Reference no: EM133005294

Broadland (2021) investigates the underlying causes and costs of forest fires in British Columbia. While the article considers the role of climate change, it primarily focuses on the roles of the logging industry, government, and globalization. The article claims that current government policies allow companies to engage in practices that make fire risk worse and externalize1 the cost associated with forest fires to citizens and taxpayers. As a result, forestry companies can sell their products at a lower price, which does not account for true cost of forest fires. It further suggests that companies can financially benefit from both practices that make fires worse and government contracts for fighting fires. The article specifically names one company as an example - Tolko Industries.

Tolko Industries (https://tolko.com/) is a privately owned forest products company headquartered in British Columbia. According to Broadland (2021), Tolko has created some of BC's largest clearcuts2, while also receiving government contracts related to fire management. Tolko's website3 expresses their commitment to managing forests "in a sustainable way that respects the environment and cultural connections" with plans guided by the Sustainable Forest Initiative (SFI) and reviewed by Indigenous peoples and community stakeholders. A cursory review of Tolko's forest management plans indicate that their stakeholder engagement is primarily focused on building alliances with those who stand to benefit from their logging activities and mitigating risk to their reputation and business rather than building long-term relationships with stakeholders and creating shared value. In fact, one of Tolko's (2017) forest management plans includes a vision focused on "being efficient, professional, and profitable while balancing the values of our stakeholders." It should also be noted that the SFI has been criticized by environmental group as an industry-dominated initiative that enables irresponsible forestry practices through greenwashing. For example, see Lewis (2020) and Stand's webpage on the SFI.4

Reflect on the relationship between logging and forest fires. Who experiences the benefits from logging? How do these practices contribute to forest fires? Who experiences the costs from forest fires? Do you think Tolko Industries can transition from a perspective of "balancing" stakeholder values and mitigating business risks to one focused on long- term relationships and shared value?

Develop a vision for stakeholder engagement focused on the issue of forest fires and aimed at establishing long-term relationships and achieving shared value. According to BSR, the vision for the stakeholder engagement should answer the question, "Why engage?" The vision explains the motivation for stakeholder engagement, the specific business and sustainability objectives the company is trying to achieve through the stakeholder engagement, and the scope of the engagement.

Keep in mind, you should not recommend a solution to the forest fire challenge. Instead, you are charged with developing a vison and objectives for engaging with stakeholders about this issue.