Introduction
The OECD Guidelines for Multinational Enterprises is an instrument of the Organization for
Economic Cooperation and Development (OECD). The recommendations set forth in the
Guidelines are a voluntary, multilateral framework of standards and principles on responsible
business conduct.
As a member of the OECD and signatory to the Guidelines, Canada is obligated to establish a
national contact point (NCP). The role of the NCP is to promote awareness of the Guidelines and
ensure their effective implementation. This report provides a summary of the activities
undertaken by Canada’s NCP in the past year (June 2001 - June 2002) to fulfill its
responsibilities.
The Canadian Policy Context
The Guidelines are an important element of the Government’s approach to promoting corporate
social responsibility (CSR). A number of government departments are active in this area,
through activities such as information dissemination, facilitation of dialogue among interested
parties and support for the development of international norms. The Guidelines are a part of these
activities, their contribution heightened by the fact that they represent the shared views of thirty-six national governments on what constitutes appropriate corporate behaviour. The business
community in Canada is promoting CSR as well, with an increasing number of enterprises
adopting codes of ethical conduct and related management strategies. The Guidelines can provide
a frame of reference for private sector initiatives and efforts to encourage progress in this area
internationally.
Corporate social responsibility, and the Guidelines, make an important contribution to the
Government’s policy on promoting sustainable development. Achieving sustainable development
requires the responsible engagement of all sectors of society, including the business community.
The Guidelines encourage corporations’ contribution to sustainable development and help to
strengthen the basis of mutual confidence between enterprises and the societies in which they
operate. Thus, while our NCP has a clear mandate to implement the Guidelines, its activities also
support other broader policy objectives of the Government.
Institutional Arrangements
The key responsibilities of Canada’s NCP are to promote the Guidelines, respond to inquiries
and contribute to the resolution of problems that may arise in relation to the operations of
multinational enterprises. Important guiding principles for the NCP’s activities include visibility,
accessibility, transparency and accountability.
Canada’s NCP is an interdepartmental committee of the federal Government. It comprises
representatives from a number of departments, including the Department of Foreign Affairs and
International Trade, Industry Canada, Human Resources Development Canada, Environment
Canada, Natural Resources Canada, the Department of Finance and the Canadian International
Development Agency. The diversity of the issues covered by the Guidelines and the potentially
broad spectrum of public interest (business, labour, non-governmental organizations) in Canada
underscores the importance of structuring the NCP in this way. Other departments and agencies
participate in NCP activities as well. Export Development Canada is a frequent participant in
NCP meetings and communications, and more recently the Canadian Commercial Corporation
has become involved. The NCP representatives exchange communication frequently and meet as
required, depending on the issues at hand.
The Canadian NCP’s key business and labour interlocutors on the Guidelines are the Canadian
Council for International Business (CCIB), the Canadian Labour Congress (CLC) and the
Confédération des syndicats nationaux (CSN). A regular point of contact has not been
established with the NGO community, although the Guidelines have been promoted with a
number of these organizations, including Mining Watch, Oxfam, the Sierra Club and the
Canadian Council for International Cooperation.
Information and Promotion
4.1 Information and Promotional Tools
The Canadian NCP web site, established in June 2001, has proven to be a useful tool for
promoting the Guidelines. An electronic bulletin was sent to some 100 organizations to inform
them of the web site and to invite them to establish links. The web site has also become an
efficient way to communicate information on the Guidelines to our overseas missions. All of our
embassies and high commissions have been informed of the Guidelines and the importance of
this instrument for the promotion of corporate social responsibility. Overall, the web site offers a
convenient point of reference for a growing number of Canadian organizations and businesses
that are seeking information on the issue of corporate social responsibility. The site receives
about 100 visits per week.
An official Government of Canada brochure on the Guidelines has been produced and distributed
to a number of stakeholder organizations, including business, labour and NGOs. The brochure is
also available on-line from the NCP web site and the virtual Publications Catalogue of the
Department of Foreign Affairs and International Trade.
