Opinion: Companies will regret not co-operating with Canada’s watchdog for corporate abuses

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The likes of Diesel, Hugo Boss and Walmart’s lack of co-operation with Canada’s new Ombudsperson for Responsible Enterprise is surprising

), the country’s watchdog for corporate abuses outside Canada, has had a busy summer. On Aug. 24, it published initial assessment reports on three companies: Diesel Canada Inc., Hugo Boss Canada Inc. and Walmart Canada Corp. These are in addition to the first four reports it published, earlier this summer, on five other companies.

The one company that fully co-operated, GobiMin Inc., will be subject to no further investigation. Instead, it has been issued with a set of recommendations about implementing human-rights due diligence. People and organizations can file complaints with CORE about possible human-rights abuses arising from the operations of Canadian garment, mining, and oil and gas companies outside of Canada. CORE’s remit extends to Canadian-registered subsidiaries of foreign companies.

A negative report by the ombudsperson will likely cause significant reputational damage to the company in question. It will be interesting to see how third parties, notably investors, react to the first full CORE reports.

 

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