Title: Responsible Business Conduct in the Extractive and Minerals Sector in Latin America and the Caribbean
Author/Institution: OECD – Centre for Responsible Business Conduct Publication Year: 2022
The 2022 OECD report Responsible Business Conduct in the Extractive and Minerals Sector in Latin America and the Caribbean delivers a region-wide assessment of governance challenges in mining, oil, and gas industries across seven key countries (Argentina, Brazil, Chile, Colombia, Mexico, Panama, and Peru). Leveraging a 2021 business survey and publicly available data, the report outlines how extractive operations contribute to GDP and foreign investment—but also raise pressing issues around human rights, labor conditions, environmental impact, and local community relations. It synthesizes trends in corporate policies, regulatory gaps, and stakeholder expectations while avoiding country-specific judgment, instead providing a structured overview to inform better business and policy choices.
A standout finding is the inconsistency between the presence of corporate RBC(Responsible Business Conduct) policies and their implementation. While many companies report embedding sustainability commitments—like aligning with the SDGs or UN Guiding Principles—into their operations, fewer demonstrate actual due diligence, traceability, or public reporting. Notably, only a minority conduct risk assessments across extended supply chains, and less than one-third offer supplier training or transparent disclosure of their practices. This implementation gap signals deeply rooted weaknesses in supply-chain governance and stakeholder accountability.
This analysis aligns directly with this week’s focus on social license to operate. It underscores that legitimacy in extractive sectors depends not just on legal permits but on robust, transparent business conduct that genuinely includes affected communities. For mining companies and regulators, the lesson is clear: building or restoring social trust requires moving beyond policy declarations to actual uptake of due- diligence systems, public reporting, risk mitigation, and inclusive stakeholder engagement. Only through these actions can extractive industries in Latin America earn and maintain their social license, ensuring shared, sustainable development rather than extractive harm.