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Corporate Social Responsibility in the Mineral Industry • Issues & Advocacy

Page Index
Overview of CSR
Centre for Excellence in Corporate Social Responsibility
e3 Plus: A Framework for Responsible Exploration
National Roundtables on CSR and the Canadian extractive industry in developing countries
Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries
Sustainable development and corporate social responsibility: Tools, codes and standards for the mineral exploration industry

Overview of CSR
Corporate social responsibility, or CSR, has become one of the most important issues facing the exploration and mining industry. The “above ground” issues can now be equally, if not more, complex and challenging than the ones normally encountered below ground. Exploration and mining companies are expected to adhere to the tenets of CSR and to recognize that they have a duty of care to all their stakeholders, including employees, customers, local communities, and shareholders. The history of CSR is strongly intertwined with the emergence over the past forty years of the environment as a worldwide concern and the eventual transformation of the term into “sustainable development” which incorporates social issues alongside environmental and development ones. A good background article on the evolution of CSR is here.

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Centre for Excellence in CSR
The Centre for Excellence in Corporate Social Responsibility, officially launched on January 13, 2010, is one of four pillars of the Canadian government’s action plan, Building the Canadian Advantage: A Corporate Social Responsibility Strategy for the Canadian International Extractive Sector announced in March 2009. The objective of this web-based resource is to be a repository for information on CSR tools, rules, laws and best practices. The site will also contain practical information and advice on foreign countries, local networks and relevant experiences of Canadian companies, civil society and other stakeholders working abroad. Click here to access the site.

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e3 Plus: A Framework for Responsible Exploration
In March 2009, the PDAC launched e3 Plus: A Framework for Responsible Exploration to help exploration companies continuously improve their social, environmental, and health and safety performance and to integrate these three aspects into all of their exploration programs. Click here to go to the e3 Plus page.

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National Roundtables on CSR and the Canadian extractive industry in developing countries
In a series of four national roundtables organized by the Government of Canada during 2006, the actions of Canadian petroleum and mining companies active abroad were examined in relation to their demonstrating corporate social responsibility. The objective of the roundtables, held in Vancouver, Toronto, Montreal and Calgary, was to generate a report to Parliament presenting “recommendations for government, NGOs (non-governmental organizations), labour organizations, businesses and industry associations on ways to strengthen approaches to managing the external impacts of international business activities to benefit both businesses and the communities within which they work.” Specifically, the roundtables looked at measures that could be taken during the following one to three years to enable Canadian extractive sector companies operating in developing countries to meet or exceed leading CSR best practices. Background to the roundtables.

The final report of the roundtable advisory group, National Roundtables on Corporate Social Responsibility (CSR) and the Canadian Extractive Industry in Developing Countries, was released on March 29, 2007. Two years later, in March 2009, the Government of Canada responded by releasing Building the Canadian Advantage: A CSR Strategy for the International Extractive Sector. Under the new policy, the government commits to the following:

  1. 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.

  2. Promoting international CSR performance guidelines.

  3. Setting up the office of the extractive sector CSR counsellor to assist stakeholders in the resolution of CSR issues.

  4. Supporting the development of a CSR Centre of Excellence.

The full text of the federal government’s CSR policy is here.

The PDAC responded to the federal government’s CSR policy on April 30, 2009. In its response, which contains eleven recommendations, the association points out that it shares the same goal as the federal government and other stakeholders: “to encourage and enable performance improvements in CSR for Canadian companies operating both domestically and abroad, in a transparent and accountable manner.” However, the association states, CSR is only one part of the equation. “The other critical component is host-country governance capacity-building. Reducing the risk of conflict and optimizing the benefits of exploration and mining in developing countries will require attention to both areas if meaningful progress in this complex area is going to be achieved.”

The full text of the PDAC’s response is here.

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Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries
Bill C-300 is a private member’s bill, tabled in the House of Commons by John McKay (Lib., Scarborough-Guildwood) on February 9, 2009. A copy of the bill is here. The bill says Canadian government support to companies in the extractive sectors must be contingent on the highest corporate social responsibility (CSR) standards for human rights and the environment. ‘Support’ includes financial and political support through trade commissioners, the Department of Foreign Affairs and International Trade, Export Development Canada, and the Canada Pension Plan.

The bill received two one-hour debates in the House of Commons before being referred to the Standing Committee on Foreign Affairs and International Trade. Over the fall of 2009, the committee held hearings, and a request for a 30-day extension to accommodate the wide range of witnesses and to complete its clause-by-clause review of the bill was granted. On Tuesday, November 17, 2009, Tony Andrews, PDAC executive director, and Bernarda Elizalde, program director, sustainable development, appeared before the committee. A news release on their appearance is here.

The PDAC is committed to the highest levels of CSR but is opposed to Bill C-300. In its submission to the federal government, the association says that the bill endorses a punitive approach to CSR, encouraging unfounded allegations of wrongdoing that can damage the reputations of companies and force them to incur significant costs to defend themselves. The association’s view is that progress in CSR can result from a collaborative, sophisticated approach and that measures currently being taken by industry, such as e3 Plus, and proposed in the government’s CSR strategy will be more effective.

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Sustainable development and corporate social responsibility: Tools, codes and standards for the mineral exploration industry
In early 2007, the PDAC developed a special publication that summarizes 36 national and international CSR codes, standards and tools. The resources in the publication were selected for their particular usefulness and value to the mineral exploration sector. The publication is divided into three sections. The first contains those resources of most practical use to companies, e.g., checklists and guides. The second section contains codes, standards and guidelines developed by international agencies (some of these are specific to the mineral industry; others are of more general application). The third section comprises background material that provides the context for sustainable development and CSR.
Click here for a copy.

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