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Performance

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 2009, PotashCorp participated in or conducted 386 public meetings. For more information, see the Stakeholder Engagement section of this report.

Charitable Donations

In January 2010, the Board of Directors reviewed and approved our Community Investment Strategy. This strategy has the underlying premise that PotashCorp’s presence in a community should make it a better place to live, and is another way we strive to meet our goal to improve the socio-economic well-being of the communities where we operate. The company targets community investment expenditures of up to 1 percent of after-tax earnings (based on a five-year rolling, historical average), and in February 2010 created a full-time position to manage our community investment program.

In 2009, we contributed $9.5 million company-wide, focusing on youth, education and health initiatives in the communities where we operate.

Some of the more significant corporate grants were:

  • CDN $500,000 to St Mary’s Wellness and Education Centre to help fund this facility at an inner city school in one of the core neighborhoods of Saskatoon SK;
  • CDN $500,000 to Humboldt District Hospital Foundation Inc. to equip and finish the new Humboldt District Health Complex at Humboldt SK;
  • CDN $250,000 to Moosomin and District Health Care Foundation to support the new Moosomin and District Integrated Health Care Facility accommodating both long-term and acute care needs at Moosomin SK;
  • CDN $250,000 to Fundy Civic Centre to support a new recreation center to serve residents of Sussex NB and surrounding area;
  • $300,000 toward a multi-year commitment to Youth Services of Glenview/Northbrook IL, a facility offering more than 35 programs to over 3,500 young people;
  • CDN $50,000 to Ducks Unlimited as the second installment on a $250,000 multi-year commitment to support wetlands conservation;
  • CDN $50,000 to Saskatchewan First Nations Summer Games to support First Nations youth in their pursuit of sporting excellence;
  • CDN $20,000 to the Rural Municipality of Blucher SK as the second installment of our $60,000 commitment, to support new fire trucks/equipment to communities within the municipality.

Grants from our plant sites facilitated direct interaction between them and their communities. PCS Trinidad’s continued support of the Starlift Steel Youth Band demonstrates how our plant sites successfully partner with our communities.

The PCS Model Farm and Agricultural Resource Center, in Trinidad, had its grand opening in February 2009. PotashCorp is supporting this project with multi-year funding.

Contributions under our employee Matching Gift program totaled $1.0 million, allowing our employees to direct some of the company’s donations to charities of their choice. United Way organizations in Canada, the US and Trinidad were major beneficiaries.

Our company and employees support communities through company-sponsored volunteerism and non-cash donations. In 2009, our contributions totaled $854,000, facilitating important grassroots support to organizations in need of non-financial support.

In 2009, our contributions totaled 0.8 percent of after-tax earnings (based on a five-year, historical rolling average). Given the dramatic shift in our operating environment during the global economic turndown, we balanced our commitment to corporate giving with the need for caution in all areas of corporate spending.

Community Investment

Community Scholarships

PotashCorp supports Saskatchewan students through merit-based scholarships and needs-based bursaries. In 2009, we also continued with the community scholarship program launched in 2008.

At the Edwards School of Business at the University of Saskatchewan (U of S), we offer two $5,000 renewable PotashCorp Scholarships in Business to third-year students. In 2009, two 2008 scholarships were renewed and two 2009 scholarships were issued. At the College of Engineering, we offer four $5,000 renewable PotashCorp Scholarships to third-year students. In 2009, three 2008 scholarships were renewed and three 2009 scholarships were issued. At the Saskatchewan Institute of Applied Science and Technology (SIAST), we offer 20 PotashCorp Centennial Merit Scholarships and 50 needs-based PotashCorp Bursaries. At the Saskatchewan Indian Institute of Technology (SIIT), we offer 10 Centennial Merit Scholarships.

Recipients are chosen by the selection committee at the respective educational facilities.

Scholarships Awarded

Scholarships for Employees’ Children

In 2009, we increased the value of our corporate scholarships from $3,000/year to $5,000/year. We also raised the number of scholarships available from 12 to 15.

The value of our one-time divisional scholarship awards increased from $1,000 to $2,500. 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 take time off to pursue other activities before starting post-secondary education.

Our PotashCorp scholarships support employees and their families, recognizing and rewarding high-achieving students. The selection process, conducted by an independent third party, includes evaluating a student’s grades, athletics, other extra-curricular activities and test scores.

Scholarships for Employees' Children

Participation in Public Policy Development

For information, see the Stakeholder Engagement section of this report.

Political Contributions

For information, see the Stakeholder Engagement section of this report.

Incidents of Legal Violations

No PotashCorp employees were dismissed or disciplined for corruption in 2009. We have a zero tolerance policy for employee corruption.

There were no instances in 2009 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 2009. No fines or non-monetary sanctions were levied against PotashCorp in 2009 related to accounting fraud or corruption.

Anti-Competitive Behavior

In 2009, there were no judicial or administrative findings that we have engaged in anti-competitive behavior or violated antitrust and monopoly legislation. Several private lawsuits alleging that we participated in a conspiracy to fix potash prices in the US were filed in 2009. These legal actions are disclosed in our annual 10K for 2009.

Bribery and Corruption

During the past year, PotashCorp provided more than 1,600 hours of training for selected employees in antitrust regulations and behavior, addressing whistleblower claims, business ethics, information security, employment law and responsibilities for financial reporting.

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