taking care of our home

taking care of our home
2005 Corporate Social Responsibility Report
2005 Corporate Social Responsibility Report
page two
overview
page six
environment
page twenty two
human resources
page thirty six
ethical sourcing
page forty six
community investment
2005 Corporate Social Responsibility Report – one
two – 2005 Corporate Social Responsibility Report
overview
As Canada’s oldest general merchandise retailer,
Hbc’s vision is to provide Canadians with stylish,
quality merchandise at great value, in stores that
focus on exceptional customer service.
We are dedicated to doing this while upholding
the values of corporate and social citizenship
throughout our organization. To this end, we seek
to limit the environmental impact of our operations,
support our local communities, provide growth
opportunities for our associates and promote
cooperation among retailers and vendors to
ensure adherence to global labour and human
rights standards throughout our supply chain.
This is Hbc’s fourth annual Corporate Social
Responsibility (CSR) Report, covering our
programs and activities for the fiscal year ending
January 31, 2006 in four key areas: environment,
human resources, ethical sourcing and
community investment.
2005 was a year of progress and exciting new
partnerships for Hbc. As Premier National Partner
of the Vancouver 2010 Olympic and Paralympic
Winter Games and the Official Clothing and
Luggage supplier for Team Canada until 2012,
our involvement reflects our commitment to CSR.
In addition to ensuring that the Canadian Olympic
Team’s uniforms are manufactured in Canada,
we are also committed to supplying our Olympic
themed shops in British Columbia with Green
Power and, most significantly, we are committed
to raising $20 million for amateur athletes over
the next seven years.
2005 Corporate Social Responsibility Report – three
Hbc continues to be a Canadian retail leader
in the areas of social compliance reporting
and international action in both our sourcing
and environment programs. In 2005, we have
disclosed more factory audit information and
audit methodology and introduced a new training
course for Hbc vendors. On the environmental
front, we were recognized by BC Hydro as a
Power Smart Certified Leader and participated
in new pilot projects involving our energy use
and our transportation fleet.
Hbc couldn’t achieve a record of CSR success
without the commitment and hard work of our
associates. From implementing effective energy
conservation practices in our stores and facilities
to organizing events such as the Hbc Run for
Canada, everyone at Hbc is committed to making
Canada a better place to live. Hbc invests over
$10 million annually in local community groups and
national charities through corporate donations and
fundraising in our stores and by our associates.
This year, Hbc will identify the Global Reporting
Initiative indicators that are included in our
report and post the results online. We are also
working towards increasing the number of
indicators covered.
We take pride in our Company and the work we
do to support a cleaner environment, labour and
human rights, stronger communities and personal
development for all of our associates.
2005 corporate social responsibility report
e
number
nvironment
Helping to sustain the environment is part of Hbc’s
commitment to Canada. Our goal is to reduce
the impact of our operations on the environment
while managing our energy costs. Throughout our
stores, fleet and logistics systems, we take a handson approach to managing our use of water and energy,
recycling the by-products of our retail operations
and controlling greenhouse gas emissions.
six – environment
this commitment is fulfilled through three core principles:
continuous evaluation of
our environmental policies
and procedures;
improvement
of our operations; and
the education of
our associates, customers
and partners
environment – seven
in 2005, Hbc’s commitment to these core principles
translated into:
•
•
the Protecting Our Future program, which
allows each store to continuously evaluate
energy consumption;
new energy conserving lighting projects such as
skylights and light dimming systems;
•
•
new partnerships to increase awareness of
recycling among associates and customers; and
reduced greenhouse gas (GHG) emissions through
Hbc’s Energy Alert program and our participation
in the federal government’s One Tonne Challenge.
overview of Energy Conservation Strategy
At Hbc, energy conservation is a commitment that
is integrated into all levels of the Company. The
Strategic Energy and Environment Committee,
supported by a member of Hbc’s senior executive
team, meets monthly to review programs and
energy consumption levels on a store-by-store
basis in all provinces.
Energy is the third highest operating cost for
most retailers; however, energy consumption is
a controllable and manageable expense, which
we are able to minimize through our Energy
Conservation Strategy.
Hbc’s national Energy Conservation Strategy
focuses on reducing energy consumption
and related emissions from our stores, fleet
and logistics systems.
eight – environment
energy use in stores
In 2005, Hbc installed skylights and a light
dimming system to use natural light more
effectively in one of our facilities. A comprehensive
analysis of this program’s effectiveness will be
available in 2006.
Hbc is actively fulfilling our commitment to
retrofitting all stores with energy efficient lighting
and Building Automation Systems (BAS) by 2007.
Hbc locations with energy efficient lighting retrofits
2003
2005
2004
Total
Number of
Stores
Completed
Total
Number of
Stores
Percentage
of Stores
Completed
Total
Number of
Stores
Completed
Total
Number of
Stores
Percentage
of Stores
Completed
Total
Number of
Stores
Completed
Total
Number of
Stores
Percentage
of Stores
Completed
169
312
54%
195
298
65%
213
291
73%
Bay
14
96
15%
17
98
17%
34
98
35%
Home Outfitters
43
45
96%
45
47
96%
56
56
100%
Designer Depot
n/a
n/a
n/a
1
1
100%
7
7
100%
1
11
9%
1
11
9%
2
11
18%
227
464
49%
259
455
57%
312
463
67%
Banner
Zellers
Distribution Centres
Total
environment – nine
BAS are store level energy control systems connected
to a central monitoring and tracking station. This webbased daily consumption monitoring and reporting
system improves our ability to track and correct
high energy use.
Hbc locations with building automation systems
2003
2005
2004
Total
Number of
Stores
with BAS
Total
Number of
Stores
Percentage
of Stores
Completed
Total
Number of
Stores
with BAS
Total
Number of
Stores
Percentage
of Stores
Completed
Total
Number of
Stores
with BAS
Total
Number of
Stores
Percentage
of Stores
Completed
251
312
80%
262
298
88%
262
291
90%
20
96
21%
22
98
22%
32
98
33%
Home Outfitters
6
45
13%
11
47
23%
18
56
32%
Designer Depot
n/a
n/a
n/a
1
1
100%
7
7
100%
1
11
9%
1
11
9%
2
11
18%
278*
464
60%
297*
455
65%
321
463
69%
Banner
Zellers
Bay
Distribution Centres
Total
*This data has been restated from the 2004 report with more accurate information.
ten – environment
recycling/solid waste management
Informal recycling programs exist in many Hbc
stores; however, most have not been tracked or
measured. Over the past three years, Hbc began
a process of collecting data on amounts of solid
waste and recycling in our Zellers locations. We
found that these numbers fluctuated depending
on the level of renovations, which generate more
waste, and other unknown factors. In order to
implement formal waste control programs, we are
conducting an Environmental Sustainability Survey
in 2006 in all Hbc stores.
Recycling and solid waste levels in Zellers stores
Total Solid Waste
Tonnes/Million
Square Feet
Percentage
of Recycled
Corrugated
Cardboard
Percentage
of Other
Recyclables
Percentage
of Landfill
Waste
Total Diversion
Rate*
2003
1,276
53%
1%
46%
54%
2004
1,321
52%
1%
47%
53%
2005
1,293
52%
1%
47%
53%
Year
*Total Diversion Rate = Corrugated Cardboard, which is sent to recycling, plus Recyclables.
environment – eleven
products and packaging
Approximately 40 per cent of Hbc’s appliance
business consists of high energy efficient Energy
Star (www.energystar.gc.ca) products, including
front-loading washing machines, refrigerators
and dishwashers.
