Credit Union Social Responsibility Tool DEVELOPING A CSR VISION AND POLICY STATEMENT

Transcription

1 Credit Union Social Responsibility Tool DEVELOPING A CSR VISION AND POLICY STATEMENT DECEMBER 2010

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3 ACKNOWLEDGMENT Credit Union Central of Canada would like to acknowledge Coro Strandberg, Principal of Strandberg Consulting for researching and writing this tool for Developing a Credit Union Social Responsibility Vision and Policy Statement. In addition to being a former director at Vancity Credit Union, Coro is a global thought leader in the areas of sustainable governance; sustainable purchasing; sustainable human resource management; and sustainable finance, insurance, and asset management. She has provided facilitation and training on social responsibility to credit union managers and directors and has helped more than a dozen credit unions develop Credit Union Social Responsibility and sustainability strategies. We are also extremely grateful to the many credit union staff and directors who have contributed their time and advice to Coro s research. Their generosity in this way is an investment in the continued strength of Canada s credit unions and the communities they serve.

4 TABLE OF CONTENTS CHAPTER 1:... 5 Introduction CHAPTER 2: Definition and Rationale CSR Vision Statement CHAPTER 3: Approaches to Corporate Social Responsibility Sustainability Definitions CHAPTER 4: Tips on Developing your Corporate Social Responsibility Vision and Policy Statement CHAPTER 5: Next Steps APPENDIX: Appendix A Appendix B Appendix C Credit Union Central of Canada, All Rights Reserved. This publication is provided for informational purposes only. The information in this publication is summary in nature and does not constitute legal or business advice. Credit Union Central of Canada hereby disclaims all warranties as to the accuracy of any of the information in this publication and disclaims all liability for any actions taken in reliance on this information. You may display on your computer, download, print or photocopy this publication for non-commercial, personal or educational purposes only, provided that the content is not modified and that each copy identifies the source and bears our copyright notice " Credit Union Central of Canada" and the terms of this limited license. Any copying, redistribution or republication of this publication, or its content, for any other purpose is strictly prohibited.

5 CHAPTER 1: INTRODUCTION Corporate Social Responsibility (CSR) is an emerging business trend. In some industries, such as the financial sector, it is becoming increasingly mainstream to adopt CSR visions, policies and strategies to guide business operations and investments. More and more businesses are discovering the benefits of strategically managing their social and environmental performance to generate positive CSR outcomes for their customers, their employees and their communities. This tool will help credit union employees, managers and board members understand the elements of a CSR vision and policy statement in order that they may undertake the preparation of a CSR framework to guide their credit union s strategic CSR direction. The tool defines a CSR vision and policy and elaborates on the role they play in CSR implementation. It reviews possible components of a vision or policy statement and different approaches credit unions and other businesses take towards their CSR visions and policies. The tool provides some basic tips for developing and implementing vision and policy statements. A sample CSR vision statement and a sample CSR policy are offered to illustrate aspects of a CSR vision and policy for credit union adaptation. Finally, a number of credit union mission, vision, and policy statements are included in the appendix, along with a list of further resources for credit unions. This tool is a complement to the Credit Union Central of Canada guide, Credit Union Social Responsibility: A Roadmap for the Development of a Sustainability Strategy available through 5 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

