Canada’s CSR Law

The economic, legal, social, ethical and discretionary expectations that society has regarding the activities of the private sector corporations is known as Corporate Social Responsibility (CSR).

Importance of CSR to business

Organizations operating in an economically, socially and environmentally responsible manner succeed more than others. These companies also go on to encourage shared value and social license. It is important to manage and mitigate the social and environmental risk factors if businesses want to be successful. As more Canadian firms go on to take advantage of global opportunities, the understanding of incorporating responsible business practices into investments and operations abroad will benefit the local economies along with the communities.

It also makes for good business sense.

How Does the Government of Canada Support CSR?

There are a variety of initiatives in place by the Government of Canada that demonstrate that Canada has a longstanding commitment when it comes to promoting responsible business practices. The government, through its actions, facilitates the commercial success of Canadian companies active abroad. At the same time, it enhances the contribution of their activities to facilitate economic growth of Canada and its trading partners, which includes developing and emergent economies. The government works with the Canadian business community, civil society organizations, foreign governments, and communities, along with other stakeholders to encourage and promote business practices that are ethical and responsible in nature. This adds support to sustainable economic growth and shared value.

Canada’s Comprehensive Approach to Supporting CSR

The Canadian Government provides Canadian businesses with CSR-related guidance, through Canadian embassies and missions abroad. The government recognizes the fact that the actions of the company alone do not guarantee either commercial success or sustainable local benefits. A wide range of interlocutors work with The Government of Canada’s effort to promote CSR. The Canadian government’s network of diplomatic missions abroad is responsible for active promotion and understanding of the importance of responsible business practice. These promotions also create opportunities for relationship building through conferences, workshops, and other activities. These other activities include companies, representatives of host governments, and civil society. In addition to that, Canada has been providing funds to various CSR projects and initiatives around the world.

Voluntary Dispute Resolution Mechanisms

The Government’s CSR efforts many a times are aimed at encouraging positive relations between organisations and its shareholders. When deemed necessary, the company has two mechanisms in place to assist the organisation. These dialogues include

• community dialogue facilitation

• conflict resolution

To get more information regarding the efforts of the Government of Canada on CSR internationally, visit Foreign Affairs, Trade and Development Canada’s (DFATD) CSR E-Bulletin. It will provide you with relevant and up-to-date information detailing DFATD and the Government of Canada’s CSR initiatives. In case you wish to be added to the distribution list, you can send a message to

As the legal landscape continues to evolve, corporations will be facing increased exposure to and extended liabilities related to CSR. Prowse Chowne understands the underlying complexities and can help you plan and respond to various CSR demands.