2018 - Bolstering Open Societies & Aligning Business with Global Norms (Full Report)

BOLSTERING OPEN SOCIETIES AND ALIGNING BUSINESS WITH GLOBAL NORMS REPORT OF THE THIRD GATHERING OF GLOBAL CANADIAN LEADERS 16 OCTOBER 2018, MONTRÉAL

On 16 October 2018, Canadians in leadership positions at home and abroad gathered in Montréal for Global Canada’s Third Gathering of Global Canadian Leaders. They discussed open societies and business with purpose, producing recommendations to enhance Canadian leadership on these issues. The main open society recommendation was the creation of a global leadership centre for Sustainable Development Goal 16 on peace, access to justice and effective institutions. Principal business recommendations included re-energizing a Canadian Council on Sustainable Development that would promote doing business the ‘Canadian way’ and the creation of a stock exchange to facilitate capital raising by social purpose businesses.

On 16 October 2018, 75 Canadians in leadership positions at home and around the world gathered in Montréal for Global Canada’s Third Gathering of Global Canadian Leaders. They discussed, under the Chatham House Rule, a range of issues in plenary and breakout sessions within the theme ‘Bolstering Open Societies and Aligning Business with Global Norms’. This report summarises the proceedings.

Instead of examining a broad array of potential opportunities, this year’s Gathering was designed to zoom in on two key issues raised at last year’s event: the role of business in society and governance. The day’s agenda was organised around generating concrete suggestions in each of these areas, and was framed by a first plenary session titled ‘What in the World is Going On?’.

The day opened with an overview of Global Canada. The organisation exists to support Canadian global leadership by 1) creating a community of ‘global Canadians’, Canadians in leadership positions at home and abroad who are passionate about Canada’s international role; 2) contributing to crafting an up-to-date narrative on Canada’s global engagement; and 3) identifying issues on which Canada can have a worldscale impact. A number of such issues emerged from previous Global Gatherings.

Among them, Global Canada carried forward recommendations for renewed Canadian leadership on sexual and reproductive health and rights, working closely with other civil society actors and contributing to the government’s decision in 2017 to allocate $650 million in additional funding over three years.

The first ‘What in the World is Going On?’ panellist provided a perspective on developments in Latin America in relation to the global move away from open societies and liberal democracy.

Rising standards of living in the region have raised political expectations and led to a rejection of traditional parties.

In this context, leaders who have been on the margins for years on the left and the right are finally coming to power in Latin America. At the same time, millennials in particular expect functioning institutions underpinned by the rule of law and will not tolerate the impunity characteristic of decades past. The Trump administration has shown little interest in the region, beyond immigration. This creates a moment of opportunity for Canada, especially if it engages directly with the new generation of leaders and opinion-shapers in their 30s and 40s.

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The second speaker sought to explain the recent global rise of illiberalism, populism and identity politics, tracing these trends to both the 2008 financial crisis and social media. While the former was resolved, it generated unprecedented inequality, at the same time as personal tax rates have gone up while corporate tax rates have fallen.

Social media has raised awareness among people on the losing end of this equation, undermining their faith in governments’ ability to deliver social services and—more fundamentally— economic fairness, while at the same time providing them with a tool to hold governments to account. Added to these effects of inequality and social media is the presidency of Donald Trump, whose emphasis on sovereignty has emboldened autocrats around the world.

The third and final panellist began by addressing the recent shift in CanadaUS relations, noting that a factor in Trump’s rise has been his ability to mobilise longstanding American insularity. Canada used to be exempt from this inwardness, in part because of close personal relationships among Canadian and American leaders, but that exemption no longer applies. In this new context, Canada must look for international partners beyond the United States. In so doing, Canada should leverage its strengths, including its soft power, positive international reputation, multiculturalism and genuine affinity and ability for partnership.