Hbc encourages customers to recycle
rechargeable batteries in our Zellers stores
through a nationwide program with the
Rechargeable Battery Recycling Corporation
(www.rbrc.org). In 2005, 133 Zellers stores
collected over 1,890 kilograms of batteries.
Hbc will expand this program to all Zellers
and Bay stores in 2006.
As well, in Alberta, six Zellers stores participated
in a pilot project for recycling electronic equipment
with the Electronic Recycling Association. Future
plans for this program will be determined based on
the results of the pilot project. For more information
about this program, visit www.era.ca.
Hbc is involved in over 20 different Provincial
Environmental Stewardship regulatory programs
across Canada. The fees we submit under these
programs are based on the amount of packaging
from the products we sell, and help provincial
governments pay for recycling programs and public
awareness campaigns.
fleet
Hbc’s fleet strategy focuses on ensuring our
equipment is properly maintained, using the most
efficient processes available to help us improve
our fuel efficiency.
Hbc is committed to meeting or exceeding
environmental protection standards for vehicles.
As of October 1, 2003, in order to meet new
standards, all newly manufactured trucks used
by Hbc have exhaust gas recirculation engines.
Although these engines generate fewer airborne
particulate emissions, they are less fuel efficient.
This factor reduced our fuel efficiency in 2004
and 2005.
Fleet fuel efficiency
Km/litre
2003
2004
2005
2.66
2.61
2.62
twelve – environment
Our logistics policies focus on finding the most
efficient routes with global positioning system
technology and reducing product transportation
distances by maximizing regional distribution
systems and local suppliers.
We are committed to eliminating the movement
of empty trailers and using rail transportation
whenever possible. Over the last three years, we
have maintained our rail use levels at 75 million
kilometres annually, approximately 70 per cent
of total Hbc transport kilometres.
In 2005, Hbc participated in the following
programs to reduce the environmental impact
of our fleet operations:
•
Biodiesel Fuel Pilot Project – In August 2005, Hbc
Logistics began a pilot project as part of Transport
Canada’s Freight Sustainability Demonstration
Program. Hbc partnered with Volvo, Canada Clean
Fuels and Energy Advantage to incorporate the
use of biodiesel fuel in our fleet of trucks.
environment – thirteen
The project will run for one year and is expected
to reduce GHG emissions by replacing some
diesel fuel with biodiesel, a non-fossil fuel that is
produced from renewable resources. The project
uses primarily B20, a blend of 20 per cent biodiesel
and 80 per cent regular diesel fuel. Hbc will
analyze the results of this project to determine the
feasibility of using biodiesel on a long term basis.
•
Repair Our Air – Fleet Challenge – Hbc
participated in the voluntary Repair Our Air –
Fleet Challenge. The Challenge involved tracking
the extent and pattern of idling in ten specific trucks
within the Hbc fleet. During the course of the
Challenge Hbc decreased idling time in our fleet
from 19.6 per cent of running time to 18 per cent.
Hbc Logistics is attempting to further reduce idling
time in 2006.
water consumption in stores
Water is a precious resource that, with proper
management and technology, can be conserved.
Hbc started measuring water usage in 2003.
We are analyzing the factors that affect water
usage, and we are exploring new technologies
and systems to minimize water use.
Water usage (water m3)
2003
2004
2005
2,086,744
(baseline year)
1,866,381
(reduced by 10.6%
over the
baseline year)
1,889,124
(reduced by 9.5%
over the
baseline year)
fourteen – environment
Enwave deep lake water cooling program
In 2005, Hbc announced plans to convert our
one-million-square-foot Queen Street Bay store
and 32-storey head office tower in Toronto to
green energy for air conditioning in 2006. This
new system will use 90 per cent less electricity
than conventional chillers (equivalent to the yearly
energy consumption of 480 homes), conserve
close to 23 million litres of water annually, eliminate
ozone-depleting refrigerants from Hbc’s cooling
system, and reduce harmful GHG emissions by
79,000 tonnes a year (equivalent to taking 15,800
cars off the road). Hbc is the first retailer in Canada
to embrace this use of green energy. To find out
more about Enwave, visit www.enwave.com.
“We’re pleased to see
Hbc added to the growing
list of buildings that have
embraced this technology,
as we move forward to
become a cleaner,
greener, more energy
efficient Ontario.”
– Former Ontario Minister of Energy
Dwight Duncan, July 20, 2005
environment – fifteen
measuring our results
Hbc measures the following emissions in all Hbc
operations to track the success of our Energy
Conservation Strategy and to identify other areas
that require attention.
Overall, the 13 per cent emissions intensity reduction
indicates that Hbc stores are becoming more
energy efficient. The cumulative reduction
in emissions from the baseline year 2000 is
over 109,000 tonnes, equivalent to the yearly
emissions from more than 23,500 cars.
Corporate emissions by source
Natural Gas
Propane
Transportation –
Fleet
Oil
Electricity
Steam
Total Emissions
Emissions Intensity*
(TCO2e/1,000
square feet)
2000
2001
2002
2003
2004
2005
% Reduction
from 2000
61,274
55,995
55,588
61,839
56,497
54,668
–11%
2,036
2,128
1,747
1,509
1,440
1,737
–15%
25,431
24,311
25,231
26,422
30,857
32,878
29%1
858
809
847
698
604
614
–28%
278,771
280,407
254,410
266,932
244,348
250,516
–10%
1,064
1,023
939
–12%
1,064
2
1,064
2
1,064
2
369,443
364,714
338,887
358,464
334,769
341,050
–8%
6.73
6.58
6.02
6.29
5.77
5.84
–13%
*TCO2e = tonnes of CO2 equivalent.
1. Increases in emissions are due to increased mileage.
2. Estimates only – based on information available.
The slight increase in emissions in 2003 and
2005 was caused by increased air conditioning
related to high summer temperatures, the addition
of refrigeration units to Zellers stores, and the
inclusion of data that was previously unavailable.
In 2003, summer temperatures in Ontario and
Quebec were close to normal while the rest
of Canada experienced an increase of more than
50 per cent in air conditioning demand. In 2005,
Ontario and Quebec, representing over 60 per
cent of Hbc stores, experienced high temperatures
that resulted in a 27 per cent increase in cooling
demand. On a national basis, cooling demand
was 23 per cent above normal.
sixteen – environment
awareness and partnerships
The success of our environmental programs is
a result of the commitment from our associates,
customers and partners. Highlights of our 2005
programs include:
Hbc Protecting Our Future
Associate Awareness Program
Energy consumption levels and costs for electricity,
natural gas and water are posted at each store and
on Hbc’s intranet so that stores can gauge the
progress of their energy conservation programs.
Associates in each store can win Hbc Points by
completing monthly quizzes on energy programs
and policies.
Hbc’s Energy Alert Program
Through a colour alert program, stores are directed
to reduce energy use by up to 30 per cent by
turning off lights, adjusting store temperature
and adjusting other electrical equipment. Energy
consumption levels in stores equipped with BAS
are adjusted remotely and all other stores are
notified to reduce energy consumption through
Hbc’s intranet.
One Tonne Challenge
As part of Hbc’s continued commitment to the
federal government’s One Tonne Challenge (OTC),
Hbc distributed 25,000 customer information
pamphlets company-wide. The pamphlets outline
the objectives of OTC and, more importantly,
how these objectives can be met.
environment – seventeen
Green Purchasing – Cool Carpet Program
Hbc has committed to the Cool Carpet Program
established by Interface Inc. for use in our stores.
Through the program, Hbc purchased “climate
neutral” carpeting from Interface, meaning that
there are no net GHG emissions associated with
the product. In 2005, Hbc’s carpet purchases
resulted in 77 tonnes of GHG emission credits.
