Document Type
Article
Publication Date
2025
Keywords
CSR, ESG, social disclosure, Securities and Exchange Commission (SEC), Ontario Securities Commission (OSC), mining, Tahoe Resources, transnational corporate accountability, human rights
Abstract
The transnational corporate structure of mining companies makes it challenging to conduct independent investigations of allegations of social or environmental harm. A parent company can hide behind a multitude of subsidiaries in a multitude of jurisdictions to avoid liability. This article explores one way to bypass these corporate structures through the disclosure requirements of securities legislation. When a parent company fails to disclose social conflict or lack of Indigenous consent at a project, investors may be harmed when the stock price falls. This article describes six empirical studies, supported by extensive macro studies, which show that when social conflict or lack of Indigenous consent in extractive projects become public, the share price falls. I highlight the case of Tahoe Resources in Guatemala that had one of the largest silver mines in the world, whose stocks were worth almost $US 26, but was sold to another company at $US 3.40 when a court in Guatemala ordered the mine suspended because of a failure to consult Indigenous people. We show that company corporate social responsibility (CSR) projects and third-party analyses of Environmental, Social and Governance (ESG) factors are not designed to disclose specific problems at specific projects, and consequently do not provide investors and analysts the information needed to properly value the company's securities. Because companies have generally failed to disclose pertinent information under voluntary guidelines, we conclude by providing concrete suggestions for mandatory disclosure on social conflict and Indigenous consent. The implementation of a mandatory reporting regime will not provide any direct redress to communities or Indigenous communities that are harmed, but it may affect company behaviour, and certainly it will help investors.
Repository Citation
Imai, Shin, "Social Conflict and Indigenous Consent in Mining: A Primer on CSR, ESG and Social disclosures to Investors" (2025). All Papers. 389.
https://digitalcommons.osgoode.yorku.ca/all_papers/389
Included in
Human Rights Law Commons, Indigenous, Indian, and Aboriginal Law Commons, Oil, Gas, and Mineral Law Commons
Comments
"Draft 21 December 2024. Any comments or corrections welcome."