6 CHAPTER 2: DEFINITION AND RATIONALE CREDIT UNION SOCIAL RESPONSIBILITY VISION STATEMENT A corporate social responsibility (CSR) vision statement is a vivid, compelling description of the future CSR position of your credit union. It is part inspirational and part achievable. It is a statement of how you see events unfolding over 10 or 20 years in your credit union. Your CSR vision statement will contain aspirations that are broad, all-inclusive and forward-thinking. It should be an idealized description of a desired outcome, conveying a mental picture of your dream or goal. While the chances of reaching the goal may not be 100 per cent, the organization must believe it can do so in order to motivate people to try. The vision statement will guide choices and can be either quantitative or qualitative. CREDIT UNION SOCIAL RESPONSIBILITY POLICY STATEMENT A CSR policy is a set of basic principles and guidelines to direct focus and influence the credit union s actions and decision-making in pursuit of its goals. Corporate social responsibility policies tend to be formal in nature and broad in application, applying to all employees. The guiding principles or policy may include statements of what and/or why. Sometimes CSR policies are communicated as commitments or intentions regarding key functions and priorities of the credit union. Corporate social responsibility policies can touch on community engagement, human resource management, governance, procurement, member relations, operations, marketing and communications, and product development the full suite of corporate functions. THE BIG PICTURE Vision sets out the future direction. Policy guides the day-to-day management and should unfold to be consistent with the vision. Strategy lays out how to achieve this vision. Together, the CSR vision statement and policy comprise the core elements of a CSR framework and help to shape the CSR strategy and day-to-day decisions. The CSR vision sets the stage for the development of shorter term (three or five year) CSR goals, targets, and deliverables, which will be developed in your CSR strategy later. The CSR policy communicates to staff and other stakeholders the credit union s commitments to social and environmental considerations in the business and becomes an auditable operational decision-making framework. The vision statement sets out a long-term aspiration and the policy defines how the credit union will conduct business on a day-to-day basis. The development of a CSR strategy and measurement and monitoring system are logical next steps in the process. Development of a corporate social responsibility strategy and management systems are explored further in Chapter 3 of Credit Union Social Responsibility: A Road Map for the Development of a Sustainability Strategy. Some credit unions revise their corporate mission, vision and values statements, as well, to incorporate their CSR philosophy and commitments into the DNA of the organization. This ensures their CSR aspirations are enduring (i.e. not limited to a 10 or 20 year timetable) and core to their business model. Other credit unions opt to not revise their corporate mission, vision and values statements, but to incorporate their CSR vision and 6 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

7 policy as supporting documents to help the credit union articulate and move toward its CSR goals. (This tool doesn t address integration of CSR into corporate mission or values, but examples are provided in the Appendix of credit unions which have done this.) Experience has shown that a critical factor for successful CSR is that board and management adopt and communicate a CSR vision or commitment statement which sets the tone at the top. Another critical success factor is for staff to buy in to the CSR vision and policy commitment. In the absence of senior level leadership and staff buy-in, the credit union will find it very difficult to advance on a CSR program or initiative. Further, a CSR vision sets the course for the credit union s aspirations, and a CSR policy communicates to all staff their role in the CSR process, elevating unconscious and underleveraged philosophies into overt, intentional and more impactful outcomes. Servus is developing a strategy to focus our CSR efforts with the expectation of enhancing member and stakeholder relations, lowering risks, and reducing costs. We will start be developing our CSR vision, a critical first step to guide our strategy work. Being socially responsible is an obligation to our member-owners and essential to achieving our vision of building a better world one member at a time. Garth Warner, President & CEO Servus Credit Union, Alberta In hindsight, I wish we had started with our CSR mandate clearly stated in inova s mission, vision and values statements. This also needed to be supported with policy. We began with ad hoc activities that were not really rooted to anything which at times created confusion. Now that we have CSR imbedded in our vision, mission and value, it serves as a beacon to our staff, members and community. We now have a responsibility to be who we say we are. Willy Robinson, General Manager inova Credit Union, Nova Scotia 7 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

8 CHAPTER 3: APPROACHES TO CORPORATE SOCIAL RESPONSIBILITY ONE APPROACH DOESN T FIT ALL The occasionally frustrating yet highly creative aspect of CSR is that there is no single path to effective CSR management and strategy. There are some basic guidelines, beyond which each organization can innovate, consistent with its unique culture and opportunities and desire for competitive differentiation. For example, some organizations adopt policies, charters or frameworks to guide their CSR approach. Visions and policies are sometimes short and high-level and at other times detailed descriptions of end-states. Time horizons vary from short-term visions of about five years, to visions that take a generational outlook of 25 years or more. The two credit union CSR visions reviewed for this tool (see Appendix B) address community sustainability, leadership, integration of CSR and triple-bottom-line (social, environmental and economic) benefits to stakeholders (e.g. members, employees, etc.). Some of the credit union CSR policies and commitments found within the Appendix could arguably be considered community investment frameworks, or CSR visions or strategies. This range of practice reveals the diversity in the credit union system, but some common philosophies and aspirations of visions or policies across sectors include: Incorporation of social, economic and environmental considerations into processes Holistic approach Reference to the triple-bottom-line. A vision for a more sustainable future and how the organization will look if it was a sustainable organization Foster positive community impact Consider life-cycle effects of the business Consider long-term perspective Act as a catalyst for community-wide sustainability (e.g. inspire others to be a force of change, etc.) A regenerative or restorative approach to social or environmental sustainability. The following diagrams may help you and your credit union think about your different philosophies or perspectives on CSR and sustainability. 8 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