The ‘What in the World is Going On’ presentations were followed by a question and answer session with the panellists. Issues that emerged from this discussion included China’s moves to fill the power vacuum left by the United States’ retreat from the world stage, including through its Belt and Road Initiative and by initiatives aimed at growing its soft power; the shrinking space for a free press and civil society alongside diminishing respect for human rights around the world; and the threats to the rules-based international order built following World War II, in particular because of these institutions’ inability to reform in response to geographic shifts in the balance of power. As in Latin America, millennials in Africa were seen as exhibiting a stronger belief in democracy than the older generation—they played an important role in the recent decision

by Ethiopia’s ruling coalition to appoint a reformer in his early 40s as Prime Minister.

Participants were of the view that Canada can play an important role in this context; the challenge is to identify specific opportunities and pragmatically pursue them without being seen as preaching. Participants raised important precedents in this regard, such as Canadian leadership in brain research and its ability to attract international students. However, participants queried whether Canada is prepared to commit the resources to back up its rhetoric and raised the challenge of partnering with regimes that do not espouse Canadian values.

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Following a short break, participants returned to hear a presentation on the 2030 Sustainable Development Goals (SDGs), which address three ‘meta challenges’: recoupling economic growth with social inclusion; decoupling economic growth from environmental degradation; and leaving no one behind. The SDGs’ international value proposition stems from their multi­ dimensional approach to defining success; the shared guideposts they provide; their universal outcome metrics, which transcend borders, sectors and disciplines; their long time horizon, which transcends short-term political cycles; and how they provide a lingua franca for international cooperation.

For Canada, the goals provide a sustained focus on the most enduring challenges; provide a neutral basis for reconciliation and intergovernmental dialogue; and provide a much-needed integrated sustainable development framework.

Neither Canada nor the rest of the world is uniformly on track to achieve the SDGs by 2030. More positively, a range of Canadian SDG leaders have emerged across the spectrum, including the private sector and civil society. Yet a recent poll showed that less than five per cent of Canadian CEOs know about the SDGs; while progress has been made, much work remains to be done.

A conversation was then convened to zero in on the role of business in society, further to BlackRock CEO Larry Fink’s 2018 letter to CEOs, which argued that to ‘prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society’. The conversation focused on the investment case for business with purpose, revealing a shift from value-­based investing to values-based investing. The former can have a negative impact on returns, while the latter incorporates social conside­ rations within investment decisions without compromising profits. There is an opportunity for Canadian companies to leverage the current value of Canada’s brand within the values-based approach to business.

With this background on the SDGs and the investment case for business with purpose in place, participants divided into five breakout groups to consider the opportunity for companies to profitably address changing Canadian and global expectations of business.

The groups were tasked with identifying some of the biggest challenges facing Canadian business today and with generating one to three strategic opportunities for Canadian businesses to do well by doing good.

Each group pitched its preferred opportunities to the plenary, in terms of the idea, its potential impact, the incentive for business to take it up and how the opportunity could be implemented.

Group 1 suggested that Canadian businesses: recognize Canadian businesses that do well by doing good; lobby the federal government to mandate or regulate diversity; empower youth; and foster transparency by publishing what they pay.

Group 2 suggested that Canadian businesses: play a key role in advancing specific digital governance issues through a multi-stakeholder process; develop a ‘Canadian Business Compact’ that would enshrine a Canadian way of doing business, through an existing institution such as the Business Council of Canada; develop voluntary codes for transnational justice; and partner with the federal government to create a network within the Canadian diaspora.

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Group 3 suggested the creation of: a stock exchange to facilitate capital raising by social purpose businesses; and a business council on sustainable development to provide visible private sector leadership on the SDGs. It also suggested that Canadian businesses: adopt and champion one or more of the SDGs, such as SDG 4 (inclusive and equitable quality education) or SDG 5 (gender equality); and provide seed funding and talent for important research and development.

Echoing a group 2 suggestion, group 4 suggested that Canadian businesses develop and deploy a Canadian standard for doing business.

Finally, group 5 suggested that Canadian businesses: develop a national data generation and governance strategy; deploy Canadian expertise in infrastructure and technology to build capability around modular infrastructure that could address challenges like the lack of potable water across Canada; and work together to lead on global health adaptation to climate change.

