Carlos Rojas - PWYP Montreal Conference 2009

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Implementation of the Canadian government’s CSR strategy for Canadian extractive companies operating abroad.

Carlos Rojas-Arbulú is Deputy Director, Corporate Social Responsibility and National Contact Point for the OECD Guidelines for Multinational Enterprises, Foreign Affairs and International Trade Canada

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  • These are just a few of the CSR policies and standards supported by the Canadian government. NOTE: Canada’s Corruption of Foreign Public Officials Act and the OECD Anti-Bribery Convention* is not voluntary Currently developing a DFAIT policy on Bribery and Corruption May also mention the promotion of CSR standards via the UN, OAS,G8, Francophonie and APEC NOTE: EITI will be covered by other speakers, including Mark Pearson from NRCan.
  • Canada is required to establish an NCP. Canada’s NCP is an interdepartmental committee of the federal government, comprising representatives from: DFAIT; Industry Canada; Human Resources and Social Development Canada; Environment Canada; Natural Resources Canada; Department of Finance; CIDA. The committee is chaired by DFAIT at the Director-General (DG) level. The NCP’s function is to: Undertake promotional activities, Handle inquires Contribute to the solution of problems that may arise (known in the Guidelines as “specific instances”). Any individual or organization that believes that an MNE’s actions or activities have breached the Guidelines may request of a review of a “specific instance”. Matters concerning corporate behaviour in relation to the Guidelines should be raised with the NCP in the country where the issue originated. If the country in question does not adhere to the Guidelines and therefore does not have a NCP, the matter may be raised with the NCP of the country where the MNE is based. Requests should contain specific and sufficiently detailed information to enable the NCP to make an initial assessment. Where the issues raised merit further examination, the NCP will consult, seek advice, and offer good offices to help the parties resolve the issues, including the facilitation of access to consensual means to assist (e.g. mediation).
  • The Strategy will improve the competitiveness of Canadian international extractive sector companies by enhancing their ability to manage social and environmental risks. Building the Canadian Advantage is founded on four complimentary pillars designed to engage multiple stakeholders and foster different aspects of CSR. 1. The first pillar involves enhancing the ability of developing countries to manage the development of minerals and oil and gas, and to benefit from these resources to reduce poverty. There is a limit to what companies can provide to support social, health, environment, and education concerns of the communities within which they operate, accordingly, this pillar is meant to assist the host governments in fulfilling their responsibilities. Canada’s CSR Andean Initiative and our leadership in the EITI are two examples of ways Canada is working to develop host country capacity. 2. The second pillar involves the promotion of four widely-recognized international CSR performance guidelines: the OECD Guidelines on Multinational Enterprises, the International Finance Corporation’s Performance Standards on Social & Environmental Sustainability; the Voluntary Principles on Security and Human Rights; and the Global Reporting Initiative. It involves communicating expectations to mining and energy companies, as embodied in these instruments. 3. The third pillar involves supporting the Canadian international extractive sector in implementing voluntary performance guidelines, through the creation of a CSR Centre of Excellence which will develop and disseminate CSR best practices, information, training and tools. This pillar is expected to be of use to industry, civil society and government, at home and abroad. The Centre will be hosted by the Canadian Institute for Mining, Metallurgy and Petroleum and is currently under development via roundtables with key stakeholders. 4. The fourth pillar is designed to complement the capacity-building efforts of the first three pillars, the Government will create a CSR Counsellor – which was announced on October 2 nd of this year, Dr Marketa Evans of the Munk School at the University of Toronto. Dr. Evans’ role will be to assist stakeholders in addressing issues pertaining to the activities of Canadian extractive sector companies abroad. The Counsellor will review the corporate social responsibility practices of Canadian extractive sector companies operating outside Canada; and, will advise stakeholders on the implementation of endorsed CSR performance guidelines.
