A Canadian government agency says it is investigating Nike Canada and mining company Dynasty Gold for their ties to companies that profit from forced labor in China.
Canada’s Ombudsman for Responsible Business Conduct (CORE), Sheri Meyerhoffer, announced the opening of two independent investigations after receiving initial reports on the two companies.
This is the first time CORE has launched surveys since it began operations in early 2021.
According to preliminary reports, Nike “maintains sourcing relationships with Chinese companies known to use or benefit from Uyghur forced labor,” although the sports equipment company said it has no ties to those companies.
Regarding Dynasty Gold, CORE claimed to have benefited from forced labor at a mine in China in which the Canadian miner has a majority stake.
Meyerhoffer said in a statement that he had decided to “launch investigations into these allegations to learn the facts and recommend appropriate action.”
CORE may propose to the Canadian government to withdraw financial assistance or support for doing business from companies operating abroad when it determines that these operations do not comply with Canadian regulations.
Human rights organizations have questioned the effectiveness of CORE, notably criticizing its lack of capacity to thoroughly investigate and punish companies that violate Canadian laws.
With information from EFE.
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