Retail Council of Canada: RCC STORE
Transcript of Retail Council of Canada: RCC STORE
presented by
Brian Burkett and Christopher PigottFasken, IOE Partner Company
Retail Council of Canada:RCC STORESeptember 13-16, 2021
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I. Overarching Themes
Theme 1: Finding a Balance
Economic DevelopmentSocial Progress
Theme 2: The movement, throughout the 21st century, from “soft” to “hard” * law in the Business and HumanRights (BHR) field
* “Hard Law” = mandatory requirements imposed on corporations in terms of its human rights footprint wherever it maintains operations or activities … at home or abroad.
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II. Foundational Documents
The ILO Declaration on Fundamental Principles andRights at Work (the “Fundamental Declaration”): 1998
The UN Guiding Principles on Business and HumanRights (the “UNGP”): 2011
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III. A Short and Sweeping History
• 1945: New World Order POST WWII
• 1995: World Trade Organization (WTO)
• 1998: Fundamental Declaration (F.D.)
• 2011: UNGP
• 2020: UNWG: BHR= launch of “Business and Human
Rights – Towards a Decade of Global Implementation” (July 2020)
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IV. Globalization: Addressing the Social Deficit
A. Focal Point:
= The UNGP*
Pillar 1 = States: Duty toProtect Human Rights
Pillar 2 = Business: Duty toRespect Human Rights
Pillar 3 = Access to Remedy
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IV. Globalization: Addressing the Social Deficit
B. Agents of Change:
1. National Governments
2. Courts
3. Civil Society
4. Investors and Corporations
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National Governments (UNGP: Pillar 1)
1. Mandatory Human Rights Due Diligence (mHRDD)• Bottom-up Model
National Action Plans (NAPs)
• Europe Leading the Way: Great Britain (2015)France (2017)Germany (2021)EU
• The Canadian Experience: COREBill S-216
• Global Supply Chain (GSC)7
National Governments (UNGP: Pillar 1)
2. Trade Deals (FTAs)
• European vs American Approach
• Examples:
European: CETA
American: CUSMA *
* Rapid Response Labor Mechanism (RRLM)
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The Courts (UNGP: Pillar 3)
* Extraterritorial reach of domestic courts in connection with the human rights footprint of Canadian Multinational Corporations (MNCs) with operations and/or activities abroad.
The shift from “soft” to “hard” law:
New Principles: 1. Duty of Care
Vedanta Royal Dutch Shell
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The Courts (UNGP: Pillar 3)
2. Act of State Doctrine Nevsun (SCC: 2020)
3. Customary International Law Nevsun (SCC: 2020)
4. Other Canadian Developments
5. The Significant for Canadian Retailers
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Civil Society (UNGP: Pillar 3)
* MNCs, Trade Unions, NGOs, etc.
The Hague Project A set of mediation/arbitration rules and processes,
specifically designed to deal with unresolved human rights disputes arising out of international commerce
• Origins• Substance• Evaluation• The Future
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Investors and Corporations (UNGP: Pillar 2)
* The previous 3 categories (Governments, Courts, Civil Society)are external to Corporations.
But Is there some fundamental change afoot within the corporate world?
What is ESG, ESG Investing, Impact Investing?
A debate within the business community around the “social purpose” of the corporation.
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Capitalism:
Shareholder Modelvs
Stakeholder Model(or social entity model)
• Financial Capital • Social Capital• Human Capital • Natural Capital
Triple Bottom Line:Profit
PeoplePlanet
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The “S” (Social) in ESG is about:
The UNGP: Pillar 2 Business and Human Rights (BHR)
The “People” component inthe Triple Bottom Line
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Question: What groupings of “people” does a corporation interact with?1. Investors and Shareholders
2. Employees and Suppliers/Contractors (GSC)
3. Local Communities
4. Civil Society
5. Customers
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Note: All Roads Lead to the UNGP
The foundational document on the “S” (Social)component of corporate behaviour within the ESG field is
Pillar 2 of the UNGP:Businesses’ Duty to respect Human Rights (BHR)
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Corporate Requirements
A. A commitment to making respect for human rights a “core” part of the business
B. An ongoing process of “due diligence” as it pertains to the human rights footprint of the corporation:1. Assess its risks to human rights;
2. Take action to mitigate such risks;
3. Track the progress of the measures aimed at mitigating the human rights risks;
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Corporate Requirements
4. Communicate internally, and beyond, the measures taken and results achieved; and
5. Provide a remedy for those harmed by the corporation’s human rights footprint.
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Brian Burkett • Counsel • +1 416 865 4466• [email protected]
Christopher Pigott • Partner• +1 416 865 5475• [email protected]
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