Strategic implementation Assignment 2



Strategicimplementation Assignment 2

Strategiccorporate social responsibility

ATCOhas established itself as a responsible corporate citizen through itcorporate social responsibility. The corporate social responsibilityadopted by ATCO group has a huge influence on the reputation of thecompany, the brand name and the relations between the company and theimmediate communities. ATCO group is involved in business activitiesthat have a direct impact on everyday life of he community. As aresult, the corporate social responsibility is taken very seriouslyby the organization. The main aspects of the corporate socialresponsibility strategy in ATCO group include commitment to improvingthe welfare of the communities, ensuring the safety of thecommunities and the employees and environment conservation. Throughit interaction with the immediate communities, ATCO operations havean impacts on their daily life. As a result, through its corporatesocial responsibility programs ATCO initiates various activities thatare aimed at improving the living standards and the welfare of thesociety. The company operates in at least five continents around theworld. Additionally, the company’s activities involve mega projectssuch as power generation facilities and gas pipelines. Thus, everyproject provides an opportunity for ATCO group to show its commitmentto the welfare of the immediate communities. This is done thoughpartnership with local institutions and organizations, publicengagement in the business activities and initiation projects thathave a direct impact on the society (ATCO Group, 2010).

Forexample, in the late 2000s, ATCO Electrical undertook a majorproject, the Eastern Alberta Transmission Line. Obviously, theconstruction of a major power like has a major impact on thecommunities due to disruption of their activities. This is especiallyimportant if the line passes through highly populated areas. As aresponsible corporate citizen, ATCO Electrical undertook severalmeasures that were aimed at expressing commitment to the wellbeing ofthe affected communities. One of the most important steps taken bythe company before the project commenced was wide consultation withthe immediate community. The project team consulted over sixthousand five hundred people along the proposed route. This is one ofthe greatest indications of the company commitment to the welfare ofthe community and the realization that the projects have an impact onthe community’s life. According to ATCO management, consultationswith the communities directly affected by the projects, whetherpositively or negatively, help the company identify ways throughwhich the undesirable impacts of the project can be identified. Thisenables the project planners and managers to effectively manage thenegative impacts. According to the group president, the company willcontinue to engage the immediate communities in its various projects.Therefore, engaging the communities affected by the companyactivities is an important aspect of corporate social responsibility.This includes local governments, non profit organizations, landownersand community based organizations. To facilitate consultation withthe immediate societies, ATCO used various community symposiums whichare held in offices located in almost all small towns where ATCO hasmajor projects. These community symposiums are aimed at helping thecommunities and interested organizations to be informed about thecompany’s project. They also act as channels through which theconcerns of the society reach the project managers and the companymanagement. The positive feedbacks and large participation of thecommunities in the symposium is an indication that ATCO is aresponsible corporate citizen (ATCO Group, 2010).

Anotherimportant aspect of ATCO corporate social responsibility strategy isinstallation of new generation and transmission facility. This is along term strategy adopted by the group, which underlines itsposition as a responsible corporate citizen. These new facilitieswill replace old facilities resulting into improved efficiency andreduced environmental impacts. The improved performance onenvironment conservation and cost of electricity will have a positiveimpact on the economy and the society in general. Corporate socialresponsibility that relates to aboriginal and native relations isalso important. Aboriginal relations in Australia and Canada havehuge impacts on how the community views a company. Aboriginals havevery strong traditions which affect all aspects of the social life.Due to its huge presence in Australia and Canada, ATCO hasestablished a mutual relationship with the aboriginal communities forthe benefit of the community and the company. The relationship isbased on trust and respect for the interest of both parties.According to the management of ATCO group, the company will continueinvest in corporate social responsibility programs that strengthenthe relationships with the aboriginal societies. The company hassigned several memorandums with local governments and community basedorganizations especially in Alberta. Majority of these memorandumfocus on leadership programs and investment in community projects.For example, ATCO sponsors Dene National assembly, a representationof native people in the region as well as camps and campingfacilities during aboriginal activities. ATCO has also invested inpromoting youth activities that are aimed at promoting leadershipskills among the young people. In partnership the local government,ATCO sponsors activities such as Alberta Future Leaders Programs andnational aboriginal achievement foundation blueprint for the future(ATCO Group, 2010).

