1. CSR and the Law: Learning from the Experience of Canadian Mining Companies in Latin America In Sagebien and Lindsay, eds., Governance Ecosystems: CSR in the Latin American Mining Sector Presentation by Kernaghan Webb, Associate Professor, Department of Law and Business Ted Rogers School of Management Founding Director, Ryerson Institute for the Study of CSR December 8, 2011

2. Basic position Corporate social responsibility and the law are complementary approaches for addressing the environmental, social and economic (ESE) challenges associated with mining in Latin America (LA) Canadian law, host country law (in LA countries) and international law all play roles in shaping mining behaviour in LA CSR a proactive approach to addressing ESE issues, thereby potentially minimizing the need for formal resort to law CSR potentially particularly important in LA jurisdictions, where: formal governance capacity (including law) is often weak; poverty and corruption is widespread; and indigenous populations are large & disadvantaged

3. CSR defined Federal government def’n: the way businesses achieve an integration of ESE objectives while at the same time addressing stakeholder expectations & sustaining or enhancing shareholder value…builds on base of compliance with law, & typically includes “beyond law” commitments ISO 26000 definition: comparable to Cdn : based on law and compliance with international norms, stakeholder expectations

4. Role of law “Long arm” Canadian law: corporate law (director duties: Wise and BCE decisions); securities law (“materiality”); tort law; anti-corruption law Latin American law: national mining law, environmental impact assessment, pollution control, worker health and safety, royalties, indigenous, referendums International law/norms (variable status and application): Universal Declaration on Human Rights, ILO Convention 169, OECD MNE Guidelines, Inter-American Human Rights

5. In practice…. Blackfire Mexico…. Goldcorp/Marlin Mine, Guatemala…. Copper Mesa, Ecuador…. Bottom line: proactive CSR measures to address ESE issues can reduce likelihood of conflict and litigation, can increase likelihood of cooperation among stakeholders, and optimize benefits for all parties

6. Thank you! Dr. Kernaghan Webb Associate Professor, Law and Business Department Ted Rogers School of Management Founding Director, Ryerson Institute for the Study of CSR kernaghan.webb@ryerson.ca