Annual Report 2007
Canada's National Contact Point
For the OECD Guidelines for Multinational Enterprises
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 2006 - June 2007).
The Canadian Policy Context
The Guidelines continue to be an
important element of the government’s approach to promoting corporate social
responsibility (CSR). A number of federal government departments are active in
this area, through activities such as information dissemination, facilitation
of dialogue among interested parties, promotion of
CSR in international fora (such as the OAS and the
G8) and support for the development of international norms. The
Guidelines are a central part of these activities, their contribution
heightened by the fact that they represent the shared views of thirty-nine
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
offer a frame of reference for private sector initiatives and the NCP serves as
a mechanism to facilitate cooperation between the government and the business
community in the promotion of CSR. The Guidelines and NCP also provide a forum
for engagement with other key stakeholders, such as labour groups and
non-governmental organizations (NGOs) on CSR issues.
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 broader policy
objectives of the Government.
2006 National Roundtables on Corporate Social
Responsibility and the Canadian Extractive Sector in Developing Countries
In June 2005, the Subcommittee on Human Rights and
Development of the Standing Committee on Foreign Affairs and International
Trade (SCFAIT) submitted a report to Parliament entitled Mining in
Developing Countries and Corporate Social Responsibility. The report emphasized that a greater role
for government is warranted to ensure that Canadian companies have the necessary
knowledge, support and incentives to conduct activities abroad in a socially
and environmentally responsible manner.
The Government of Canada tabled its response in October 2005, which
included a commitment to organize a series of Roundtables to explore the issues
raised in the report in more depth.
Following this response, the Government of Canada, led by
the Department of Foreign Affairs and International Trade (DFAIT), hosted four
public Roundtables on Corporate Social Responsibility (CSR) and the Canadian
Extractive Sector in Developing Countries. These Roundtables were held from
June to November 2006 in Vancouver, Toronto, Calgary and Montreal. The Roundtables
were a consultation process to engage industry, civil society and the public in
a solutions-oriented discussion on how to enable the Canadian global extractive
sector to better identify and manage the social and environmental risks of
their operations.
To coordinate the National
Roundtables process, DFAIT established a Steering Committee composed of nine
government departments and agencies (DFAIT, Industry Canada, Natural Resources
Canada, Environment Canada, Export Development Canada, Indian and Northern
Affairs Canada, Canadian International Development Agency, Justice Canada and
the Privy Council Office) as well as an Advisory Group made up of
non-government experts drawn from across stakeholder groups (civil society,
labour, industry, investment sector and academics) acting in their expert
capacity. This multi-stakeholder
Advisory Group was established to work with the Government to jointly plan and
implement the Roundtable process.
Over the course of the
Roundtables, 156 oral presentations were heard and 104 written submissions were
received. Almost half of the submissions
were from civil society and labour organizations, one quarter from industry,
and the remainder from academics, research institutes, and members of the
public. The Roundtables also benefited from the participation of a total of 57
prominent Canadian and international experts.
Throughout this process, representatives of Canada’s National Contact Point provided input into the
development of these Roundtables and participated in the events.
The Advisory Group for the National Roundtables on CSR and
the Canadian Extractive Sector in Developing Countries released the
"Advisory Group Report", which is the final output of this year-long
consultation process, on 29 March 2007.
The Advisory Group Report
recommends the development of a “Canadian CSR Framework” that knits together a
set of standards Canadian extractive sector companies are expected to meet, a
reporting scheme to monitor the adherence to those standards, a compliance
mechanism that facilitates dispute resolution, and a host of incentives and
tools designed to assist companies in meeting the standards. There are also a
series of recommendations to assist with the capacity building of
host-countries and communities that focus on, inter alia, transparency and
corruption.
This report is non-binding for the Government of Canada.
However, its recommendations provide valuable input to a government response,
which is currently being prepared through an interdepartmental process. More information can be found on the
roundtables at the following address: www.CSRExtractiveSectorRoundtables.ca
Institutional Arrangements
The key responsibilities of Canada’s NCP are to promote the Guidelines, respond to inquiries
and contribute to the resolution of specific instances of corporate conduct in
relation to the Guidelines. 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 Department of Foreign Affairs and International Trade, Industry Canada, Human Resources and Social 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 broad spectrum of public interest (business, labour,
NGOs) 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.
