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CSR Case Study:
Husky Injection Molding
Determined to make a contribution
FINAL DRAFT
Prepared for:
Interdepartmental Working Group on
Corporate Social Responsibility (CSR)
Corporate Social Responsibility: Lessons Learned Final Husky Case Study
1 Corporate Overview
Husky Injection Molding Ltd. is a Canadian supplier of injection molding systems to the global
plastics industry. The company serves customers in over 100 countries from approximately 41
sales and service offices around the world. The three major manufacturing facilities (or campuses)
are located in Bolton, Ontario; Dudelange, Luxemburg; and Milton, Vermont and main markets
for Husky are the USA, Europe, Latin America and Asia.
Husky’s 70-acre site in Bolton includes manufacturing facilities for medium tonnage machines,
molds and robotics. Bolton is also home to the company’s corporate, sales and marketing groups.
Husky targets four principal market segments: polyethylene terephthalate (PET) packaging; non-
PET packaging; technical and general and automotive. Customers use Husky’s equipment to
manufacture a wide range of plastic products such as soft drink and mineral water bottles, food
containers (e.g, yoghurt cups), technical products (e.g., cellular phones and laptop computers) and
automotive components (e.g., car bumpers and instrument panels). Within the packaging sector,
Husky is the world's leading manufacturer of injection molding systems for PET pre-forms with a
market share in excess of 50%1. Husky’s worldwide sales for the fiscal year 2001 were $640
million and the company employed more than 2800 people worldwide. Approximately 96% of the
company’s sales were generated outside of Canada2. Husky’s common shares are listed on the
Toronto Stock Exchange (HKY).
Husky has been working as a good corporate citizen since its inception in 1953 and the company
refers to its CSR activities as “living out the company’s Purpose and Values”3. This term will be used
throughout this case study and will be explained in more detail in Section 5 on CSR at Husky.
2 Business Context
Robert Schad, Husky's President and Chief Executive Officer commented, "Fiscal 2002 was
another year of widespread economic turmoil and uncertainty, with demand for plastic injection
1
Husky Injection Molding Systems Ltd., Investor Information Fact Sheet – February 2002
2
Husky Injection Molding Systems Ltd., Investor Information Fact Sheet – February 2002
3 nd
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22 , 2002.
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molding equipment reaching historic lows in some areas”4. This economic downturn was
compounded by the fact that Husky began the year with weak backlog order levels and had a
significant decline in orders during the first quarter. The decrease in sales for Husky was noted
primarily in PET applications, which is believed to reflect slower growth in carbonated soft drinks
and water applications in the second half of the previous fiscal year and the first quarter of fiscal
20025. Other than packaging applications, demand was down in all application markets for
Husky’s machinery.
The United States was hit the hardest with plastic machinery sales falling below 1990-91 levels—a
decrease of nearly 50% compared to last year6. Husky also witnessed that Europe started to show
signs of weakness as a market for its machinery. Latin America was stable while Asia, especially
China, remained to be good opportunities. Although Husky was able to hold its ground relative to
its competitors, the company’s sales fell to US $640 million resulting in a US $ 7.8 million loss.
This situation compelled Husky to take a hard look at all areas of its business to determine where
it could cut costs. Husky has taken measures to address its economic shortcomings by:
• Realigning and reducing its workforce;
• Clamping down on discretionary spending. Husky reduced its travel and accommodation
costs by 40% through smarter air travel and more frequent video conferencing; and
• Reducing component costs by doing more in-house, standardizing components and
manufacturing methods, and working better with suppliers7.
It is difficult for anyone to predict how quickly global economic markets will recover. Markets are
especially volatile with the recent threat of US attacks on Iraq. Foreign investors are reluctant to
make any significant stock purchases with political events being so unstable. Husky has decided
that it must maintain its focus on marketing its new products and capturing more market share.
4
Husky Injection Molding website. http://www.husky.ca/news_release/2002-09-25.html.
5
Husky Injection Molding website. http://www.husky.ca/news_release/2002-09-25.html.
6
Ibid.
7
Ibid.
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3 A Unique Partnership: The Story of A Sustainable Community Project
in Moose Deer Point First Nations Community
Robert Schad, Husky’s president and majority shareholder, is the type of man who asks himself
“what can I personally do to help improve the state of the world?” He also goes beyond this to
ask “how can Husky, as a company, make a contribution to society”? This story of a unique
partnership between Husky Injection Molding, the Moose Deer Point First Nations People, and
the federal and Ontario provincial governments is testament to Robert Schad and the company’s
commitment to making a valuable contribution to broader society.