Overthe years, ATCO has shown commitment to corporate socialresponsibility through its long term investment in the society. Through financial support and voluntary activities by the staff, thecompany supports wellness and health programs, education, sports,youth activities and cultural activities in different communities.The annual contributions by the company to social corporateresponsibility programs in different parts of the world are over sixmillion dollars. ATCO is directly involved in emergency responsesespecially in areas were its facilities are located. However, theseemergency and rescue activities are undertaken in all regions withinthe vicinity of the company facilities. For example, in 2010, thecompany played a major role in assisting people affected by the Haitiearthquake. Similarly, after the devastating Tsunami, ATCO investedheavily especially in Chile where it provided temporary schools tothe affected communities. ATCO is also involved in recreation andsporting activities, being one of the major sponsors of the Arcticwinter games. These activities have significantly improved thereputation of the company and the relations between the ATCO and theimmediate society. ATCO also promotes employees voluntary activitiesthat are aimed a promoting community activities. It also facilitatescharity donations by its employees to the need in the society (ATCOGroup, 2010).


ATCOhas operations in different parts of the world. To support thismassive organization, the management has developed an effectivecorporate strategy that has enabled the organization contribute tolocal and global economies and build communities. The principle ofgood governance and the organization commitment to environmentalconservation and taking care of community welfare and safety are themain facets of ATCO corporate strategy. Over the years, ATCO hasdeveloped and perfected effective corporate governance that works forthe organization. The corporate strategy adopted by the group hasevolved over the years to address the challenges and changes in themarket. It is important to note that ATCO operates in a very dynamicenergy market. Emerging challenges and changes such as newtechnologies, changes in laws and increased demand for renewablesources of energy have direct impacts on ATCO operations.Additionally, ATCO operates in different countries which have a hugeinfluence on its systems. These factors have played a critical rolein the evolution of the corporate strategy and governance. Theevolution of the corporate strategy has been initiated by the need toprovide comprehensive and world class goods and services to itsclients in diverse communities through its subsidiaries (ATCO Group,2012).

Theboard of directors and the entire management of ATCO have recognizedthat an effective corporate strategy and governance is one of themost important elements of success. The corporate strategy aims atimproving the well being of the client and the employees and creatingvalue for the shareholders investments. Thus, ATCO group ensures thatthe corporate strategy and related practices provide the frameworkfor effective stewardship of the company and evaluates the strategycontinuously to identify the strengths and weaknesses. The board ofdirectors is the main decision making unit in the organization.Although they can meet any time whenever there is a need, there fivescheduled board meeting every year. Additionally, the board has acomprehensive corporate strategy session every year, a meeting thatlast three to four days. However, the corporate strategy at ATCO iscomplex and involves bureaucratic procedures. Considering that theorganization operates in different countries and has diverse businessinterest, this is likely to slow down the decision making process.This has a direct impact on the efficiency of the organization andmay significantly affect the success of the organization (ATCO Group,2012).

Organizationalstructure and design

SinceATCO was established in the mid 20thcentury, the corporate strategy has been based on the spirit ofentrepreneurship. As a result, ATCO group has established itself as amultinational company operating in different parts of the world. Themost important success factor that has enabled ATCO group to enjoyedsignificant success due to the organization structure and designadopted by the group. The strength of the organizational structureadopted by ATCO is diversity. The company has diverse businessinterests in diverge business environments. The operational unitsinclude utilities, energy and structure and logistics (ATCO Group,2015).