For more information about Cool Carpet, visit
www.interfaceinc.com.
eighteen – environment
sustainable olympic games
Hbc is working with the Vancouver Organizing
Committee to ensure that the Vancouver 2010
Olympic and Paralympic Winter Games are
the most sustainable possible. As part of this
commitment, Hbc purchased 1,000 Green
Power Certificates in 2005. Hbc will double this
commitment starting in 2006 by purchasing
2,000 Certificates, enough to power all Olympic
and Heritage themed shops in British Columbia’s
Bay and Zellers stores annually until 2010. This
purchase of green power will avoid 720 tonnes of
GHG emissions per year, equivalent to removing
150 cars from the road. Green power is electricity
produced from sustainable sources such as wind,
low-impact hydroelectric, biomass and solar.
2005 environmental awards
and recognition
BC Hydro Power Smart Certified
Hbc was the first retailer in British Columbia to be
designated a Power Smart Certified customer. This
designation is granted by BC Hydro to recognize
organizations that demonstrate exceptional energy
efficiency leadership within their industries or
sectors. For more information, visit www.bchydro.
com/business/success/story22632.html.
environment – nineteen
Recycling Council of Ontario
“Through its long-standing
Hbc received two bronze Waste Minimization
from the Recycling Council of Ontario:
commitment and leadership Awards
for the success of Hbc’s Energy Conservation
over the last five years, and for the use
in energy conservation and Strategy
of sustainable technologies.
environmental sustainability,
Hbc is setting an example
initiatives for 2006
for other retailers to follow.
conduct Environmental Sustainability Survey
Hbc has been a leader
with all stores to review programs;
conduct an in-depth study of in-store
in sustainable resource
lighting technology;
conduct energy efficiency benchmark analysis
use and has shown that
with ENVINTA, an energy and environmental
solutions company; and
improving energy efficiency information
conduct a gap analysis of a Zellers store against
Leadership in Energy and Environmental
not only reduces operating the
Design (LEED) criteria
costs but also benefits
the environment.”
•
•
•
•
– BC Hydro President and CEO Bob Elton
2005 corporate social responsibility report
human
number
resources
At Hbc, we rely on our associates to deliver a
great shopping experience to Canadians. In turn,
their efforts require an ongoing commitment by
Hbc to invest in programs and resources that help
associates in every part of the country to learn, grow
and contribute to the future of this Company.
twenty two – human resources
this commitment is fulfilled through three core principles:
fostering the professional
development of associates
while providing a competitive
benefits package;
providing a safe and
healthy workplace; and
encouraging open communication
throughout all levels of the Company
human resources – twenty three
in 2005, Hbc’s commitment to these core principles
translated into:
•
•
an investment of over $200 million annually in
associate benefit programs;
extensive internal communications programs; and
•
health and safety programs for our associates,
both at work and in their personal lives
overview of human resources
Hbc operates stores in all provinces of Canada,
supported by close to 70,000 associates. Both full and
part time associates qualify for comprehensive benefits
programs and a number of other support programs.
twenty four – human resources
Number of Hbc stores and percentage of associates per province
Zellers
Alberta
15
27
9
2
46
99
9%
British Columbia
18
35
9
–
59
121
13%
Manitoba
3
8
2
–
2
15
3%
New Brunswick
1
12
–
–
–
13
1%
Newfoundland/
Labrador
–
5
–
–
–
5
0.6%
Nova Scotia
3
14
1
–
–
18
2.9%
37
122
25
5
–
191
49%
–
2
–
–
–
2
0.3%
18
57
8
–
–
84
16%
3
9
2
–
8
22
2%
98
291
56
7
118*
570
Ontario
Prince Edward
Island
Quebec
Saskatchewan
Total
Fields
Percentage
of Hbc
Associates
Bay
Province
Designer
Depot
Total
Number of
Hbc Stores
Home
Outfitters
*Includes three stores in the Yukon and Northwest Territories.
Associate Charter of Rights and Responsibilities
The rights and responsibilities of Hbc associates are detailed in
My Life at Hbc. The guiding philosophy behind this document
is that every associate is respected as an individual and
accorded understanding, courteous consideration and fair
treatment at all times.
This handbook provides associates with an overview of
what they can expect while employed at Hbc; including policies
and procedures on communication, career development,
performance management, scheduling, health and safety
and harassment protection.
human resources – twenty five
associate benefits
Hbc offers a comprehensive benefits package,
which includes programs that encourage health
and wellness, career development and offer
additional financial resources and savings.
•
•
•
Additional Hbc benefits include:
RRSP programs – Hbc has 5,235 RRSP
members, who have accumulated annual
savings of $38 million, and educational
resources on managing personal finances
are provided for associates;
Associate Buying Club (ABC) – offers Hbc
associates special discounts on products and
services such as event and attraction tickets,
movie passes, travel, cell phone plans, fitness
memberships, auto insurance and more.
Since 2004, ABC has helped our associates
save over $1.5 million;
scholarship program – children and dependents of
Hbc associates may apply for one of forty $2,500
scholarships to help finance higher education.
A total of $100,000 is granted annually. In 2005,
there was a year-over-year increase of 20 per cent
in the number of applications;
•
store discounts and special offers – the Associate
Discount Program provides all associates and
their dependents with discount privileges at all
Bay, Zellers, Home Outfitters, Designer Depot and
Fields stores from the first day of employment.
In 2005, associates saved over $19 million on
credit card transactions alone;
twenty six – human resources
•
•
long and short term disability programs – in 2005,
$12 million was spent on short term disability
costs and $10 million on long term disability costs
for associates. Hbc continues to help minimize
absenteeism and maximize the productivity of
our workforce by investing in health and wellness
programs; and
the Hbc Associate Wellness Program – launched
in 2005, this program provides online and
printed information and resources on heart
health, cancer, mental illness and day-to-day
wellness to all Hbc associates. As part of this
program, associates can access the Resource
Referral Program, which was relaunched in 2005
to include EMPOWERNET, an online Wellness
Information Network (WIN). Associates can get upto-date information about community services for
parenting, elder care, relationships, addictions and
recovery, work/life balance and stress. In 2006,
Hbc will increase awareness of these programs
Olympic Games
Associate involvement was a key to the success of Hbc’s
partnership with the Canadian Olympic Team during the 2006
Torino Winter Games. Hbc associates were actively engaged
in this partnership in a number of ways:
• associates helped raise money for amateur athletes;
• Hbc associates were offered an exclusive 20 per cent
discount, in addition to their existing associate discount,
on Olympic merchandise;
through marketing initiatives, vendor partnerships
and online tools, and will develop benchmarks and
measurements for both programs.
“I think that ABC is valuable
to all associates within
Hbc. I like the fact that
there is a website and
e-newsletter that is sent.”
– Hbc Brand Management Associate,
Brampton Office
Associate Buying Club (ABC)
• management trainees gained hands-on experience by setting
up and running Hbc Olympic merchandise stores at the 2006
Torino Winter Games. Former Management Trainee Patrick
Lapansee, from Zellers in Nepean, Ontario, worked on planning
and execution to support the stores in Torino. In Torino,
Patrick and the other Management Trainees were responsible
for promoting Hbc’s Official Olympic merchandise and the
Hbc brand to international media, managing Hbc shops and
representing Hbc at sponsor events.
human resources – twenty seven
career development
Hbc is dedicated to identifying, developing and
retaining future leadership talent. We provide
associates with educational reimbursements,
e-learning programs such as the Online Personal
Approach to Learning (OPAL), in-class workshops
and customized learning to help develop
their careers.
