Incentive created by putting value on ethical action
From The Toronto Star
Husky Injection Molding Systems Ltd., a major machine maker in the plastics industry with a keen eye on environmental and social responsibility, took its values a step further yesterday by introducing a program that allows its 3,000 workers to earn shares for acting green and helping others.
"It's quite incredible," Husky worker Anthony Hannem said. "If other companies took this kind of lead, we'd be a much better society."
Hannem, manager for security and emergency services, said he recently started walking about 2.5 kilometres to work, which could earn him up to two dozen Husky "GreenShares" annually.
He also volunteers at a Toronto community service that provides work placements for underprivileged people. It will earn him a few more shares every year.
Valerie Chort, Husky's vice-president of environment, health and safety, said an employee should be able to earn about 25 to 30 shares annually through helping the environment and the community.
That would generate about $155 to $185 worth of shares a year for each employee, taking into account Husky's current stock price.
"This is creative and innovative," said David Nitkin, president of EthicScan Canada Ltd., a research house on social responsibility, and consultant on ethics.
Nitkin said a number of leading-edge companies, like Husky, are
experimenting with ways to reinforce environmental and social
>responsibility. For example, some companies will match employee donations to a charity organization or hospital. Other firms raise funds for community groups, he said.
But Nitkin noted the Husky program is especially positive because it induces workers to participate and does not compel them. "The company indicates it has a set of values and it has added a financial incentive if you want to buy into it," he said.
Hannem said the share program gives workers ownership in the company which makes them more productive. "It empowers employees," he said. "You also give back to the environment and the community and those actions are looked at in a positive manner."
Under the latest program, employees will get a GreenShares calculator that lets them fill in what they are doing environmentally and socially in the community. The company has set a value per activity and employees submit the forms monthly to management. The company governs the submissions under its code
of honour.
Participants can earn shares through activities ranging from walking to work, driving fuel-efficient cars, and planting trees to reporting water leaks, turning off power tools and photocopying on both sides of paper.
They can collect more if they coach a sports team or volunteer for a >community group.
The GreenShares program is the latest environmental and social initiative of Husky founder and chief executive officer Robert Schad. Schad, a youthful-looking 71, built Husky from a small Toronto garage into a top designer and manufacturer of injection molding equipment for products including plastic bottles, food containers, auto parts and cell phones.
Sales topped $1.02 billion last year for the firm, based in Bolton, northwest of Toronto.
In the past decade, Schad has led a drive at Husky to reduce waste, pollution, job injuries and improve employee health. "We have a purpose beyond making money," he said."This is something industry will . . . copy."
At the same time, Husky officials said the company has realized significant savings and generated new revenues from the programs.
"This is good business," Schad said in announcing the share program.
Schad, who rides in a natural gas-powered Ford Crown Victoria, said a lot more companies and consumers are becoming environmentally conscious.
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