4.2 Promotion with Social Partners
NCP members travelled to Toronto in January 2002 to attend the annual meeting of the Canadian
Labour Congress (CLC) Trade Union Researchers. Two presentations on the Guidelines were
made - one by a NCP member from Human Resources Development Canada and the other by a
TUAC representative. The presentations generated significant interest from the audience and a
number of questions were raised, such as: Who had the right to file a complaint?, Does the NCP
have an investigative role and does it have a budget?, Does the Canadian International
Development Agency sit on the NCP?, Are the Guidelines legally enforceable?, What is
happening in regard to MNE’s operating in Burma? The speaking engagement provided the NCP
with a valuable opportunity to make the Guidelines better known in the labour community in
Canada. The participation of TUAC added greatly to the success of the event.
The OECD Guidelines were highlighted during an across-Canada "Business Integrity
Workshops" tour, April-May 2002, sponsored by Export Development Canada. The workshops
were designed to help businesses operating internationally to manage human rights,
environmental and labour issues in challenging conditions. The Ottawa session featured a
keynote address on the OECD Guidelines by the President of the Canadian Council for
International Business.
Canada’s Trade Commissioner Service now includes corporate social responsibility as an
important aspect of its promotional activities. Guidelines brochures are made available to
companies that participate on trade and investment promotion missions abroad, and
consideration is being given to further integrating corporate social responsibility activities into
these missions. The missions normally include government Ministers and attract many Canadian
firms interested in doing business abroad. As a result, they are an excellent forum for the
promotion of the Guidelines in cooperation with the business community.
4.3 Promotion Within the Government
Promoting the Guidelines within the government is an essential aspect of the NCP’s
responsibility to raise awareness of the instrument. A number of departments and agencies
interact directly with the business community and NGOs through their programs and consultative
activities. This is an important channel for alerting these groups of Canada’s commitment to
support the Guidelines.
The Department of Foreign Affairs and International Trade (DFAIT) has integrated the
Guidelines into its activities to promote corporate social responsibility at the international level.
The Department provides information sessions on the Guidelines for its overseas trade officials.
The provision of Guidelines information is also a part of human rights training for government
officials preparing for overseas postings. A formal training program on CSR targeted at trade
officials is planned, and will include a session on the application of the Guidelines abroad. The
Guidelines are also an important element of the Department’s strategy to promote sustainable
development.
Canada's Department of Industry has publically committed to promoting the OECD Guidelines in
its Sustainable Development Strategy for 2000-2003. This involves not only identifying concrete
deliverables regarding the Guidelines (e.g. developing promotional material and identifying
opportunities to promote the Guidelines with the Canadian business community), but also
reporting publically on these efforts.
Industry Canada has promulgated the Guidelines throughout the department, particularly to all
areas which are involved in investment development activities. These groups have been
requested to hotlink their respective web sites to Canada’s National Web Site on the OECD
Guidelines for MNEs and to circulate the Government’s brochure on the Guidelines to client
groups on an as-requested basis.
Members of the NCP made a presentation on the Guidelines to the Canadian International
Development Agency’s (CIDA’s) Industrial Cooperation Program. This Program is an important
point of contact for CIDA with the Canadian business community. A key objective of the
Program is to encourage the contribution of businesses to sustainable development in developing
countries. The OECD Guidelines can provide guidance to companies as they carry out their
activities in partnership with CIDA.
Export Development Canada (EDC) is developing a corporate social responsibility framework to
make CSR a more integral part of its corporate strategy. Through its web site, EDC is promoting
corporate social responsibility principles, including the recommendations of the Guidelines.
EDC has established a link between its web site and that of Canada's NCP. Also, as noted above,
EDC sponsored an across-Canada tour to promote business ethics which included promotion of
the Guidelines.
4.4 International Events
Corporate social responsibility is an important theme that the Government of Canada, and other
governments, promoted at the G8 Summit in Kananaskis. In the lead-up to this high profile
event, the NCP ensured that references to the OECD Guidelines were included in Summit
documentation.
Canada is a key supporter of the Americas conference on corporate social responsibility
scheduled for September 2002 in Miami. It is being organized by the Inter-American
Development Bank, Organization of American States and the World Bank. Key international
codes of conduct, including the OECD Guidelines, will figure importantly in the discussions.
