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Canadian resource companies must adopt new standards on community engagement to mitigate risk, says Ethical Funds

Author: Ethical Funds [Canada], Published on: 5 March 2008

Canadian mining, energy and oil and gas companies can minimize reputational, operational and fiduciary risks by adopting the latest evolving standards on engaging and benefiting indigenous communities, according to a new executive brief from The Ethical Funds Company. Around the world, communities have begun to deny corporations access to resources, fearing adverse environmental impacts and negative economic consequences. The Ethical Funds brief, Winning the Social License to Operate, gives resource extraction company executives and board members a set of top-line recommendations to follow to help successfully manage this growing assertiveness. Top among the recommendations is the adoption of the standard of Free, Prior and Informed Consent (FPIC) when dealing with indigenous communities.

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