Community and Social Issues
Our approach to community and broader social issues is shaped by two considerations. First, we operate under the highest standards of business conduct and must adhere to clear policies regarding bribery and corruption, antitrust and undue political influence. Second, we have a responsibility to increase the socio-economic well-being of the communities where we operate.
Community Impact
In 2008, PotashCorp participated in or conducted 369 public meetings. For more information, see the Stakeholder Engagement section of this report.
Charitable Donations
- Our targeted donations are made to create long-term socio-economic value in the communities where we operate. We focus our donations towards youth, health, education and natural disasters. We donated $6.6 million in 2008.
- Grants from the corporate office totaled $5.4 million in 2008. This includes $1.0 million to the China Charity Federation and $0.1 million to the people of Myanmar through CARE in response to the earthquake in China and the Myanmar cyclone. We also gave $0.3 million to the Glenview Youth Center in Glenview, IL, as part of a multi-year commitment of $1.5 million, and $0.3 million to the Southeast Integrated Care Centre in Moosomin, SK, as part of a multi-year commitment of $0.5 million.
- Our contributions under the Matching Gift program totaled $0.8 million. United Way organizations in Canada, the US and Trinidad were major beneficiaries. In 2008, we raised the maximum that we will match from $5,000 to $10,000 per employee per year, while reducing the minimum contribution to $25. This will allow our employees to direct more of the money we donate to the causes they find important.
- Our company and employees support communities through company-sponsored volunteerism and non-cash donations. This totaled $0.4 million in 2008. In-kind donations allow us to interact with the community directly, as we did at Lima.
- We exceeded our target of donating more than 1 percent of our five-year average earnings by donating 1.2 percent.
Scholarships
In 2008, we announced that beginning in 2009 our corporate scholarships will be raised from $3,000/year to $5,000/year for up to four years, and increased the number from 12 to 15. Divisional scholarships rose from $1,000/year to $2,500/year. Recipients will now be allowed to defer their scholarships for one year without loss of eligibility. This change recognizes that an increasing number of students are taking time off to pursue other activities before starting their post-secondary education.
We give scholarships to support employees and their families, recognizing students who are high achievers. The selection process includes evaluating a student’s grades, athletics, other extra-curricular activities and test scores.
Participation in Public Policy Development
For more information see the Stakeholder Engagement section of this report.
Political Contributions
For more information see the Stakeholder Engagement section of this report.
Incidents of Legal Violations
No PotashCorp employees were dismissed or disciplined for corruption in 2008. PotashCorp has a zero tolerance policy for employee corruption.
There were no instances in 2008 where contracts with business partners were not renewed due to violations related to corruption. No legal cases regarding corrupt practices were concluded against the company or our employees in 2008. No significant fines or non-monetary sanctions were levied against PotashCorp in 2008 related to accounting fraud or corruption.
Anti-Competitive Behavior
In 2008, there were no judicial or administrative findings that we have engaged in anti-competitive behavior or violated antitrust and monopoly legislation. Several law suits alleging certain antitrust violations were filed against the company in 2008. The status of these actions is disclosed in our annual 10K.
Bribery and Corruption
During the past year, PotashCorp provided training for select employees in antitrust regulations and behavior, addressing whistleblower claims, business ethics, information security, employment law and responsibilities for financial reporting.
