A/66/288 with specific projects for which the State has failed to carry out an adequate consultation with indigenous peoples. 100. Without prejudice to the principle that States bear the main responsibility to consult, companies must respect the right of indigenous peoples to participate in decisions affecting them by ensuring adequate mechanisms for consultation and dialogue. Here, the purpose of consultations with indigenous peoples should be to seek consensus on key aspects such as identification of the potentially negative impact of the activities, measures to mitigate and compensate for such impact, and mechanisms for sharing the benefits derived from the activities. 4. Impact studies and compensation measures 101. Impact studies and the definition of appropriate measures to compensate for any negative impact identified are, by definition, related to the consultation process. In recognition of indigenous peoples’ right to the conservation and protection of their lands and environments, international standards and practice now require that social and environmental impact studies be conducted as a specific guarantee for the protection of indigenous rights, in particular with regard to projects involving investment in or the development, exploration or extraction of natural resources likely to affect those rights. 5. Benefit-sharing 102. Aside from being entitled to compensation for damages or mitigation measures for negative impacts, indigenous peoples have the right to share in the benefits arising from activities taking place on their traditional territories, especially in relation to natural resource development. Companies are bound by their duty to respect indigenous rights to establish mechanisms that ensure that indigenous peoples share in the benefits generated by the activities in question. Benefit-sharing should be regarded as a means of complying with a right, not as a charitable award or favour granted by the company in order to secure social support for the project or minimize potential conflicts. Consideration should be given to the development of benefit-sharing mechanisms that genuinely strengthen the capacity of indigenous peoples to establish and pursue their own development priorities and that help indigenous peoples to make their own decision-making mechanisms and institutions more effective. D. Extractive industries operating in or near indigenous territories 4 103. The impact that extractive industries have on indigenous peoples is a subject of particular concern to the Special Rapporteur. In several country-specific and special reports, and in his review of particular cases, he has examined various situations in which extractive industry activities generate effects that infringe upon indigenous peoples’ rights. The Special Rapporteur aims to contribute to efforts to clarify and resolve the problems arising from the activities of extractive industries in relation to indigenous peoples. In 2011 the Special Rapporteur disseminated a questionnaire on natural resource extraction and development projects in or near __________________ 4 20 This section summarizes the report of the Special Rapporteur’s discussion of extractive industries in A/HRC/18/35. 11-44942