Mr. Schad owns a cottage on the eastern shore of Georgian Bay in the Muskoka area of Ontario.
In order to get to his cottage, he drives through the Moose Deer Point First Nations reserve. He
noted the conditions that the Moose Deer Point people were living in were very poor and there
did not appear to be many lucrative employment opportunities on the reserve. On one particular
trip, his car broke down. A young man from the local community came to his assistance and did
an excellent job repairing the car. Mr. Schad was touched by the young man’s generosity and gave
some more thought to what, if anything, he could do to reach out to this community.
After some thought, he sat down with J. Edward Williams, Chief of the Moose Deer Point First
Nations community, to discuss possibilities for some sort of sustainable community project.
Together, and in consultation with other residents of the community, they came up with three
overarching principles for what sustainable community development means to Moose Deer Point
First Nations people. “Sustainable community development is:
1. The active pursuit of economic development that is not just environmentally
friendly, but which offers the community long-term stability, diversity and
prosperity;
2. A deliberate, broadly based, multi-faceted quest for social health and individual
well-being; and
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3. A concerted, long-term program, not just to clean up the environment, but to
conserve and enhance the community’s natural assets of land, water, air and living
things8”.
Robert Schad had a personal vision that a large component of the sustainable community project
would be the construction of a world-class injection molding facility on the reserve. This vision
was an answer to his question, “how could Husky contribute something valuable” to the Moose
Deer Point First Nation’s community. He believed that local economic development and career
development opportunities for the Moose Deer Point community were key to developing a
healthy and prosperous community, and Husky could offer valuable insights and expertise to help
support this development.
The two men proceeded to launch an indigenous peoples partnership program through the Schad
Foundation (Husky’s philanthropy program). With additional funding from both the federal and
provincial governments, they constructed a state-of-the-art injection molding facility on the
Moose Deer Point reserve called Niigon, which means “future” in the local language Ojibway.
The first phase of the facility opened in Summer 2001 and is a 2400 m2 facility housing 10
injection molding machines that manufacture computer, electronics, automotive and medical
components for companies across North America. Niigon is fully owned by the Moose Deer
Point First Nations people, and all employees are residents of the First Nation community. Husky
will continue to provide know-how and technical support until the facility can be run
independently. The facility brings employment opportunities and economic stability to the
community and contributes to sustainable community development in other ways as all dividends
are reinvested in community social, environmental, wellness and infrastructure projects.
The facility design also follows Husky’s holistic approach to construction and includes a wellness
centre, fitness centre, and environmentally sound land use plan. Environmental features of the
building include:
• North-facing skylights that provide natural light for workers and reduce annual electric
lighting energy by 50% and south-facing skylights that accommodate photovoltaic panels
for on-site electricity generation;9
8
Sustainable Community Project: Moose Deer Point First Nation. Niigon Technologies. www.niigon.com/moose.htm
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• Building insulation that meets R30 in the ceiling and R20 in the walls and a facility design
that will facilitate future expansion10, and
• Office windows that are triple glazed with low e-coatings, argon gas fills and insulating
frames and spacers11.
In addition to the impressive Niigon injection molding facility, many other initiatives outlined in
Table 1 are being taken through the Moose Deer Point First Nations Sustainable Community
Project.
Table 1: Sustainable Community Initiatives at Moose Deer Point First Nations
(taken from Niigon Technologies website, www.niigon.com/moose.htm)
Social • Community meetings, committees, workshops, dinners, recreation/cultural
events
• Early Years Learning Program
• Educational Awards/Incentives
• Adult Education Upgrading
• CAP – Public Internet Access
• Health and Wellness Clinic
• Smoking Ban in Public Buildings
• Anishaabeg Gov’t Agreement (self-governing agreement)
Economic • Niigon Technologies Ltd.
• Moose Deer Point Marina
• Naadmaadying Community Association
• Entrepreneurial Training Programs
Environment • Nature Trails
• Outdoor Learning Centre
• Energy Efficiency Program
• Sustainable Housing Technology
9
Our Facility. Niigon Technologies website. www.igon.com/facility.htm
10
Ibid.
