The Fonds de solidarité also keeps its own tally of the employment universe of current investee companies. According to fund officers, this consists of over 31,000 jobs created or maintained, directly or indirectly. An additional 17,900 jobs are forecast as emerging from these investments in the longer-term and, more predominantly, from new projects of specialized, regional and local funds (see Figure 11).
In the above research, methodological differences have no doubt contributed to the distinct conclusions. It is clear that further studies will make important contributions, not only through new findings, but also in establishing accepted technical approaches to this kind of study.
In the meantime, evidence of the economic impact of early investments of other labour- sponsored funds, though limited, appears promising. For instance, both Working Ventures and Working Opportunity have released data to the CLMPC which show rapid expansion in sales and employment among investee firms. These results, along with the strong orientation of firms towards exports and research and development, are consistent with the pattern identified for other prosperous venture capital institutions in the aforementioned FBDB study. Working Opportunity, for example, has investee companies demonstrating the same job growth of 40 percent.Endnote 36 At the end of 1995, the cumulative investment portfolio of Working Ventures reflected almost 5,600 jobs, including jobs created (an economic profile of the initial 52 investee firms of Working Ventures is contained in Figure 12).
Some (but not all) labour-sponsored funds also link investment activity with corporate social responsibility. This concept, which is achieving greater currency in Canada's business and financial constituencies, is closely associated with a growing species of ethical and environmental mutual funds and other financial instruments directed primarily at public securities exchanges. Such funds use indices for screening tradeable shares on behalf of conscientious individual and institutional investors. In 1995, there were sixteen ethical and environmental funds operating in Canada with assets of approximately $500 million and a shareholder base of 90,000.Endnote 37
Corporate social responsibility is encouraged by other means as well. Where unions exercise clout over pension plans there is often some procedure for ensuring investment accountability. The American Federation of Labour - Congress of Industrial Organizations, for instance, has advanced the concept of "economically targeted investments" whereby plan managers must balance financial expectations with such criteria as job security and regional development. In France, large companies are legally required to perform audits of internal operations to ensure compliance with national social standards. Such practices are also being undertaken voluntarily in industry worldwide as a tenet of better business.
Whatever version it assumes, the essential premise of all programs for socially responsible investment is that those factors which make an enterprise profitable cannot be separated from the well-being of the surrounding community, its inhabitants, and its ecosystem. Practically speaking, this involves encouraging firm owners/managers to move away from attitudes and behaviours grounded in traditional philanthropic definitions of corporate citizenship and towards those acknowledging mutual benefit, such as support for community economic development.