Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

CORPORATE SOCIAL RESPONSIBILITY: Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Author: Nikki Bahr de Rogers

Founder and President Sustainable Strategies Design:

ArdiCOM, Costa Rica

Information on Canadian Embassies and Canadian Corporate Social Responsibility (CSR) was written by Global Affairs Canada. The case studies (organizations, chambers and companies) in this document were written by Nikki Bahr de Rogers for the Canadian Embassies in Central America and the Dominican Republic. This text seeks to promote Canadian business values and specifically Canada’s CSR Strategy, through which the Canadian government expects Canadian companies operating abroad to respect all applicable laws and implement international CSR best practices. In addition, this text seeks to raise awareness of CSR best practices by Canadian companies investing in the region.

The opinions, interpretations and conclusions expressed in this document do not necessarily reflect the opinions, interpretations and conclusions of the Government of Canada. The total or partial reproduction of this document is permitted with prior written authorization from Global Affairs Canada.

November 2016

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Sustainable Strategies is a pioneer company based out of Guatemala, bringing Sustainability and Corporate Social Responsibility consulting to leaders looking to change the long-term competitive advantage of their companies and raise the quality of life of the societies in which they operate. Our vision is to transform societies working with leaders, changing ideas and generating sustainable strategies.

Based in Guatemala City, Sustainable Strategies works on projects in the region such as: social impact assessments, compliance with financial standards (Ecuador Principles and International Finance Corporation Regulations), development of strategies and policies for sustainability, managing relations with public stakeholders and systems and management systems for cross-company deployment, strategic and thematic approach to business sustainability, measuring the impact of the current sustainability strategy to optimize the time and resource investment, among others.

www.rse.com.gt

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

TABLE OF CONTENTS

Introduction: Shaping the Framework........................................................................................................................................

6

Corporate Social Responsibility: The Canadian Model.........................................................................................................

6

Promoting Commercial Opportunities between Canada and the Region (Bilateral Chambers) ...............................

7

IntegraRSE: Instutionalizing CSR in the Regiont....................................................................................................................

8

Examples of Canada’s commitment to Responsible Business Practices in the Region.................................................................

9

B2Gold Corp.........................................................................................................................................................................................

11

Barrick Pueblo Viejo..........................................................................................................................................................................

12

Belize Electric Company Ltd. (BECOL).....................................................................................................................................

14

Cabo Drilling........................................................................................................................................................................................

15

Desjardins International (Centro Financiero Empresarial (CFE).....................................................................................

17

Gildan Activewear Inc......................................................................................................................................................................

18

GoldQuest Dominicana SRL..........................................................................................................................................................

19

Pershimco Resources.......................................................................................................................................................................

20

Polaris Energy Nicaragua, S.A......................................................................................................................................................

22

Scotiabank............................................................................................................................................................................................

24

TELUS International..........................................................................................................................................................................

25

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Introduction: Shaping the Framework

sibly also plays an important role in promoting Canadian values internationally and contributes to the sustainable

It is with great pleasure that we present the booklet, “Corpo-

development of communities. The Government of Ca-

rate Social Responsibility: Canada’s Commitment to Respon-

nada is committed to promoting responsible business

sible Business Practices in Central America and the Domini-

practices, with the clear expectation that Canadian com-

can Republic”. This document is a collaborative effort by the

panies working internationally respect human rights and

Canadian Embassies located in Costa Rica , the Dominican

all applicable laws and international standards, operate

Republic, El Salvador, Guatemala , and Panama, by Canadian

transparently and in consultation with host governments

companies operating in the region, by IntergaRSE and its

and local communities, and conduct their activities in a

members and by Sustainable Strategies. It presents a general

socially and environmentally responsible manner.

1

2

overview of how Canada defines Corporate Social Responsibility (CSR), of the organizations that have been the Embassies’ partners in promoting this subject, and illustrates cases of how some companies are managing CSR in the region.

Canadian Embassies in Central America and the Dominican Republic work collaboratively on commercial initiatives, planning and CSR in order to maximize resources, networks and opportunities for Canadian clients and local stakeholders.

This booklet seeks to highlight Canada’s positive contributions to the region and motivate other companies to continue striving to improve their practices. Specifically, it seeks to promote the Government of Canada’s CSR strategy.

This booklet clearly shows how companies with leading CSR

What is Corporate Social Responsibility (CSR)?

The Government of Canada defines CSR as the voluntary activities undertaken by a company, over and above legal requirements, to operate in an economically, socially and environmentally sustainable manner.

practices distinguish themselves through their commitment to economic, environmental and social objectives, while addressing stakeholders’ questions and needs. It also recognizes the importance of a partnership model of engagement with communities.

Corporate Social Responsibility: The Canadian Model The Government of Canada understands that responsible corporate behaviour by Canadian companies opera-

Socially responsible practices can improve the ability to manage business relationships with stakeholders, anticipate conflicts, mitigate risks and contribute to the sustainable development of communities, regions and countries.

Successful CSR strategies are characterized by the integration of social, environmental and economic considerations within the organization’s values and by transparent operations based on these same considerations.

ting internationally not only enhances their chances for business success but also can contribute to broad-based economic benefits for the countries in which they are active and for Canada. Investing and operating respon1 The Embassy of Canada in Costa Rica is also accredited to Honduras and Nicaragua.