11
Ibid
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Table 1: Sustainable Community Initiatives at Moose Deer Point First Nations
(taken from Niigon Technologies website, www.niigon.com/moose.htm)
• Recycling
• Community and Roadside Clean Up
• Community Design/Plan
• Environmental Assessment & Protection Laws
This sustainable community project has been touted as the first innovative private, public and
First Nations partnership of its kind in Canada. “Through their effort, Moose Deer Point is
establishing a new model for sustainable development in First Nations communities. We are very
pleased to be involved in this project and see it as a win for everyone involved”, said Robert
Schad. For Husky, it meets all five of the company’s values— it makes a contribution, is
environmentally proactive, exercises the company’s passion for excellence and honesty, and sets
bold goals. For the Moose Deer Point First Nations community, Niigon is a win-win situation—it
gives a tremendous boost to local economic development by providing close to 70 jobs in the first
5 years of operation. And, the $7.5 million dollar commitment is a winning investment for
Aboriginal Business Canada and the Department of Indian Affairs and Northern Development. It
stands up as a model of successful business development—demonstrating a new way in which the
public and private sectors can work together to assist in the development of viable Aboriginal
communities12. There are few examples of innovative community development partnerships
(public, private and First Nations) like this in Canada that have been so successful for all parties
involved.
Husky’s role in the sustainable community project is admirable. There are very few companies
that have dedicated as much time and money to supporting a disadvantaged community in its
journey to becoming more self-sufficient and, ultimately, more sustainable.
12
Aboriginal Sustainable Community Project a First for Canada – Private, Public Sectors and Moose Deer Point First Nation
Partner. Press Release, June 2000.
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4 Husky’s Journey
A Visionary Leader
Husky’s involvement in the sustainable Box 1:
community project in Moose Deer Point “At Husky, our purpose is to be a role model
First Nations community is only one example of lasting business success based on our core
values:
of the company’s good corporate citizenship.
Robert Schad started Husky Injection • Make a Contribution
• Proactive Environmental
Molding in 1953. From the beginning, his Responsibility
personal vision of the company included not • Passion for Excellence
only making money, but also making a • Uncompromising Honesty
• Bold Goals
positive contribution to society. The
development and legacy of Husky’s Purpose Our values influence our corporate strategies,
form the basis for our business and
and Values (Box 1) can be attributed to the management practices, and guide the
dedication and conviction of Robert Schad, behaviour of our people around the world”.
the company’s visionary leader. From Husky’s website www.husky.ca
Living its Purpose and Values
Husky’s quest to become more sustainable has long operated on intuition. Robert Schad has
always had strong personal belief that a successful, sustainable business is compatible with today’s
capitalistic market forces. He has always operated the company as a responsible corporate citizen,
and has tried to successfully manage the triple bottom line as opposed to just managing the
economic bottom line. For example, in the 1970’s, one of Husky’s customers placed a major
order that would have been highly profitable for the company. Husky, however, did not feel that
the order was something that would have helped the customer in the long-term and would not
have ultimately contributed to the customer’s success. It took a great deal of conviction to turn
the contract down, especially when the company was in dire need of income at the time. In spite
of this, Husky held true to its number one Value, “make a contribution”. Husky insists that, as
part of its commitment to uncompromising honesty, it will “only recommend those solutions that
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it believes in” to its customers13. This is only one example of many where Robert Schad, and all
employees of the company, have stayed true to the company’s values and convictions.
Five years ago, Robert Schad’s commitment to operating as a good corporate citizen was
confirmed, when he read the book entitled Built to Last by Jim Collins. Built to Last documents the
success stories and habits of several companies that also subscribe to a vision of business that
includes all three legs of sustainability (economic, environmental and social). Mr. Schad
immediately asked Jim Collins to come and meet with him to discuss the book and its relevance
to Husky. Jim Collins helped Husky gain a better understanding of the business value of CSR and
helped the company better articulate and communicate its Purpose and Values. Husky considers the
interaction with Jim Collins a key external influence in shaping the company’s renewed
commitment to CSR14.
Husky knows that CSR is currently seen as ‘en vogue’, and that it is not shaping the majority of
political or business agendas. However, the company has realized significant business benefits
from being involved in CSR and knows that many other companies are also reaping considerable
benefits.
Successes with CSR
Husky has had many successes living out its Purpose and Values, but highlights a few exceptional
achievements. The company, which reports to the Voluntary Challenge and Registry (VCR) in
Canada, indicated in its 2001 report that it had reduced its greenhouse gas emissions to a level
15% below 1990 levels despite having grown to three times its size since 1990. These reductions
are also 6% below the targets set out in the Kyoto Protocol. Husky has now set a goal for itself to
be C02-neutral by 201115. Husky is ahead of the game with its greenhouse gas reduction program
and is going well beyond compliance.
