Business & Personal Finance

Socially responsible corporate citizens

Both Macleans and Corporate Knights recently published a list of the top 50 socially responsible corporations in Canada. They based their selections on a broad range of environmental, social and governance indicators. The listed companies are either Canadian or a wholly owned subsidiary of a foreign-owned company with significant operations or brand presence in Canada.

Tim Hortons has for many years now been raising money for their Children's Foundation which provides thousands of children from disadvantaged homes an opportunity to have a camping adventure. As well, they are working with farmers in Brazil, Columbia, Guatemala and Honduras to promote sustainable coffee production. And then there is Bombardier Inc. who builds emission-free urbanpower for light rail transit, buses and cars. And Loblaw Companies Ltd. who partners with the World Wildlife Fund and the Vancouver Aquarium Marine Science Centre by sponsoring the annual Great Canadian Shoreline Cleanup.  The Gap Inc. protects local waterways by laundering their denim items in specially treated water. They are also committed to safe and fair working conditions by monitoring factories that produce Gap-branded clothing. In order to reduce emissions from commuting, Telus Corp. plans to have 70 per cent of its employees work part-time from home by 2015.  Its national headquarters in Vancouver is currently being redeveloped to include a LEED (Leadership in Energy and Environmental Design) Platinum 22-storey tower and a LEED Gold 46-storey residential tower.

Businesses know that savvy consumers make ethical choices when purchasing products and services and are learning that it is no longer "business as usual". Be it retailers that have a good relationship with consumers by having a plan in place to deal with waste and greenhouse emissions, or mining companies that protect their workers and their communities, or telecom/electronic companies that have developed environmentally friendly electronic products and a management plan for electronic waste.  All of these changes can positively affect a company's bottom line.

Are you looking for ways to become a good corporate citizen or do you want to learn more about companies that respect the world in which they do business?  Here are a few titles to get you started:

 

 

The World's Most Respected Companies

 
Barron's financial newspaper recently published an article on the world's most respected companies based on a survey of 116 money managers across the U.S. The criteria voted on are: strong management, sound business strategy, ethical business practices, competitive edge and revenue and profit growth. It will not come as a surprise, then, that Apple Inc. has come out on top due, in large part, to the highly successful launch of the new iPad and iPhone.  The death of a company's founder often leads to a lack of innovation and sales leadership. Not so with Apple. Their surging share price nearly doubled from last year.

In the number two spot is IBM, then McDonald's, Amazon and Caterpillar. Several large U.S. companies lost their coveted high rankings due to a variety of factors. Berkshire-Hathaway, for example, dropped to No. 15 from last year's No. 3 spot because of Warren Buffett's support for higher taxes for the rich. Google has also lost some growth potential in advertising revenues with competition from Facebook and other social-networking sites and, as a result, dropped to No. 16 from No.6 last year.The Royal Bank of Canada is Canada's contribution to the list at No. 38, then the Toronto-Dominion Bank at No. 45, and the Bank of Nova Scotia at No. 62. It's probably best to take these rankings with a grain of salt, says Charles Bobrinskoy, research director at Ariel Investments. He says that surveys are backward-looking and don't take into consideration that a widely hated stock might just be a good  investment opportunity.

If you're interested in reading about these companies and how they got to where they are today, take a look at these books:

 

Recent Canadian Personal Finance Books (And A Note About The Small Business Network)

 

                                                                            Photo by alexindigo

 

 

The Toronto Public Library has hundreds of books on Personal Finance. Here are a few recent Canadian titles:   

 

Retirement's Harsh New Realities is the latest by Gordon Pape.

As the title clearly indicates, Pape is not happy with the current prospects for Canadians looking to retire. Threatened pension plans, low savings rates and an unhelpful tax system are part of what creates the harsh realities he refers to.

But he does offer solutions. He explains how to build your Registered Retirement Savings Plan and discusses Tax Free Savings Accounts. He also has chapters on minimizing taxes and finding financial advisers.

The Toronto Public Library has many publications by Gordon Pape, as well as two  of his investment newsletters: The Income Investor, and  Mutual Funds/ETFs Update.  

