An Analysis of Canada's Corporate Social Responssibility (CSR) Strategy for the Canadian Extractive Industry

Abstract

Canadians take pride in their country’s commitment to global poverty reduction through the delivery of Canada’s Official Development Assistance (ODA) programs which are funded through tax payer’s revenue. They also share their government’s vision of responsible mining abroad as encapsulated in the “Building the Canadian Advantage.’ This Capstone Project explores the implication of Canada’s policy shift which aligns the delivery its Official Development Assistance(ODA) programs to its economic interest abroad to determine whether the implementation of Canada’s International Extractive Sector (CSR) Strategy is a subsidy to Canadian mining corporations operating abroad by asking whether Canada would remain consistently committed to its Official Development Assistance(ODA) programs under this new policy regime and also whether Canada will be better off as a major foreign aid donor by adopting mandatory regulatory CSR strategy for its international extractive industry. The Capstone Project is explored through qualitative research technique using case study approach. To this end, a study of the cases reviewed by the CSR Counsellor’s Office between 2009 and 2013 in the performance of its dispute resolution role was carried out. Also, the research evaluated Canada’s partnership in the delivery of Official Development Assistance (ODA) for the same period. From available data and analysis carried out, there is no evidence which supports the claim that “Building the Canadian Advantage” is a subsidy to mining corporations operating abroad in the delivery of Canada’s ODA programs. Similarly, there is no direct evidence which suggests that corporations involved in the CSR Counsellor’s review partnered with CIDA in the delivery of Canada’s Official Development Assistance (ODA) delivery between 2009 and 2013. Along this line, this Capstone Project recommends that Government of Canada should continue to promote and support Corporate Social Responsibility (CSR) best practices in its international extractive sector while it should also focus on delivering its Official Development Assistance (ODA) programs to vulnerable people around the world in demonstration of its commitment to global poverty alleviation and sustainable development. However, the Government of Canada should empower the Office of the Canadian Extractive Sector Corporate Social Responsibility (CSR) Counsellor in the performance of its oversight function in the implementation of the endorsed performance standards of the International Extractive Sector CSR Strategy by allowing the CSR Counsellor to exercise mandatory regulatory power over Canadian mining corporations operating abroad.