A Message from Douglas G. Hatch, Chair of the Board and Robert M. Griffin, President and CEO Fulfilling the promise of service and trust Today, we operate in a social climate increasingly marked by an absence of trust. Corporations, government, religious and health care institutions have all suffered a loss of confidence in the eyes of their stakeholders. Inappropriate behaviours or unethical practices are exposed by the media and instantly transmitted around the globe through information technology. There is no place to hide in today's world! Creating trust and excellent service requires unrelenting attention to good governance, management system standards, auditing to ensure compliance, and transparent measurement and reporting. Against these fundamentals, CSA Group continues to play a vital role in fulfilling its purpose of making standards work for people and business. The work of our 1,200 employees and 9,000 members continues to expand in scope, reflecting the increasing - and, at times, conflicting - demands of society and business for safety and health, quality of life, a clean and sustainable environment, and vigorous trade. The results of service The growth of CSA Group is represented by a year on year revenue increase of 3.5% (7.1% at constant exchange rate). This growth has come from all four of CSA Group's divisions. CSA earned the confidence of many new stakeholders who increasingly look to it for leadership in the development of new standards and the creation of education and related training materials. QMI acquired a competing registrar (QCB), and is better positioned to serve its clients. CSA International has enjoyed significant growth as its fast, flexible but always thorough product certification services have attracted many new customers previously served by competitors. The creation of our newest business division, OnSpeX, has been very well received by major retailers and is already contributing to CSA Group's growth. In all aspects of our business, we remain focused on providing excellent service. Through regular surveys and other feedback mechanisms, our customers and members tell us we are delivering, with satisfaction scores ranging from 81 to 95 percent! We continue to generate positive media response. Our public relations activities yielded a significant increase in coverage, and our brand awareness remained at an all time high level. CSA Group measures achievement against its purpose through the use of nine selected key performance indicators (Purpose KPIs). To see continuous improvement in these measures is both encouraging and rewarding. Serving our purpose Engaging and earning the trust of stakeholders is a key dimension of our work. CSA's work with Health Canada is a fine example of the public health and safety improvements that can be achieved through positive collaboration among stakeholders. We expect our new management system standard for blood and blood components will be referenced in legislation by 2007. In the meantime, certain provincial authorities are already expressing interest in having blood labs accredited to this new standard. Our partnership with Ontario's Ministry of Citizenship and Immigration has yielded new standards designed to improve the quality of life for people with disabilities. We have supplemented new guidelines for customer service with training tools for managers and front line sales staff. These are now being piloted by leading retailers. In our effort to preserve the environment, we have taken steps to help Canadians respond to the federal government's commitment to the Kyoto accord. CSA's new Ottawa based Climate Change office, our hiring of a Director of Climate Change, and our newly acquired greenhouse gas registry business are important milestones as we move ahead to effectively serve this emerging market. The launch of OnSpeX is a major initiative designed to facilitate trade. This division helps both retailers and manufacturers manage risk across the entire supply chain. Working from facilities in Canada, the U.S. and China, OnSpeX is well-equipped to perform specification development and design consulting, vendor qualification and social accountability audits, pre-shipment inspections, full product performance testing, and data management. Entrusted to make a difference As CSA Group moves forward, the breadth of our mandate will continue to expand. The organization is positioning itself to be a "full solutions provider" in areas as diverse as life itself. Utilizing core competencies gained over 86 years of developing standards, CSA is now offering services for clients needing assistance in managing stakeholder engagement for their business. And our standards are increasingly accompanied by related application products and resources, including classroom and on site training. In 2005/06, we will concentrate on health care and climate change, two subjects very much on the public agenda today. CSA Group will also establish a greater presence in China over the months ahead. CSA, in partnership with three other leading standards development organizations, will open a Beijing office early in the fiscal year. From this base, we will liaise with Chinese authorities and work to facilitate trade through standards harmonization. CSA International, OnSpeX and QMI are all currently busy with adding to our capacity to provide local service for existing and new clients. Corporate Audits & Investigation services will continue to build an international network of partners focused on applying a zero-tolerance policy to fraudulent and counterfeit products bearing CSA marks. Our job is to protect the integrity of the CSA marks that the public has come to know and trust. While applying ourselves to the purpose of making standards work for people and business, CSA Group will continue to take appropriate measures toward corporate social responsibility. In 2004/05, the company and its employees responded generously to the United Way and the Red Cross Tsunami relief appeals. Locally, Toronto employees volunteered their time in building a home through our alliance with Habitat for Humanity. Our business is all about life. We want to make a difference where people live, work and play. And that involves a passion to serve, with care, integrity and excellence in everything we do. CSA Group appreciates the trust our stakeholders place in us, and we will make sure we continue to earn it. Douglas G. Hatch Robert M. Griffin Chair of the Board President and CEO © Copyright 2005 Canadian Standards Association. All rights reserved.