9 In practice, common structural elements of CSR vision statements and policies include: Definition of CSR or sustainability Vision for the future Purpose and scope of the policy Role of the organization Sustainability or CSR principles Commitments Policy goals Role of, and relationship to, stakeholders Implementation statement Monitoring statement Reporting statement 9 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

10 Sometimes policies indicate who and what the policy applies to and the spheres of influence of the business. In other words, the degree to which the business will endeavor to work beyond its operational boundaries what is sometimes referred to as the value chain to leverage CSR or sustainability benefits? For organizations that integrate CSR principles into their policies, they often address the following to guide planning and decision-making: Inter-relationships between people and systems Long-term or inter-generational perspectives, commitments, impacts and costs Building capacity Partnerships, collaboration, education and engagement Open and inclusive decision-making Accountability and transparency Valuing diversity Ideally your credit union vision and policy statements should build upon your unique distinctiveness as a financial institution and a co-operative. For example, your vision and policy could address the credit union s unique CSR role in lending, deposit-taking, community economic and co-operative development, social enterprises, social finance and community investment, socially responsible investment, affordable housing, green economy, financial inclusion and access, and financial literacy all within the purview of an environmentally and socially responsible co-operative financial institution. There are different points of view about how brief or extensive a vision and policy statement should be. Some prefer a succinct one or two sentence vision which is memorable for staff and stakeholders. Others prefer a more robust model. Regardless of your preferred approach, in the case of your vision statement you are creating a mental picture that can energize and inspire the credit union and its stakeholders. The use of action words or words that have emotional pull can make your statement more inspiring. Your policy statement should address all the relevant areas of your business. Neither the vision nor policy is intended to serve as a measuring stick for success; this is the role of your goals and targets. As your vision will influence the creativity and originality of your CSR strategy, it is important to ensure it is aspirational and allows for out of the box outcomes. 10 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

11 CHAPTER 4: TIPS ON DEVELOPING YOUR CSR VISION AND POLICY STATEMENT Here are some ideas for how your credit union could develop its CSR vision statement and policy: 1. Task a team with the responsibility to prepare a draft vision and policy statement for board approval. 2. Research CSR vision and policies of other businesses or credit unions in your region or province. 3. Read the background material provided at on CSR to understand the breadth and depth of CSR. 4. Educate staff and other stakeholders (e.g. members, community representatives, regulators, etc.) on the range of possibilities, opportunities and issues which your CSR vision and policy might address. 5. Consult staff and other stakeholders for input into the vision and policy. 6. Have a visioning session with key stakeholders. For more information on the process for the development of a CSR Vision Statement and Policy see Chapter 3 of Credit Union Social Responsibility: A Road Map for the Development of a Sustainability Strategy. Methods for Stakeholder Consultation There are many different approaches for stakeholder consultation in CSR vision and policy development, including focus groups, electronic surveys, telephone interviews, task forces, roundtables, town hall meetings, etc. By consulting internal and external stakeholders you can develop a more robust statement, foster goodwill, foster excitement and motivation and identify partners for future collaboration. Remember that a CSR vision statement should energize and challenge the status quo enough to spark innovation amongst staff and others. Focus on where you want to be in the future so you don t fall into the trap of limiting your organization to what it is capable of achieving today. In your visioning session you may want to ask some of the following questions: What does CSR success look like for our credit union in ten years? In 50 years? What will employees tell friends and family about our credit union? What will members say about our credit union two decades from now? If our credit union was singled out by the media as a CSR leader, what would the headline say? 11 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

12 Try not to get stuck in concerns over how to make the vision statement work; the visioning session should be about expanding possibilities. The vision should be inspirational and exciting. You may want your visioning session to fill in the following blanks: We believe Our role Our stakeholders/partners Our unique contributions to sustainability challenges If our credit union was fully sustainable we would In a sustainable future our organization would We want to make a difference by We are committed to We want to be known for Why we do it These prompting questions, informed by the results of the stakeholder interviews and your research into other CSR vision statements and policies, should result in some high-level vision concepts which you can work into a draft CSR vision statement for management and ultimately board approval. If possible, describe your vision in the present tense, written from the perspective of having achieved your desired outcome. You will find as you go through this process that a number of guiding principles will surface along the way. These basic principles and guidelines can be pulled together into a CSR policy to frame day-to-day business at the credit union. Many credit unions involve their board of directors directly in the development of the CSR vision statement and policy. As members, they represent an important point of view when it comes to the CSR vision of the credit union. As governors, they will be responsible for adopting and providing oversight over the vision statement and policy so getting their early buy-in can be helpful. This can take many forms, including board interviews in the scoping phase, board participation in the visioning session, etc. 12 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