Summary of Hbc courses and completions
2004
2005
OPAL Course
Catalogue
180
200
OPAL Course
Completions
141,587
96,893
The number of course completions declined
in 2005 due to a change in mandatory course
requirements. As of last year, the Merchandise
Continuum course became mandatory only for
Home Office associates, which is a much smaller
population than our total store workforce. This
was part of our overall strategy to restructure the
OPAL platform, offering courses with specialized
in-house content tailored to Hbc associates.
New OPAL courses were introduced covering
topics such as Social Compliance in the Supply
Chain and a Hazard Specific Training Program.
Some of the career development programs
and initiatives at Hbc include:
Leadership talent reviews
Hbc undertakes annual leadership talent reviews
through a process designed to identify and
assess talent across the Company. This process
explores individual career aspirations, motivation
and capability to perform successfully in positions
of greater responsibility. It enables us to better
understand the overall strength of our talent in
key areas and to make better informed decisions
regarding promotions, mitigating transition risk and
increasing the success rate by promoting the right
people at the right time into the right roles.
Our 2005 reviews conducted within store
management ranks identified close to 12 per
cent of Store Managers as willing and able to
move to new roles, of whom over 50 per cent
were promoted.
twenty eight – human resources
Certificate in Human Resources
Management program
The Certificate in Human Resources Management
program (CHRM) was re-launched in 2005
across Hbc. This program received recognition
from Campus Canada, a federal government
agency, as being equivalent to six university
level credits. Graduates of this program can
apply this accreditation towards the completion
of a university degree or certificate at schools
participating in the Campus Canada program. Hbc
is the first retail organization to participate in this
program. In 2004, 83 associates graduated from
the program, and in 2005, 150 associates enrolled
and are expected to graduate in April 2006.
Management Trainee Program
In 2005, the number of participants in Hbc’s
Management Trainee Program (MTP) increased by
Career Bridge
Hbc has been recognized for its commitment to helping
recent immigrants gain professional experience. The Company
received the Career Bridge Internship award for creating the
largest number of internship placements for qualified recent
immigrant professionals.
nearly ten per cent. Our MTP provides associates
and external recruits with an opportunity to develop
their careers in retail. Participants train over a
12-month period and graduate into a leadership
role, either within a store environment or in a
merchandising position. In 2005, a review of this
program resulted in improved workplace planning
practices, providing a more accurate view of our
talent needs, a more focused recruitment plan,
and a more positive environment for associates.
The implementation of a talent retention strategy
for the program is underway. The goal is to retain
all program graduates.
Program Year
2004
2005
Internal
41
External
Total Trainees
66
107
46
68
114
“This award reflects Hbc’s dedication to the ideals of
multiculturalism that have shaped our country, and we are very
proud of our associates who have made Canada home and
Hbc their Company,” said Bob Kolida, Senior Vice President,
Human Resources. “These professionals provide companies
like Hbc with expertise and a wealth of experience. Hbc has
had incredible success through this partnership.”
The Career Bridge program provides internships for recent
immigrants to Canada. Employers use this program to tap into
Canada’s newest resource – the international experience and
skills of professional level newcomers.
From left to right: Career Bridge intern; Siraj Rahman, past Career Bridge intern
and now Hbc associate Connie Bao, Hbc National Workforce Planning and
Recruitment Manager; Daniela Mayol, Hbc Senior Vice President Human Resources;
Bob Kolida and Career Bridge intern Qian Xing.
human resources – twenty nine
ACE (Advancing Canadian Entrepreneurship)
In 2005, Hbc increased the number of its
executives serving as mentors to ACE chapters
at colleges and universities across the country.
ACE is a national not-for-profit organization that
provides university and college students with
the principles and values of entrepreneurship
and market economics. Hbc also sponsored the
Students-In-Free-Enterprise World Cup through
its association with ACE. Students from around
the world presented their projects promoting
entrepreneurship and free enterprise to an
international panel of judges. Over a dozen Hbc
executives participated as judges for this event.
Hbc also hosted a special dinner for Canadian
students and faculty advisors, offering a chance
to connect with Hbc executives and learn more
about the retail industry. In 2005, Hbc recruited
three members of ACE into our Management
Trainee Program.
DECA (Distributive Education Clubs of America)
In December 2005, Hbc sponsored the 27th
annual DECA Ontario provincial competition. DECA
is a student-centred educational organization with
a program of leadership, career and professional
development in areas such as hospitality, finance,
sales and service, business administration
and entrepreneurship. DECA is a non-profit
organization, funded by student and chapter
fees and corporate support.
Jobs/Vision/Success Toronto (JVS)
In May 2005, Hbc received the 2004 Best Retail
Employer Award from JVS Toronto. JVS Toronto
is a non-profit organization that partners with
businesses and government to assist individuals
in overcoming obstacles so they can succeed in
school, work and life. To date, Hbc has employed
over 50 participants in Toronto area Zellers stores
through JVS and has hired 17 on a full time or
part time basis. In 2006, Hbc will expand this
program to all banners.
Retail as a career
Together with other Canadian retailers, Hbc
continues its efforts to promote retail as a
career through the Retail Council of Canada’s
(RCC) committee on the issue. Co-chaired by a
senior Hbc executive, the committee organized
28 speaking engagements in 2005 at colleges and
universities across Canada. These events reached
more than 2,100 students, with the committee
participating in retail-specific job fairs in various
cities. Hbc is an annual sponsor of the RCC’s
scholarship program.
thirty – human resources
health and safety
Hbc supports the principle that all injuries are
preventable. Our vision is Zero Lost Time injuries.
In 2005, Hbc achieved a 10 per cent reduction in
total workers’ compensation claims, a 22 per cent
reduction in lost time claims, and a 34 per cent
improvement in workdays lost due to injuries. In
addition, we achieved a 22 per cent improvement
in the number of Hbc locations that had zero lost
time injuries in 2005.
In 2005, Hbc launched a new Hazard Specific
Training Program, which involved training over
30,000 associates at Zellers stores on the safe
handling of potentially dangerous machinery on the
job. This program has had significant results: an
11 per cent reduction in claims, a 24 per cent
reduction in lost time claims and a 30 per cent
improvement in lost days for the Zellers banner.
Every store, office location and Distribution Centre
Our positive results can be attributed to the
is required to have a Health and Safety Committee
development and execution of an effective strategy, that educates associates through events, information
which includes establishing job-specific safety
and tips on health and safety and is responsible
standards, accommodating injured or disabled
for meeting general safety requirements, including
associates through our early and safe return to
inspections. Each Committee consists of five to ten
work program, training and targeted communication. associates, depending on the number of people
working at that location.
internal communications
To be inspired to contribute their best to the
organization, associates must understand their
company’s business strategy, priorities, and
how each person can add to the success of the
organization. At Hbc, this understanding is
assisted by a comprehensive internal
communications program and delivered through
various communication vehicles, including face-toface meetings and associate websites.
human resources – thirty one
associate websites
(Hbcnet, Hbcassociate.com, Hbcalumni.ca)
In 2004, the goal for these sites was to increase
repeat visits by improving the quantity and quality
of the content, initiate procedural changes and
increase awareness of the sites.
We are continuing to focus our efforts on
improving the sites’ usability by reviewing all
aspects of the online experience: site design,
content and usage tracking.
In 2006, we are examining short term and long
term options for the collection of these statistics.
In an effort to ensure our intranet presence is
meeting the needs of associates, Hbc will conduct
usability tests and an end-user survey in 2006.
Hbc retirees have specific information and program
needs as well. To address this unique associate
group, we host a website specifically for them:
www.hbcalumni.ca.