  • The first pillar involves supporting initiatives to enhance the capacities of developing countries to manage the development of minerals and oil and gas, and to benefit from these resources to reduce poverty. There is a limit to what companies can provide to support social, health, environment, and education concerns of the communities within which they operate, accordingly, this pillar is meant to assist the host governments in fulfilling their responsibilities. What does this mean for TC? As this program has been created within existing host-government capacity building programs, most of the issues dealing with capacity building will fall under CIDA. Therefore, TCs can be a liaison and refer both host governments and businesses to the appropriate CIDA contact. For example, host countries may be eligible for CIDA funding to enhance infrastructure or health services in a community in which a Canadian company is operating.
  • The second pillar involves the promotion of three widely-recognized international CSR performance guidelines: the International Finance Corporation’s Performance Standards on Social & Environmental Sustainability; the Voluntary Principles on Security and Human Rights; and the Global Reporting Initiative. What does this mean for TC? As a key focus of CSR promotion, these three international standards will be emphasised when promoting CSR abroad. TCS will have access to information regarding the standards via Horizons, their HQ counterparts and CSR e-Bulletins. For example, the Global Reporting Initiative provides guidelines on ‘when, how and what’ companies should be reporting. TCs will have access to these guidelines and may be able to provide clarification.
  • The third pillar involves supporting the Canadian international extractive sector in implementing voluntary performance guidelines, through the creation of a CSR Centre of Excellence which will develop and disseminate CSR best practices, information, training and tools. This pillar is expected to be of use to industry, civil society and government, at home and abroad. To be hosted by CIM Stakeholder meetings have been held in Ottawa and Vancouver, with a third scheduled for Calgary (Nov. 10) What does this mean for TC? As part of the ongoing promotion of CSR, TC can now refer extractive companies to the Centre of Excellence to learn more about best practices. For example, the Centre of Excellence is designed to provide information and examples on Best Practices, to facilitate dialogue and idea sharing and to provide tools for implementation. TCs will be able to not only refer businesses to the centre, but also to access the information themselves
  • The fourth pillar is designed to complement the capacity-building efforts of the first three pillars, the Government will create the Office of the Extractive Sector CSR Counsellor, to assist stakeholders in addressing issues pertaining to the activities of Canadian extractive sector companies abroad. The Counsellor will review the corporate social responsibility practices of Canadian extractive sector companies operating outside Canada; and, will advise stakeholders on the implementation of endorsed CSR performance guidelines. NOTE: Minister Day announced the appointment of Dr. Marketa Evans on Oct.2, 2009. Dr. Evans brings a wealth of experience to this new role. What does this mean for TC? When a TC learns of a potential dispute with an extractive sector company, after consulting with HQ, TCs can refer stakeholders to the Counsellor For potential disputes related to the OECD Guidelines, TCs can refer stakeholders to the NCP. For example, if a TC is approached by a concerned citizen or activist group, regarding the behaviour of a Canadian company, the TC would first consult HQ and then, if appropriate, advise the individual to contact the Counsellor. The Counsellor would then contact the company, and if agreed to by the company, would investigate the incident and offer informal mediating services to help resolve the issue.
  • Carlos Rojas - PWYP Montreal Conference 2009