Husky has also been successful at reducing the waste the company produces by 95% since 1993.
Husky states on the company website that “Husky recycles everything from plastic bottles to light
bulbs, all food waste is composted, our cafeterias buy in bulk and our shipping and receiving
13
Husky Injection Molding website, http://www.husky.ca/corpcult/values_honesty.html
14 nd
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22 , 2002.
15
Triple Bottom Line Presentation by Robert Schad at Globe 2000 Conference
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teams are always looking for ways to reduce, reuse and eliminate packaging”16. Through this
aggressive waste reduction program, the company has generated approximately $863,000 in
revenue and avoided $351,000 in disposal fees17.
Robert Schad started Husky Injection Molding in a garage 50 years ago, and the company is now
considered a global leader in the industry. In 2001, the company recorded sales of close to $640
million. This is testimony that a business can grow tremendously and do what is right at the same
time. Dirk Schlimm, Husky’s VP Human Resources, indicated that the company has not recently
been a financial role model of success. A poor financial record from the past two years makes
Husky less enthusiastic to talk about its CSR programs and commitment. The company is less
comfortable telling other companies “hey you should do this and follow our lead” when the
books are not showing profits. Despite the fact the company attributes most of its economic
struggle to a reduced market demand for plastic, it knows that critics might jump to the
conclusion that Husky is spending unwisely on its CSR programs. Husky has committed to
improving its financials before it develops a more active voice calling for others to make
environmental and social improvements, so that it has more credibility with the public. Despite
having a weaker financial picture over the past two years, Husky has not cut any of its CSR
programs. The company maintains its belief that investing in programs for employees,
communities and the environment pays off now and will continue to do so in the future as well,
and that more sustainable companies will outlive less sustainable ones. The lack of program cuts
and funding is also indicative of the company’s commitment to CSR.
An important business benefit Husky has realized through strong commitment to its Purpose and
Values is the right to operate and expand. It recently expanded into Vermont, USA, a state with a
particularly tough regulatory environment. By demonstrating the company’s Purpose and Values,
the company had an easier time obtaining the necessary permits than might have been the case
otherwise. Other companies have had to bring in lawyers to argue their case, etc. Husky can
prove that it “walks the talk”, which holds up to independent scrutiny and builds a strong
reputation of being a good corporate citizen.
16
Waste Minimization. Husky website. http://www.husky.ca/ehs/en3a.html
17
Triple Bottom Line Presentation by Robert Schad at Globe 2000 Conference.
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Husky believes that leading companies—those that are going above and beyond compliance—will
eventually outpace, outlast and outgrow those companies that are doing very little or nothing at
all. As stakeholder expectations continue to demand more and more of global companies, these
laggards will eventually forced to get up to speed, and I doing so will expend a lot of time and
money18.
5 CSR at Husky
Husky’s Purpose and Values
Husky’s corporate-wide mission statement stems from Mr Schad’s dedication “to make a
significant contribution to [the company’s] customers’ success”. Husky has had an honour code
since Robert Schad started the company in 1953. The company has always stayed true to its
mission and values and has always been tough on employees who do not abide by the honour
code. This honour code was later supplemented by Husky’s Purpose and Values. Husky’s Purpose is
“to be a role model of lasting business success based on our core values”19. The five core Values
are:
• Make a Contribution;
• Proactive Environmental Responsibility;
• Passion for Excellence;
• Uncompromising Honesty; and
• Bold Goals20.
Husky prides itself on “living out” its Values, which influence its corporate strategies, form the
basis for its business and management practices, and guide the behaviour of employees around
the world. Every new employee to the company goes through an extensive orientation, a large
part of which deals with understanding the company’s Purpose and Values and how these translate
into company policy and expected behaviour. The company tries to incorporate its Values into
core business practices wherever possible and is always looking for new opportunities to do this.
18 nd
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22 , 2002.
19
Husky Injection Molding Ltd. Website, www.husky.ca
20
Husky Injection Molding Ltd. Website, www.husky.ca
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For example, when Husky draws up plans for a new facility, the environmental and social values
of the company are expressed in the design.
The commitment to CSR at Husky comes from the top and senior managers drive the company’s
CSR vision. However, Dirk Schlimm makes the case that responsibility for actively living out the
Purpose and Values at Husky lies with every employee.