Following this discussion about aligning Canadian enterprises with where the world is going, participants heard an overview of contemporary challenges to open societies and liberal democracy, the current global context for good governance. They were then asked to consider the cost of good governance, which is low compared to most global investments. Participants were given three reasons why Canada, if provided with high-impact opportunities, could invest several hundred million a year in innovative governance innovations:

1. Although Canada spends less than 2% of GDP on global engagement through diplomacy, development and defence, total spending is $38 billion a year. Re-allocating 1% could provide over $300 million a year for governance.

2. Canada’s commitment to development is lagging well behind historical levels and international comparisons. Increasing development spending by just two hundredths of one percent of national income could provide $400 million a year.

3. Canadian Foundations presently spend $6 billion a year. If only 5% were allocated to governance initiatives, this would provide $300 million a year.

Bearing the critical nature and affordability of good governance in mind, participants divided again into breakout discussion of how Canada—including government, foundations, universities, businesses and civil society—could support open societies and liberal democracy around the world, specifically in relation to the following questions: • Rising to the challenge of technotyranny: is there a better way to govern emerging communication, data and artificial intelligence technologies?

• Supporting a dynamic free press and vibrant civil society: the media is threatened by changing business models and state oppression, while civil society is also suffering from the latter. What more could Canada do to support a free press and vibrant civil society around the world?

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• Enhancing the democratic resilience and the effectiveness of government institutions: democracy is under siege by authoritarian leaders around the world. Could Canada play a greater role in bolstering the effectiveness and democratic resilience of governments around the world?

• Leading on anticorruption, justice and rule of law: rule of law is the missing middle between defence and development in many fragile states, and corruption is an important and growing develop­ment concern. Could Canada play a more significant role supporting anticorruption, police and judicial reform around the world?

• Crafting coalitions of state and non-state actors to develop new institutions and support open societies: much of the post-War international order was created by the United States or under its patronage. Could Canada work in concert with like-minded states and non-state actors to develop new institutions and coalitions to enhance open societies and liberal democracy around the world?

Reconvened in plenary, each group pitched one to three ideas about how Canada could support open societies and liberal democracy, in terms of the idea, its impact, why Canada should get involved and how the opportunity could be implemented.

Group 1 on techno-tyranny proposed Canada leading on: a public health approach to digital technology; an international public broadcaster network; and a bill of rights on emerging digital technologies.

Group 2 on freedom of the press and civil society suggested that Canada should lead on: professional development for journalists and media literacy training for civil society; and fostering (including through funding) an enabling environment for the media and civil society.

Group 3 on democratic resilience and government effectiveness suggested that Canada create a ‘what works’ centre; focus initiatives on SDG 16 (peace, access to justice and accountable and inclusive institutions); and use two-track diplomacy, including twinning.

Group 4 on anticorruption, justice and the rule of law proposed that Canada create a multi-stakeholder centre on governance to train stakeholders from around the world.

Finally, group 5 on coalitions suggested the creation of a global partnership foundation to foster relationships between state and non-state actors working to bolster open societies.

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Following a final question and answer segment, participants completed feedback forms to identify their preferred Canadian opportunity for global impact in relation to each of business and supporting open societies and liberal democracy.

The preferred business opportunities centred on: • a Canadian Council on Sustainable Development, which would promote doing business the ‘Canadian way’; and • the creation of a B-corp stock exchange.

The preferred open society and liberal democracy ideas coalesced around: • a global leadership centre for SDG 16; Other prominent ideas included: • an international public broadcaster network; and • a digital bill of rights.

More detail on participants’ preferred opportunities for Canada to have a global impact as described in the feedback forms is provided in the Annex.