 

It's Your Money, Honey grew out of a website called GoldenGirlFinance.ca. The website was created by Susan Misner, an investment industry veteran of over 20 years, and her friend, successful entrepreneur and communications consultant Laura Jayne McDonald. They are also the authors of the book.

The website's goal is "to inspire, motivate, engage and support women into taking control of their financial lives and futures. To connect women, to mentor them, and certainly to never underestimate them. And to make it all fun and, dare we say, fashionable".  

Sounds good to me!

 

 

 
How Not To Move Back In With Your Parents aims to help people in their late teens, twenties or thirties take charge of their finances. Rob Carrick is personal finance columnist for the Globe and Mail.

The book covers how to afford college or university, student credit cards ("this product can kill you financially, so be careful", he says), handling debt after school, buying a car (or not), weddings, buying a home, saving, budgeting and more.

Personal case studies are included in some chapters. "Nathan" is interviewed  in the chapter entitled Buying a Home. He says something that sums up one of the themes of the book: "It's very easy to see what your friends are doing and get caught up in trying to keep up, but remember that you should stay within your means" (p 181).

 

Take some time to browse the personal finance section of your local Toronto Public Library for more books like this!

 

Important note: the time for the August 14th Small Business Network session is 6pm. The time stated in the latest What's On publication is incorrect.

 

 

 

 

Take a vacation - please.

If you are an owner of a small business, you know that it seems like it is next to impossible to actually take a vacation. Being the person central to the success or failure of a business comes with a lot of responsibility. 

Interestingly enough, you would think if you work for a large company, it would be a no brainer to take time off, but even people in those organizations find it hard to make the break. Many people believe that they are indispensable and can not be gone for a period of time. If people in large businesses feel that way, what chance does a small business person have to get some time off?

Each year, articles pop up around this topic. The latest article from Canadian Business re-enforces the benefits of taking some time off. The main risk - burn out, both physical and emotional.  And with mobile technology and the internet, the temptation is always there to sneak a peek at e-mail to see what is going on without you there.

So what is a small business owner to do? Try some of these options suggested in Susan Ward's article "How to have a worry-free vacation"

• Close shop.  Have everyone who works for you take a holiday at the same time you do.
• Take your business with you.  With mobile technology, you are only a phone call or e-mail away from solving any problems that might arise.
• Have a good second in command, that you can train and trust to run your business while you are away.

Can taking a vacation actually improve how you do business?  Yes according to Jessica Stillman in her article from Inc entitled "Make your vacations good for business" .  It can force you to be more organized, working more efficiently and delegating responsiblity.  And remember a vacation doesn't have to mean that you go half way around the world to get a break from your business, or be gone for an extended period of time.  Who knows? While relaxing, you might come up with the next great idea for your company. 

Check out some of the numbers given in The Small Business Owners Guide to Taking a Vacation. It includes some interesting tips and statistics on how small businesses take time off.

Enjoy your holiday!

 

 

Thinking of investing in an IPO? It pays to do your homework.

The recent publicity over Facebook's initial public offering (IPO), and its uneven performance post IPO, makes one wonder how does one evaluate an IPO objectively?  Many people, despite analysts predictions about the value of the stock being over priced, took the leap and invested. One of the keys to smart investing is doing your homework.  And while many technology or new companies don't have a long financial track record to go on, there are still many sources that you can consult to garner information about a company about to go public.   And many are available with the use of your library card.  Listed below are just a few of the great resources TPL subscribes to.

 

For companies trading on United States exchanges, or who are considering going public, Mergent offers a wealth of information, including annual reports, industry analysis, and EDGAR filings.  An at a glance profile of companies will give you key financials, executives, and a spreadsheet of competitors with relevant financials for comparison with the company who you are looking at. Available remotely from TPL website with a library card and in library.  

 

The venerable Business and Company Resource Center offers a snap shot of a company, as well as tabs on recent articles on the company broken down by topic, a history of the company, industry overview, rankings, as well as analyst house investment reports.  This database is international in scope of the companies covered.  Available remotely from TPL website with a library card and in library.

