakeholders show that a plurality of them prefer doing business with responsible companies. Indeed, an increasingly common question in consumer market research asks if respondents avoid companies that don’t reflect their values and, consistently, more than half say they do.

Admittedly, in the depths of a strangling recession, it’s tough for companies to think about something as seemingly ethereal and removed from the bottom line as being a good corporate citizen. Yet doing so actually shows up on the P&L statement, either because loyal customers who like a company are more likely buy from them again, or – and this is just as likely – because an irresponsible company can end up paying hefty fines for a cavalier attitude.

Brewing Trouble

There isn’t a better example than the Lorne Street Brewery in Sudbury.

In August, 2006, a utility company worker arrived at the brewery to cut its hydro. The once-successful Northern Breweries, which operated the Lorne Street Brewery, was far behind in bills. A smell of ammonia permeated the area and maintenance worker explained that compressors that circulated concentrated ammonia through the brewery’s coolers had been offline since June. The gas warmed and expanded until it ruptured one of the aging system’s pipes.

Sudbury Hydro alerted the Ministry of the Environment (MOE), which immediately notified local police and fire departments. MOE staff collaborated with local agencies, enhancing municipal manpower with ministry expertise. The area was evacuated but not before a number of first responders required medical attention.

Once the situation was normalised, the MOE tracked down a Northern employee at another brewery in Sault Ste. Marie that was also being closed. Claiming the company had no money to pay for clean-up, the MOE issued an order and filed a complaint.

Leo Schotte, Northern’s owner, told MOE investigators that he had a “hands-off” approach to running – or not running – the company. When he failed to attract investors, Schotte said Northern Breweries locations were simply abandoned with any dangerous materials on-hand still inside.

“I just don’t think he really thought much about it or cared much about it,” MOE investigator Rick Besner, who handled the inquiry, told reporters.

As a result of ignoring the dangers lurking inside his failed businesses, a $100,000 fine was imposed on Northern Breweries for disrupting local business and for the health risks caused by the leak. Shutting down the Sault brewery landed Schotte back in court, where he pleaded guilty on charges relating to leftover ammonia in that facility’s coolers.

Controlling Risks

Used in countless industrial processes, ammonia can be deadly if handled improperly – not just to employees exposed to it but the surrounding community, as well. And it can be just as deadly to a company’s coffers, as Leo Schotte discovered the expensive way.

Yet it’s not difficult to control the risk posed by a compound such as ammonia.

For instance, the Reed GD 3300 detects a wide variety of gases including some that are toxic along with nuisance vapours. It includes noise and visible alarms, running off a low-power, semi-conductor sensor. Besides ammonia, it can alert businesses to a wide range of aromas that signal something is leaking amiss:
• Natural gas
• Propane
• Butane
• Methane
• Acetone
• Alcohol
• Carbon Monoxide
• Gasoline
• Jet fuel
• Hydrogen Sulfide
• Naphtha
• Lacquer thinner
• Smoke
• Industrial solvents

A good corporate citizen knows that doing the right thing is sometimes the hardest but done for all the right reasons. Taking proactive and preventative steps to ensure hazards don’t harm the local environment, local community and help build a sustainable future for employees while also having a positive impact on a company’s profit picture.





Isaac Rudik is a compliance consultant with Compliance Solutions Canada Inc. (www.compliancesolutionscanada.com), Canada’s largest provider of health, safety and environmental compliance solutions to industrial, institutional and government facilities.

E-mail Isaac at irudik@csc-inc.ca or phone him at 905-761-5354.