Husky does not sign on to many international sustainability covenants or codes of conduct (e.g.,
GRI, BSR, Global Compact, Global Sullivan Principles, etc). The company feels it is doing good
things and is going to continue doing them at its own pace. Dirk Schlimm agreed that Husky tries
to stay informed of international developments in CSR, but the company does not look to other
organizations or companies to shape Husky’s own CSR agenda. Husky does not subscribe to
anyone else’s definition of CSR—it takes a home-grown approach to programs and policies based
on inner convictions and feels that it has been quite successful operating in this manner. The
company has been audited twice on its CSR efforts in EthicsScan Reports, and has fared quite
well in comparison to others in the sector.
Husky has identified several priority areas for CSR where it believes there is business value in
investing resources. These are employees, environment, suppliers, governance and conduct, and
communities.
6 CSR Program Areas
Husky is active in many areas of CSR, however the company considers three areas to stand out as
best practice. These are its community, employee and environment programs, which are discussed
in detail in this section below.
6.1 Community Programs
Philanthropy
Husky has an extensive philanthropy program focused on the local communities surrounding
each of its manufacturing operations. Each year, Husky donates 5% of its pre-tax profits to
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charitable organizations through the Schad Foundation, which is responsible for managing the
overall philanthropy budget and directs 50% of the company’s charitable budget to support
environmental projects and the remaining 50% is divided among Husky locations worldwide in
support of local community and educational initiatives.
Local Community and Broader Society Development
The unique partnership between Husky Injection Molding, the Moose Deer Point First Nations
People, and the federal and provincial governments is testament to the company’s commitment to
making a contribution to society through community development. This example was discussed
in detail in Section 3 above.
Local Engagement
Husky has recently started engaging members of local communities that would be directly
affected by the construction of new Husky facilities. For example, Husky invited community
neighbours to participate in the planning and design of a new facility in Vermont. It was very
important to the community that the facility fit in with the overall look and feel of the
community. Consulting with stakeholders in local communities was not something the company
had had to do much in the past, but it now recognizes that obtaining the necessary permits to
operate depends on the acceptance of not just regulators but of local stakeholders as well.
6.2 Employee Programs
Husky spends more than $4 million a year on employee benefits and programs at a time when the
economy is weak and many companies are cutting back on these perks to boost the bottom line.
The company takes a team approach to employee relations by encouraging teamwork and
creativity, having an open office policy that applies to everyone, accepting casual dress as a means
of ensuring comfort, utilizing a “first name policy”, and emphasizing the “we” vs. “I” culture. All
of these characteristics impart to the company’s work environment a “not-just-a-job”
atmosphere21. Husky believes that this work environment helps to attract high quality employees
21
“Built to Last” Presentation to: Conference Board of Canada. 2001 Community Investment Conference from Husky Injection
Molding
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to the company in a sector where skilled labour is highly competitive. This work environment also
causes the company to lose out on some employees who would otherwise have the appropriate
skills and experience. During interviews, Husky makes it clear that the company has a unique
Purpose and Values statement and that it expects employees to meet certain expectations related to
those values. Some prospective employees will decide that the work culture demanded by Husky
is not for them and will opt out of the interview process. Making the company’s Purpose and Values
clear up front, at the interview stage, also ensures that the majority of Husky employees are
already supportive and have bought in to the company’s CSR approach to doing business before
they even start working for Husky.
Comprehensive Benefit Program
Considered one of the Top 35 companies to work for in Canada by Report on Business magazine
in 2000 and 2001, Husky offers a holistic assortment of benefits including tuition reimbursement,
on-site aerobics classes in a campus fitness centre, cafeterias that provide healthy food (no junk
food), a naturopath, massage therapist, doctor, physiotherapist and daycare for employees’
children. Husky believes in prevention, and has a “Get Fit, Stay Fit” program where employees
are rewarded with an extra vacation day for taking an active role in their own health and wellness.
Over 300 free vacation days were awarded last year at the Bolton, Ontario campus22.
Husky admits its benefit programs could be viewed as paternalistic—there are no options or
cafeteria-style benefit packages for company employees. Husky often believes it knows what best
contributes to effective and satisfied employees. For example, in Europe there was some
opposition to Husky pushing through its policy of no junk food in the cafeterias. But Husky
remained persistent, and followed through on its conviction that eating a proper, nutritious diet
makes for healthier, more productive employees. Husky believes that ultimately employees will
choose companies with high ethical values and will want to extend the same levels of respect to
others and to the company. Husky also believes the company’s extremely low absentee and
turnover rates are due, in part, to its comprehensive employee benefit programs.