2 The Embassy of Canada in Guatemala is also accredited to Belize.

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Through its CSR Strategy, Canada has a multifaceted

•

approach to help Canadian companies mitigate social

United Nations (UN) Guiding Principles on Business and Human Rights (GPs)

and environmental risks and improve their CSR performance, as well as their contribution to host country

•

benefits. This robust Strategy focuses on (i) developing

Voluntary Principles on Security and Human Rights (VPs)

networks and partnerships through Canada’s over 160 trade offices abroad; (ii) facilitating dialogue through

•

Global Reporting Initiative (GRI)

two dispute resolution mechanisms; (iii) strengthening the environment affecting responsible business practi-

For more information:

ce, and promoting internationally-recognized CSR stan-

http://www.international.gc.ca/trade-agreements-ac-

dards, including the OECD (Organization for Economic

cords-commerciaux/topics-domaines/other-autre/csr-

Co-operation and Development) Guidelines for Multina-

rse.aspx?lang=eng

tional Enterprises, United Nations Guiding Principles on Business & Human Rights, and Voluntary Principles for Security & Human Rights, which Canada is chairing in 2016. In the region, Canada is actively working with Sus-

Promoting Commercial Opportunities between Canada and the Region (Bilateral Chambers)

tainable Strategies, IntegraRSE and its members, bilateral chambers of commerce, businesses, universities, civil

Canada is an important investment, trade and tourism

society, the diplomatic and international community, the

partner for the region. Canadian Embassies have worked

media, local communities, host governments, and others

with business groups to promote greater trade opportu-

in building networks and partnerships to promote CSR.

nities and always include the message of aligning business growth with CSR values.

Through all of these mechanisms, and more, the Government of Canada demonstrates Canada’s longstanding

Due to the differences in market size, the level of for-

commitment to promoting responsible business practi-

mality varies between corporate groups representing

ces. With the help of this booklet, Canadian Embassies

and promoting trade between Canada and the countries

in Central America and the Dominican Republic hope to

of the region. In some countries such as the Dominican

continue reaching out to communicate Canada’s CSR

Republic (www.ccdc.org.do), Guatemala (www.can-

values and share best practices.

chamguatemala.com) and Panama (www.Pancanada.

Examples of Internationally-recognized CSR guidelines

org), there are chambers of commerce. In other coun-

endorsed by the Government of Canada:

tries, there are business groups interested in developing commerce between Canada and the country where they

•

OECD

Guidelines

for

Multinational

Enterprises

(MNEs)

operate. For example, in Belize, Costa Rica, El Salvador, Honduras and Nicaragua, companies and informal business groups (such as Business Councils) work together

•

OECD Due Diligence Guidance for Responsible Su-

and with Canadian Embassies to promote CSR and dis-

pply Chains of Minerals from Conflict-Affected and

cuss issue of common interest.

High-Risk Areas.

•

International Finance Corporation’s (IFC) Performance Standards on Social & Environmental Sustainability

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Some examples of how CSR has been promoted include events about the importance of “trialogue” among companies, governments and communities, as well as local development models in Central America and in the Dominican Republic. The Embassies have encouraged workshops on dialogue and community relations with local chambers or organizations in Guatemala, Honduras and Costa Rica, promoted CSR best practices in mining in Panama, Nicaragua and Honduras, presented the Performance Standards on Social and Environmental Sustainability from the IFC in Guatemala and Panama, and promoted lectures and roundtable discussions on specific CSR issues such as human rights in the region.

•

Honduras: Honduran Foundation for CSR (FUNDAHRSE)

•

Nicaragua: Nicaraguan Union for CSR (uniRSE)

•

Panama: sumaRSE

Chambers of commerce, business groups and companies have been key to contextualize CSR in their respective countries, to provide illustrative cases of success and to provide advice to other companies.

IntegraRSE: Institutionalisation of CSR in the region One of the Canadian Embassies’ main partners in promoting CSR in the region has been the IntegraRSE Network.

IntegraRSE is a partnership of various private organizations in seven countries of the region, which supports companies in the dissemination and implementation of social responsibility as part of their business strategy. IntegraRSE consists of: • •

Costa Rica: Business Development Association (AED) Dominican Republic: National Support Network for Environmental Action (ECORED).

•

El Salvador: Business Foundation for Social Action (FUNDEMAS)

•

Guatemala: Action Centre for CSR in Guatemala (CENTRARSE)

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

IntegraRSE and its member organizations’ goal is to

public-private dialogue is encouraged on current

promote a sustainable and inclusive Central American

issues. Also, the organization of forums, training,

society through joint and complementary action.

conferences, seminars and workshops.

Its

strategic plan is focussed on companies and promotes a service-oriented model with a threefold approach: Eco-

•

Honduras: Sustainable dialogue on how to imple-

nomic, Social and Environmental. Overall, IntegraRSE

ment CSR in SMEs; Socially responsible procure-

has over 900 member companies and a staff of more

ment; How to practice CSR in the future?

than 120 employees.

• Canadian Embassies in the region, in partnership with

Nicaragua: Thematic forum for exchange of experiences with Canadian companies.