These site enhancements have also necessitated
Where Our Associates Work
a review of our current in-house website reporting
application. It was determined that the software
cannot adequately capture essential information
such as unique visitors to given sections, which
leaves us unable to report usage statistics this year.
92%
4%
4%
Alberta Workers’ Compensation Board Recognition
Hbc received a Certificate of Recognition from the Alberta
Workers’ Compensation Board (WCB) under the Partners
in Injury Reduction (PIR) program.
store
corporate office
other
(e.g., distribution centres)
PIR encourages the development of effective workplace health,
safety and disability management programs in Alberta. Through
this voluntary program, the WCB offers premium incentives to
employers who reduce their claim costs below predicted targets
and meet specified standards for health and safety.
thirty two – human resources
Hbc Associate Survey
Where our associates work
In 2005, Hbc was able to implement many
changes and initiatives, such as the Team Hbc
Recognition Program, due to feedback provided
through the 2004 Associate Survey. These
Team Hbc Recognition Program
Team Hbc Recognition Program was launched in late 2005.
Through the program, Hbc will recognize associates for their
teamwork, strategic contributions, superior service and their
passion for achieving the results of Hbc. The Team Hbc Awards
reinforce the fact that our associates are key to delivering
results, and that great performances deserve to be recognized.
This program was launched in response to feedback in the last
Associate Survey. Associates told us we need to do more to
adequately recognize and reward great performance.
changes and new programs will be reviewed
through associate feedback gathered through
smaller surveys and other communications
vehicles on an ongoing basis as necessary.
There are four recognition award categories:
• The Pinnacle Awards: Recognizing outstanding contributions
of individuals in the areas of service, people, strategy and
contribution to results;
• The President’s Excellence Awards: Recognizing outstanding
performance of teams, driving the results of Hbc;
• Making a Difference: Recognizing individual associates who
make a difference by contributing to their team and Hbc; and
• Long Service Awards: Recognizing individual contributions of
associates with long service.
Hbc Life – associate newsletter
Hbc Life is a newsletter for all associates and
retirees of Hbc, published three times a year. Its
purpose is to drive positive cultural change by
informing, motivating and engaging all Hbc
associates about the vision of the Company and
the role they play in helping achieve that vision.
It highlights relevant information about our strategy,
our customers and our people, celebrates success,
and helps instill a sense of pride and community.
Three issues are planned for 2006, as well as a
readership survey to help ensure that the newsletter
delivers relevant information and continues to be an
effective communication vehicle.
human resources – thirty three
Hbc Direct Line
Associates who have exhausted Hbc’s formal
communication process for dealing with jobrelated concerns have the option of contacting
the Hbc Direct Line. Hbc Direct Line provides an
opportunity for associates to forward their questions
and concerns directly to the Company’s senior
executive team. Participants may receive a reply
addressing their concerns or remain anonymous.
statement of targets for 2006
•
•
expand the Associate Wellness Program to
incorporate the EMPOWERNET program and
continue to provide information and resources
for associates, increasing awareness through
marketing initiatives, vendor partnerships and
online tools;
develop benchmarks and measurements
for the EMPOWERNET program;
•
•
increase by 10 per cent the number of Hbc
locations with zero lost time injuries; and
Focus on enhancing the training experience
of Management Trainees Program participants
through a centralized approach, as well as
establishing key metrics to measure the
success of the program.
2005 corporate social responsibility report
ethic
number
al sourcing
Hbc works with merchandise vendors and
manufacturers to ensure our merchandise sourcing
policies comply with international labour and human
rights standards. The goal of our Social Compliance
Program is to ensure all Hbc brands have been
produced in humane conditions, and also to
protect the integrity of Hbc’s private brands.
Only through education and collaboration can
meaningful progress be realized.
thirty six – ethical sourcing
this commitment is fulfilled through three core principles:
educating and training
Hbc buyers, vendors and
manufacturers about our Code of
Vendor Conduct and audit process
as a core element of our auditing
and compliance program;
improving the quality and
transparency of dialogue with
external stakeholders; and
leveraging international
relationships to seek common
programs that enhance the
efficiency and effectiveness of
social compliance within the global
retail supply chain
ethical sourcing – thirty seven
in 2005, Hbc’s commitment to these core principles
translated into:
•
•
introducing a new online course for Hbc buyers;
providing more detail on our audit methodology
and audit results;
•
•
Canadian Olympic Team Merchandise Sourcing Program
In 2005, Hbc produced over 40 items exclusively for Team
Canada at the Torino 2006 Winter Olympic Games. All uniforms
and accessories in the Canadian Olympic Athlete Program
were made in Canada, with the exception of luggage items
and snowboarding gloves. In addition, Hbc produced
auditing of Olympic merchandise for social
compliance; and
collaborating with stakeholders to address
common challenges in compliance outreach
a line of Official Olympic merchandise inspired by the athletes’
uniforms – Official Athlete Replica Wear. This merchandise was
sourced from Asia and Canada. All vendors supplying items for
the Official Athlete and Replica Wear Programs participated in
Hbc’s Social Compliance Program.
training
To ensure that social compliance is integrated
into our core business decisions and operations,
Hbc works to help suppliers, vendors and Hbc
associates understand our policies and procedures.
It is important that buyers and vendors are
accountable for the factories they use for
sourcing product.
•
•
Hbc introduced an intranet online learning
course in 2005, which over 400 associates
have completed so far.
as an intrinsic part of the product review process,
Hbc’s Social Compliance team met regularly with
vendors to inspect their factory list, compliance
issues, factory Corrective Action Plans (CAP)
and re-audit schedules. These meetings ensure
improved social compliance monitoring on a
regular basis.
thirty eight – ethical sourcing
audit methodology
Factory audits are performed for Hbc by
two independent firms, Intertek Labtest and
Independent Global Compliance Services. Audits
are conducted over one or two days and consist of:
•
•
•
an interview with the factory manager;
interviews with factory employees;
a tour of the facility;
•
•
a complete review of legal documentation, such
as wage/payroll/time cards, contracts, personnel
files; and
a closing meeting with the factory manager to
review findings and to develop a CAP if necessary
Audit results are reported back to Hbc and our
Social Compliance team reviews the findings with
the related suppliers.
Audit Grades
Re-Audit Schedule
Production Schedule
Approved for
Production
Facility will be re-audited in 1–2 years
Factory may proceed with production
Subject to
Improvement
Facility will be issued a CAP and re-audited
within 6 months
Production may continue, but there may be a
delay or cancellation due to results of re-audit
Zero Tolerance
Facility will be issued a CAP and re-audited
within 2 months
Production will be postponed or not accepted
Factories rated “subject to improvement” and
“zero tolerance” are issued a CAP and reviewed
to determine if and when orders can be placed.
Corrections and improvements are carried out based
Code of Vendor Conduct
Hbc’s Code of Vendor Conduct (CVC) is based on International
Labour Organization conventions and principles, yet also takes
into account the local laws, in relation to items in our Code, of the
countries where factories operate. All merchants, vendors and
manufacturers are mandated to follow Hbc’s CVC. This information
is included in the Vendor Starter Kit and Hbc’s online training course.
Hbc’s CVC is available at www.hbc.ca, under Social Responsibility,
in the Ethical Sourcing section.
on the CAP developed by both the supplier and Hbc.