13 CHAPTER 5: NEXT STEPS Once the vision statement and policy are adopted by the board of directors, the next steps include communication and implementation. It is very important to communicate your CSR commitments to your internal and external stakeholders as this signals to employees, members and others their importance and sets the tone from the top, a critical factor in CSR success. Board and management will next be tasked with incorporating the vision statement into its goals and targets to advance the organization toward its vision the domain of a CSR strategy. The policy will require an implementation effort as well. In addition to communication of the policy to staff, credit unions may wish to embed the policy into the credit union s ethical and decision making systems, including Codes of Conduct, lending and purchasing guidelines, job competencies, incentive programs, etc. For further guidance on the development of a CSR vision statement, strategy and management framework, see Chapter 3 of Credit Union Social Responsibility: A Road Map for the Development of a Sustainability Strategy. 13 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

14 APPENDIX A SAMPLE VISION AND POLICY STATEMENTS The following is a sample CSR vision and policy statement to demonstrate possible approaches a credit union might adopt. Sample Vision Statement Sample 1: By 2030 we are using our role as a lender, deposit-taker, investor, purchaser, employer, partner and co-operative to generate net positive benefits to the environment and our community, having reduced our negative environmental and social impacts years ago. People seek us out because of our reputation for superior financial services that make a positive difference in our community. We have successfully piloted financial innovations to address environmental and social issues and others are looking to us as a role model. The way we practice our credit union philosophy is our competitive advantage and our core strength. Sample 2: People seek us out because of our reputation for superior financial services that make a positive difference in our community and our environment. SAMPLE POLICY STATEMENTS Policy Objective The CSR policy objective sets out the philosophy and guiding principles for the credit union s activities. CSR Definition We define CSR as the integration of social and environmental considerations in how we conduct our business day-to-day. We take our stakeholder interests into account in our decision-making in the short and long-term. Audience and Scope This policy is applicable to all staff and provides them with the principles required to uphold the CSR policy. The policy applies across all our operations, and is incorporated into our governance, management, business strategy, and daily decisions and actions. We also include our CSR ethic in our supplier relations, which are governed under a separate Supplier Code of Practice. We expect our joint ventures and business partnerships to satisfy the intent of this CSR policy. Guiding Principles We will be responsible for reducing our negative environmental impacts on the land, water, air and living organisms and our negative social impacts on people and communities near and far. 14 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

15 We will use our influence to encourage others to limit their negative and enhance their positive environmental and social impacts. We will leverage our resources, expertise, products and services and relationships for the benefit or our members and our communities. We will work with our community partners and use our public voice to advance solutions to social and environmental issues in our community. Accountability We will regularly monitor implementation of this policy and publicly report on our progress. 15 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

16 APPENDIX B RESOURCES 1. The Canadian Co-operative Association s Sustainability Toolkit is an online resource providing guidance and assistance to co-ops and credit unions on how they can embed environmental considerations within their organization. Part 1 provides best practices and frameworks on environmental sustainability governance and management: Sustainability/Sustainabilitytoolkit 2. Credit Union Central of Canada s Credit Union Social Responsibility for Canadian Credit Unions: A Road Map for the Development of a Sustainability Strategy provides an overview of CSR and sustainability and outlines ten steps for the development of a CSR strategy and management system, including the development of a CSR vision statement. A sample exercise for the development of a CSR vision statement can be found in Chapter The Canadian Credit Union Environment Scan, published by SaskCentral, provides an overview of credit union environmental visions and missions, along with a scan of credit union environmental initiatives. 16 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