IntegraRSE, have been able to strengthen the transfer of knowledge and awareness of CSR while creating important alliances. This collaboration has allowed for increa-

Examples of Canada’s Commitment to Responsible Business Practices in the region

sed visibility of Canadian companies’ CSR advances and raised awareness of Canadian values in the context of

The cases below illustrate how CSR is implemented in

local CSR movements and organizations.

different countries, industries, and businesses of various sizes. Companies included in this publication were se-

This relationship has also facilitated the organization of

lected because they are representative of investments in

events, projects and other collaboration. Examples in-

the region, and for their commitment to CSR. Additiona-

clude:

lly, given the nature of the document, the case descriptions are highly condensed. For each company highli-

•

Costa Rica: Development and implementation of the

ghted, we have selected two key practices in order to

program,“Community-Relationship Best Practices”,

demonstrate the wide range of social and environmental

though roundtables; Development of a Toolbox for

experiences.

Integration of LGBTI persons in the Labour Market, together with the ILO.

This document clearly outlines how companies with good CSR practices stand out due to their commitment

•

Dominican Republic: collaboration in CSR forums.

to economic, environmental and social objectives. It also illustrates models for engaging and partnering with va-

•

El Salvador: Implementation of the “Entrepreneur-

rious stakeholders in order to maximize local benefits

ship and Employment Generation” project through

and operational success.

strengthening microenterprises.

•

Guatemala: Implementing a CSR week with the business sector and various stakeholders, where

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Summary of the 11 CSR cases

Company

Country

B2Gold Corp.

Nicaragua

Industry Mining

Flagship Practices Biodiversity Milk Distribution Project

Barrick Pueblo Viejo

Dominican Republic

Mining

Public-Private Partnership for Local Sustainable Development Management and Conservation for the natural Resources of the Low Hills of Pueblo Viejo - Los Haitises

Belize Electric Company Ltd. (BECOL)

Belize

Energy

Cabo Drilling

Panama

Services, Mining

Tranparent Environmental Practices Active Corporate Citizen Occupational Health and Safety Procedures for Logging and Clearing Trees

Desjardins International (Centro Financiero Empresarial (CFE)) Gildan Activewear Inc.

Panama

Finance

Financial Solutions for the Base of the Pyramid Priority to Environmentally Friendly Customers

Dominican Republic, Honduras, Nicaragua

Apparel and textile

Transition to Renewable Energy Employees and Community Development through Education

GoldQuest Dominicana SRL

Dominican Republic

Mining

Pershimco Resources

Panama

Mining

Education for Development Environmental Management Program Responding to Local Needs and Opportunities Creating Local Economic Opportunities

Polaris Energy Nicaragua, S.A.

Nicaragua

Energy

Water and Sanitation for Sustainable Development Risk Assessment System for Environmental and Social Impacts

Scotiabank

TELUS International

Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala (representation office), Panama

Finance

El Salvador, Guatemala

Information and Communication Technology and Service

Socio-Environmental Financial Risk Management Reforestation of La Sabana

Days of Giving HOPE Program (Helping Our Community Through Education)

Disclaimer: This document does not qualify a company as either responsible or not, nor is it an endorsement of the company, but it illustrates examples of responsible practices regarding social and environmental issues that have been successful, according to the companies’ own assessments.

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

B2Gold Corp.

B2Gold Nicaragua is part of B2Gold Corp., a Canadian company based in Vancouver and one of the fastest-growing intermediate gold producers in the world.

B2Gold Corp. operates in Canada, Nicaragua, the Philippines, Namibia, Mali, Burkina Faso and Colombia.

The company began its operations in Nicaragua in 2009 managing El Limon Mine in the department of Leon and La Libertad Mine in the department of Chontales, from which it extracts, produces and exports gold.

B2Gold’s mission statement outlines the corporation’s commitment to responsible mining, seeking a positive impact in the communities where it operates, recognizing the company’s role and its impacts in all aspects of its activities, including health, safety, environment and social aspects. B2Gold Corp’s social initiatives are not isolated actions, but go hand in hand with the company’s mission, vision, values and strategy. The success of the business depends on knowing how to maintain balance and consistency, aligning them with activities which result in positive impacts for the surrounding community.

Clive Johnson, CEO of B2Gold., specifies that “whether in Nicaragua, the Philippines, Namibia or Mali, our goal is to make a positive difference.”

nearly 83,000 protected plants. In order to manage the refuge and to study and preserve the species, B2Gold established a partnership with the community of Santo Domingo and the Amigos del Rio San Juan Foundation.

The refuge has been beneficial for the company as proof of its commitment towards the environment.

Milk Collection Project - La Libertad Mine is the biggest employer in its area. In order to empower local communities and provide alternative employment and generate non-mining related wealth, B2Gold identified the potential of the dairy farming sector and its importance in the local economy. In alliance with other institutions, B2Gold responded to the request of local small and medium sized dairy farmers and supported a project to create a milk collection center. The main result of the project has been to decrease the local communities’ dependence on economic benefits provided directly by the company, by strengthening a pre-existing alternative economic activity in the region.

According to B2Gold, the key to its social and environmental achievements in Nicaragua has been the company’s consistent involvement with local communities to identify issues of common interest, and its response through projects that are designed, implemented and monitored in collaboration with local stakeholders.

Biodiversity - B2Gold Corp. is committed not only to meeting the requirements of environmental protection in the areas where its projects are located, but to going beyond what is required, seeking the conservation of biodiversity in its areas of influence. A wildlife refuge has been created near La Libertad Mine to help mitigate the impacts of the mining project on flora and fauna. The Peña Blanca Wildlife Refuge in Santo Domingo was established on 42 hectares of land acquired for this purpose, and is home to over 290 animal species and

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Barrick Pueblo Viejo Barrick Gold Corporation is the largest shareholder of the Barrick Pueblo Viejo gold mine in the Dominican Republic. Barrick is a company that generates wealth through responsible mining, wealth for its shareholders, for its staff and the countries and communities with whom it works. Headquartered in Toronto, Canada, the company has operations in Argentina, Australia, Canada,

Análisis

Chile, the Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, the United States and Zambia.