NCP representatives exchange communication frequently and meet as required,
depending on the issues at hand. The role of NCP Chair rests with the
Investment Trade Policy Division of the Department of Foreign Affairs and
International Trade.
The Canadian NCP’s
key business and labour interlocutors on the Guidelines are the Canadian
Chamber of Commerce (CCC), the Canadian Labour Congress (CLC)
and the Confédération des syndicats
nationaux (CSN). The NCP also has frequent contact
with domestic and international NGOs.
Information and Promotion
a) Information and Promotional Tools
The Canadian NCP web site is a useful tool for promoting the
Guidelines. It 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 CSR.
Overall, the web site offers a convenient point of reference for a growing
number of Canadian organizations and businesses that are seeking information on
CSR.
An updated version of the Canadian NCP website was recently
published in order to increase transparency regarding the submissions received
and the implementation of specific instances.
b) Promotion with Social Partners
More focus is being given to the extractive sector (mining, oil and gas).
Because Canada is a major player in the global extractive sector, both the
Canadian Government and the Canadian industry share an interest in maintaining
a positive image of Canada in this sector, and ensuring that Canadian
businesses contribute positively to the broader social and environmental
objectives of the communities in which they operate. Promoting the Guidelines
in this sector is a concrete way for the Government to engage Canadian
companies in supporting these objectives
As previously mentioned the Canadian NCP provided input
into the development of the “Canadian National Roundtables on CSR and the
Canadian Extractive Industry in Developing Countries” which took over the
course of 2006. This was an excellent opportunity to make the Guidelines and
the Canadian NCP better known to the various stakeholders involved in this
process.
The
NCP has also been providing support and advice on the OECD Guidelines and to
the Canadian Government Working Group on the
Democratic Republic of Congo in their development of a strategy on corporate
social responsibility (CSR) in the mining
sector.
Canadian
embassies and high commissions abroad attract many Canadian firms interested in
expanding their international business operations. As a result, these overseas
posts are an excellent vehicle for the promotion of the Guidelines in
cooperation with the business community. As mining is the single largest sector
of Canadian direct foreign investment in the Americas,
our embassies in this region are particularly focussed on incorporating
CSR-relevant information, including references to the Guidelines, in the
briefings they give to their Canadian clients. They also communicate the
Government of Canada's commitment to CSR to both Canadian and local business
audiences, and ensure that host governments are aware of their CSR initiatives. In March 2007, for instance, the Canadian
Embassies in Ecuador, Peru and Guatemala organised CSR seminars attracting among others NGOs, local
political authorities and representatives of Canadian companies, especially in
the mining sector.
Industry
Canada
continues to promote the OECD Guidelines as part of its suite of CSR
activities to strengthen the capacity of Canadian businesses to develop and use
CSR practices, tools, and knowledge to
achieve positive social, environmental and economic performance results. For
example, in its last Sustainable Development Strategy, the Guidelines were used
to help shape departmental commitments for the next three years. Commitments
include: broadening and deepening CSR
promotion to make the CSR approach more
mainstreamed; developing the knowledge base with respect to CSR
tools, voluntary standards, best practices, and data bases, and; augmenting CSR
reporting by industry. A variety of actions are being pursued to help meet
these commitments.
Environment Canada is actively collaborating with the private sector,
academics, non-governmental organizations and other government departments to
explore CSR principles and policies that encourage and support
corporate sustainability leadership and are broadly aligned with the principles
of the Guidelines. For example, Environment Canada's Sustainable Development
Strategy includes commitments to provide the information, tools, and best
practices that will enable market actors to better integrate environmental
considerations into their decision-making and thereby to strengthen the
business case for sustainability performance. These commitments build on the
departments existing work and knowledge base with respect to: ascertaining
where the business case for environmental and social performance is strong and
seizing opportunities to advance CSR
when they arise; encouraging, advancing and recognizing CSR
best practices; developing and disseminating CSR
tools, reporting approaches and domestic and international voluntary standards;
and, supporting the development of human capital and human resource skills to
strengthen CSR expertise.
Canadian agencies that work with the private sector
internationally continue to promote awareness of the Guidelines among their
partners. This is the case, for instance, of the Canadian International
Development Agency (CIDA). CIDA raises awareness of the
Guidelines among its partners and stakeholders in the private and other sectors
through participation in outreach events across Canada, e.g. International Development
Days. CIDA has supported initiatives to
encourage sustainable business practices among local or foreign enterprises in
developing countries with a view to supporting a positive contribution by the
private sector to poverty reduction.