ANNEX Preferred Opportunity (business)

Why

How to make it happen

Business Council on Sustainable Development Business Council on Sustainable Development

CEOs need an accepted standard of what is needed in the role to anchor their organization in society. A “Canadian Way” for responsible leadership

Revive initiative through a business organization and a business school

Business Council on Sustainable Development Goals

Need businesses out in front of this issue

Get Canadian business council to set up

Business council on sustainable development

Pragmatic; allows for peer to peer Identify leaders in this space – work engagement; way to identify best practices with UN Global Compact to reinforce their efforts

Restart Canadian Council on Sustainable Development

So obvious! Could mobilize the private sector towards more action and contributions to sustainable development

A call by new business leaders… and get going!

Business council to advance the SDGs

Opportunities to create value – projects while advancing security

Engage business council of Canada and chambers of commerce to formulate the strategy

Canada Business Council of Sustainable Development – aligned with world council

Base level of Canadian engagement; ambition on the part of the private sector

2-3 leading Canadian CEOs catalyze action

Montreal Centre of Global Governance

Because we appreciate/understand importance of governance. Because we support/adhere to SDGs

Identify leadership Get it funded.

Canadian Way of Doing Business Develop messaging around “The Canadian Business Way”

To develop brand “Canada, the Good” and The Business Council; International engage business more in our global profile Chambers of Commerce and our embassies

Celebrate business leaders that bring true community value

Tells and showcases business leadership in Canada

Create some kind of prize that is presented nationally and recognized globally; also encourages companies to be based out of Canada

Recognize/showcase business leadership examples to promote “Canadian” approach to doing business, aligned with GDG implementation

Driver of grater corporate engagement, share lessons learned with others. Need to tell good stories of leadership to encourage others to do the same

Working closely with Canadian Council for Chief Executives, UN Global Compact, etc. to strengthen corporate sustainability in the Canadian context

Establish/reference a “Canadian way of doing business” initiative

Future competitiveness for Canada.

A way to set real precedent for a new social economy.

EDC/industry associations. Platform to elevate issues of sustainable supply chain management, and corporate social responsibility

Celebrate business leaders

Canadian and international businesses who are creating shared value and transformative success

Fund a champion to build the idea.

Bennett Jones and Caldwell partners sponsor outstanding CEO of the year and they may be interested

Developing & deploying a “Canadian” way of doing big interventions

It is the ultimate opportunity to act as a global citizen

Via Canadian Chamber of commerce?

Economic attaches?

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Preferred Opportunity (business)

Why

How to make it happen

Promote Canadian governance and rules of conduct

Because we still have a reputation to leverage

Corporate commitment, government support

Get Canadian businesses who want to expand internationally to do it “The Canadian Way”

International growth is vital to the Canadian Coalition of businesses; create and economy; there is truly a distinctive Canadian promote standards; networking way; mindful of gender equality, community, fairness and concern for employee livelihood etc.; creates and attracts loyalty, motivation to support from commitment, local governments, employers BCorp SVX Stock Exchange

Create a BCorp/SVX Securities Exchange

Private sector opportunity to fill market gap; leverage lessons-leaned by lack of national securities regulator; include stream to celebrate success in small business incubation in Canada (ideas and jobs); exciting opportunity to set the framework for the next generation accountability (SGs + market)

Leverage experience of participants.

BCorp Stock exchange with SVX

Pragmatic approach to enabling a triple bottom line approach

- Create a council of Bcorps - Engage regulatory framework - Attract investors

Make social ventures exchanges a reality

Make B exchanges known

Create a BCorp stock exchange

Money drives the economy

Get large pension companies in Canada to support

Corporate seed funding and BCorp stock exchange

- Partnering – corporate R&D and academia - Enterprise creation/talent/innovation - Capacity – creation/disruption

Connect to idea of business council on SDGs

Youth Mobilizing youth and students in business schools around the values of diversity, championed in most of Canada

A space of leadership in the global context, part of the Canadian brand globally, yet there is much more to be done. Time to walk the talk

Championing leaders in diversity and integrating them into business school curricula

Empowering Youth

CEO in residence – listening Focus, mentorship… connection and rethinking business education - Students in global experience

Connect business leadership and business school deans

Work to empower the younger generation Invest in youth; skills and talent.

