Best Practices in CSR: Alterna Savings

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Best Practices in CSR Alterna Savings

• Embedding CSR Values and Principles in Credit
  Union Operations
• June 2, 2006

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Alterna Savings Who we are

• Created April 1, 2005 from merger of CS CO-OP and
  Metro Credit Union
• Ontario based, regional offices in Toronto and
  Ottawa
• Asset base of 1.7 billion
• 24 Branches
• 150,000 members
• Owns Alterna Bank, a Schedule 1 chartered bank
• 550 employees

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Alternas Vision Mission and Values

• Vision To be the leader of co-operative
  financial services.
• Mission Develop and share an exceptional level
  of financial
• expertise that is
• -tailored to member needs
• -accessible to all
• -supportive of local communities
• -and delivered by caring, professional
  employees.
• Values People First, Excellence and Integrity

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CSR Vision

• As part of the strategic planning process for
  Alterna Savings we created the following vision
  of our CSR Commitment
• To achieve mutual growth and prosperity by
  providing social, economic and environmental
  benefits to our member communities.

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CSR Policy

• Approved by Board of Directors
• Contains Alternas CSR commitments
• Terms of reference for all relevant Board
  committees

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CSR Pillars

• Community Economic Development
• Accountability
• Financial Literacy
• Philanthropy

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Key Performance Indicators for CSR

• KPIs have been set for 2006
• Measuring through member surveys and more
• Need to progress in this area, to create more
  meaningful targets.

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Board Committee Structure

• The Member Relations Committee of the Board of
  Directors is responsible for CSR
• Four Board Sub-committees report to this
  committee
• Social Audit Advisory Committee
• Donations Advisory Committee
• Diversity Advisory Committee
• Gary Gillam Award Committee

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Senior Staff Champion

• Senior management leadership and support is
  crucial to success of CSR activities
• Alternas designated champion is Kimberley Ney,
  VP Branch Operations

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CSR Co-ordinating Group

• Cross-departmental CSR Co-ordinating Group of
  employees
• Co-ordinates roll-out of CSR Plans
• Forum for discussing best practices
• Keeps all departments informed of activities

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Social Auditing

• Embeds sustainability approach in organization
• Alterna committed to independently verified,
  bi-annual social audits
• Social Audit Advisory Committee is working on a
  updated process
• Will include stakeholder engagement (AA1000)

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Stakeholder Engagement

• Members
• Member Town Halls
• Email the CEO directly
• Member Surveys
• Employees
• Employee surveys
• Employee Town Halls
• Senior Management Team Visits to branches and
  departments

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Environmental Activities

• New committee forming
• Will assess the environmental footprint of
  organization
• Actions to be determined

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Employee Participation

• All employees participate in a community project
  each year
• Employees raised 11,000 in 2005
• Employees volunteered 400 hours in 2005

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Community Economic Development

• Community Micro Loan Program
• To date over 1 million loaned to
  micro-entrepreneurs
• Loans from 1,000 to 15,000
• Members have purchased 883,092 in personal
  products with Alterna Savings
• Administer other micro-finance loan programs,
  such as ACCESS Riverdale Loan Fund.

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Bottling SuccessAcropolis Organics

• Panagiotis Tsiriotakis immigrated in 2003
• Participated in SEA program
• Started premium organic olive oil importing
  business from family farm in Crete
• Received micro loan from Alterna Savings
• Now selling in gourmet stores, on Shopping Channel

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Immigrant Employment Loan Fund

• Assists newcomers to Canada to obtain work in
  chosen field
• Provides micro-loans to pay for for Canadian
  accreditation or training
• In partnership with Maytree Foundation

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Financial Literacy

• Free member education seminars and events
• Articles in member newsletter
• Fact Sheets in branches

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Philanthropy

• Do It For Dad! Run and Family Walk
• Spare Change Program
• Corporate Donations

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Innovative Partnership

• 112,000 Endowment for Alterna Savings Social
  Responsibility Program at the University of
  Ottawa School of Management
• Influencing future business leaders
• Encouraging CSR activities among students
• CSR Award for third year student, who will become
  CSR ambassador in 4th year at school

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Products Services

• Special packages for housing co-operatives and
  non-profit organizations
• Community Builder Mortgage Program

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Our Learnings

• Be sure to get senior management buy-insell the
  CSR business case
• Social auditing a great tool for formalizing
  sustainability
• Measure to determine impact
• Co-ordinate all staff who touch on CSR

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Our Learnings

• Keep focussed on vision and core commitments
• Contribute through your existing competencies
• Staff must be committed to CSR
• Keep up-to-date with best practices in CSR

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• Pick battles big enough to matter, small enough
  to win. -- Jonathan Kozol