Corporate accountability and diplomatic liability in overseas extractive projects

• Published in: The extractive industries and society 2021-03, Vol.8 (1), p.467-476
• Main Authors: Charles, Melisha, Billon, Philippe Le
• Format: Article
• Language: English
• Subjects: Accountability; Corporate social responsibility; Diplomacy; Environmental defenders; Extractive industries
• ISSN: 2214-790X
• DOI: 10.1016/j.exis.2020.12.001

•Attempts at creating accountability for Canadian companies by federal lawmakers have not succeeded.•Canadian diplomats promote overseas mining without without sufficient liability.•Court judgements open the door to litigation in Canada for alleged overseas human rights violations.•Diplomatic liability over the promotion of harmful overseas extractive projects should be advanced as part of home-state responsibility. The activities of multinational mining corporations in the developing world have come under increased scrutiny, and so has the failure of their home governments to regulate the negative impacts of their activities on host communities. Attention on regulatory instruments available for home governments has so far mostly focused on investment guidelines for investment abroad, export credit risk assessments and conditionalities, and extra-territorial court proceedings to bring some accountability. In contrast, little attention has been given to the potential liability of home country diplomats, who actively promote these activities while being aware of potential environmental risks and the likelihood of human rights abuses. Despite attempts by human rights activists, scholars, and Members of Parliament, the Canadian Government still inadequately addresses allegations of impacts ranging from physical abuse to killings and modern slavery. Instead, Canadian diplomats continue promoting mining interests abroad, often at the cost of human rights, and consequently, in contravention of policies to which they are required to adhere. This paper argues that in the absence of government will to regulate the conduct of Canadian companies abroad, hope to effectuate substantial change rests with the judiciary and in pushing for reform in the way diplomatic liability is addressed as part of the broader concept of home-state responsibility over the conduct of extractive companies.