17 APPENDIX C CORPORATE MISSION AND VISION STATEMENTS CSR Mission Statements 1. inova Credit Union (Halifax, Nova Scotia) inova revised its overall mission to say: We are a viable member owned financial institution based on co-operative values and environmental sustainability. We exist not only to serve the community but also to give back to our community. 2. Vancity Credit Union (Vancouver, British Columbia) Vancity Credit Union s mission is: To be a democratic, ethical, and innovative provider of financial services to our members. Through strong financial performance, we serve as a catalyst for the self-reliance and economic well-being of our membership and community; their purpose is: Working with people and communities to help them thrive and prosper. 3. Assiniboine Credit Union (Winnipeg, Manitoba) Assiniboine Credit Union adopted a new mission statement and revised its core values in 2007 at the first meeting of the newly amalgamated credit union. The statement is as follows: Our purpose as a socially responsible and profitable financial co-operative is to provide accessible financial services for the well-being of our members, employees and community; offer fair and meaningful employment in a safe and respectful workplace; and build partnerships that foster self-reliant, sustainable communities. Their core values include: Co-operation: Guided by International Co-operative Principles, we build relationships that are fair, equitable and co-operative. Integrity and Respect: Integrity and respect guide our business practices and our relationships with each other, our employees, our members and our community. Accountability: We build trust that fosters organizational success and sustainability through our commitment to social and financial accountability. Excellence: We strive for excellence in all we do through innovation, creative thinking and continuous improvement. 17 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

18 MECU Credit Union Ltd., a leading CSR oriented credit union in Australia, has a Purpose which states: mecu will consistently and effectively provide our members and their families with value for money, compelling integrated banking, insurance, and financial planning solutions, as well as memorable superior service in a profitable and sustainable way (emphasis added). Their values include: to be economically, environmentally and socially responsible, and their Brand, what they want to be known for, states: mecu aims to become the pre-eminent socially responsible banking brand in Australia. CSR Vision Statements 1. Envision Financial Group (Langley, British Columbia) Envision Financial Group s corporate vision is to be: The best place our employees have ever worked The best service provider our member-owners have ever experienced An industry leader in financial strength A leader in corporate citizenship (emphasis added) 2. Coastal Community Credit Union (Nanaimo, British Columbia) Coastal Community Credit Union adopted a 10-year CSR vision: Coastal Community Credit Union will be a leader in enhancing the long-term sustainability of the communities it serves; Our CSR practices will be integrated throughout our business operations and will deliver social, economic and environmental benefits to our members, communities and other stakeholders, while delivering a business advantage to our organization. 3. Northern Savings Credit Union (Prince Rupert, British Columbia) Northern Savings Credit Union adopted a Community Reinvestment and Corporate Responsibility vision statement in 2006 which reads: Strong resilient, and sustainable Northwest BC communities and credit union, excellent financial services and enhanced quality of life for members, and recognized by our employees to be the best place to work. To build strong, resilient and sustainable communities we are committed to the following principles: In addition, they have developed Six Principles to guide their direction: 1. Collaborative engagement with NSCU employees, members, and local communities in setting priorities and implementing solutions, and regional replication of innovations initiated at the community level and at other credit unions. 18 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

19 2. Developing mutually beneficial partnerships with community, business, education, and government organizations in the design and delivery of priority initiatives. 3. Unwavering focus on asset development and capacity building of individuals, groups and businesses for the long-term strength and resilience of our region. We will be an advocate for, and champion of, the social and economic health of our communities. 4. Leveraging the credit union s core competencies and assets, including our strengths in financial services, governance, human resources, business operations and development, facilities, networks and co-operative development. 5. Priority concern for sustainable communities and vulnerable groups, particularly youth, aboriginal people, seniors, and businesses classified as small or micro. 6. Commitment to embedding corporate responsibility practices throughout our organization, including measuring, monitoring and reporting on our progress and continuous learning and improvement; we will build on best practices (including our own). The Co-operators has incorporated sustainability into its overall corporate vision: We will be a catalyst for a sustainable society. CSR COMMITMENTS AND POLICIES Conexus Credit Union (Regina, Saskatchewan) Conexus Credit Union adopted a CSR commitment: Through our commitment to CSR, Conexus will act with integrity to improve the quality of life of our employees, members and the communities we serve. We will be competitive with our products and services, striving to be the financial services provider of choice. We will take the steps necessary to have a positive impact on our communities and the environment consistent with our corporate values. They have also adopted a Green Plan Mission Statement: Conexus will strive to improve our environmental performance by developing sustainable business operations and standards that will reduce our impact on natural resources. We will instill environmental responsibility as a corporate value within Conexus culture, and will encourage Conexus staff, partners, and our customers to be more environmentally conscious for future generations. Vancity Credit Union (Vancouver, British Columbia) Vancity Credit Union adopted a Statement of Values and Commitments (SOVAC) in 2000 in order to live their purpose and values in how they do business. Their aim: is to strengthen Vancity s long-term business while contributing to the well-being of their members, staff, communities and the environment. They have six commitments, including two that speak to CSR aspects, which are elaborated on below, as follows: 19 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

