The Canadian government recently opened an office of Corporate Social Responsibility (CSR) in order to help their mining and extractive industries achieve their CSR responsibilities. Canadian mining companies have come under considerable scrutiny lately. One report, which received much attention in the global media, labeled Canadian firms among the worst in the world for their negative environmental impact and poor community relations.
As European governments continue to divest in Canadian mining firms, some argue the Canadian government ought to have stricter regulations in place to prevent negative social and environmental impacts. Historical evidence supports claims of mismanagement and shows a pattern of neglecting environmental and social impact. Activists and leaders from some of the communities where Canadian mining firms are conducting business have complained about the effects of mining on their health and contamination of the surrounding natural resources and environment, including local water supplies. Those representing the industry argue that NGO reports on firm activities are biased and exaggerate the negative impacts of their activities.
We do not have sufficient information to determine whether NGO reports on the Canadian mining industry are indeed exaggerated. However, a combination of the Canadian mining industry’s zeal to mine areas in developing countries of potential great wealth, the desire by developing nations to foster foreign direct investment in their countries, and current international and domestic laws and regulations are not sufficient to mitigate the vast negative environmental and social impacts that pervade the extractive industries.