Ajustes

In the Dominican Republic the company operates the

Abordaje y relaciones

Licencia Social

Pueblo Viejo mine located about 100 kilometers northwest of Santo Domingo. Barrick acquired the project in 2006; the construction of the mine started in 2008, production began in 2013, and it is on its way to a sustai-

Gestión

Identificación y validación

nable production.

The group CSR strategy focuses on the vision of working

Planificación

with the local communities towards long term mutual success. Globally, the company has implemented CSR policies and procedures. The elements that make up the Corporation’s Social Management System (matrix) are based on international standards, corporative policies and the laws of the countries where they operate.

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Public-Private Partnership for Local Sustainable Development - With the objective of promoting community development, Barrick Pueblo Viejo established a Public-Private Partnership with local authorities and communities, NGO’s and other companies of the area. The role of the company in this partnership is to facilitate the devising and approval of the Municipal Development Plans, participate in investment consultation roundtables to support the realization of major projects prioritized by the communities together with the authorities and make voluntary contributions to municipalities which support them in the execution of works within a framework of participatory processes. This partnership has promoted partaking and democratic process to facilitate the development and economical management independently from the mine. The practice has been documented and made available to the Central Government for possible replication in other areas of the country.

Management and Conservation for the Natural Resources of the Low Hills of Pueblo Viejo-Los Haitises – Barrick Pueblo Viejo developed a program to manage the conservation of natural resources of the low hills of Pueblo Viejo-Los Haitises. This program’s goal is to increase forest cover and protection of natural resources in the area, particularly in the rivers’ basins, through reforestation programs, but also by working with the community to find alternative forms of housing that would enable resource conservation and simultaneously guarantee food security. This program benefited the residents, families and municipalities in the area, from Piedra Blanca to Los Haitises National Park with the interest of improving the environment and promoting alternative employment. The company has demonstrated its commitment to environmental issues, which was initially one of the most critical issues raised by the communities, given their negative experience with companies which had operated previously in the area.

According to Barrick the key to their successful CSR strategy has been its involvement and partnerships with local communities and authorities.

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Belize Electric Company Ltd. (BECOL) BECOL is a subsidiary of Fortis Inc., a Canadian company headquartered in Newfoundland. Fortis is a leader in the North American regulated electric and gas utility industry with assets of more than CAD $45 billion. The Corporation’s 8,000 employees serve customers at utility operations in five Canadian provinces, nine U.S. states and three Caribbean countries. In 2000, Fortis invested in hydroelectric power generation in Belize, acquiring a hydroelectric plant and building two more to more than double Belize’s production of renewable energy. Considering the country’s high dependence on fossil fuels and on imported energy from Mexico, Fortis identified a business opportunity where it could generate profitability and value for the country by reducing energy costs and at the same time reducing the country’s carbon footprint. Even with Fortis’ investment, in 2016 Belize still imports 42% of its energy from Mexico.

BECOL operates three hydroelectric plants in the Macal River in the Cayo District in Belize: Mollejon with a capacity of 25 MW, Chalillo with a capacity of 8 MW and Vaca with a production capacity of 19 MW. Mollejón and Vaca are run-of-the-river plants. The Chalillo plant has a reservoir of approximately 120 million cubic meters of water.

BECOL’s CSR strategy has been geared towards compliance with national and international best practices, being a good citizen and integration with local communities.

rrently, this committee has been working for more than 10 years, involving the central government, local authorities, civil society and local leaders and meets regularly to review issues of mutual interest. It has been a forum for dialogue and resolution of doubts.

Going beyond what is required by the government of Belize and mitigating the company’s impacts on the river, BECOL developed a partnership with an environmental NGO, Friends of Conservation, to promote the conservation of biodiversity around the Macal River. This commitment and the results of this partnership were presented at the Committee’s forum.

Active Corporate Citizen - BECOL is an active corporate citizen and support programs, initiatives, sports and cultural activities that are important to their employees and communities. The company supports various initiatives at the regional level by donating resources, time and support and it is a big donor to the Red Cross Disaster Relief programs in Belize. President and CEO Lynn Young said, “We do what we can to support communities and sports and cultural events to ensure that we are a full-fledged local partner.”

According to BECOL, the key success factor of their strategy has been partnerships with local, national and international organizations, governments and leaders.

Transparent Environmental Practices - During the construction of the Chalillo dam project in 2002 there were several social actors who questioned the construction of the project given the potential environmental impacts of the dam in an area of virgin rainforest. The Environmental Impact Study required BECOL to create a Public Participation Committee as a forum for ongoing dialogue through which the company could make known its operation, and its environmental and conservation practices under the principles of transparency and openness. Cu-

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Cabo Drilling Cabo Drilling (Panama) is a subsidiary of the Canadian company Cabo Drilling Corp., which specializes in providing mine drilling services to Canadian and international mining companies. The company operates in five countries and supports customers in their exploration and development processes to extract minerals in areas with varied landscapes, unique operating environments and different cultures.

