Director Journal (November/December 2023)

Director Journal

A P U B LI CATI O N O F TH E I N STITUTE O F C O R PO R ATE D I R ECTO R S

LABOUR PAINS

Workers are speaking up. Boards should listen

NOVEMBER/DECEMBER 2023

Samuel-De Champlain Bridge, Canada

Engineering a better future for our planet and its people

SNC-Lavalin is now AtkinsRéalis. atkinsrealis.com

CONTENTS

Director Journal Editorial EDITOR Simon Avery ART DIRECTOR Lionel Bebbington CONTRIBUTORS Steve Carty, Virginia Galt, Andrew Gray, Cajsa Holgersson, Rima Ramchandani, Serge Rivest, Judith Rudd, Barbara Smith, Prasanthi Vasanthakumar, Shirley Won

Managerial Lead Prasanthi Vasanthakumar

Institute of Corporate Directors Rahul Bhardwaj - President and CEO Richard Piticco - Chief administrative officer Jan Daly Mollenhauer - Vice-president, sales, marketing and membership Gigi Dawe - Vice-president, policy and research Shannon Hunt - Vice-president, education Kathryn Wakefield - Vice-president, chapter relations

Finally Content Eric Schneider - President Abi Slone - Creative director Dana Francoz - Advertising sales dana.francoz@finallycontent.com 416-726-2853

COVER: CAJSA HOLGERSSON

Building trust and confidence in Canadian organizations is imperative. At the Institute of Corporate Directors (ICD), we believe that this starts with the right leadership and good governance. Directors must lead by being informed, prepared, ethical, connected, courageous and engaged with the world. In the pages that follow, you will find thoughtful and provocative articles that explore these essential leadership qualities. Bâtir la confiance envers les organisations canadiennes est primordial. À l’Institut des administrateurs de sociétés (IAS), nous croyons que cela commence par un bon leadership et une bonne gouvernance. Les administrateurs doivent gouverner en étant informés, préparés, intègres, connectés, courageux et ouverts sur le monde. Dans les pages qui suivent, vous trouverez des articles réfléchis et provocateurs qui explorent ces qualités de leadership essentielles. 2701 – 250 Yonge Street, Toronto, Ontario M5B 2L7 T: 416-593-7741 F: 416-593-0636 E: info@icd.ca ISSN 2371-5634 (Print) www.icd.ca ISSN 2371-5650 (Online) The ICD welcomes a diversity of opinion for inclusion in Director Journal. The contents of this publication do not necessarily reflect the opinions of the ICD, its partners, its sponsors, or its advertisers. Readers are encouraged to consider seeking professional advice and other views. To request reprints of articles, please contact info@icd.ca

Departments Editor’s note Directors have their work cut out for them

CEO insights Rahul Bhardwaj on fostering a culture of board improvement

Dispatches The demise of retail, an Arctic rush, refined drinking habits, business card trends, four-day workweeks, fast talkers

Issues How to avoid conflicts of interest

Directors’ dilemma Is it time to retire the term ‘ESG’?

Directors on the move Recent board appointments across the country

Parting shot Why Nobel laureate Claudia Goldin won

04 05 06 11 12 44 50

Features Labour action As workers seek a better deal, boards can help ensure improved results for everyone

20 years of the DEP After nearly two decades overseeing the Directors Education Program, Richard Powers explains why director training today has become essential

Board growth A diverse board can’t become truly effective until it is fully inclusive

Recommended reading In Not Here: Why American Democracy Is Eroding and How Canada Can Protect Itself, academic Rob Goodman argues that leaders must tackle the underlying causes of democratic decline

