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Corporate philanthropy still involves giving away money, but these days spending decisions aren't made from on high in the rarefied air of the executive boardroom.

Instead, they're made in consultation with local communities, and targeted to match the company's business while also addressing the environmental and social impact of its specific activities.

"Our community investment program is driven by our corporate values," says Sheryl Fox, manager of external and investor communications for Saskatoon-based Cameco Corp., one of the world's largest uranium producers with operations all over the globe.

"Supporting initiatives that improve quality of life for people in communities where we operate builds good will, and strengthens our business," she says.

For the past five years, Ms. Fox led Cameco's community investments program. She oversaw an "employee giving" program that matches individual charitable contributions up to $500. "Our employees are very actively engaged in their communities. … This year we expect the fund to raise more than $650,000 in total," Ms. Fox notes.

Beneficiaries include food banks, hospitals, groups for the disabled, and hockey arenas, among many others. On the larger corporate level, Cameco contributes $150,000 in direct support for student scholarships and has contributed $3-million to the University of Saskatchewan to promote greater access for aboriginal students, women and northerners to studies in engineering and science.

In the long term

Cameco also strives to overcome the negative images of the past that saw extractive industries such as mining companies "just pull up stake and leave when they weren't making money any longer," says Ed Bianchi, co-ordinator of the indigenous rights program for Kairos, a social justice organization representing Canada's major religions. The group aims to educate shareholders and the public on issues of corporate social responsibility.

"Real CSR — that isn't just public relations or so-called greenwashing — involves having a plan in place that deals with the long-term effects of industries such as mining," Mr. Bianchi says.

And when it comes to uranium mining and refining, there are some who believe that no amount of corporate community investment can compensate for the long-term costs associated with the safe transport and storage of radioactive waste.

Graham Simpson is one of them. As past president of the Saskatchewan Inter-Church Uranium Committee Education Co-operative and a professor emeritus in plant sciences at the University of Saskatchewan, Mr. Simpson has opposed the uranium industry for more than 30 years.

He acknowledges that "giving money to organizations such as symphony orchestras will benefit them, but no amount of this kind of community investing can redress the costs associated with uranium." Mining uranium, he argues, is "in a class by itself" and should be banned altogether.

Ms. Fox says that Cameco regularly provides open forums to address community concerns, and it issues updates and responses on its website.

"We operate in a highly regulated industry. In addition, we must satisfy our own standards for safety and environmental protection and show the communities near our operations that we are operating responsibly to hold their trust," she says.

"Community investing in consultation with local communities assists with building relationships," Ms. Fox says, adding that Cameco doesn't view it as a substitute for responsible corporate behaviour.

'Holistic view'

It's not only mining companies that see the benefit in community investment. Unilever is a worldwide company with operations in 100 countries. Its products range from soup to soap, with such famous brands as Lipton and Dove under its corporate umbrella.

In Canada, Unilever's community vitality fund donates 1 per cent of pre-tax profits to initiatives in two primary areas: children's health and water resources, both of which are linked to its products. Beneficiaries have included Get Set for Life parenting resources, and a partnership with the Evergreen environmental group on water-restoration projects.

Unilever encourages volunteerism and toward that end gives employees four afternoons each year for community activities. "Corporate social responsibility for us has never just equalled charity," says John Coyne, Unilever Canada's vice-president of legal and corporate affairs. "Our operations are integral to the communities in which we work; we are part of those communities. We take a holistic view of what corporations must bring to the table."

Investing in communities, Mr. Coyne says, is "the right thing to do and it is also good for business."

In moving away from a strictly charitable model, companies look to work with community partners but they also want to see measurable return on their investments.

"We look for programs and initiatives which build community capacity," says Peter Kruselnicki, vice-president of public sector relations for TransCanada Corp.

The oil-and-gas company has targeted education as one of its key community investment priorities. "We know that education is the key to breaking cycles of poverty, a key driver of civic engagement and critical in developing a skilled work force," Mr. Kruselnicki says.

As with most large corporations and in particular those in resource extraction industries, TransCanada is not without its share of opposition from communities where it seeks to operate and invest. In particular, there is a long-standing issue involving the Lubicon Lake Cree in northern Alberta over territory that was never ceded by treaty. The issue is seen as a human rights violation by opponents, and a jurisdictional dispute between the Lubicon and federal government by TransCanada.

The tension between corporate activity and corporate good deeds engenders both cynicism and praise. In the end, says Kairos's Mr. Bianchi, it often comes down to "not becoming cynical, but at the same time holding the corporations accountable for the investments they make."

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The giving spirit

The corporate giving spirit is alive and well, according to a new report by Imagine Canada, a non-profit organization that promotes charitable donation and volunteerism. "There has been a paradigm shift toward corporate contributions to charities as the era of big government declined," says Michael Hall, Imagine Canada's vice-president of research and author of the report released late last month.

The survey of 93 of Canada's largest companies found that 97 per cent made financial donations to charities and non-profit groups, with a median value of $340,000. Half of the donor companies exceeded the standard of giving 1 per cent of pre-tax profits, as recommended by Imagine's "Caring Company" program.

While business leaders felt positive about charitable donations in general, the survey found that only 27 per cent measured the benefits of their contributions. "It's not a question of just cutting a cheque. The question is not should we measure impact, but how," Mr. Hall said.

The survey was conducted in late 2007 and early 2008, before the global economic downturn. Mr. Hall said that in the current climate, corporations might look at "all of their assets in terms of donating ... such as lending employee expertise in marketing campaigns. There is room for more creativity in what business could offer."

Special to The Globe and Mail