Cabo Drilling began operations in Panama in 2007 at the request of a customer. Cabo Drilling began to provide services such as site preparation, machinery transportation to remote sites, often by helicopter, and running core drilling and geotechnical drilling in customer’s mining projects. When the client project reaches the development phase, Cabo Drilling provides additional services including specialized tree logging, clearing dense vegetation and trees to install mining infrastructure, secondary roads, transmission lines, most of the time in remote and uninhabited land.

The company’s CSR philosophy aims to uphold internationally recognized operation standards in order to achieve excellent levels of productivity for their customers. John A. Versfelt, President and General Manager of the company emphasizes that “the corporation works to reflect its commitment to preserve human health, employees’ safety and the environment, while being recognized by its clients and their neighbours for its operational excellence.”

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Freq (Per 200_00 min)

Injury Frequency

15.00 10.00 5.00

2006

2007

2008

2009

2010

2011

Total Medical Ald Frequency

2012

2013

2014

2015

2016

0.00

Least Time Injury Frequency

Occupational Health and Safety - To comply with cus-

nel involved in the task, the company has implemented

tomer safety policies and programs, Cabo Drilling con-

the pertinent standards developed by British Columbia’s

tinually works to proactively and systematically identify

forestry industry, which are rigorous in terms of secu-

and mitigate risky situations, combined with staff edu-

rity. Field supervisors have knowledge and skills based

cation, monitoring and good engineering to avoid ac-

on these standards. Locally, the company trains staff to

cidents, property damage and lost time in operations.

ensure voluntary compliance with security policies and

To date, Cabo Panama has drilled more than 220,000

procedures.

meters and has built 910 drilling rigs in thickly jungled areas and has invested more than 3,000,000 man hours

According to Cabo, the success of their CSR practices is

to clean up the vegetation of more than 1,250 hectares

a result of their adherence to international operational

without documenting a single serious accident. This po-

standards, even when they are not required, reducing

licy includes strict procedures and programs, high-qua-

environmental and social impact risks, winning the loyal-

lity safety equipment, continuous training and a zero to-

ty of its employees and providing a competitive advan-

lerance for carelessness.

tage for its customers.

Procedures for Logging and Clearing Trees - Cabo Drilling provides logging and platforms clearing services for drilling and provides access to drilling machinery, clearing the way for the development of the mining site and the necessary infrastructure to enable the construction of electrical wiring and transmission lines. Recognizing that deforestation is an environmentally sensitive issue and presents high risks to the physical health of person-

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Desjardins International (Centro Financiero Empresarial (CFE)) Centro Financiero Empresarial - CFE - (Corporate Financial Center in English) is a Panamanian company, owned by four shareholders each with 25% stakes, that offers microfinance services. One of CFE’s parent companies is the Desjardins Group, the largest financial cooperative in Canada. Desjardins is present in 30 developing countries through its Development International Desjardins (DID) branch with the goal of facilitating competitive financial development in emerging markets.

CFE began operations in Panama in January 2010 offering commercial financial loans to Small and Medium Sized Enterprises (SMEs). CFE has eight branches in Panama that serve as its base of operations for their employees to visit customers and offer them loans of approximately $ 9,000 with low interest rate and flexible disbursement.

The company’s CSR strategy stems directly from its mission statement that seeks to increase permanent access for micro, small and medium enterprises and low-income individuals in urban and peri-urban areas to specialized financial services. CFE strives to reduce poverty by empowering local communities and through the development of the Panamanian private sector. According to Bruno Arsenault, General Manager, the company’s CSR policy is “based on the set of values that govern our operations and we prioritize social responsibility practices in all of the services we offer.”

Financial Solutions for the Base of the Pyramid - Under the slogan “we help you grow”, CFE provides financial services to entrepreneurs at the bottom of the pyramid.

The result of the strategy has been to grow a portfolio of solid loans that favors those who had not been granted loans in the past. 43% of customers are women.

One of the major challenges of the strategy is customer awareness of financial responsibility, since due to lack

of information, they are vulnerable. The company has therefore implemented a number of initiatives to provide information to customers and encourage a culture of fair collection. Roberto Rodriguez, Commercial Manager responsible for the Company’s CSR indicates, “We have a culture of responsible collection and although we have to enforce the guarantees, we have worked with partners in order for this collection to be humane, transparent and, if possible, beneficial for the customer.” As proof of this, CFE has launched the “Incentive Program for the Reliable Customer”, which rewards customers who pay their loans in a timely manner through a 10% return of interest paid.

Priority to Environmentally Friendly Customers - In order to encourage companies to make responsible use of renewable resources in a climate of poor environmental awareness, CFE encouraged a strategy of attracting customers who care about the environment. CFE advisers seek customers who recycle or reuse natural resources and offer them loans. CFE will be exporting this business model to other Desjardins operations.

According to CFE, the key success factor of their CSR strategy is the constant involvement of stakeholders and the promotion of human values in company’s operations.

Mr. SEBASTIAN CASTILLERO is a businessman and entrepreneur who currently employs 6 people. Sebastian is a farmer from Ocú who took his first loan with CFE to build a machine that dries cassava and processes it to be sold to companies that produce gum, enamel, glue, shrimp food, etc. He identified the need for this machine because he saw that many producers had to throw away their cassava production because their product was damaged. When Mr. Castillero saw all the products going to waste, he proposed that producers sell him the cassava at a better price instead of throwing it out to.

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Gildan Activewear Inc. Gildan Activewear Inc. is a leading supplier of everyday quality family apparel, including T-shirts, sweatshirts, sport shirts, underwear, socks, stockings and corsets.