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GreenShares Program
Husky launched a GreenShares Program in January 2002 that enables employees to earn Husky
shares by participating in four key areas:
• Responsible commuting to work (walking, carpooling, bicycling, public transit);
• Conserving energy and resources;
• Volunteering for environmental, community or educational causes; and
• “Greening” the environment through personal purchases.
This program is a fun and educational way to reward those who alter their behaviour in ways that
are aligned with Husky’s corporate-wide environmental commitment and values.
6.3 Environment Programs
Husky is most proactive in the area of environment and feels this is what sets it apart from its
competitors. Not only does the company have a multitude of environmental programs (materials
efficiency, toxic substance reduction, etc.), but it is also somewhat of an environmental activist.
Husky’s CEO Robert Schad broke ranks with other Canadian manufacturers by defending the
Kyoto Protocol early on and appealing to other companies to also take action on climate change23.
Robert Schad and many others at Husky feel that “the biggest challenge for humanity right now is
the environment”24. The company invited David Suzuki to come and speak to all of the
employees in Bolton, Ontario, about the state of the environment and how companies can play a
role in the environmental movement. Husky found this to be an excellent motivator for
employees, which further reinforced the need for all employees to make good decisions that
consider both the social and environmental aspects of business. Aside from doing what is morally
right, Husky also feels that there is a definite business case for being proactive environmentally.
Given the recent air quality crisis in Toronto and other parts of southern Ontario, Husky feels it
is only a matter of time before regulators are forced to react and pass strict legislations.
Companies that are not prepared will be forced to manage the crisis and will have to expend time
22
Triple Bottom Line Presentation by Robert Schad at Globe 2000 Conference.
23
Article in National Post on April 8th, 2002.
24 nd
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22 , 2002
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and money getting up to speed with the leaders who are already meeting and exceeding
compliance.
Husky acknowledges that there is much more it can do to improve its environmental practices
and is always open to new ideas and technologies. Robert Schad was intrigued by a recent article
he read in Fortune Magazine by Amory Lovins, CEO of the Rocky Mountain Institute. In the
article, Mr. Lovins presents some rather revolutionary ideas on how to improve building
efficiency. Mr. Schad was so impressed; he immediately called Amory Lovins to set up a meeting.
This is characteristic of Robert Schad who is always looking for best practices that Husky can
adopt25. Husky conducts a great deal of benchmarking in the sector and also among sustainability
leaders to ensure that the company is staying ahead, or at least keeping pace, with new CSR
practices or programs that other companies are find successful. Husky has been recognized
several times for its progressive environmental activities and was awarded the Financial Post’s
Gold Environmental Leadership Award in 1998.
Materials Efficiency Programs
Husky has developed several technologies that promote the “3 Rs” of reduction, reuse, and
recycling. For example, the company has developed thin-walling technology to minimize the
amount of material used to make plastic containers; plastic refillable bottles that reduce solid
waste; and co-injection technology that allows the use of recycled polyethylene terephthalate
(PET) in food and beverage containers26. Husky’s ultimate goal for its material efficiency program
is to have each Husky employee and supplier be conscious of, and perhaps even audit, his/her
own resource usage. Husky believes every employee has opportunities to make practical decisions
each day that can improve their behaviour and reduce his/her eco-footprint.
Energy Efficiency Programs
Husky has challenged each of its business units to become as energy efficient as possible.
Working with building design, lighting, and process equipment, the company is modifying how
business gets done. Husky also selects company cars based on fuel efficiency standards for those
25 nd
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22 , 2002
26
Husky Injection Molding website. www.husky.ca
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vehicles. According to Husky, “reducing demand for energy derived from non-renewable
resources not only benefits our bottom line, it has global impact as our need for coal, nuclear, or
gas supplied energy will be that much less”27. Husky tries to incorporate the latest energy and
environmental innovations and standards when constructing new facilities. Initiatives the
company has taken include pre-cast wall sections and argon-filled windows (both have high
insulation values), motion sensors to activate lighting, and energy efficient motors and hand-
dryers. Husky also has a policy that all new refrigerants must have zero global warming or ozone
depletion potentials.
Naturalized Landscaping
Husky makes significant efforts to naturalize the landscapes surrounding its manufacturing
facilities by re-establishing communities of plants and wildlife that require minimal intervention.