    1. 1. Carlos Rojas-Arbulú Deputy Director, Social Responsibility and the National Contact Point for the OECD Guidelines for MNEs Corporate Social Responsibility November 16, 2009
    2. 2. Agenda <ul><li>Canada’s Approach to CSR </li></ul><ul><li>Policies and Programs </li></ul><ul><li>The Government of Canada’s new CSR policy: Building the Canadian Advantage </li></ul>
    3. 3. <ul><li>Corporate Social Responsibility is the way companies integrate social, environmental, and economic concerns into their values and operations in a transparent and accountable manner. </li></ul>Government of Canada’s Definition
    4. 4. Canada’s CSR Approach Canada encourages and expects Canadian firms operating abroad to respect all applicable laws, international standards, and to reflect our values and international commitments. Canada is active in fostering and promoting CSR at bilateral and multilateral levels. Host governments are responsible for legislation that meets the needs of their citizens. There is, however, a limit to what companies can provide to support social, health, environment, and education concerns of the communities within which they operate. Canada supports and encourages the Canadian business community to develop and implement CSR standards, tools, and best practices .
    5. 5. Policies and Programs <ul><li>General </li></ul><ul><ul><li>OECD Guidelines for Multinational Enterprises </li></ul></ul><ul><ul><li>IFC Performance Standards/Equator Principles </li></ul></ul><ul><ul><li>Global Reporting Initiative </li></ul></ul><ul><ul><li>UN Global Compact </li></ul></ul><ul><ul><li>ILO Tripartite Declaration </li></ul></ul><ul><ul><li>CSR in FTAs </li></ul></ul><ul><li>Extractive Industries </li></ul><ul><ul><li>Extractive Industries Transparency Initiative </li></ul></ul><ul><ul><li>Voluntary Principles on Security and Human Rights </li></ul></ul><ul><ul><li>Intergovernmental Forum on Mining and Sustainable Development </li></ul></ul><ul><ul><li>Canada’s CSR policy, Building the Canadian Advantage </li></ul></ul><ul><li>Canada’s Corruption of Foreign Public Officials Act and the OECD Anti-Bribery Convention* </li></ul><ul><li>Internal </li></ul><ul><ul><li>Enhancing knowledge capacity of DFAIT officers </li></ul></ul>
    6. 6. OECD & National Contact Point (NCP) <ul><li>OECD Guidelines for Multinational Enterprises: a government-endorsed framework of voluntary standards and principles for responsible business conduct. </li></ul><ul><li>As a signatory to the OECD Guidelines, Canada has established an NCP; which: </li></ul><ul><ul><li>undertakes promotional activities </li></ul></ul><ul><ul><li>handles inquiries </li></ul></ul><ul><ul><li>contributes to the solution of problems which may arise </li></ul></ul>
    7. 7. Canada’s New CSR Policy <ul><li>Building the Canadian Advantage is founded on four complimentary pillars designed to engage multiple stakeholders and foster different aspects of CSR </li></ul><ul><li>The policy will improve the competitiveness of Canadian international extractive sector companies by enhancing their ability to manage social and environmental risks. </li></ul><ul><li>The policy reinforces Canada’s commitment to work with host countries, to better enhance economic development and benefits to communities from responsible natural resource management. </li></ul>
    8. 8. Building the Canadian Advantage: A CSR Strategy for the Canadian International Extractive Sector CSR Centre of Excellence Host Country Resource Capacity Building Promotion of Voluntary CSR Performance Guidelines Extractive Sector CSR Counsellor The Strategy adds 4 pillars to the suite of existing government CSR policies
    9. 9. Resource Governance Capacity-Building <ul><li>Canada will work with developing countries to enhance their capacity to manage natural resource development (i.e. Andean initiative). </li></ul><ul><li>Canada will enhance support for the Extractive Industries Transparency Initiative through a secondment to the World Bank. </li></ul><ul><li>Status </li></ul><ul><li>CIDA has established an internal focal point with expertise in extractive sector development issues. </li></ul><ul><li>Ongoing CIDA consultations with stakeholders on the best way forward </li></ul><ul><li>CSR under &quot;Sustainable Economic Growth” CIDA strategy </li></ul>The Strategy develops and supports initiatives aimed at strengthening host country resource governance.
    10. 10. Promotion of Voluntary CSR Performance Guidelines <ul><li>International Finance Corporation Performance Standards </li></ul><ul><li>Voluntary Principles on Security and Human Rights </li></ul><ul><li>Global Reporting Initiative </li></ul><ul><li>Status </li></ul><ul><li>Standards are being promoted at home and abroad </li></ul>Beyond Canada's commitment to the OECD Guidelines for Multinational Enterprises the Strategy endorses and promotes the following widely-recognized international CSR performance guidelines:
    11. 11. CSR Centre of Excellence <ul><li>Up-to-date, relevant information on CSR for clients in government and industry. </li></ul><ul><li>Business-friendly tools and an inventory of extractive sector regulations and policies. </li></ul><ul><li>“ Community of practice” public platform for stakeholders to share information. </li></ul><ul><li>Status </li></ul><ul><li>Multi stakeholder consultations held across Canada resulting in broad base support </li></ul><ul><li>Virtual site to be launched end of November </li></ul>The Strategy calls for the development of a CSR Centre of Excellence in an existing institution outside of government that will provide :
    12. 12. Extractive Sector CSR Counsellor <ul><li>The Counsellor will : </li></ul><ul><li>Provide informal mediation and fact-finding services to assist in resolving CSR disputes. </li></ul><ul><li>Advise stakeholders on implementation of endorsed performance guidelines. </li></ul><ul><li>Report results of all inquiries and be accountable to the Minister of International Trade who will table the Counsellor's annual report in Parliament. </li></ul><ul><li>Status </li></ul><ul><li>Dr Marketa Evans appointed on October 2 and office is being set up. </li></ul>The Strategy creates a dispute resolution mechanism, the CSR Counsellor, to address CSR issues related to the Canadian extractive sector abroad.
    13. 13. Thank You! http: // www.csr.gc.ca http://www.tradecommissioner.gc.ca/

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