20 1. We will be responsible and effective financial managers to Vancity remains strong and prospers. 2. We will provide you with outstanding service and help you achieve your financial goals. 3. We will provide meaningful opportunities for you to have input in setting the direction of the credit union. 4. We will ensure that Vancity is a great place to work. 5. We will lead by example and use our resources and expertise to effect positive change in our communities. This means we will: o leverage our unique skills and expertise as a financial institution to create solutions to social, environmental and economic issues. o o o model and advocate socially and environmentally responsible business practices. seek business partners that practice progressive employee relations, contribute to the well-being of their communities and respect the environment. invest our dollars responsibly in the communities in which we live and work. 6. We will be accountable for living up to our commitments. This means: o o Make continuous and measurable progress in meeting our commitments Involve our members, staff and communities in measuring our performance and report the findings in a public, externally verified report. Sydney Credit Union (Sydney, Nova Scotia) Sydney Credit Union adopted a CSR Value Statement: Sydney Credit Union s commitment to Co-operative Social Responsibility defines its recognition of stakeholders, while in the pursuit of sustainable solutions that involve and balance the interests of our organization, our members, our staff, our communities, our cooperative sector and our environment. Alterna Savings and Credit Union (Ottawa, Ontario) Alterna Savings and Credit Union (Alterna Savings) updates its CSR policy regularly. The following CSR policy was updated June, Philosophy Alterna Savings is committed to Corporate Social Responsibility, which is defined as an organization s commitment to operate in an economically, socially and environmentally sustainable manner, while recognizing the interests of its stakeholders, including members, employees, business partners, local communities, the environment and society at large. Through our Corporate Social Responsibility activities Alterna Savings seeks to use our resources and expertise to provide social, economic and environmental benefits to the communities we serve as well as other stakeholders. Corporate Social Responsibility is a key component of Alterna Saving s desired position as a leader in the credit union system in Canada. To this end, the Board has identified five pillars in which Alterna Savings will focus its CSR strategies: 1. Corporate Accountability 20 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

21 2. Community Economic Development 3. Financial Literacy 4. Environmental Sustainability 5. Philanthropy Our commitment to these areas differentiates Alterna Savings in the financial services marketplace. Policy Objectives a. To provide a framework for an effective social auditing and accountability reporting process. b. To set guidelines for Alterna Savings philanthropic contributions to our communities, including donations, and charitable funds. c. To describe Alterna Savings financial literacy commitment. General Policy Guidelines and Requirements: Accountability a. Alterna Savings is committed to regularly scheduled accountability audits. b. Alterna Savings is committed to reporting the results of these audits to members and the general public through an accountability report. c. The Member Relations Committee, with support from management and designated employees, shall oversee the accountability mandate of Alterna Savings. Community Contributions a. Alterna Savings shall contribute an amount no less than 2% of pre-tax profits based on a three-year rolling average calculation. This budget shall include corporate donations of no less than 1% of allocated funds, corporate sponsorships, a Presdient and CEO discretionary donation budget, the Gary Gillam Award, the CSR Idol awards program and other related costs. b. Alterna Savings shall administer a Spare Change Program, whereby participating members have the spare change (less than $1) from their accounts transferred to pools of funds that are donated to community programs and projects. c. Alterna Savings shall consider which community activities it supports by using the following criteria: Anticipation of effectiveness/community impact Projects or purposes that relate to serving people responding to a community need Projects or purpose that are particularly responding to a community need Projects or programs related to co-operative development Projects or programs sponsored by, or associated with, organizational or individual 21 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