Naturalized landscaping eliminates the use of herbicides, pesticides, chemical fertilizers and
emissions-causing gas mowers. At Husky’s Bolton campus alone, naturalized landscaping
circumvented the use of 3000 tonnes of fertilizer per year and 300 kg of pesticide per year.
Landscaping at many facilities also incorporates a storm water management plan. Shallow swales,
ponds and wetlands throughout the campuses promote natural infiltration of storm water while
providing both animal habitat and protection. These may be small adaptations, but by looking for
environmental and social alternatives that makes sense, Husky is incorporating CSR into all
aspects of its business.
Toxic Substance Use Reduction
Husky has taken steps to reduce the company’s reliance on substances that cause damage to the
ozone layer and contribute to smog and respiratory ailments. The company has:
• phased out the use of chlorinated solvents in metal parts cleaners;
• replaced high solvent-based paints with a non-hazardous, water-based formula; and
• opted for CFC- and HCFC-free, ammonia-based refrigerants for all new cooling
equipment.
27
Husky Injection Molding website, http://www.husky.ca/ehs/en2a.html
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Corporate Social Responsibility: Lessons Learned Final Husky Case Study
As a result of these efforts, Husky eliminates approximately 250,000 litres of hazardous materials
and 86 tonnes of volatile organic compounds from its processes each year28.
Husky is a very entrepreneurial company and is not afraid of change. Husky employees and
managers are constantly looking for operational efficiencies or actions to reduce the company’s
footprint on the environment. As the company continues to live out one of its core values, “a
commitment to proactive environmental responsibility”, it will look to advance its public
reporting efforts, one of the areas the company considers to be quite weak. Husky acknowledges
that there will probably be value in reporting in the near future, especially given the fact that it
wants to be a role model for the sector. However, at this time there is more benefit for a company
of its size to invest its resources into other CSR program areas29.
7 Key Drivers and Benefits for Husky
Husky wants to remain a leader in its industry. So far, it has been extremely successful in
maintaining a competitive advantage. The biggest driver for CSR at Husky is that it believes
strongly in what it is doing. Certainly, Husky has realized many business benefits by “living out”
its Purpose and Values and attributes much of its sustainable growth to successful CSR, but the
ultimate driver for the company is personal commitment. Robert Schad personally believes in
being a good corporate citizen, and his personal values are very much accepted and reflected by
the actions of all Husky employees.
Husky cites the following business benefits of being proactive in CSR activities:
• Attracting and retaining the best people;
• Improved employee morale/productivity/safety;
• Maintaining competitive advantage;
• Developing lasting and stronger relationships with customers;
• Excellent community relations (e.g. Vermont) and maintaining a license to operate;
• Credibility (with customers, employees, communities, NGOs, regulators); and
• Saving money through recycling, and having a low injury and low absentee rate.
28
Husky Injection Molding Website, http://www.husky.ca/ehs/en3b.html
29
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22nd, 2002.
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Corporate Social Responsibility: Lessons Learned Final Husky Case Study
The company has still been able to grow financially while investing in all of these CSR programs.
This is proof that it can be done and that other companies can also have a successful triple
bottom line.
8 Organizational Success Factors and Lessons Learned
Husky has a number of unique business practices that it uses to ensure the success of its CSR
programs and vision.
Being upfront about corporate values: Husky recognizes that CSR can only be truly
integrated in a company, if every employee buys in to the raison d’être of CSR. This is an obvious
challenge for companies, considering that employees come and go, have different backgrounds,
operate in different countries with different cultural practices, etc. Husky has typically not had
difficulty getting global employees to buy in to all aspects of the company’s Purpose and Values
because of its practice of introducing the Purpose and Values to prospective employees in the
interview phase. Those who are not supportive of the company values do not usually end of
taking jobs with Husky. Husky acknowledges that not all employees are going to actively live
those values to the same extent and accepts that fact. It can educate employees on what they can
do to reduce their personal environmental footprints but it cannot, for example, dictate what type
of transportation methods employees use to get to work. Some employees intrinsically see the
benefit in taking public transit or buying low emission hybrid vehicles, while others view their
vehicle as a status symbol that they are not inclined to give up. Husky tries to act as a role model
of a responsible citizen and promotes environmentally and socially responsible living through
education.
Values are not always the same from country to country either. For example, Husky remarked
that in some countries, it may be possible for a company to write off a bribe as a tax exemption.
