Evolving CI Reporting
There were 5 questions presented to the LBG Canada community for discussion and voting this year. These included employee programs in different economies to valuation of own-brand gift cards and donation of high-value assets, such as buildings.
One particularly vibrant discussion focused on whether programs exclusively benefiting employees qualify as community investment. Years ago, the LBG Canada community voted to agree that scholarship and similar community programming that was only available to employees (or their children) were ineligible for reporting as community investment.
Companies operate in economies with severe poverty and other characteristics. Within very challenging environments, the 2024 question: Do the principles hold?
The voting outcome confirmed that the principle remains valid: social impact programming exclusively benefiting employees is not eligible for reporting as community investment, even in challenging operating environments.
There were valid questions raised, however. What about situations where employees and the broader community benefit indirectly through natural sharing? Actual examples included scholarships, grocery programs, legal services, and laundry assistance. Some participants shared personal stories of how employer programs positively ripple through communities, driven by cultural tendencies to share resources and lift others with newfound opportunities.
It’s important to remember that LBG Canada Audit Principles are designed to standardize how companies report, but they are not intended to exclude evidence of impactful work. Exceptions do arise, and when this occurs, the goal is to document the reasons for exceptionality in relation to the norm. Other times, the exception leads to reporting in a different category – both are always valid options.
The above is simple evidence of why reporting standards matter. Audiences such as investors, employees, regulators, and the general public, review annual reports, sustainability reports, CSR, and purpose reporting are reading corporate reports. They seek a true representation of investment made in order to believe results reported.
Because our beloved term ‘community investment’ is used with both specific and broad meaning, there is a real risk that audiences won’t be convinced that information reported is a real account of what they expect community investment numbers to represent.
This is where the standard for what is eligible for inclusion in reporting on community investment comes in. We know that the LBG Canada community is all about defining what is community investment in a standardized and consistent way.
How we choose to invest in community matters. These choices, and the investment budget made available, reflects corporate culture and commitment.
The LBG Canada Community Investment Reporting Standard raises awareness of corporate commitment to strengthen community, and of each company’s preparedness to be fully accountable for the resources they make available for the purpose of community impact.