1. Working Together to Make a Difference The Meridian Credit Union Approach to Corporate Social Responsibility

2. 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

3. A commitment to community investment One of four key issues during the merger in 2005 Merger commitment made to: 1.Double community investments to four per cent of pre-tax earnings Four times more than national average $1 million a year for community investments 2.Increase local input into decisions on how the money is spent

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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.

17. 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.

18. Questions?