 

The Value Line service has been around since the 1930s and is one of the most trusted and asked for stock guides that TPL subscribes to.  This source gives a concise, one page overview of a company, including historic stock tracking, analysts views, analysis of specific industries, as well as newsletters.  Available remotely from TPL website with a library card and in library. 

 

FP Advisor, a product of the Financial Post, offers a wealth of information on Canadian companies, including historic information, key personnel and financials, new issues and supplemental databases that include Crosbie Mergers & Acquisitions in Canada, Equifax Commercial Law Record, and ProFile Canada. Available remotely from TPL website with a library card and in library.

 

 Sedar provides access to public documents for companies across Canada.  Maintained by the Canadian Securities Administrators,  this website contains documents filed since 1997.  It includes profiles of public companies as well as Investment Fund Groups.  One can browse or search by the name of the company.  Freely available on the internet.

 

A source for a list of Ontario based companies IPOs is the OSC Bulletin.  This periodical, published weekly by the Ontario Securities Commission, holds a wealth of information on company filings.  Each issue has a chapter (Chapter 11 to be precise) that contains a handy list of IPOs, New Issues and Secondary Financings.  Copies are available in the Business Department at North York Central Library and in the Business, Science and Technology Department at the Toronto Reference Library.

Check these out and become a savvy investor. 

 

This month's business quote is...

... "Business has only two functions - marketing and innovation."  Peter F. Drucker (1909-2005)

Source: 
Haig, Matt.  Brand Success : How the World's Top 100 Brands Thrive and Survive.  London; Philadelphia : Kogan Page, 2011.

Here are a few of the many titles by Peter F. Drucker that may be of interest:

For books about Peter F. Drucker and his ideas, try the following titles:

For more titles by or about this famous business writer, search the Toronto Public Library catalogue by author or subject with the heading Drucker, Peter F. (Peter Ferdinand), 1909-2005.

Do You Have a Great New Product or Idea?

The Freeman Institute has listed several, memorable quotes from former, corporate executives regarding new products or ideas during their time.

Here are a few amusing quotes:

"This telephone has too many shortcomings to be seriously considered as a means of communication.  The device is inherently of no value to us."  
--  An internal Western Union memo, 1876.

"Who the hell wants to hear actors talk?"
--  H.M. Warner, Warner Brothers, 1927

"I think there is a world market for maybe five computers."
--  IBM chairman Thomas Watson,  1943

If you have a new business product or idea, the following organization may be able to help.

Canadian Innovation Centre
The Canadian Innovation Centre is a national, not-for-profit organization dedicated to helping innovators, inventors, and entrepreneurs.  The Center has been at the forefront of innovation for over 35 years, providing its expertise to over 20,000 clients in companies of all sizes.  They may be able to help you transform your innovative idea into a market success.

To obtain a list of other, recommended web sites by TPL staff, visit the Toronto Public Library's Recommended Websites page entitled Business Ideas and Innovations.

The Toronto Public Library system has many titles that may be of interest.  The following titles are recent additions to TPL collections.

 

 

For additional titles, search the Toronto Public Library catalogue with the subject headings New products and/or Product management.

Hiring the best people for your small business

If your small business has suddenly become too much for you to handle on your own, maybe it's time to hire some talented and quality employees that will help you continue to grow your business.  Doing a bit of research before hiring your new employees will prevent a lot of stress and frustration down the road. Harvard Business Essentials guide Hiring and Keeping the Best People presents a series of logical steps that will get you started on the hiring and maintaining a loyal and productive workforce:

1. Clearly define the job requirements that will attract the best people.

2. If necessary, use online recruiting or professional recruiters.

3. You may need to compete to attract the best employees and then use incentives to keep them working for you.

4. Develop your talented staff by creating strategies for training and development

5. Create an equitable and understanding workplace by providing a work-life balance to prevent employee burnout.

6. Despite all your efforts you will still lose some of your best employees. Maintain a productive relationship with your former employees especially if they've moved on in the same field.  They can lead you to new business, send you new employees or even provide you with market intelligence.

To hire and retain a terrific workforce take a look at these books: