Mr. Speaker, the Government of Canada expects Canadian companies active abroad to respect human rights, to operate transparently and in consultation with host governments and local communities, and to work in a socially and environmentally responsible manner while respecting applicable laws. Companies are also expected to adopt best practices and internationally respected guidelines on responsible business conduct and to take measures to meet anti-corruption objectives.
Canada pursues a balanced approach to responsible business conduct, RBC, which includes prevention, legislation and access to remedy.
In terms of prevention, the Government of Canada provides guidance on preventive measures that Canadian companies can take to mitigate risks in various markets and builds awareness about tools available to support company efforts. The Government of Canada endorses and promotes RBC standards and guidelines, including the OECD’s “Guidelines for Multinational Enterprises” and the UN’s “Guiding Principles on Business and Human Rights”.
With respect to mandatory measures, Canada has adopted legislation addressing critical issues related to RBC, such as corruption, transparency and forced labour. For example, Canada has made it a criminal offence to offer a bribe to a foreign public official under the Corruption of Foreign Public Officials Act; under the Extractive Sector Transparency Measures Act, Canada requires extractive companies listed in Canada to declare all taxes paid and where they are paid; and, in July 2020, amendments to the Customs Tariff made it illegal to import products manufactured wholly or in part through forced labour. This prohibition applies to imports from all foreign sources and is enforced at the border by border services officers. Importers are ultimately responsible for ensuring compliance with the prohibition and are encouraged to work with their foreign suppliers to ensure that any goods being imported into Canada have not been mined, manufactured or produced wholly or in part by forced or compulsory labour. Canada has also committed to enacting supply chain legislation.
Canada provides access to remedy through two dispute resolution mechanisms: The Canadian ombudsperson for responsible enterprise and the national contact point for the Organisation for Economic Co-operation and Development’s “Guidelines for Multinational Enterprises”. If a Canadian company does not co-operate in good faith with Canada’s dispute resolution mechanisms, a recommendation may be made to withdraw or deny trade commissioner service support. A recommendation may also be provided to Export Development Canada and the Canadian Commercial Corporation to also withhold future support.