The company sells its products under a diversified portfolio of brands. With more than 48,000 employees worldwide, the company is vertically integrated since it owns and operates manufacturing facilities on a large scale, which are located mainly in Central America, the Caribbean Basin, North America and Bangladesh, to efficiently meet its customer’s needs.

Gildan began its operation in Central America in 1997 and operates in Honduras (27,000 jobs), Nicaragua (8,000 jobs) and the Dominican Republic (3,000 jobs).

Gildan’s commitment to responsible management leadership is an integral part of, and guides, the company’s overall business strategy. According to Peter Iliopoulos, Senior Vice President, Public and Corporate Affairs, “the sustainability strategy is focussed in four key areas: the employees, the environment, the communities, and the products they manufacture.” Based on its commitment, Gildan is included in the Dow Jones Sustainability World Index. It also leads the industry as a member of the Sustainable Apparel Coalition, it has been included in the RobecoSAM Sustainability Yearbook 2016, and it has once again been recognized as one of Canada’s 50 most socially responsible companies by Maclean’s magazine, among others.

the company came from renewable sources. Compared to 2010, bunker fuel consumption has been reduced by 75%, greenhouse gas emissions by 32% and the level of recycling has increased by 89%.

Employees and Community Development through Education - Low literacy rates and low education are not only a social challenge, but also an impediment to creating a strong workforce for Gildan. Therefore, aside from internal training, employees are offered additional opportunities for personal growth. In each country Gildan has been a pioneer in forging partnerships with universities, schools and technology programs to provide educational programs for its staff and the communities where it carries out diverse operations. Hundreds of graduates in these communities have benefited from these initiatives.

According to Gildan, one of the key success factors of their CSR strategy has been the company’s commitment to awareness of the industry’s global trends as well as creating leading international business practices in their regional operations.

Transition to Renewable Energy - Gildan is in transition from fossil fuels to a more carbon-neutral main power supply. The transition to biomass (agroindustry in the Dominican Republic and agroforestry and waste processing in Honduras) was initially for environmental reasons, allowing Gildan to reduce its greenhouse gas emissions.

Then the company realized that it gained a competitive advantage by being independent from oil price fluctuations. To date, Gildan has completed the transition of most of its plants. In 2015, 51% of the energy used by

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

GoldQuest Dominicana SRL GoldQuest Dominicana SRL is a mining exploration company that develops mining projects in the Dominican Republic. It is a subsidiary of the Canadian company GoldQuest Mining Corp.

GoldQuest Mining Corp. has invested approximately US $25 million in the Dominican Republic since 2004 and currently generates approximately 50 direct jobs in the country. The company operates in the southern part of the Cordillera Central mountain range and in the provinces of San Juan and Elias Piña.

GoldQuest’s sustainability philosophy is based on its vision of being a sustainable mining company, maximizing its stakeholders’ long-term value. Since its inception, the company has implemented CSR initiatives based on the management of its activities and interactions with all stakeholders. GoldQuest’s responsible management style is based on the understanding of its operations and the use of the most modern techniques in their activities, the minimization of environmental impacts, developing constructive dialogues with various public stakeholders and creating value for them.

Education for Development - Among the stand-out initiatives implemented for the communities neighboring the exploration and development projects, the company highlights its support for primary, secondary and university education. GoldQuest in coordination with the community of Hondo Valle (Palo de Viento) built the community’s primary school for both primary school children and also it has an adult-learning center. The space is also used as a meeting hall for students’ parents. Similarly, GoldQuest maintains a cooperation program with a middle school learning center called Campamento Aventura, which is run by the Catholic Church. Additionally, the company has a Geology college scholarship program at the Universidad Tecnologica del Cibao Oriental (UTECO).

Environmental Management Program – GoldQuest, seeking to minimize the environmental footprint produced by exploration, has implemented an environmental management program which focuses on continual improvement, based on planning, implementation, monitoring and action. The scope of these programs has been greater than the one put forth by existing regulation and meets the company’s environmental policies. Monitoring and evaluation of all water supplies surrounding the project confirm that there is no interference. Among GoldQuest’s future plans is the implementation of a reforestation programs with adequate fruit trees and plants in the basins that will be chosen in coordination with relevant communities and government agencies.

According to GoldQuest, the company’s main success factor is open dialogue with neighboring communities and timely information delivery and collection at all levels (provincial and national), which is the key tool to meet stakeholders’ expectations. GoldQuest aims to exceed its stakeholders’ rational expectations.

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Pershimco Resources Pershimco Resources is a Canadian company listed on the Toronto Stock Exchange (TSX) as a mining exploration corporation. Its business strategy is to acquire, explore and develop properties with the goal of converting them into operating mines. Pershimco, who operates in Canada, Mexico and Panama, was recognized in 2012, 2013 and 2014 as one of the top junior mining companies on the TSX Venture.

