Development and Society
Corporate Social Responsibility
International Trade Canada (ITCan) and CSR
The Canadian Government expectation is that Canadian companies
operating abroad uphold local laws and reflect our values and international
commitments relating to human rights, the environment, anti-corruption
and labour standards. The Government also expects Canadian firms
operating internationally to make a positive contribution to the
development of the countries and communities in which they operate,
and act as good corporate citizens.
At ITCan, our approach is to promote CSR by facilitating dialogue
and information sharing on CSR best practices, with civil society
groups, business and within government. For example, we have collaborated
with Canadian business associations and have engaged in targeted
activities with individual companies. CSR messaging and promotion
have been integrated into the Department’s trade promotion
activities and existing departmental communication vehicles to business
and their stakeholders.
We also support the development of voluntary standards and norms,
in Canada and internationally - including the OECD Guidelines for
Multinational Enterprises (MNEs) - the international standard the
Government of Canada recommends to companies to follow. Our effort
in this area has included working with stakeholders to translate
international principles into practice. For example, in 1997 the
former Department of Foreign Affairs and International Trade supported
the joint initiative by a number of large Canadian resource companies
which resulted in the creation of the International
Code of Ethics for Canadian Business.
Encouraging responsible corporate conduct through the promotion
of voluntary instruments enables the government to promote higher
standards of responsible conduct internationally without resort
to extraterritorial application of its legal jurisdiction. This
approach is also more flexible and less costly than the development
and oversight of a regulatory framework and builds upon the initiatives
already underway in the private sector. Promoting CSR also contributes
to a positive image of Canada abroad and supports Canada’s
international trade objectives as responsible business conduct reinforces
the positive effects that trade and investment can have on human
rights, the environment, and labour standards.
Because of the cross-cutting nature of the issues that Corporate
Social Responsibility touches on, ITCan also works closely with
other Government departments in the development of CSR tools, resources
and programming.
Advancing CSR Internationally
Multilaterally-agreed standards and best practices provide a framework
for ITCan’s interaction with Canadian companies. In June 2000,
Canada endorsed the revised OECD
Guidelines for Multinational Enterprises which set out non-binding
recommendations from governments to multinational enterprises (MNEs)
for responsible business conduct in areas such as the environment,
labour, anti-corruption and bribery and human rights. The Guidelines,
which are endorsed by Canada and 38 other governments, provide a
framework of standards and principles that complement and support
private sector initiatives. They are addressed to MNEs operating
in or from OECD countries and therefore have global application.
As a signatory to the Guidelines, Canada is obliged to establish
a National Contact Point (NCP) to promote the Guidelines in Canada
and contribute to the resolution of specific problems which are
brought to its attention. Canada’s NCP is an inter-departmental
committee co-ordinated by ITCan’s Investment Trade Policy
Division (EBI). Detailed information on these Guidelines can be
found below in the OECD Guideline PDF brochure (see document section
below) and on the Canadian National
Contact Point website.
Other emerging international standards and best practices which
Canada supports includes the UN Global Compact. The Global Compact
is not a code of conduct with a monitoring system that businesses
are formally asked to adopt, but a “learning network”
to share experiences, lessons learned, and best practices in applying
the nine principles in their operations. Its objective is to promote
a commitment by international business to universal principles and
values and to working with non-governmental and international organizations
in partnership to operationalize these principles. Businesses participating
in the Global Compact are asked to do three things: to publicly
express support for its goals; to post on the UN Global Compact
web-site once a year an example of progress towards the implementation
of the principles; and to undertake joint activities with the UN
to advance the Compact’s principles. The Compact has been
engaged in policy dialogues including a Global Learning Forum and
Global Reporting Initiative, involving companies in zones of conflict,
and developing lessons learned, including case studies for use in
business schools. As of June 2004, fourteen Canadian companies have
signed on to the Global Compact.
We also support the
International Labour Organization (ILO) Tripartite Declaration of
Principles concerning MNEs and Social Policy: The declaration,
which Canada adopted in 1998, represents a commitment by all ILO
member states, regardless of their level of economic development,
cultural values, history, or number of ILO Conventions ratified,
to respect, promote, and realize the following principles and rights
which are recognized as fundamental:
- freedom of association and effective recognition of the right
to collective bargaining;
- elimination of all forms of forced or compulsory labour;
- effective abolition of child labour; and,
- elimination of discrimination in respect of employment and occupation.
The rights and principles of the Declaration are embodied in eight
fundamental ILO Conventions, also referred to as core labour standards,
which all member states are encouraged to ratify. The Declaration
itself is a promotional instrument, which is not subject to ratification.
All member states, by virtue of their membership in the ILO, are
bound to respect and promote its principles and rights.