The timeframe and intensity of corrective actions are
unique to each circumstance and may depend on the
specific nature of the actions required.
ethical sourcing – thirty nine
vendor prioritization policy
Hbc sources products from hundreds of suppliers
on a yearly basis. Due to this large volume,
vendors are categorized as the following:
Number of factories by region
Region
Asia
•
•
•
priority A – high priority: top 200 suppliers
based on volume of sales, perceived risk and
factory location
priority B – new suppliers: all new vendors are
carefully evaluated on social compliance criteria
priority C – existing suppliers: all remaining suppliers
586
Central America
1
Europe
4
Middle East
7
North America
36
Total
634
Vendor compliance and monitoring program results
three-strike policy
Factories
2003
2004
2005
Approved
395 or 90%
474 or 97%
605 or 95%
The purpose of this policy is to build strong
business relationships with key suppliers – people
who want to put their products on our shelves.
Not Approved
46 or 10%
17 or 3%
29 or 5%
Audits completed by vendor priority
2004
Under this policy, suppliers are required to:
•
•
•
•
fully disclose factory locations;
pay for their audits;
actively participate in the program; and
receive a passing grade on their audits.
If a supplier breaches any of the above conditions
more than three times in a fiscal year, the supplier
may be suspended or may be barred from doing
business with Hbc for a minimum of two years.
In 2005, 42 factories received one strike and five
factories received two strikes.
2005
Vendors
Factories
Priority A
114
199
100*
330
Priority B
168
187
207
241
Priority C
87
105
148
63
369
491
455
634
Total
Vendors
Factories
* When the purchase order list from vendors for 2005 was finalized at the end
of the year, only 100 of the top vendors were audited because of a lag in
determining how many total orders each vendor fulfilled. Going forward, we
will ensure that the top 200 vendors from the previous year are audited.
forty – ethical sourcing
Types of violations at factories with three audits
30
Initial Audit
Second Audit
Third Audit
X Axis = Types of violations Y Axis = Number of factories
25
20
15
10
5
0
Legal
Expectations
Child
Labour
Historical
Child Labour
Forced
Labour
Health
and Safety
Wages
and Benefits
Hours and/or
Overtime
Environment
Transhipment
and/or
Subcontracting
Falsified/
Inconsistent
Payroll/
Timecards
Freedom of
Association
Harassment,
Abuse,
Discrimination
factory issues analysis
Using a sample of factories that have had three
audits within the last 18 months, we have tracked
levels of compliance and found that the most
common factory violations relate to health and
safety, overtime and wage issues. While there
seems to be more action in improving health
and safety violations, we have found that falsified
documentation is a more chronic, ongoing issue.
In recognition of this, we are considering ranking
this violation as a zero tolerance issue in hopes
that this will deter suppliers from continuing this
practice. Local governments must play a key
role in changing the political environment that
perpetuates this issue.
As a majority of our sourcing is done in Asia,
we are pleased that the Government of China
introduced a Code of Conduct in 2005 and is
engaged in promoting the code to textile mills and
garment factories around the country. We see this
as a good first step by the Chinese Government
towards promoting better working conditions
and engaging in this issue. It is important for the
Government to take an active role in enforcing
the code, addressing the practice of falsifying
documents and improving working conditions.
ethical sourcing – forty one
While we have seen positive changes in factories,
long term solutions have been slow coming, and
collaboration with community groups and other
companies has been challenging to advance.
As with any industry effort, there are concerns
on all sides regarding anti-trust laws and
proprietary information, which can impede the
progress of a project.
Improvements Made
The issue of falsified or missing documents led to a vendor’s
factory being rated critical; however, the vendor took action to
improve operations and implement the recommendations from the
Corrective Action Plan. The vendor actively worked with the factory
management to ensure that all workers possess labour contracts,
and that the factory maintains correct attendance records and
observes health and safety standards.
The vendor took the initiative to contact Hbc’s third party
auditing agency and arrange a re-audit of the factory. Results of
Purchase order size is the most significant
obstacle in addressing factory labour standards.
A factory facing an order representing a small
fraction of their total factory work load will not have
sufficient motivation to change their practices.
the second audit were positive and, with proper contracts and
documentation, it was possible to track wages and overtime
levels. As well, the factory management ensured proper access
to fire hydrants and fire routes and now promotes safe working
conditions with required personal protective equipment.
Hbc’s monitoring program acted as a means for the discovery
of these working conditions, but more importantly, it acted as a
mechanism for positive change.
stakeholder outreach
In 2005, Hbc’s Social Compliance team participated
in shadow audits and explored partnership
opportunities with groups in Asia. In meetings
with Asia Monitor Resource Centre, the Hong
Kong Christian Industrial Committee and Dong
Bao Hua, Professor of Politics and Law at East
China University, Hbc was able to discuss regional
challenges in social compliance and human rights.
Hbc will collaborate with these groups as we move
forward on remediation programs.
In Canada, Hbc met with Maquila Solidarity Network
(MSN), KAIROS Canadian Ecumenical Justice
Initiatives and Play Fair at the Olympics to discuss
our CSR programs and policies. These discussions
enable greater collaboration and understanding of
the issues facing Canadian retailers in their social
compliance efforts. For example, despite its large
size within the Canadian market, Hbc’s orders at
any one factory are comparatively small. As a result,
Hbc faces challenges to its ability to encourage
social change at a faster pace. We agreed that
collaboration with local NGOs would be helpful in
implementing remediation programs and we will
endeavour to engage such groups as we move
forward in this area.
forty two – ethical sourcing
Hbc attends the annual Intertek Conference on
social compliance, which provides an opportunity
for us to collaborate with retailers, consumer brand
companies and other stakeholders on the issues
and challenges facing the industry in relation to
social compliance. This also allows leaders in
CSR to share ideas and experiences related to the
implementation and performance measurements
of ethical sourcing programs and their impact on
the supply chain. One of the key challenges in
the area of collaboration is achieving co-operation
within the industry to address non-compliance.
Issues of anti-trust legislation and proprietary
information also remain a common barrier to
effective collaboration in addressing core factory
issues. In keeping with the momentum from the
conference, Hbc has taken the initiative to develop
research and projects with Canadian Business
for Social Responsibility (CBSR) to find effective
methods for Canadian retailers/brands to establish
a framework of collaboration within Canada.
Hbc continued working with the Fair Factory
Clearinghouse (FFC) to advance international
collaboration on programs and audit sharing. In
January 2005, the FFC was officially launched at
the National Retail Federation’s annual conference.
The FFC maintains a secure, global database
of factory compliance audit information that
allows retailers and consumer brands to share
non-competitive information about workplace
conditions. Through this initiative, companies can
collaborate with other retailers in a manner that
is cost effective, informs sourcing decisions and
helps improve factory workplace conditions around
the world. The FFC was developed through a
collaborative effort by retailers, consumer brands
and trade associations in the United States and
Canada. Hbc was a founding member of this
program and is working on integrating the FFC
framework into Hbc’s auditing system. For more
information, visit www.fairfactories.org.
Hbc is the only Canadian retailer to have become
a signatory to the United Nations Global Compact
(UNGC). The UNGC promotes awareness
and active observance of ten Global Compact
principles in the areas of human rights, labour,
the environment and anti-corruption efforts.
We have leveraged our association with the
UNGC to engage retailers internationally on these
important topics. For more information, visit
www.unglobalcompact.org.
ethical sourcing – forty three
statement of targets for 2006
•
continue Hbc associate training to ensure buyer
accountability by designating the OPAL course
mandatory for buyers, with an in-class component,
and consider including social compliance
performance indicators in performance reviews;
Canadian Business for Social Responsibility
Through our membership in Canadian Business for Social
Responsibility (CBSR), Hbc participated in Retail Learning
circles with other Canadian retailers to discuss the challenges
they face and CSR best practices. Hbc attended the 2005
CBSR Summit, “Human Rights: Everyone’s Business”, which
•
•
research and develop remediation programs
with NGOs and/or local government agencies; and
continue review of Hbc’s Social Compliance
Program, including audit methodology and grading
system for violations
addressed domestic and international human rights issues. At
the summit, Hbc participated in a panel discussion addressing
our association with the United Nations Global Compact. For
more information on CBSR, visit www.cbsr.bc.ca.