Utilitiesbusiness mainly involves the delivery of electricity and naturalgases. Over the years, ATCO Utilities has focused in increasingsafety and reliability in the transportation and delivery of naturalgas and electricity. The Utilities businesses are mainly located inCanada and Australia and serve over two million customers andhundreds of communities. The ATCO Utilities includes “ATCOPipelines, ATCO Gas, ATCO Gas Australia, ATCO Electric and itssubsidiaries Northland Utilities in the Northwest Territories andATCO Electric Yukon”. Due to the sensitivity of its operations,ATCOUtilities corporate strategy is very concerned with safety of theemployees, the company resources as well as the immediate community.As a result, customers have developed trust with the services as wellas the expert advice offered by ATCO such as the Energy Sense programand the Blue Flame Kitchen (ATCO Group, 2015).

Anotherimportant operational unit at ATCOgroup is the energy business. This includes “ATCO power, ATCO powerAustralia and ATCO energy. ATCO energy is one of the leadingdeveloper, builder and operator of power generating facilities.According to the corporate strategy at ATCO, the energy business aimsat providing cost effective and customized power solution to theirclients. Their service includes industrial power marketing anddistribution. ATCO has huge power facilities in “Alberta,British Columbia, Saskatchewan and Ontario” with a combinedcapacity of over three thousand five hundred megawatts in Canada. InAustralia, ATCOEnergy has two major power generation facilities and a total offifteen power generating plants in different part of the world. Inaddition to the energy generation facilities, ATCO Energy also ownslarge water resources and infrastructures (ATCO Group, 2015).

Thethird functional unit in ATCO corporate structure and design isstructures and logistics. This unit also includes ATCO sustainablecommunity. The unit offers infrastructure solutions to ATCO customersin different parts of the world. This includes workers housingfacilities, logistic facilities, catering facilities, operationalmanagement and comprehensive construction services. Due to itseconomies of scale, ATCO is able to offer these services atrelatively low prices. Thus, ATCO structures and logistics businesshas customers and operations in more than one hundred countriesaround the world. In addition to high level of technology, ATCOstructures and logistics is supported by highly trained andexperienced experts (ATCO Group, 2015).

Thecorporate structure, together with the values of the organizationforms the organization and design strategy that has throughout theyears ensured that the organization is successful. Some of the mostimportant values that guide ATCO management include “integrity,transparency, entrepreneurship, accountability, collaboration,perseverance&nbspand caring”. Although in some sense, thestructure splits the organization into three independent companies,ATCO has been able to effectively deal with the associated challenges(ATCO Group, 2015).

Longterm potentials

ATCOoperations have direct impacts on the society. Generation andtransmission of electricity as well as natural gas pipelines impactdirectly on the society. The company facilities disrupt normal livesthrough displacement. Additionally, energy generation and fossilfuels are associated with environment concerns due to large scalepollutions. Additionally, energy transmission and natural gastransport are extremely dangerous. They are highly susceptible tosabotage and a small accident may be catastrophic. Security of theemployees and the immediate communities has a huge impact on the ATCOoperations. However, there are long term potentials of expressingcommitment to corporate social responsibility. One of the mostimportant long term potential is adoption of new technology. Thenegative impacts and inconveniences caused by ATCO activities,especially during installation or construction of major projects cannot be eliminated (ATCO Group, 2015). On the other hand, communitywork and building mutual relationship with the affected communitieswill not eliminate the long term impacts. However, adopting modernand more advanced technology will significantly eliminate some ofthese challenges. For example, advanced pipeline monitoringtechnologies with significantly increase the safety of facilities.Additionally, there are emerging technologies in the generation ofelectricity. Adopting these technologies has long term potentials ofreducing the impacts of energy generation on the environment.Although investing in community programs such as education andcultural activity is an essential aspect of ATCO corporate socialresponsibility strategy, reducing the negative impacts of itsactivities on the communities is a more critical long term plan.


ATCOGroup (2010). ATCOGroup Sustainabilityreport 2010.

ATCOGroup (2012). ATCOGroup Sustainabilityreport 2012