Corporate Social Responsibility (CSR) in Canada

Corporate Social Responsibility (CSR) refers to the voluntary accomplishments that a company undertakes in order to carry out its operation in an environmentally, economic, and social sustainable manner. It does not only involve behaving in a socially responsible manner but as well doing things the right way (Paetzold, 2009). CSR has a numerous benefit to companies and to the states. Undoubtedly, the reason why states are more concerned about the CSR of their international companies operating in other states is to promote their image internationally. This paper aims to outline the commitments of Canada in respect to addressing CSR issues in order to boost its international image.

The Canadian government recognizes that responsible corporate behaviors by its companies operating in other states do not only augment their business success chances but as well, it contributes to economic benefits of the host country and as well as that of Canada. Operating and investing responsibly additionally plays a substantial part in enhancing Canadian ideals internationally and in addition to promoting sustainable development within the communities. Therefore, the Canadian government has been a proponent of responsible business practices for long through encouraging and expecting Canadian companies operating in other states to respect the applicable laws of the host country and the international standards. Moreover, it expects its international companies to operate in a transparent manner and to consult with the local communities and the host governments in order to carry out their activities in an environmentally and socially responsible manner.

The Canadian companies have invested heavily in the extractive sector in other countries. In fact, its extractive sector has helped its economy to grow enormously. Some of its major extractive companies operating in other states include mining, natural gas, and oil industries. These companies have contributed to an economic growth of the host countries in which they operate as well. In fact, Featherby 2011 supports this claim by stipulating“… the government of Canada held a series of multi-stakeholder roundtable discussions on CSR and the Canadian extractive sector in developing countries” (125). Undeniably, due to the concern of the Canadian government to maintain its international image as far as CSR is concerned, in 2009, it introduced its first CSR strategy entitled “Building the Canadian Advantage: A Corporate Social Responsibility Strategy for the Canadian international Extractive Sector” (Sagebien and Lindsay, 2011).

Through this strategy, the Canadians and the relevant international stakeholders respond to social and environmental performance concerns in respect to gas, mining, and oil firms abroad. The major aim of the strategy is to develop the competitive gain of Canadian extractive sector firms through enhancing their capability to manage environmental and social hazards. Through this policy, the Canadian government recognizes that, though most Canadian firms operating in other countries might be devoted to the highest social, environmental, and ethical standards, those that might be lacking this devotion could harm abroad communities and thus undermining the competitive status of other Canadian firms (Katamba, 2012).

In my view, the Canadian government has demonstrated its commitments towards CSR in a number of reasonable initiatives. In fact, with the ratification of the outlined 2009 strategy, a clause was included that mandates it be reviewed every five years. In 2014, the strategy was reviewed for the first time by three major Canadian bodies, which are the Natural Resource Canada (NRCan), Trade and Development (DFATD), and the Canada’s department of Foreign Affairs, alongside other government partners. The review comprised of an internal assessment that was based on CSR strategy consultations, online public survey consultation, NRCan researches on extractive companies, and on guidelines by the treasury board. Additionally, “… the 2013 consultations on the Government’s Extractive Sector Strategy also fed into the CSR Strategy review, as many submissions related to the CSR Strategy” (International, 2015 par. 4).

The review results revealed that the strategy has been of importance in helping the government to focus on encouraging Canadian firms operating in other states to focus on CSR issues in order to improve their business activities and maintain a good image internationally. Unquestionably, through these initiatives, the Canadian government shows that it expects Canadian firms operating overseas and especially in developing countries to uphold Canadian ideals through operating with high ethical standards.

In response to what the Canadian government is doing as far as CSR is concerned, it is clear that through the outlined strategies they are among the best-developed states that are concerned with the environmental, social, and ethical issues of developing countries. Note that, overseas companies usually carry out extraction in developing countries.   It of great importance for the overseas companies to observe CSR issues in order to create a good image of their mother state. Arguably, the mother country of these companies should as well have strategies that the companies should adhere to in order to uphold their image internationally. In this case, Canada has a well-laid strategy that encourages its extracting companies operating abroad to observe CSR issues. Equally, the strategy is evaluated every five years to improvement purposes.

References

Featherby, J. (2011). Global business and human rights: Jurisdictional comparisons. London:       European Lawyer/FutureLex.

International.gc.ca,. (2015). Canada’s Enhanced Corporate Social Responsibility Strategy to         Strengthen Canada’s Extractive Sector Abroad. Retrieved 14 June 2015, from http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-  domaines/other-autre/csr-strat-rse.aspx?lang=eng

Katamba, D. (2012). Principles of Corporate Social Responsibility (CSR): A guide for students      and practicing managers in developing and emerging countries. Cork: Publish on   Demand Global LLC.

Paetzold, K. (2009). Corporate social responsibility (CSR): An international marketing      approach. Hamburg: Diplomica-Verl.

Sagebien, J., & Lindsay, N. M. (2011). Governance ecosystems: CSR in the Latin American          mining sector. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.