A new CNCA research paper assesses the policy and legal framework in Canada to hold multinational corporations to account for human rights and environmental harms caused overseas. Find the full report in English and in French.
The paper focuses on three key issues: binding standards, an ombudsperson and the state-business nexus. The paper concludes that Canadian policy and legal developments have failed to keep pace with international standards, initiatives in leading jurisdictions and civil society proposals.
Binding standards: While the Canadian government recognizes the value of human rights due diligence, it relies on companies to voluntarily adopt this practice. A government commitment to introduce legislation mandating labour rights due diligence remains unfulfilled.
Ombudsperson: In 2019 the Canadian government created the Canadian Ombudsperson for Responsible Enterprise (CORE). Structural and functional shortcomings undermine the office’s credibility. The ombudsperson post is currently vacant and the office’s future is unclear.
State-business nexus: Canada lacks enforceable mechanisms to condition corporate eligibility for government services on compliance with human rights and environmental norms. The government departments and agencies that support corporations lack transparency regarding their operations and decision-making processes.
To remedy these failings, the Canadian Network for Corporate Accountability calls on the Canadian government to:
- implement comprehensive human rights and environmental due diligence legislation. As a first step towards comprehensive legislation, immediately adopt legislation requiring companies to conduct due diligence to prevent forced labour and child labour throughout their supply chains;
- publish the results of its 2024 review of the CORE, appoint an ombudsperson and grant the office the independence and investigatory powers required to realize its potential; and
- adopt measures that improve transparency regarding the operation of government departments and agencies that provide support to companies, and that condition such support on corporate respect for human rights and the environment.