Canada is a strong advocate and promoter of CSR
in the Americas. We believed that governments have an important
role to play in facilitating and promoting corporate social responsibility
and through dialogue with corporations and civil society on this
issue. Canada was instrumental in ensuring that work to promote
CSR was included in the Quebec Summit of the Americas Action Plan
in April 2001. Placed in the wider context of the Summit agenda,
which included democratic development, economic prosperity and the
realization of human potential, countries of the Hemisphere recognized
the importance of CSR in responding to public concern about globalization.
In September 2002, Canada was one of the main sponsors of the first
Americas Conference on CSR. For additional information on the CSRAmericas
conferences please see the Inter-American Development Bank CSR website.
The Canadian International Development Agency, is currently contributing
$500,000 to a joint $1.8 million Inter-American CSR project aimed
at following up on the objectives and results of the CSR Americas
Conference held in Miami, September 2002. Specifically, the project,
which was announced in October 2003, aims to promote education,
outreach, training, technical assistance and projects on Corporate
Social Responsibility in Latin America and the Caribbean. More information
on the project can be found on Empresa
(the project leaders) website.
In April 2004, with support from Foreign Affairs Canada (FAC),
the Canadian
Foundation for the Americas (FOCAL) published a study entitled
“The Corporate Social Responsibility System in Latin America
and the Caribbean”. The paper aims at advancing the understanding
of the existing system of corporate social responsibility (CSR)
promotion and advocacy in Latin America and the Caribbean.
Intersection
of CSR and other Foreign Policy issues
Corporate Social Responsibility (CSR) signals the intersection
of the globalization and human security agendas by examining the
positive role that the private sector can play in a host of complex
areas including safeguarding the core labour rights of employees,
protecting the natural environment, eliminating corruption and bribery
and contributing to respect for human rights in the communities
where they operate.
While investment can play a positive role in peacebuilding and
conflict prevention efforts, ITCan also recognizes that our companies
face significant challenges in ensuring their operations in these
regions are consistent with internationally agreed upon principles
of CSR. ITCan is working in collaboration with FAC to work with
stakeholders to help clarify expectations and provide tangible guidance
in areas such as risk assessment, transparency, best practices and
the use of private security firms.
For example, FAC’s Human Security Fund is funding the Collaborative
for Development Action (CDA), an NGO well-known for its work
on the impact of external influences on conflict situations, initiative,
“Corporate Options: Constructive Engagement in Conflict Zones.”
The project aims to develop practical management tools for corporations
to redesign their day-to-day operations in such a way that their
activities, rather than feeding into and exacerbating conflict,
can have a positive impact on relationships among groups and promote
overall social and political stability.
The Canadian Centre for Foreign
Policy Development is also engaged with businesses, labour organizations,
youth and others on the issue of corporate social responsibility
CSR and Canadian Embassies Abroad
Canada’s embassies abroad plays a key role in liaising with
the Canadian business community and delivering ITCan’s and
FAC’s message regarding the importance of incorporating CSR
concepts in day-to-day operations. The Trade Commissioner Service,
at work in most of our embassies abroad, is actively engaged in
the promotion of CSR. To that end Trade Commissioners incorporate
CSR-relevant information and material in the briefings they give
to their Canadian clients, they communicate the Government of Canada's
commitment to CSR to both Canadian and local business audiences,
and the make sure that their host governments are aware of Canadian
CSR initiatives.
The following are some examples of the work of Canada’s Embassies
abroad to promote corporate social responsibility:
The Canadian Embassy in Bogota, Columbia has hosted two Human Rights
and Ethical Investment seminars in 2000 and 2002 in conjunction
with the Canada-Colombia Chamber of Commerce (CCCC) and Javeriana
University.
The Canadian Embassy in Port of Spain, Trinidad was a co-sponsor
and a key participant in an Executive
Seminar on Corporate Social Responsibility held in September
2003 in Trinidad and Tobago.
In July 2003, the Chilean Canadian Chamber of Commerce published
The
Social Impact of Canadian investment in Chile, a study
of corporate social responsibility initiatives undertaken by Canadian
firms in Chile. The Canadian Embassy in Chile is active in promoting
the publication.
In March 22-23, 2004 the Canadian Embassy in Manila, Philippines
hosted an ITCan organized and sponsored two day pilot training course
on Corporate Social Responsibility. The two day training course
was directed at Trade Commissioners from four embassies in the region
including the Canadian Embassy in Philippines, the Canadian Embassy
in Malaysia, the Canadian Embassy in Thailand and the Canadian Embassy
in Indonesia. The course deepened participants understanding of
CSR and its importance; served as a forum for sharing information
and experiences on CSR issues faced by Canadian companies and how
Embassies have managed the issues and explored and further defined
how The Trade Commissioners Service (TCS) can promote CSR and effectively
serve their clients in this area.
ITCan
CSR Brochures
OECD Guidelines for Multinational Enterprises brochure.
Corporate Social Responsibility: Your Key to Competitive
Advantage in the Global Market Place
Government of Canada (pdf
654 KB 2 pages)
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