Members of the NCP attended a Global Mining Initiative conference in Toronto in May 2002.
The GMI, launched in 1998 by nine mining companies from around the world, set out to re-define the role of the global mining industry in relation to sustainable development. The Toronto
conference, which was the third and final component of the three year GMI, was attended by a
cross-section of society sharing a common resolve to work towards achieving a greater
contribution to sustainability by the sector. The importance of international standards and norms
to guide corporate operations was discussed, and in this context attention was drawn to a role for
the OECD Guidelines for MNEs. The outcome of the GMI process will contribute to the
forthcoming World Summit on Sustainable Development.
Inquiries
A number of inquiries about the Guidelines have come to the NCP in the past year. Inquiries
received via e-mail are often from think-tanks and academic institutions looking for information
on Canada’s experiences with the Guidelines. Other inquiries come through meetings with
businesses or non-governmental organizations. The purpose of such meetings is usually to
discuss issues related to corporate social responsibility, and in this context an inquiry will be
made about the OECD Guidelines and their relevance to the situations in question. As well, the
Guidelines are occasionally raised in the public’s correspondence to Ministers.
Implementation in Specific Instances
Canada’s NCP received one notice of a specific instance of MNE conduct in relation to the
Guidelines. The notice, which was received in July 2001, was the first in the history of the
Canadian NCP. It was brought to the attention of the NCP by an international non-governmental
organization through its affiliated Canadian organization. After a preliminary assessment the case
was deemed to merit further examination.
The case involved the operations of a copper mining company in Zambia. The company,
formerly state-owned, was acquired jointly by two foreign firms - one Canadian, one Swiss - in
March 2000. The Government of Zambia retained a minor stake in the operations. The NGO
reported that the operations of the company were not respecting three OECD Guideline
recommendations: 1) Chapter II, paragraph 2, regarding respect for human rights; 2) Chapter II,
paragraph 7, regarding development of practices that foster confidence and trust between
companies and the societies in which they operate, and; 3) Chapter V, paragraph 2(b), regarding
communication and consultation with communities on environmental, health and safety policies.
The central underlying issue that gave rise to these charges was the impending removal of poor
local farmers from company-owned land.
To address this issue, the Canadian NCP facilitated a flow of communications between the
company’s headquarters in Canada and the Canadian office of the NGO. All communication
flowed through the office of the NCP. Both Canadian parties in turn communicated with their
operations in Zambia where face-to-face meetings took place. While there was a variance in the
facts and opinions reported on each side, a resolution was reached after the company met with
groups from the affected communities and worked out an approach whereby the farmers could
continue to use the land, at least for the short-term. The Canadian NCP sent a final
communication to the Canadian company, copied to the Canadian NGO, that welcomed the spirit
of cooperation demonstrated by both parties. We also encouraged the company to maintain an
open line of communication with the Canadian NGO and other groups concerned about the
welfare of people affected by the operations of the Zambian mining company. Throughout the
process, the Canadian NCP kept its counterpart in Switzerland informed of developments.
Other Issues
The NCP has shared communications with its French counterpart concerning a Canadian
company’s former operations in France. The matter is the subject of ongoing discussion between
the two NCPs.
Concluding Remarks
The OECD Guidelines for Multinational Enterprises has become an important element of the
Government’s approach to promoting corporate social responsibility, domestically and
internationally. The interdepartmental structure of the NCP facilitates the promotion of the
Guidelines within the Government and with departmental constituencies, including business,
labour and NGOs. The NCP looks forward to further promotional activities in the coming year.
Canada’s one experience with a Guidelines case resulted in a positive outcome. The approach
adopted by the NCP to facilitate a resolution drew significantly from the Procedural Guidance
annex of the Guidelines Decision. With the full cooperation of the parties concerned, this
approach offered a non-judgmental process for confronting a complex social problem related to a
foreign investment activity. Essentially, the process facilitated a dialogue, and the dialogue led to
a resolution.
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