CEOs meet and listen and show them and provide advice Pre-empt exclusion and populism

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Preferred Opportunity (business)

Why

How to make it happen

Transparency Greater transparency

Better visibility on what companies do and what works/what does not work

Promote volunteer disclosure, as opposed to mandating

Better communication

Public are unaware of impact and needs and benefits of robust business activity

Leadership of CEOs and boards

Corporations to adopt “stretch goals”

It is important for initiatives to be self-driven not regulated

Work with leaders in the space and encourage them to lead by example

Transparency

Reduce corruption

Share information

Modular Technology Smart modular technology on the SDGs

It is a Canadian and global challenge, with tremendous potential impact and a massive “first mover” advantage

Canadian business leadership Canada is a recognized leader in compact with a forum on modular infrastructure. infrastructure (combination of two ideas)

Create clean-tech platform of “Academic-­ Private Sector-Community Users” (municipalities, etc.)

- Enable marketing, tech transfer - Use BDC IO fund as well as FinDev Canada Build relationships with existing organizations that have experience in this space.

Energy Leadership Energy leadership

Both an opportunity for us to improve and a clean area for us to lead (infrastructure, micro-grid, climate leadership from extractive sector)

Information gaps in the populace must be addressed and conflict diffused.

Micro-grids in rural communities helped by domestic energy producers.

Distributed energy infrastructure

Canada has a wealth of Energy resources.

However, Canada has an imperative to upgrade its energy infrastructure (transmission in particular)

Incentivize demand side energy investment and R&D for domestic and export

Global Leader on Food Brand Canada as a global leader around food

Canada is a leader but can do a lot more and Canadians and other countries around the world need to know where environmentally safe, secure, wholesome food is coming from

Greater collaboration tri-sectorally

Centre for Data Governance Canada to create centre for data governance (including national data strategies that pulls/shares data with the right privacy and protection policies)

Canada has a reputation for openness and being advanced technologically puts Canada in the right position. Build on strengths in areas such as AI, Brain

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Need to confirm buy in and support from core group of leading Canadian companies and organizations (and foundations?)

Preferred Opportunity (business)

Why

How to make it happen

Global Centre for Governance Global Centre for SDG16

SDGs need re-envisioning and Canada can step up and create a global centre for SDG16 (multilateral and multi-stakeholder) to promote value already typically associated with Canada

Needs to reflect/action on issue domestically (for credibility and public awareness) as well as internationally.

As a next step, there is a need to develop a concept note and discuss with Canadian government and key stakeholders.

- Already build on success of Global Affairs funded program to Equitas and IBJ and land as a “Global Defenders Forum” as a first step

Canadian/International institute on Governance

World (50+ countries) need the counselling Leadership of the Government of Canada, and wisdom. private sector, key universities We have the experience and expertise.

- 10-year horizon and money needed

Centre for global governance that brings expertise of public sector together with private sector to combat corruption – aligns with SDG 16

Canadian government and business ­leaders have relevant expertise that can be drawn upon and really make a long-term investment, necessary for real change

Similar model to the Global Fund but with a focus on good governance. Huge opportunity space for Canada. Needs leadership from both public and private sectors.

International Centre for Governance

Opportunity to put Canada on the map as a governance leader; test ideas; invest in research and build networks.

Create an international advisory group to develop structure/scope with Canadian government funding

Centre of Governance

We have the skills and experience; opportunity to show leadership

Step up and take the lead - Get in on as many party platforms for the next election

Global Centre for Governance

It takes some drive to make things happen. Advocacy, lobbying.

Institutions do not solve everything, but they create a focal point and coalesce energy.

International hub for support of governance and rule of law

Canada’s brand makes it possible and we and the world need it to combat the ills we face

Government funding, NGO engagement

Global governance centre/ leadership

Investment in leadership is one of the highest returns

Government of Canada $100M investment

An independent organization which calls itself an international laboratory (a la IDRC) to strengthen institutions of governance and invites other countries to join in and share best practices

Because we have vulnerabilities in our institutions, too, and can advance our shared aims more effectively with a disposition of truthfulness and humility

Multi-stakeholder, Pan-Canadian SDG 16 effort (as per groups 3,4 and 5)

- Private sector, CSO and government engagement reflected in the governance of the institution - Convene and connect - Non-partisan

Global SDG 16 Centre

- Partnerships - Endow an “institution”?

