In a new report, Canada’s Justice and Corporate Accountability Project (JCAP) reviews six complaints made by JCAP against Canadian mining company projects in Mexico, Guatemala and Alaska. When JCAP made the information public through its complaints, share prices dropped from 11%- 33% in a matter of days. To our knowledge it is the first empirical study of the impact of human rights disclosure (or lack thereof) on the price of stocks.
JCAP’s report provides empirical data on the impact on investors. The Canadian Lawyers Association on International Human Rights (CLAIHR) has produced a paper critiquing existing frameworks for human rights disclosure by publicly listed companies, and suggests an alternative approach focussed on the impact on victims.
Full JCAP press release https://justice-project.org/wp-content/uploads/2020/09/Press-release-fin-sent.pdf
For full JCAP report: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3690013
For full CLAIHR report: http://claihr.ca/wp-content/uploads/2020/09/2020-09-07-CLAIHR-Submission-to-Capital-Markets-Modernization-Taskforce.pdf