Working Together to Make a Difference a commitment to community investment Helps define Meridian as a company

Working Together to Make a Difference

A commitment to community investment

• Helps define Meridian as a company

• At the heart of what we are all about

• Firm belief in credit union values
• Demonstrates our Meridian brand, vision, core values

• Continues a tradition of more than 60 years of supporting community causes by our legacy credit unions

• Strategic implications

• Key role in growth and success of legacy credit unions

A commitment to community investment

• One of four key issues during the merger in 2005

• Merger commitment made to:

• Double community investments to four per cent of pre-tax earnings
• Four times more than national average
• $1 million a year for community investments
• Increase local input into decisions on how the money is spent

The Challenge

• Develop a unified Meridian approach

• Replace different policies in each legacy credit union
• Ensure local input in decision making
• Ensure flexibility
• Must recognize needs in Kincardine & Penetanguishene different than St. Catharines & Scarborough
• Ensure decisions consistent with Meridian brand and corporate strategy

The Meridian Solution – The Good Neighbour Program

• Focus investments on helping to build strong, safe, vibrant and inclusive communities

• Eligible – Community events, local arenas, etc.
• Ineligible – National associations

• Strategic approach consistent with Meridian’s

• Vision of “reinventing neighbourhood banking”
• Commitment to communities we serve

• Provides both consistency & flexibility

The Meridian Solution – The Good Neighbour Program

• Ensures local input in decisions

• Branch managers approve up to $3,000
• Branch managers have input on all investments above $3,000

The Good Neighbour Program A Meridian success story

• Winner of the 2006 Ontario Credit Union Charitable Foundation Outstanding Corporate Achievement Award

• More than 650 applications received in 2006

• More than 300 local community events from 250 organizations were sponsored

• Broad spectrum of events –  social, educational, economic, environmental

• All had one thing in common – building strong, safe, vibrant inclusive communities

The Good Neighbour Program A Meridian success story

• Provided clarity for both community organizations and Meridian employees

• Allowed for fast approval of applications

• Majority of decisions made in 30 days
• Major benefit to organizations planning events

• Generated significant local media coverage

• 7 million impressions in 2006

Building on Success Good Neighbour Scholarships

• Developed to replace legacy CU scholarship programs

• Same principles applied as in Good Neighbour Program

• Students must demonstrate community leadership, volunteering, efforts to make community strong, vibrant, safe, inclusive

• $25,000 in total scholarships awarded in 2006

Meridian’s path to CSR

• Good Neighbour Program set the stage for CSR

• Board recognized that CSR involves more than community investments

• Other credit unions had successful CSR programs

• Board wanted to know what Meridian should be doing re:

• CSR
• Owner/Member Engagement

The Challenge

• Vast amount of information

• 22.4 million hits on Google CSR search
• 1.3 million hits on Owner/Member Engagement (OME)

• No clear definition of CSR exists

• Different internal viewpoints on both CSR & OME

The Research

• Interviews/facilitated workshop with members of Board committee responsible for the initiative

• Clarified direction
• Generated agreement on principles to guide research

• Review of literature

• Interviews with thought leaders

• Programs in more than 100 organizations around the world reviewed

The Results

• Meridian should establish a CSR program

• Research showed 75 per cent of Canadian business involved in CSR (ISPOS-Reid)
• There is a public expectation that organizations have a program
• Organizations that are not involved in CSR could increasingly be at a competitive disadvantage

• The recommendation was approved by the Board in February, 2007

The Meridian Approach –  Some key features

• Rooted in the Meridian brand and value proposition

• Focus on building strong, vibrant neighbourhoods

• Builds on current initiatives

• Good Neighbour Program
• Good Neighbor Scholarship Program

• Combines CSR & Owner/Member Engagement

• Engages members through robust public relations and communications program

• Key success factor in all CSR programs reviewed

• Engages employees

• Recognizes volunteer work in the community

Meridian’s CSR program in action

• Since January, we have:

• Approved and begun implementing the public relations strategy
• Developing online seminars launch date TBD
• Developing a signature event that dovetails with our CSR initiatives
• Begun approaching community organizations to explore offering in-kind services such as financial advice
• Begun exploring ways to recognize and encourage employees for volunteer activities
• Looked at ways to engage members online including web cast of annual meeting

Meridian’s CSR program in action

• Partnership with Opportunities Niagara & Royal LePage in Welland

• Aimed at working families living in municipal housing who believe they cannot qualify for a mortgage

• Meridian will provide mortgages to qualified applicants

• Royal LePage will help find a home and contribute 25 per cent of commission to cover legal costs.

CSR & Meridian Helping real people build lives

• The Welland program is a prime example of our approach to CSR

• Innovative and community focused

• Requires no government assistance

• Helps build a stronger, more vibrant, inclusive community

• Encourages home ownership
• Frees space in municipal housing

• Helps real people build lives

• Opens the door to home ownership to people who thought they would never realize that dream.

• Questions?