2005 corporate social responsibility report
community
number
investment
Hbc is committed to empowering Canadians to
make a difference in the communities where they
live. For every child, athlete, charitable organization
and community that Hbc helped to support in 2005,
our customers, vendors, associates and charitable
partners teamed up across the country to help
make their dreams a reality. Through innovative
partnerships and in-store programs, we are taking
care of Canadians, together.
forty six – community investment
this commitment is fulfilled through three core principles:
building healthy families by
providing support for community
partners that deliver effective
programs in the areas of health
and wellness;
creating strong communities
by leveraging relationships and
developing long term partnerships
to maximize the effectiveness of
community programs; and
inspiring Canadians by supporting
programs that encourage future
generations to achieve great
things, get involved in their local
communities and learn the
value of our Canadian heritage
community investment – forty seven
in 2005, Hbc’s commitment to these core principles:
•
•
total donations of more than $10.5 million through
the Hbc Foundation;
new partnerships with the Olympic, Paralympic
and Commonwealth Games to raise money for
Canadian amateur athletics;
•
•
ongoing partnerships with various
national organizations; and
the creation of more local community
investment initiatives
forty eight – community investment
Hbc Foundation
The Hbc Foundation is a leading charitable
organization dedicated to improving the lives
of Canadians through programs that reflect
distinct Canadian values. Each year, by working
closely with local and national organizations
across the country, we invest over $10 million
in three key areas.
As a member of Imagine Caring Canada, Hbc
donates at least one per cent of its pre-tax profits
to charity. Annually, Hbc allocates marketing funds
to support sponsorship opportunities, and Hbc
stores from coast to coast work together to stage
national and local fundraising initiatives.
Key community investment areas
2004
2005
$ 4,426,955
$ 2,715,789
Strong
Communities
1,521,867
3,404,169
Inspiring
Canadians
4,851,610
4,333,679
$ 10,800,432
$ 10,453,637
Healthy Families
Total
community investment – forty nine
Great things for
Canadian athletes
Hbc community investment
by province
The Hbc Foundation is a leading supporter of
Canadian amateur athletes. Over the next seven
years, our goal is to raise $20 million to help our
athletes be their best when they compete on
the world stage. The Hbc Foundation will grant
a $5,000 annual bursary to 200 of our most
promising young athletes set to compete at the
Olympic, Paralympic and Commonwealth Games.
Remaining proceeds will be invested in Canada’s
multi-sport organizations and national training
centres. Funds will be raised through a number of
in-store promotions and national events such as
the Hbc Run for Canada, held every July 1.
Province
Alberta
British Columbia
2004
$
328,705
2005
$
384,636
370,695
427,709
1,155,358
1,718,850
New Brunswick
65,350
54,500
Newfoundland/
Labrador
193,875
34,890
98,445
107,715
3,074,529
3,093,683
12,030
12,500
462,515
564,886
77,315
120,910
4,562,615
3,933,357
$ 10,800,432
$ 10,453,637
Manitoba*
Nova Scotia
Ontario
Prince Edward
Island
Quebec
Saskatchewan
National
Organizations
Total
* Hbc provides extensive support to the Manitoba Museum and the Archives of
Manitoba to assist in the preservation of our archives and artifacts.
fifty – community investment
healthy families
The health and well-being of Canadians is a
key focus at Hbc. That’s why, in 2005, we
invested over $2.7 million to support national
health care organizations, as well as local
hospitals and hospices. Highlights of our 2005
investments include:
•
a donation of over $500,000 to the Canadian
Cystic Fibrosis Foundation (CCFF) in support of its
promotional events and programs, including the
first annual Great Strides Walk and the Hbc Future
Leaders in CF Science Studentships, providing
grants to young medical researchers seeking a
cure for cystic fibrosis. In the past 20 years, Hbc
has helped raise over $25 million for the CCFF,
and is a sponsor of the Cystic Fibrosis 65 Roses
Galas in Toronto, Ottawa and Vancouver in support
of medical research.
Look Good. . . Feel Better
Hbc is a partner with the Cosmetics, Toiletry and Fragrance
Association’s Look Good… Feel Better (LGFB) program for
cancer patients. This program helps patients cope with the
side-effects of cancer treatment, including skin changes, hair
loss, stress and other consequences.
•
Hbc was a retail leader during Breast Cancer
Awareness month through partnerships with both
the Canadian Breast Cancer Foundation and the
Quebec Breast Cancer Foundation. In total, over
$350,000 was raised:
– all Bay, Zellers, Home Outfitters and Designer
Depot stores sold an exclusive pink ribbon t-shirt
designed by Simon Chang and modelled by
Celine Dion and René Angélil;
– Hbc associates prompted customers to donate
their Hbc Rewards points when they passed
through store check-outs; and
– an extensive line of pink ribbon branded
merchandise was sold, and a portion of
the proceeds were donated
Cosmetics can play an important role in how patients see
themselves during cancer treatment and can help them to feel
more like themselves again. A morale boost and an improved
self-image are often the result, helping patients to face cancer
with greater confidence. As a retail leader in cosmetics, Hbc
supports the LGFB program by fundraising through in-store
fashion galas and as a lead sponsor of the annual LGFB Gala.
community investment – fifty one
strong communities
We believe that Canada’s ongoing success must
be built on the foundation of healthy, vibrant
communities. That’s why the Hbc Foundation
donated over $3.4 million in 2005 to programs
that help to ensure the well-being of Canadians.
In addition, each Bay, Zellers, Home Outfitters
and Designer Depot store is partnered with a
women’s shelter in its community and also has the
opportunity to identify other community charities
its associates would like to support, such as local
hospitals and food banks.
•
•
Some of the organizations and events that
received funding in 2005:
•
•
the Canadian Women’s Foundation “Start to Stop
Violence” campaign. Hbc participated in a national
radio-thon in partnership with 14 Rogers’ radio
stations, which was held in Bay locations across
Canada. We promoted the sale of featured
cut-outs in Zellers stores and bookmarks in
Bay and Home Outfitters stores, along with
a month-long “Donate Your Hbc Rewards Points”
program, raising over $310,000;
the Seventh Annual Hbc Celebrity Golf
Tournament. One of the largest of its kind, the
•
event welcomed over 700 golfers and spa
participants. In 2005, it raised over $400,000
(a $100,000 increase from 2004) to support
local charitable organizations in communities
Canada-wide;
Hbc launched a three-year, $150,000 per year
“Partnership for Child Passenger Safety” with the
Hospital for Sick Children’s Safe Kids Canada.
As the retail partner, we will engage Hbc customers,
vendors and employees in addressing and promoting
car seat safety in communities across Canada;
the second annual Hbc Run for Canada
grew from one location (Ottawa) to seven in 2005
(Victoria, Calgary, Winnipeg, Algonquin Park,
Toronto, Ottawa and Halifax) and included
6,000 participants in the 10 km run, 3 km walk
and 1 km kids’ run. The run raised $500,000 for
over 90 community partners. Associates organized
the event in their communities and helped to
allocate the funds to local charities; and
in 2005, Hbc announced the expansion of the
successful Zellers fundraising holiday gift box
program to include all Hbc stores. Hbc also
expanded our Charity Plush fundraising program
fifty two – community investment
to run year-round and to include special themes,
such as Valentine’s Day and Easter. For the 2005
holiday season, we added two Charity Plush
programs: Millington, a heritage inspired bear,
along with a series of plush toys accompanied
by an Hbc Gift Card holder. In total, $300,000
was raised to help support local charities in the
participating communities.
