Canadian Lawyer

September 2008

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that in the areas of environment, em- ployee relations, and to make sure that people are treated with dignity and re- spect, and the environment is treated with the same dignity and respect — to advance causes that, typically, corpora- tions weren't, or didn't feel the need to be, involved with. "But it is certainly be- coming more and more of an expectation from our customers and our suppliers that we are going to act in a manner that is socially responsible for a corporation." Krebs says the ACC's research has shown that, while definitions of CSR are varied and fuzzy and the boundar- ies aren't exactly clear, it's top-of-mind. "It is a voluntary activity of the organization to go beyond what is legally required, and I think that is a very impor- tant component. And it ties into the citizenship aspect, to the dignity, to the respect, sustain- ability. There is a whole range of things that are involved." Armstrong says while such actions are voluntary now, there seems to be a trend towards determining how one measures compliance to environmental standards or corporate social responsibility. "There is an evolving trend, I think, towards the establishment of some sorts of stan- dards, internationally, in this area, which is interesting," he says. "So, while it is vol- untary now, it may be like one of those things that, over time, becomes some- thing that a corporation feels obligated to do, if it is not otherwise motivated to do it." Badour notes it's not so voluntary in the United Kingdom, for instance, with financial institutions, "where they have an obligation to be putting a certain part of their profits back in, and their real ob- ligation to be disclosing the kind of com- munity activities that they have. It seems to me, you read their annual reports and see the kind of CSR disclosure that they do, it's remarkable," he says. "And the reason it is so remarkable is that I think they are regulated to do so." Melendy says a lot of CSR and green initiatives began with branded com- panies and a concern for public image but have moved down the supply chain into supplier contracts and lease agree- ments. "It has trickled down through- out the industry, and it is now an ex- pectation from our customers. And we have the same expectation with our suppliers: that people are going to ad- here to this code and not just pay it lip tion is very important. "In Celestica's case, because the legal department has taken an active role in the area of cor- porate social responsibility, we are be- ing looked to for strategic advice in this area, especially when you are going be- yond a legal standard," he says. "So we can advise, 'OK, legally we have to get to point A,' but when you want to go be- yond point A we are very much looked towards to provide guidance and direc- tion in that area." The ACC's Krebs says on and how it may impact all the various other stakeholders within the company." — TODD MELENDY, CELESTICA INC. service, but to proactively ensure that it is rolled out throughout the entire supply chain," he says. "I mean, there is a defined set of standards now that all the companies in the electronics industry are expected to comply with globally. It is amazing how quickly it has taken off." And as these initiatives take off and increase in scope and size, so too does the legal department's involvement. Ki- nastowski says, as the City of Toronto takes on new initiatives and brings in new regulations, the staff lawyers are key members of every corporate team. "Ev- ery initiative that comes forward from the city has a lawyer that is involved somewhere, somehow, providing advice, ensuring that it is set up in such a way that it is defendable legally, that it works, strategic help, as well as the legal help," she says. Melendy says because CSR and green initiatives aren't a legal requirement in most cases, you are going beyond the legal standard where a strategic direc- "When you are trying to roll out some- thing like corporate social responsibility, which touches all areas of the company, I think the law department is in a really unique position to know what is going the association's research shows there are a variety of approaches and that, as a result, law depart- ments and their roles vary. "What we have seen is, generally, the role of the law department is primarily, or has been primarily, what I would say reinforcing the struc- ture and supporting the functions, as opposed to a more strategic approach. Although, particularly as it evolves, the law depart- ment is playing a more strategic role, but I don't mean to deni- grate or even to argue that you necessar- ily have to play a strategic role," he says. "I am certainly not denigrating the importance of the supporting func- tion, because you can play a critical role in making certain that the organiza- tion achieves the goals that it wishes to achieve." Melendy says law departments are in a unique position where "they are one of the few departments within a com- pany that touch every area of the com- pany," he says. "They are aware of the environmental issues, the supplier is- sues, the customer issues, the real estate issues, HR issues. When you are trying to roll out something like corporate so- cial responsibility, which touches all ar- eas of the company, I think the law de- partment is in a really unique position to know what is going on and how it may impact all the various other stake- holders within the company," Melendy says. "So, I think it gives us a very unique position." www. C ANADIAN Law ye rmag.com SEPTEMBER 2008 47

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