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Article

15 Dec 2014

Author:
McCarthy Tétrault law firm (Canada)

Canadian government introduces enhanced Corporate Social Responsibility Strategy for resource companies

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On November 14, 2014, the Minister of International Trade announced Canada’s enhanced Corporate Social Responsibility (CSR) Strategy, “Doing Business the Canadian Way: A Strategy to Advance CSR in Canada’s Extractive Sector Abroad”. Like its predecessor, the CSR Strategy applies to all resource companies headquartered in Canada with extractive operations abroad.  The CSR Strategy launched in 2009...promoted compliance with international CSR guidelines but contained no enforcement mechanism.  While it established the Office of the Extractive Sector CSR Counsellor, this role found little support in the industry, with companies tending to opt out of...dispute resolution...Canadian companies are expected to align their practices [with inernational standards including]...the United Nations’ Guiding Principles on Business and Human Rights and the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas...[The new] policy implements what the Canadian government hopes will amount to tangible consequences for resource companies who do not follow the the CSR-related guidance...or refuse to participate in...dispute resolution...[: The] federal government will withdraw its economic diplomacy in favour of that company in the country in which it operates...[such as] issuing letters of support, advocating in support of the company...Failure to align with CSR best practices or participate in...dispute resolution...will also be taken into account by Export Development Canada...