Export Development Canada’s (EDC)
commitment to Corporate Social Responsibility (CSR) principles and standards
includes the promotion of the Guidelines.
EDC supports the NCP’s efforts to promote the
recommendations of the Guidelines within the Canadian exporting and investing
community. EDC meets with its customers,
various business associations, NGOs, and other stakeholders on CSR issues as
part of its efforts to promote ethical corporate conduct and continue a
dialogue with these groups. Issues
relating to the Guidelines, such as the environmental and social impacts of projects,
anti-corruption and anti-bribery efforts, and human rights are discussed, when
relevant. In addition, EDC also promotes
the Guidelines through its website.
c) 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, labour groups 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 interdepartmental structure of the
NCP greatly facilitates promotion within government.
The Department of Foreign Affairs
and International Trade (DFAIT) provides information sessions on the Guidelines
for overseas trade officials. The provision of Guidelines information is also a
part of human rights training for government officials preparing for overseas
postings. In 2006, DFAIT also provided information on the Guidelines on the
occasion of a presentation on CSR to the “Industry Sector Young Professionals
Network” in Industry Canada.
Canada's Trade Commissioner
Service recognizes the importance of including CSR as an aspect of its
promotional activities. As part of their regular training, Canada's trade commissioners
are encouraged to incorporate the promotion of CSR (including the Guidelines)
into the delivery of the core services provided to Canadian companies operating
abroad. In early
2007, the Trade Commissioner Service developed a course on CSR, including a
session on the OECD Guidelines. The pilot course was held on May 16, 2007.
Industry Canada
continues to promote the Guidelines as part of its work activity to improve the
coordination and advancement of corporate responsibility and sustainability
within federal activities (e.g., federal sustainable development strategies).
This also involves working in international fora,
such as the OECD, and domestic conferences to improve the Department’s knowledge
and understanding of CSR and related practices. Industry Canada
works closely with a number of other federal departments to build more
cooperation and collaboration on the promotion of CSR practices. This
interdepartmental group collaborates closely with the NCP.
Environment
Canada works closely with other federal departments on the
development and implementation of projects to support and advance CSR
principles and practices relevant to the Guidelines. This includes the
administration of a memorandum of understanding between the departments of
Natural Resources, Industry, Foreign Affairs and International Trade and
Environment for collaboration on projects that specifically relate to:
development and dissemination of information that supports CSR and sustainability
decision-making; increasing understanding of the business value of CSR and
sustainability; and, development and dissemination of information on the use of
CSR and sustainability tools to a broad range of companies.
CIDA is promoting the Guidelines through
internal knowledge networks comprised of officials working in private sector
development and governance. The Guidelines are also being mainstreamed in work
on conflict prevention and on poverty reduction in fragile states.
The
Labour Program of Human Resources and Social Development Canada is a member of
the Canadian NCP with particular interest and expertise with respect to the
labour principles. The Program manages
Canada's participation in the International Labour Organisation (ILO) and
promotes respect for the ILO Declaration on Fundamental Principles and Rights
at Work which embodies the following fundamental principles and rights: freedom
of association and effective recognition of the right to collective bargaining;
the elimination of all forms of forced or compulsory labour; the effective
abolition of child labour and; the elimination of discrimination in respect of
employment and occupation. These principles are part of the OECD Guidelines and
are also included in the ILO Tripartite Declaration of Principles Concerning
Multinational Enterprises and Social Policy.
Inquiries
A number of inquiries about the Guidelines were received by
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 NGOs. Often such inquiries are about
the nature of the Guidelines and their possible application in certain
situations. The media made a number of inquiries in the past year, as well,
mostly related to the Standing Committee on Foreign Affairs and International
Trade report on Mining in Developing Countries and Corporate Social
Responsibility and the Government of Canada response to the report. As well, the Guidelines are occasionally
raised in the public’s correspondence with Ministers.
Submissions and
Implementation in Specific Instances
No submission or specific instance was dealt with by the
Canadian NCP during the current reporting year.
Concluding Remarks
The OECD Guidelines for Multinational Enterprises continue
to be a central 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 new opportunities in the coming year to promote
the Guidelines. The NCP will also follow up as required to the Government’s
response to the Advisory Group’s Report on CSR and the Canadian Extractive
Industry in Developing Countries.
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