22 members of Alterna Savings d. A Donations Advisory Committee, reporting to the Member Relations Committee, shall oversee the distribution of corporate and Spare Change donations within the limits established through the Advisory Committee Terms of Reference. e. In order to provide a quick response to donation requests, the President and CEO is permitted to authorize donations without the Donation Advisory Committee approval up to an amount determined annually by the Member Relations Committee. These donations shall be made in accordance with this policy. f. Alterna avings shall encourage and support community involvement by employees. g. Alterna Savings shall operate charitable funds and foundations as recommended by the Member Relations Committee of the Board of Directors. h. Alterna Savings shall sponsor the Gary Gillam Award for Social Responsibility in conjuction with the Central. This includes the administration of the Gary Gillam Award Committee, and a financial contribution equal to half the award(s) presented. Commitment to Financial Literacy a. Alterna Savings is committed to using our communication channels and resources to educate members about financial matters. b. As part of this commitment Alterna Savings shall provide members with periodic education seminars on topics of interest and use other mediums such as the website and member newsletter to foster financial literacy amongst its members. Reporting a. The Member Relations Committee shall report to the Board of Directors as outlined in the committee Terms of Reference. b. The Donations Advisory Committee shall report donation decisions to the Board of Directors through the Member Relations Committee following its meetings. Donations shall also be reported in the member newsletter. c. A report on the education activities of the credit union shall be made to the Member Relations Committee of the Board of Directors on an annual basis. d. A community involvement report shall be produced annually and made available to members and non-members. e. An accountability report shall be produced following each social audit and be made available to members and non-members. North Shore Credit Union (North Vancouver, British Columbia) 22 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

23 CSR Policy: Our CSR policy is the strategic filter through which all of our actions will pass. This is not a short-term project, nor is it a glossy veneer over our existing organization. It is a genuine, long term commitment to operate in a financially, environmentally and socially responsible manner and as such it will become an integral part of who we are and what we do. At North Shore Credit Union, we believe it is our responsibility to provide the services for financial wellness that our members deserve, without negatively impacting on the social, environmental or financial wellness of others. To achieve this, we will: Ensure that as we support our members in the achievement of financial wellness, the services we provide do not have harmful social or environmental costs. Engage our stakeholders in the development of our policies and programs. Maintain transparency in all that we do. Implement policies and programs that address our stakeholder groups: Members, Employees, Leadership, Community, Environment, Suppliers. For Our Members, we will: Provide clear information to our members on the direct and indirect social and environmental implications of purchasing, investing and borrowing decisions. Ensure transparent governance practices and reporting Facilitate member support for NSCU community activities. Engage members in the on-going development of our CSR policies, practices and programs. For Our Employees, we will: Provide employees with a safe environment that supports a healthy lifestyle, one that recognizes the value of family and supports balance in our lives. Give employees the freedom to express their ideas and opinions openly and honestly and then respect those ideas and opinions. Give employees the freedom to express their ideas and opinions openly and honestly and then respect those ideas and opinions. Engage our staff in program development. Ensure, through our Employment Deal, that the relationship between NSCU and staff is that of shared responsibility and shared success. As Leaders, we will: Engage the executive management team and seek commitment to all areas of CSR. Engage the Board of Directors and facilitate their active involvement. Ensure frequent and pertinent communications with all stakeholders. Maintain a broad leadership that understands CSR and integrates it into their decision making processes 23 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.

24 In Our Communities, we will: Engage the communities in which we live, jointly developing long-term, strategic, community programs and initiatives. Provide resources to support the charities and organizations within our communities that make them a better place to live, work, and play. For Our Environment, we will: Identify our direct and indirect environmental impacts and develop programs to manage them. Benchmark against other, similar organizations and initiate reporting and knowledge sharing relationships. Exceed basic compliance with all environmental legislation and regulation, and strive to continually improve our performance With Our Suppliers, we will: Ensure that we have open communication with our suppliers. Valuate suppliers against our published CSR standards. Support suppliers who do not meet our criteria by providing information and guidance. Where possible, give priority to local suppliers of goods and services. How we will achieve this: Raise awareness of our social and environmental responsibility among staff, members, leadership, suppliers and the wider community. Adopt policies and programs that address specific areas of our social and environmental responsibilities. Engage in appropriate local, regional, national and international programs that effectively promote the advancement of CSR. Openly report on our CSR programs 24 CUSR Tool DEVELOPING A CSR VISION AND POLICY STATEMENT 2010 Credit Union Central of Canada. All Rights Reserved.