Sylvain Fabi Senior Trade Commissioner Trade Commissioner Service

1. Sylvain FabiSenior Trade CommissionerTrade Commissioner Service Corporate Social Responsibility December 9, 2008 – Santiago, Chile

2. Agenda • Overview • Canadian CSR Context • Canada’s Approach and Commitment • Role of Government of Canada Abroad • Some Examples • Conclusion

3. OVERVIEW

4. Corporate Social Responsibility (CSR) • The way companies integrate social, environmental, and economic concerns into their values and operations in a transparent and accountable manner • CSR has social and political impacts that implicate governments • CSR: a voluntary practice

5. Corporate Social Responsibility (CSR) • “Corporate Social Responsibility is the overall relationship of the corporation with all of its stakeholders. Elements of social responsibility include investment in community outreach, employee relations, creation and maintenance of employment, environmental stewardship, and financial performance.” – Conference Board of Canada http://www.conferenceboard.ca/

6. CSR in today’s society

7. What are the CSR links between Chile and Canada? • Mining sector is important to our respective economies • Multi stakeholder engagement can lead to obtaining a “social” license to operate • Chilean mining companies investing overseas are engaged in similar debates & facing similar challenges • Canada wants to foster dialogue regarding shared experiences and best practices • Pursue discussions in the context of APEC, OAS and the OECD: Chile is a supporting country of the Guidelines for Multinational Enterprises • Chile has a National Contact Point • Through the Canadian Embassy in Santiago we want to continue engaging with all stakeholders on CSR

8. CANADIAN CSR CONTEXT

9. Canadian CSR context • CSR practices used by Canadian companies in many sectors • Government committed to promote and increase best practices by industry • Interest of civil society, Parliament, media, and industry • CSR National Roundtables 2006 • Broad base engagement by the Government of Canada on CSR performance of Canadian extractive companies operating overseas • Canada's extractive sector a focus due to size of Canadian Direct Investment Abroad

10. Environmental issues Nature of governance & legal framework Indigenous/Community involvement Multi-stakeholder engagement Local benefits and sustainable economic development Predictability of taxes & royalties Capacity to regulate the various aspects of the investment Perceptions and realities Labour standards Security Issues faced by companies & stakeholders

11. Why promote & foster CSR to clients? • The right thing to do • Strengthen community relations • Social license to operate • Risk management • Enhance shareholder value and corporate image • Enhance market competitiveness • Help manage stakeholder relations • Contribute to employee recruitment and retention • Maintain/improve Canada brand

12. CANADA’S APPROACH AND COMMITMENTS

13. Canada’s approach to CSR, Resource Governance and Transparency. • “ Canada encourages and expects all Canadian companies working around the world to respect all applicable laws and international standards, to operate transparently and in consultation with the host government and local communities, and to conduct their activities in a socially and environmentally responsible manner.”

14. CSR: A Shared Responsibility • There is a limit to what support companies are capable of providing to address concerns of the communities within which they operate • Host governments responsible for legislation that meets needs of their citizens

15. Canada’s CSR Commitments • Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises • Extractive Industries Transparency Initiative (EITI) • Equator Principles • International Labour Organisation (ILO) • Canada’s Corruption of Foreign Public Officials Act • APEC, G8, UN, Francophone Summit, OAS

16. Canada's National Contact Point • OECD requirement • Ensure the effective implementation and promotion of the OECD Guidelines • Responsibilities include • promotion • responses • resolution of issues • cooperation • reporting http://www.ncp-pcn.gc.ca/

17. Extractive Industries Transparency Initiative (EITI) • Canada joined the EITI as a supporting country • Strengthens governance by improving transparency and accountability in the extractives sector • Multi-stakeholder coalition • Monitoring & reconciling payments & government revenues • Country-level implementation • 37 of the largest oil, gas, & mining companies committed to the EITI

18. Export Development Canada • Conducts its business in a socially and environmentally responsible manner    • Signed on to Equator Principles • Statement on Human Rights   • Established global community investment partnership with CARE Canada • An EDC representative is co located within the Canadian Embassy in Santiago

19. ROLE OF GOVERNMENT OF CANADA ABROAD

20. Role of Canada Abroad (Canadian High Commissions, Embassies, Consulates) • Facilitate dialogue • Foster informed debate • Advise companies of Canada’s CSR expectations • Refer clients to information, tools, guidelines • Invite experts and speakers on CSR • Report on local CSR issues • Engage host governments

21. CSR initiatives by Canadian Diplomatic missions abroad • Roundtables, Workshops, Seminars, Advocacy • Chile, Senegal, Colombia, Guatemala, Panama, Venezuela, Mexico, Guyana, Brazil, Democratic Republic of Congo, and Trinidad & Tobago • CSR Guidebook for managers • China & Canadian Chamber of Commerce • Mining Tool Kit for Aboriginal Communities • Peru, Philippines, Mali

22. SOME EXAMPLES

23. Canadian Banking sector • Dedicated CSR teams at major Canadian banks • CSR Advisory Committees • Business codes, openness and accountability • Consumption reduction, community investment and green initiatives • Major banks signatories to the Equator Principles: • based on the environmental standards of the World Bank and the social policies of the International Finance Corporation (IFC)

24. Canadian Manufacturing Sector • Automotive • Corporate Constitution and charitable/non-profit contribution • Environmental inspection audits and action plans • Transportation • Community engagement, global value chains • Some companies signatory to the United Nations Global Compact • Oil and Gas • Community Investment, Health, Safety & Environment, Diversity • Engagement with Aboriginal community

25. Canadian Mining sector • Important sector to the Canadian economy • Environmental practices • Meet all environmental standards and laws • Adopted voluntary guidelines and protocols for responsible development • Aboriginal community engagement • Consultation, project review, input • Early and ongoingdialogue • Canadian Industry associations playing an important role to promote & foster Internationally-recognized CSR standards • Growing number of Canadian mining companies signatories to voluntary international standards

26. CONCLUSION

27. Conclusion • Canada a partner in the promotion of CSR • Facing similar debates • Exchange best practices and experiences • CSR a shared responsibility • Internationally recognized guidelines and standards

28. Thank You Louise Leger Tel: (613) 992-8785 Louise.Leger@international.gc.ca http://www.csr.gc.ca http://www.tradecommissioner.gc.ca/