The Carney Doctrine aligns with responsible business conduct |
At the World Economic Forum in Davos back in January, Prime Minister Mark Carney set out what is emerging as his government’s organizing principle: economic growth grounded in resilience, trust, and effective risk management. His message was clear: the new global economy will reward countries and companies that manage systemic risk, build public confidence, and align markets with long-term stability.
It has become the Carney Doctrine.
Canada’s Defence Industrial Strategy – Time to Build.
In his remarks, the prime minister described a new approach that applies both to states and to firms. The implication is significant. Canada’s competitive strategy will no longer rest solely on trade access, natural resources, or capital markets. It will depend increasingly on how well we govern the social, environmental, technological, and geopolitical risks that shape economic performance.
He is to be commended for his efforts in signing agreements and opening new trading patterns. In less than a year, Carney has undertaken an intensive schedule of international travel, opening new trading relationships, and pursuing a wide range of economic partnerships and agreements.
The vision raises an important question: where does Canada’s business and human rights and responsible business conduct agenda fit within the economic framework now emerging?
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The answer is straightforward: it belongs squarely at the centre.
Responsible business conduct is no longer a niche ethical concern. It is increasingly a core economic issue. Companies that manage labour risks, supply-chain vulnerabilities, community impacts, and governance challenges are more resilient, more investable, and better positioned for long-term returns. Investors, insurers, and major buyers already incorporate these factors into their decisions. In other words, effective human rights’ due diligence is effective risk management.
Canada has begun to build the foundations of such a framework. The Canadian Ombudsperson for Responsible Enterprise (CORE) and the Fighting Against Forced Labour and Child Labour in Supply Chains Act are two such initiatives. There are also ongoing discussions around broader due diligence legislation, reflecting the policy direction among advanced economies.
But momentum matters, and this is where questions now arise.
The current government has understandably focused on economic stabilization, productivity, and geopolitical positioning. Yet, progress on the business and human rights file has slowed. The CORE ombudsperson position remains unfilled. Decapitated and kneecapped by frozen funding, the office is limited in its ability to fulfill—let alone expand—its mandate. Similarly, enforcement of the Supply Chains Act has been less than stellar. Limited enforcement, along with limited public analysis, leaves Canadians wondering whether we are serious about expunging slave-made products from our supply chains.
World-class legislation followed by less-than-world-class implementation risks becoming an exercise in hypocrisy. Border enforcement is virtually non-existent.
Slowing down is a mistake because the global context is moving quickly. The European Union has moved forward with corporate due diligence legislation establishing new requirements for large companies to identify and address human rights and environmental risks across their operations and value chains. These are precisely the partners this country is seeking to deepen economic ties with. Alignment is not simply a question of values; it is increasingly a matter of market access and competitiveness.
This logic is entirely consistent with Carney’s long-standing emphasis on systemic risk, financial stability, and market trust. The reasoning mirrors his work on climate and sustainable finance: unmanaged externalities eventually become economic shocks.
The question, then, is not whether responsible business conduct fits within this economic approach. It clearly does. Nor is the question whether Canada should move forward—our allies and competitors already have. The real question is how Canada intends to position itself.
If existing initiatives are to be strengthened, the government should signal that clearly by filling leadership positions, improving implementation, and aligning efforts across departments. If a different model is contemplated, that direction should be articulated. Business needs regulatory certainty. Investors need policy clarity. International partners need to understand where Canada stands.
What Canada cannot afford is policy ambiguity.
The opportunity is significant. Done well, a coherent responsible business framework can improve corporate performance, attract investment, support Canadian firms abroad, and reinforce this country’s reputation as a trusted economic partner in a world shaped by geopolitical fragmentation and technological disruption. Trust is becoming a strategic asset.
The economic approach emerging under Carney recognizes that competitiveness increasingly depends on effective risk governance. Business and human rights are not peripheral to that agenda. They are among the tools that will determine whether Canada succeeds.
Now is the time to make that clear.
John McKay, the former Liberal MP for Scarborough Guildwood, Ont., is the co sponsor of the Forced and Child Labour in Supply Chains Act and the former chair of the Defence and Public Safety committees. Sheri Meyerhoffer is the former Canadian ombudsperson for Responsible Enterprise and an international adviser on responsible business and risk governance.