Good Companies Have Good Indigenous Relations

Standing Rock #DAPL

With greater awareness of environmental and social issues investors have asked companies to report on how their activities impact communities. Corporate social responsibility (CSR) reports are standard for large corporations nowadays which let investors (and interested parties) see what the company has been up to reconcile any negative impacts the company has perpetuated. Increasingly, investors are asking for CSR statements to include indigenous issues since companies that ignore local concerns tend to perform worse, a good example of this is the recent debacle of the Dakota Access Pipeline.

In Canada and around the world, we are entering a time where the prudent company is the company that secures Indigenous consent before beginning activities, involves Indigenous peoples as partners, and works with them to establish a clear framework for ongoing relations in order to renew and maintain relationships. For investors, strong Indigenous relations are a marker that a company is a stable investment, with management foresight, solid partnerships and prospects for sustainable growth.

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Consumers Care About Social Responsibility

I recall early in the last decade that companies didn’t respond to calls for corporate social responsibility because consumers didn’t care. That seems to have changed, which is a very good thing. Since then, corporations have had to accommodate the growing concerns of people and have even gone so far to create new brands that focus on ethical behaviour. The consumer times are changing!

Treatment of employees is the biggest factor (45%) when people decide how responsible a company is. Environmental impact follows close behind (38%). Transparency, corporate oversight, and impact on society are also important factors.

Companies shouldn’t think that the trend towards socially-responsible purchasing means that they can just claim that their products are “green” and call it a day. According to the survey, 63% of people trust company claims about social responsibility only sometimes–when they do verify information, it’s often by reading product packaging, checking out the news, and doing independent research.

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