- How much do we need to spend/get into the budget?

International Centre of Governance 11

Preferred Opportunity (business)

Why

How to make it happen

Global Partnership Foundation Forming state and non-state coalitions with non-traditional partners Global Partnerships Foundation

To support working towards open societies

- Use problem-solving learning approach - Use goal oriented coalitions domestically and internationally

Create coalitions of state and non-state actors to develop new institutions to support open societies around the world

Complimentary to creating sustainable environment for growth

Identify leader, create vision, get strategy, raise funds, execute

Create a foundation for global partnership towards resolving tough questions

Canada is well positioned; Canada has the Start small and focused. Ensure short term capability and track record goals are achieved so that more resources are channelled, and longer-term aims can be developed

Foundation of the like-minded internationally

Dialogue to promote liberal democracy

Global Partnership (Governance)

Biggest Reach, most ambitious idea

Bring back “Rights and Democracy” model on steroids

Initiative from Canada

Begin developing of prospective partners from which to elicit potential endowment

Work towards the creation of a Global Partnership Foundation for Governance National Focus on SDG 16 Focus on SDG 16 as a country

Take global leadership, encourages other countries to do the same

Government of Canada and provincial governments committing resources and people to lead domestically and globally

Canada to champion SDG 16

Hooked on to an internationally agreed upon agenda, not a Canadian made agenda.

We have credibility; We can be good at it, including convening power

- We could possibly create a special initiative/fund

Clear eyes about what our origin stories are and how we construct our operating premises

Beginning well, and honesty/truthfulness, is halfway done, and ensures legitimacy Leading on Rule of Law

Leading on anti-corruption, justice It’s the only way to create sustainable envi- Identify leader, create vision, get strategy, and rule of law ronment for growth raise funds, execute Set up an “international service” of Canadian justice, police and public security professionals

Specifically address anti-corruption efforts as a priority

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Multi-prong -Priority for justice budget allocations -Begin with modest pilot programme

Preferred Opportunity (business)

Why

How to make it happen

International Public Broadcasters Network International Public Broadcasters network

Would love a trustworthy national news broadcaster in the US

CBC following the Chile/Brazil scientist organization to support and protect journalists and freedom of expression

This is truly thinking big about the potential Give CBC funding and capacity to expand for an existing Canadian treasure its presence internationally and to help protect journalists

Balanced journalism

Democracy depends on information for decision-making that appeals to people’s sense of justice

Create a Canadian institution with global participants to establish and certify standards of measurement and classifications for news media both traditional and digital

International network of public broadcasters Canadian BBC

Maximum impact and need to weaken social media propaganda of “alternative facts”

Independent news organization Media and Civics Education Education, media literacy, professional development for journalism

Help younger generations understand the importance of being media literate

Media literacy and civic education in schools; leverage celebrities, role models, to communicate these messages.

Education: civics, value of media and CSO’s

Because not enough people in Canada and the world are aware of the value

Funding/testimonials (stories), mentorship and scholarship

Education/media literacy and professional development opportunities

More Canadians reporting in difficult environments to help create stronger public discourse

Media and civil society

Balanced information and ground changes Education in both areas and help sufficient funding Technological Stewardship University and tech sector and government partnership. Bring a global and national lens on innovation policy

Technological stewardship initiative – thoughtful leadership and global standards setting on emerging tech governance, especially in the realm of human rights protection Research on digital and AI rights and protections Bill of Digital Rights

- Protect health, privacy, data - Enable new businesses

Digital Bill of Rights

The time is now

- Identify core elements - Convene multinational working groups - Keep primarily in the public domain (no private sector or government agenda)

Regulating media/digital platforms Mental health, digital pollution

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Adapt GDPR for Canada