Strategies for a more just and sustainable economy:
INDICATORS OF THE SOCIAL PROFITABILITY OF COMPANIES

Several problems

Neoliberal ideology tends to deny that companies have a social responsibility, or simply limits it to their responsibility to shareholders. Yet all economic activities have impacts -- or "externalities" -- which go beyond the profit of the few and the simple market exchanges between producers and consumers. Economic profitability is too often the only accepted and recognized measure for determining the "success" of a firm -- be it large or small, private or cooperative.

At the moment, we do not have a common and recognized instrument allowing us to draw up a social balance sheet -- both positive and negative -- for companies. These tools have to be developed in order to measure the extent to which a company is a "good corporate citizen."

Some solutions

During a first mandate, we will develop norms and tools (in the form of a social balance sheet) allowing us to evaluate the impact and social profitability of firms. The objective is to arrive at a Social Balance Sheet Policy in the course of a first term.

We will nevertheless proceed in steps. At the beginning, we will require medium and large firms to draw up a social balance sheet. We will progressively introduce incentive and disincentive measures for firms depending on their social profitability. In the longer term, more coercive measures will be implemented, notably by making government contracts and all government support conditional on a strong social balance sheet.

Over the long run, and using a system of incentives, this mechanism could bring important changes in company culture as companies with a good performance would be rewarded. As well, this mechanism would offer important information to shareholders, consumers, local authorities and the government. This social balance sheet would be audited by an external body which would be accessible to the public.

Consultations will be undertaken concerning the best indicators to use. For the moment, we can imagine certain indicators articulated around ten major dimensions:

Major Dimensions
1	Type of property and distribution of profits
2	Transparency and public accountability
3	Creating and maintaining jobs
4	Work conditions
5	Worker participation and joint management
6	Stakeholder relations
7	Environmental impact
8	Contribution to the community
9	Impact on quality of life
10	Respect for rights

See also the following website :
http://www.corporate-accountability.ca/index.html