Hbc Run for Canada
“I was very excited when
the Hbc Run for Canada
was launched because
it involved the entire
Company and the money
raised would go to local
charities, such as the
Children’s Hospital of
Eastern Ontario.
I am very fortunate that my four nephews
and my niece are healthy, so when there
is a chance to help other children, I like to
be involved.
Learning that our fundraising event was
now a run was intimidating, to say the
least. I had never been the athletic type,
but the Hbc Community Investment team
convinced me that, with training, I would
be able to do a 10 km run. I trained for 10
weeks and I completed the run in 1 hour 27
minutes! The sense of accomplishment was
overwhelming. I am so glad they convinced
me to run. The next day when I came in
to work, the associates clapped me in as
if I was finishing the run there and then!
Everyone was so excited to participate and
raise money for such a good cause!
What a great feeling! So many more
associates in our store participated in the
second Hbc Run for Canada in Ottawa.
I convinced them that if I can do it, they
can do it too!”
– Cathy Carr, Ottawa Zellers Store Manager
community investment – fifty three
local community investment initiatives
Hbc is involved in a number of regional and local
programs across Canada, such as:
in memory of Constable Brock Warren Myrol, a
former Hbc associate and one of the fallen officers
of the Mayerthorpe Alberta detachment of the
• the Hbc Rewards Community Program, which
RCMP, Hbc raised $109,000 towards the RCMP’s
allows charities and community groups to register
“We Remember” pin campaign in support of the
with Hbc so that customers can donate their
four RCMP officers who were killed in the line of
Hbc Rewards points to the organization of their
duty on March 3, 2005;
•
the launch of a partnership with La Grande
choice, helped close to 2,000 charities and
Guignolee des Medias in the province of Quebec.
community groups receive donations of over
375 million Hbc points, which they can redeem for In the first year of our partnership, Hbc donated
items in the Hbc Rewards catalogue, including Hbc close to $100,000 to this initiative, which funds
food banks throughout Quebec;
Gift Cards. The Toronto Humane Society, Ontario
•
and the Canadian Mental Health Centre in Saint
Toronto’s Annual Fashion Cares event, of which the
Bay has been a lead sponsor for 11 years. Over
John, New Brunswick have been two of the most
successful groups in this program to date;
that time, Hbc has donated over $5 million (cash
• Hbc’s 11-year partnership with the Toronto Zoo,
and in-kind) towards the event in support of AIDS
which includes sponsoring the zoo’s annual ZooDo research; and
• Hbc supported Reach for the Rainbow’s Crystal Ball
fundraiser by contributing over $20,000 to the
event. Additionally, in 2005, we expanded our
at the Metro Toronto Convention Centre, with over
sponsorship of the Zellers Discovery Zone with
$20,000 of in-kind support. The event supports
the opening of the Drum Café;
children and young adults with physical and
developmental disabilities in the province of Ontario.
Support for the Canadian Red Cross
Hbc supports the Canadian Red Cross with fundraising initiatives
in our stores as well as direct sponsorship of their programs.
Hbc raised funds with our customers through the Hbc Rewards
“Donate Your Points” program to support:
• Asian earthquake and tsunami relief efforts – $500,000, including
$150,000 from Hbc;
• Hurricane Katrina relief efforts – $195,000; and
• Western Canada Flood and Severe Weather Appeal – $25,000.
•
“Over the last year, we have seen Hbc and its customers and
store associates generously support Red Cross relief efforts
in many ways,” said Dr. Pierre Duplessis, Secretary General
of the Canadian Red Cross. “Hbc has been an important
contributor to Red Cross as we helped the vulnerable recover
from devastating disasters. As well, Hbc has helped over
100,000 young adults become versed in the necessary skills
and knowledge to become successful babysitters through its
sponsorship of the Canadian Red Cross Babysitting program.”
fifty four – community investment
inspiring Canadians
The key to Canada’s future lies in connecting with,
and inspiring, Canadians. This is why the Hbc
Foundation supports programs that encourage
future generations to achieve great things, to
get involved in their local communities, and to
learn the value of our Canadian heritage. Hbc
committed over $4.3 million in 2005 to help
empower Canadians to take an active role in
building our country.
Hbc sponsored the Quilt of Belonging book with
a $25,000 grant, and participated in the opening
of the “Quilt of Belonging” project at the Museum
of Civilization in Ottawa. There are 263 squares in
the Quilt of Belonging, representing 71 Aboriginal
groups and 192 immigrant nationalities found in
Canada. The book tells the stories of the people
and cultures behind each square;
• Hbc participated in the Heritage Canada Poster
Challenge Awards ceremony in Ottawa. Thirteen
kids from across Canada were recognized as the
Some of the organizations and events that
top prize winners, and the grand prize winner was
received funding in 2005:
presented with a $1,000 Hbc Gift Card; and
• the Hbc History Foundation continued to sponsor
• the fifth annual Hbc Golf Tournament in support
Historica Fairs. Over 220,000 children from grades of Commonwealth Games Canada was held on
4 to 9 explored Canada’s past by creating history
September 14 at Rattlesnake Golf Course. The
projects. Hbc established an Explorers Award for
event attracted over 600 golfers and 40 spa
each regional fair, giving an award certificate and
participants, raising over $375,000 to support
an Hbc blanket throw;
Canadian athletes.
•
community investment – fifty five
Hbc associate volunteerism
•
Many of the fundraising initiatives and events
organized by the Hbc Foundation would not be
possible without the hard work and dedication of
thousands of Hbc associates who volunteer their
time both during and after work hours.
•
Here are just some of the successful events for
which we’d like to thank our associates for their
enthusiastic participation:
the Hbc Foundation Golf Tournaments;
•
•
•
•
Hbc Associate Feedback
The Hbc Foundation conducted surveys with associates following
the Hbc Run for Canada and the Canadian Women’s Foundation
Start to Stop Violence Campaign. The surveys were designed to
gauge the success and effectiveness of these initiatives.
Hbc Run for Canada in Victoria, Calgary, Winnipeg,
Algonquin Park, Toronto, Ottawa and Halifax;
Great Strides Walk for the Canadian Cystic
Fibrosis Foundation;
Breast Cancer Fashion Galas in Bay stores
across the country;
Cancer Society’s Relay for Life events in over
200 communities; and
the Rick Hanson’s Wheels in Motion event.
This process generated many responses that highlighted the
positive aspects of the events, as well as numerous ideas on
how to improve them.
initiatives for 2006
Hbc will continue to build on our community
investment initiatives in 2006:
•
our associate volunteer program – in every
Hbc store, associates can support the work of
the Hbc Foundation as the Store Champion or
as a member of the store’s Spirit Committee. The
purpose of these individuals and committees is
to help raise awareness, profile and funds for
Hbc Foundation initiatives;
•
•
•
Hbc associate payroll deduction program;
Executive Leadership Challenge to drive
participation at Hbc’s Run for Canada. One senior
executive will be assigned to each of the ten
locations hosting a run and will be responsible
for driving individual fundraising, participant and
volunteer goals for the Hbc associates in those
locations; and
ongoing fundraising activities to support
Canadian amateur athletes.
number
Hbc.ca
For more information about Hbc’s Corporate Social Responsibility
initiatives, please visit www.hbc.ca.
Hudson’s Bay Company, 401 Bay Street, Suite 500
Toronto, Ontario M5H 2Y4 Canada