In Panama, Pershimco operates the Cerro Quema mine in the province of Los Santos located in the south, in the center of the Azuero Peninsula. This project is designed for the extraction of gold and is currently advancing in the phase of obtaining permits. It is scheduled to enter into full construction in the coming months and

Responding to Local Needs and Opportunities - Some of

start gold production at the end of 2017 by conventional

the sports and arts initiatives that the mine is working in

open-pit mining.

partnership with the community are programs such as the creation and sponsorship of the district’s football and ba-

Cerro Quema project’s CSR strategy is in line with Pers-

seball leagues and a Youth Symphony Orchestra as well

himco’s commitment to operate responsibly as an active

as scientific initiatives such as the Cerro Quema Mine -

corporate citizen in cooperation with local communities

Agricultural Research Institute Agreement (MCQ-IDIAP in

and creating alternative production capacities outside

Spanish) which is implementing a meteorological network

of the mine. Executives are in constant communication

and building a Agro Climate database by installing inter-

with community leaders, collaborate on projects and

connected weather stations and performing scientific data

initiatives identified by the community and actively ex-

management to provide timely information to small and

change information with the communities to ensure job

medium producers in the area. The company is also heavily

training and to create employment alternatives that are

involved in improving health services through donations of

not always related to the mine. The Cerro Quema project

medical supplies to hospitals in the region as well as pro-

is the largest employer in the area and cooperation is

moting programs established by Canadian NGOs.

important for the continued regional growth.

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Creating Local Economic Capacities - To support the com-

tant contact with employees, the governor, the mayor and

munities around the project and help them develop their

the community in order to be aware of opportunities and

own economic capacities, the mine has supported two

the communities’ needs. That is what explains the success

programs that seek to reduce the communities’ reliance on

of our programs.”

the mine. The first is the Training Program with the National Institute for Human Development (INADEH, in Spanish) to provide technical training to young people in the surrounding communities and to some of the mine’s suppliers.

The result of this project is an increase in the number of workers and skilled labor in the communities surrounding the project with the ability to obtain specialized jobs with recognized qualifications.

Second, the mine collaborated with the Smithsonian Institute, local universities and the Embassies of Mexico and Korea in a cooperation project with the Panamanian Authority on Aquatic Resources (ARAP in Spanish) participating in the creation of an oyster farm on Cana Island. This project developed a prefeasibility study, market research, a business plan, project training, and support for distribution and marketing, among others. The results of the study were positive and led to the commercial production of high-quality oysters in 2015.

According to Pershimco Resources, the success of their CSR strategy is the constant and fluid contact between company executives and local communities, which has fostered a collaborative relationship. According to Alain Bureau, President of Pershimco Resources, “it is key for company executives to live on the site, as it ensures cons-

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Polaris Energy Nicaragua, S.A.

PENSA’s mission statement includes a CSR strategy,

Polaris Energy Nicaragua, S.A. (PENSA) is a subsidiary

which is based on generating renewable, clean and re-

of Polaris Infrastructure Inc., a Canadian company based

liable energy in order to be a leader in the development

in Toronto and listed on the TSX under the symbol PIF.

and operation of geothermal resources in a competitive,

Polaris Infrastructure, Inc. is engaged in the operation,

efficient and sustainable manner. This strategy focuses

acquisition and development of renewable energy pro-

on three factors: Community, Employees and Environ-

jects in Latin America. PENSA owns and operates the

ment, thus reflecting its leadership commitment and

San Jacinto-Tizate geothermal plant in the Republic of

compliance with International Finance Corporation (IFC)

Nicaragua with an installed generation capacity of 72

Performance Standards on Environmental and Social

MW net and is currently developing new wells to increa-

Sustainability. The project is funded by the IFC and six

se its capacity.

other development banks.

In 2006, the first operational phase of the San Jacinto

Water and Sanitation for Sustainable Development: The

Tizate’s Geothermal Plant began, and following a major

company has striven to work with 5 communities su-

investment in 2010, it is one of the most important fo-

rrounding its operation area by establishing multi-secto-

reign investments in Nicaragua. It is also one of the main

rial partnerships and managing sustainable projects that

renewable energy generators in the country, thus con-

meet the primary needs of the area. Among the projects,

tributing to a change in the energy matrix. The project

PENSA has been able to provide access to quality wa-

sells electricity to the company that distributes electrici-

ter and sanitation, which improved the quality of life for

ty in a regulated industry, and contributes about 10% of

more than 4,500 people, directly impacting more than

the national demand for electricity.

900 households, 6 public schools and a health center.

This project was co-financed by the IDB (Inter-American Development Bank), OeEB (Oesterreichische Entwicklungsbank AG / Development Bank of Austria), CRS (Catholic Relief Services) and PENSA, attaining a comprehensive reach in the communities of the area of influence. This project has not only benefited the communities, but also has improved the relationship with local authorities and the lending banks.

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

According to PENSA, the main success factor for the company’s CSR strategy has been to involve all three sectors of society and the various target audiences in the projects it operates in order to align interests and create sustainable changes.

Sistema de Evaluación de los Riesgos e Impactos Ambientales y Sociales

1. Evaluación de Aspectos/ Impactos Ambientales & Sociales

2. Planificación del Sistema

1. Planificar

As part of its CSR environmental component, the com-

7. Evaluación de desempeño

pany is working with a Risk Assessment System for Environmental and Social Impacts, which aims to comply with: national and international regulations, socio-envi-

4. Evaluar desempeño

Evaluación y Manejo del Sistema

2. Entrenar 3. Capacidad Organizacional

ronmental permits, with IFC regulations and adhere to international standards set forth under ISO 14001:2004

6. Monitoreo /Verificación

3. Monitorear/Verificar

Environmental Management Systems. The company has established an Environmental Management Program that identifies potential environmental and social risks

4. Entrenamiento

5. Consultas a la comunidad

and impacts, which are mitigated and / or prevented though a management plan. Among the impact management initiatives, the company highlights the Noise Monitoring Plan, the Resource Efficiency plan and the Reforestation Plan. The systematic management of risks and impacts has been beneficial to reduce costs, prevent conflict and retain staff.

