Integrating Corporate Social Responsibility Into a Corporate Culture, the Quest to Embed Integrity into the Workplace

Abstract

Nexen Inc. (the "Company"), an independent global energy and chemicals company, has made significant strides in the area of corporate social responsibility ("CSR"). Developments such as globalization, environmental issues, competitive labor markets and advances in technology have accelerated the pace at which these and other corporate social responsibility issues have risen up the corporate agenda. The playing field for multi-national enterprises has been forever altered. In response to these emerging issues and encouraged by Canada's Minister of Foreign Affairs, the Company championed and adopted the International Code of Ethics for Canadian Business (the "Code") in 1997. The Code received endorsement from the Canadian government and support from many companies and business associations. The Code provides principles for community participation, environmental protection, business conduct and employee health and safety. The Company's Integrity Program is the vehicle by which the Code is implemented. The Integrity Program focuses on ensuring that the Code is more than simply words. Its principles have been successfully translated into comprehensive and innovative practices which address industry considerations faced by companies today and which benefit the company and its stakeholders. Corporate social responsibility is an area of emerging global importance. Besides being the right thing to do, fostering a culture of integrity has ensured that the Company adds shareholder value over the long term and makes a difference in its broader sphere of influence. Introduction Corporate social responsibility ("CSR") is defined by the World Business Council on Sustainable Development as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. In addition, it is important to recognize that CSR provides a vehicle by which business can demonstrate its commitment and engagement in addressing many of the concerns identified by those that oppose globalization. The Company considers the key elements of CSR to be: business practices; community investment; safety and environment; employee relations; and supplier and customer relations. Key Issues/Challenges Although only recently emerging in the public spotlight, efforts to address corporate social responsibility concerns are not new. The Universal Declaration for Human Rights was developed over 50 years ago. The far reaching United States Foreign Corrupt Practices Act was enacted a generation ago. While the creation of these and other instruments were important milestones, they have not removed the barriers to investment that exist for many companies. A survey of business people by the World Bank showed that, other than tax regulations or high taxes, corruption is considered to be the number one obstacle to conducting business in developing countries1.