Husky, however, will not tolerate this practice and is confident that it can even out the playing
field staying true to its corporate values.
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Corporate Social Responsibility: Lessons Learned Final Husky Case Study
Being a leader is not always easy: Husky aspires to be a sustainability leader and would
like to be a role model for other companies in all aspects of its business – economically,
environmentally and socially. Husky has found it more difficult in the last two years to vocalize its
aspirations as a leader and an advocate of CSR. In the past, when the economy was booming, it
was much easier to stand up and advocate CSR as the way to carry out responsible business.
Husky could confidently say that investing in employees or the environment does not affect the
bottom line and could even argue that the investment improves the company’s bottom line
without being questioned. Now, however, with a weakened economy and reduced profitability in
the majority of sectors, Husky has a much harder time advocating CSR to those who are more
sceptical of CSR. The challenge for Husky is to find harder, more quantitative figures that link
CSR activities to the company’s financial bottom line and shareholder value and separate those
out from other confounding factors that affect the bottom line. This situation is somewhat unique
to Husky. For the majority of companies, the challenge in tough economic times would be to
justify existing CSR program funding to senior management. Husky already has senior
management commitment – a management that intrinsically believes in CSR. The company’s
challenge comes more so in finding a balance between honestly communicating its shortcomings
and challenges and not attracting criticism or losing credibility by appearing hypocritical. This is a
delicate balance to achieve30.
Change in management: Robert Schad has been the vision and driver behind much of
Husky’s Purpose and Values. Husky will face an enormous challenge when Mr. Schad, now 73,
decides to retire. Will the next CEO share a common vision and continue to carry out the values
that have been instilled in the organization over the past 50 years? To address this challenge of
succession, Robert Schad consulted Jim Collins once again for advice. Together, the men came up
with three criteria that were recently communicated company-wide. The successive CEO must
meet the following:
1. Have the ability to achieve results without direction from above;
2. Have the ambition to make the company successful (rather than personal success); and
3. Share a passion for the company Purpose and Values32.
30
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday September 30th, 2002.
32 th
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday September 30 , 2002
2002 Five Winds International, LP 20
Corporate Social Responsibility: Lessons Learned Final Husky Case Study
Formalizing these criteria will help to ensure that Husky’s next CEO will share Mr. Schad’s
commitment to being a responsible corporate citizen and will increase the likelihood that the new
CEO will continue to carry out the values that have been instilled in the organization over the
past 50 years
Despite these challenges, Husky is moving forward with its Purpose and Values, actively living them
out in new and innovative ways. In May 2002, Corporate Knights issued a press release ranking
Husky 2nd of Canada’s Top 25 Corporate Citizens. Rankings were based on research by Michael
Jantzi Research Associates and were based on six categories (community; employee
relations/diversity; product safety and business practices; environment).
9 Role of Government
Overall, Husky feels the Canadian government could be much more of a role model when it
comes to environmental issues. Canada used to be considered a leader in this area, but now seems
to have fallen behind other leading countries (Europe, Nordic Countries, etc.). The current
government’s priorities do not seem to include the environment yet there is consensus that, as a
nation, we face imminent environmental disaster, if we do not act now and make it a priority
issue. Husky urges the Canadian government to identify environment as a political priority and to
develop more stringent legislation that goes well beyond simply encouraging companies to adopt
voluntary initiatives.
Husky recognizes that it is difficult for government to take any position contrary to those of its
strongest lobbyists, but the company has taken strong views on one-sided lobbyists who only
point out the economic costs of meeting the Kyoto Protocol in terms of impacts on oil and gas
sector, and do not take into account the total costs to the environment of climate change or even
the economic benefits of the new industries that will be further developed. Husky believes the
government should be exercising the precautionary principle and advancing the climate change
agenda more forcefully33 and is encouraged by recent moves the federal government has taken to
advance actions to meet the Kyoto Protocol.
33
Interview with Dirk Schlimm, VP Human Resources Husky Injection Molding, Monday July 22nd, 2002.
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Corporate Social Responsibility: Lessons Learned Final Husky Case Study
Again, Husky feels that there is a role for government to play in advancing CSR by being a role
model itself. Instead of letting companies break ground in the area of CSR, the government could
be more proactive by developing a nation wide CSR strategy. This would help companies
differentiate between CSR, CR, SD etc., decide on what strategy they should take, and what the
expectations of companies are in that regard.
2002 Five Winds International, LP 22
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