Mr. Speaker, I want to compliment the member for her enthusiasm and corporate social responsibility. All of us here want to take this seriously.
It gives me pleasure to rise in the House today and speak about what our Conservative government is doing in our approach to supporting and promoting corporate social responsibility, or CSR, particularly with Canada's international extractive sectors operating abroad.
I want to emphasize that this government encourages and expects all Canadian companies working internationally to respect all applicable laws and international standards, to operate transparently and in consultation with host governments and local communities, and to conduct their activities in a socially and environmentally responsible manner.
Our Conservative government works across all sectors and with a wide range of stakeholders to underscore the importance of responsible business conduct, good governance, and meaningful stakeholder engagement, broadly and in the extractive sector specifically.
Canada is a trading nation. Our economy relies on doing business around the world. From the trade perspective, we promote CSR to Canadian businesses because they contribute to our economic success. I want to be clear. The vast majority of Canadian companies conduct their operations in a responsible manner. It is a key reason why Canadian companies are highly regarded and internationally respected. It is also one reason Canada is a global leader in the extractive sector.
Canadian companies operating abroad recognize that responsible business practices are fundamentally important to their ultimate success and to their bottom line, including shareholder value. Canadian companies recognize that a commitment to responsible business practice is a commitment to their own success.
I would now like to turn to a CSR strategy that our government has created.
The CSR strategy was created around a number of core areas. However, much of the focus has been centred on four key elements. These are often referred to as the four pillars of the CSR strategy. They include enhancing the capacities of developing countries to manage the development of minerals, oils, and gas, and the benefit from these resources to reduce poverty; promoting widely recognized voluntary international CSR performance guidelines; establishing the Office of the Extractive Sector CSR Counsellor; and supporting the development of the Canadian Centre for Excellence in CSR.
Other areas of CSR strategy include promoting and recognizing that transparency and disclosure are key to the success of CSR activities. Co-operating with stakeholders for continuous improvement in the implementation of the CSR strategy and extractive sector CSR practices is also very important.
The CSR strategy has proven to be a strong framework by which the government encourages and promotes responsible business practices by Canadian companies working internationally in the extractive sector. The CSR strategy has also garnered strong support from a broad range of stakeholders, including industry, civil society, and host countries.
The government's approach to CSR is based on its commitment to the value of using voluntary mechanisms for dispute resolution, such as those offered by Canada's National Contact Point for the OECD Guidelines for Multinational Enterprises, the NCP. The use of voluntary initiatives based on internationally developed and recognized standards offers a flexible and effective approach to resolving issues of mutual concern, and can advance public policy objectives in a more expeditious and less costly way than relying on regulatory or legislative regimes. Voluntary mechanisms for dialogue and dispute resolution are respectful of the countries that host Canadian companies. It is for those countries, not us, to judge what laws should be in place within the respective jurisdictions.
Compared to the many legal alternatives, non-judicial mechanisms offer a cost-efficient and more accessible alternative for all stakeholders. Voluntary mechanisms also allow relationships to flourish on the basis for creating economic and social benefits for both the company and the host community. Coercive mechanisms shut down dialogue and risk ending positive relationships.
Through the CSR strategy, our Conservative government's efforts are squarely focused on encouraging constructive collaboration and dialogue. This approach is further exemplified by the Canadian Centre for Excellence in CSR, which has been successful in establishing an environment for productive discussion among key industry, civil society, and government stakeholders on sensitive issues affecting Canada's extractive sector.
This government has made a commitment to review the CSR strategy five years following its implementation date. In 2014, I am pleased to report that the government has been active in carrying out this mandate. The review is informed by a comprehensive process that includes round table consultations with industry and civil society, supplemented by an online public consultation process. The Minister of International Trade and his parliamentary secretary also held consultations in the summer and fall of 2013, which has fed into the CSR strategy review.
The preliminary findings of the review confirm that the CSR strategy should continue. It clearly responds to the needs of the host communities and Canadian extractive sector companies operating abroad. We are confident that the CSR strategy will become even better as a result of the broad consultations we have undertaken during the review process.
Everything I have said so far clearly highlights why Bill C-584 is duplicative. It simply restates key elements of the existing CSR strategy. The government already works with the Canadian business community, civil society organizations, foreign governments and communities, as well as other stakeholders, to foster and promote responsible business conduct in countries where Canadian extractive sector companies operate.
The CSR Counsellor's office and the CSR guidelines promoted in the CSR strategy play an important role in assisting companies and facilitating dialogue between project-affected stakeholders to allow for sustainable economic growth in the countries where Canadian companies are active.
This government supports the overall objective of fostering enhanced accountability for the extractive sector, while continuing to address the CSR-related challenges of Canadian firms operating abroad.
However, I urge my colleagues to oppose this bill for three reasons.
First, legally the bill raises several constitutional issues. The bill purports to compel Canadian extractive companies to report on how they conduct their business when they are operating abroad. This clearly falls outside the Government of Canada's jurisdiction. Jurisdiction over how a company conducts its business is primarily provincial. Extractive sector companies do not fall into the federally regulated category. Even for federally incorporated companies, the federal government lacks the jurisdiction to legislate the commercial activities of these companies overseas. As a result, it is likely that any legal action challenging the constitutionality of the bill would be successful.
Second, Bill C-584 duplicates the key elements of Canada's existing CSR strategy, which already articulates how the government provides tools and information to assist Canadian extractive sector companies enhance their ability to manage social and environmental risks abroad. As mentioned earlier, much of the guidance and undertakings recommended in the bill are currently provided by Canada's NCP for the OECD Guidelines for Multinational Enterprises.
Third, the CSR strategy is currently being reviewed. It is therefore premature to put forward this bill when concerns that have prompted its introduction may be addressed following the completion of the CSR strategy review.
For these reasons, I ask all hon. members to vote against the bill, which is legally unenforceable and duplicative and whose consideration is clearly premature, given the ongoing CSR review process.
I have had the privilege of travelling into Central and South America with different committees and have seen some of the different Canadian mining companies operate. I am proud to see how important they think CSR is. In fact, in Peru, it is really interesting. When one looks at the Canadian mining or extractive industries there, they are so highly regarded that other countries are hiring Canadians to help set up and establish their mines because we know how to do it.
I understand the enthusiasm that the member has for this type of legislation and her concerns, but she can rest assured that we are taking these concerns very seriously and already working with many stakeholders to ensure that these CSR concerns are being addressed.