Alcanzar desempeño ambiental sostenible

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Scotiabank The Bank of Nova Scotia or Scotiabank is Canada’s leading international bank and is one of North America’s leading financial institutions. The bank was founded in 1823 and now has over 23 million customers and approximately 90,000 employees worldwide. The bank offers a wide range of products and services such as personal and commercial banking, wealth management and private banking, corporate banking and investment.

Scotiabank has operated in Costa Rica since 1995 and is active in retail banking, commercial and corporate banking, private banking, investment funds and insurance.

The regional headquarters is located in Costa Rica and the bank also operates in Belize, El Salvador, Guatemala (representative office) and Panama.

The bank has recognized that it has a unique opportunity to positively influence the economic and social environments in the countries where it operates. In this context, its CSR strategy is seen as a strategic imperative that generates value for the bank, its shareholders and society at large. The group’s strategy focuses on five priority areas: corporate governance, customers, employees, the environment and social investment.

ges them to create their own social and environmental management system and includes these requirements in the loan agreement. Disbursements are conditional upon good management in this area.

Reforestation of La Sabana - In order to create a true urban forest in the capital and rehabilitate the safety, health, and ecological functionality of the main park in the capital, Scotiabank encourages the reforestation of the Metropolitan Park La Sabana, through the gradual intervention of various partner agencies in the areas of cleaning, reforestation, maintenance, communication, monitoring and evaluation. The initiative, carried out with the support of the Costa Rican Sport and Recreation Institute (ICODER, in Spanish) and other state institutions, was declared a project of public interest by the Chinchilla Miranda administration. In addition, the project has been highlighted as one of the country’s most important and efficient public-private partnerships in recent years.

According to Scotiabank, the success of their CSR work has been its ability to contextualize the company’s international commitment to the local needs and market.

Socio-Environmental Financial Risk Management – Scotiabank does not only include its CSR policy in its operations, it also seeks to promote sustainability as a priority to its clients, especially for customers whose project they finance. As a signatory to the Equator Principles, Scotiabank is committed to ensuring that projects funded by substantial loans meet certain IFC Performance Standards on Environmental and Social Sustainability. In order to achieve this goal, the bank has implemented a socio-environmental risk management system through which it completes due diligence processes to identify the projects’ social and environmental risk, encoura-

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

TELUS International is part of TELUS Communications Company, a Canadian communication services company with more than 12.5 million customers. TELUS International is the international branch, which focuses on outsourcing services and is dedicated to driving industry solutions for business process outsourcing (BPOs). It has established call centers in Bulgaria, El Salvador, Guatemala, the Philippines, Romania, and the USA with the mission of being a worldwide BPO leader.

TELUS International began operations in Central America in 2010 when it acquired a local company that had been its supplier. Now, it is the largest in the region with 4,000 employees in Guatemala City, 1,000 in Quetzaltenango and 3,000 in El Salvador. It is a regional leader in the outsourcing services industry.

The company’s CSR strategy is based on positive impacts for its employees’ place of work and residence and is based on a three-pronged approach: education and health, environment and internal clients. Taking into consideration the large number of employees, the focus on internal clients or employees is strategic because it promotes a positive work environment, decreases staff turnover and reduces costs. It also helps the employees feel a sense of belonging when company helps the community and the country.

Días de Servicio – (Days of Giving) son los días orga-

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Page 25

Days of Giving – are specific outreach days organized to

HOPE (Helping Our Community through Education) –

mobilize large numbers of employees who come toge-

is an educational initiative designed on the principle of

ther and volunteer. The purpose of the pre-selected days

providing a better future for young people with limited

is to mobilize the largest number of volunteers to fulfill

access to education. The program also seeks to teach

the dreams of communities within the company’s area

skilled workers English so they can then be employed

of influence. On these days, the company not only offers

by the company in a market with limited qualified per-

staff’s time, but also approximately 90% of staff donate

sonnel. The program’s goal is that young people achie-

part of their salary and TELUS International contribu-

ve an intermediate English level. TELUS International

tes $ 1 for every $ 1 contributed by the employees. This

covers 80% of the tuition costs and students pay the

program helps TELUS fulfill one of its promises, which

rest. There are several study groups. One is located in

is: “We give where we live.” The Canadian Embassies in

the company’s facilities for low-income youth attending

Guatemala and El Salvador have participated in the Days

base courses and the other study center is located in the

of Giving, working closely with volunteers from TELUS

highlands of Guatemala where students are recruited

International.

mainly from indigenous backgrounds, and who traditionally work in the fields. HOPE gives them new employment, cross-cultural opportunities and more. Students who graduate find employment in TELUS International

Volunteers per year

or with other companies in the BPO industry, and earn 3 to 5 times more than minimum wage.

2014 2013 2012 2011 2010 2009 2008

According to TELUS International, its CSR success stems from designing and implementing programs that benefit many groups, while attracting and retaining talent, which is one of the greatest challenges of operating in Guatemala.

600

700

1,879

2,225

2,441

2,880

Hours donated per year 2014 2013 2012 2011 2010 2009 2008

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2,400

2,600

8,661

21,113 19,789

20,646

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic

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Canada’s Commitment to Responsible Business Practices in Central America and the Dominican Republic