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EDITOR’S NOTE

A host of pressing issues Climate change, labour unrest and DEI promise to test boards in 2024 RICHARD POWERS has spoken to a lot of RICHARD POWERS s’est entretenu avec board directors over the past two decades. In bien des administrateurs au cours des deux fact, he’s taught hundreds of them as the nadernières décennies. En fait, il a enseigné à tional academic director of the ICD-Rotman des centaines d’entre eux à titre de direcDirectors Education Program. In an interview teur académique du Programme de peron page 30, he was asked what will be some of fectionnement des administrateurs IASthe most pressing governance challenges for Rotman. En entrevue (page 30), il a évoqué board members. “I think that social issues such certains des défis de gouvernance les plus as climate change and our responsibility to the urgents qui se poseront aux conseils. « Je environment will continue to be hot topics for pense que les enjeux sociaux comme les boards to consider and have positions on,” he changements climatiques et nos responsasaid. “It will be their responsibility to encourage bilités envers l’environnement demeureront dialogue on these pressing issues, while at the les grandes questions sur lesquelles les consame time maintain their responsibility to do seils devront se prononcer. » what is best for the organization.” Ces enjeux mondiaux seront au cœur Global climate issues will be in the spotlight de la conférence des Nations Unies sur Simon Avery Nov. 30 to Dec. 12 at the United Nations’ conles changements climatiques (COP28) qui Editor ference on climate change (COP28) in Dubai, se déroulera à Dubaï. Entretemps, ici au savery@icd.ca where organizers will look to governments and pays, des questions sociales telles que les the private sector to take bigger steps toward hausses des salaires et l’accroissement de decarbonizing the economy. Meanwhile, social la diversité et de l’inclusion dans les postes de commande au Canada continueront issues such as improved wages and greater did’occuper le devant de la scène. versity and inclusivity in the leadership ranks of L’article principal de Prasanthi Vasanthakumar sur les conCanadian organizations continue to be front and centre here at home. flits de travail en Amérique du Nord porte sur la manière dont les Prasanthi Vasanthakumar’s cover story on North American laconseils peuvent guider leurs équipes de direction afin d’offrir de bour unrest (page 16) looks at how boards can guide management meilleurs résultats pour l’ensemble des parties impliquées. L’une to deliver better outcomes for everyone involved. One of the first des premières étapes, écrit-elle, consiste à accepter le fait que les steps, she says, is to accept that organized labour has gained a syndicats parlent désormais d’une voix plus forte et jouissent d’un stronger voice and greater public support since the pandemic. meilleur appui du public depuis la pandémie. And Virginia Galt’s feature on board growth (page 34) takes Par ailleurs, l’article de Virginia Galt (page 34) se penche sur ce a close look at what board members need to do to maximize the que les administrateurs devraient faire pour maximiser la puissance power of increased diversity in their ranks. With disclosure red’une diversité accrue dans leurs rangs. Maintenant que les exigenquirements having encouraged boards to become more reflective of ces en matière de divulgation ont encouragé les conseils à mieux society, scrutiny is now shifting to the issue of inclusion, she writes. refléter la composition de la société, l’attention se porte maintenant Robin Cardozo, an experienced director and a governance training sur l’inclusion, l’indispensable complément de la diversité. consultant with the ICD, tells her, “Board diversity is unlikely to be Les changements climatiques, les syndicats, la diversité et l’ineffective without a parallel commitment to inclusion.” clusion sont des questions susceptibles de susciter, dans le meilleur Climate change, organized labour, and diversity and inclusion des cas, des réactions émotives. Mais alors qu’elles figurent désorare subjects that can spark emotional reactions at the best of times. mais à l’ordre du jour des conseils, les administrateurs devront But with all of them appearing on board agendas these days, direcdéployer leurs compétences, leur expérience et leur formation pour tors will need to draw on their skills, experience and training to s’assurer de les gérer adéquatement. DJ ensure they are managed properly. DJ

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CEO INSIGHTS

Learning new ways

ILLUSTRATIONS BY AARON MCCONOMY

In challenging times, high-performing boards evolve to stay effective WE’VE WITNESSED enormous economic, soAU COURS DES DERNIÈRES années, nous cietal and technological change in the past few avons connu des changements économiques, years, which has caused people to question the sociétaux et technologiques considérables traditional and embrace new ways of thinkqui ont incité les gens à remettre en question ing and working. Speaking at our national les méthodes traditionnelles et à embrasser conference last June, Gillian Tett, chair of the de nouvelles façons de penser et de faire. Financial Times editorial board, summed up Lors de notre congrès national en juin dernithe post-pandemic situation well. The relaer, la présidente du conseil éditorial du Fitionship between the individual and society nancial Times Gillian Tett a bien résumé la has shifted, she said, with younger workers situation post-pandémique. Le rapport entre seeking empowerment and flexibility in the l’individu et la société s’est modifié, dit-elle, workplace. They no longer see themselves as a alors que les jeunes recherchent la responsaderivative of society, she added, but rather as a bilisation et la flexibilité au travail. force to shape society to their own tastes. À mesure qu’évolue cette nouvelle norAs this new normal evolves, relations bemalité, les relations entre employeurs et Rahul Bhardwaj tween employers and their people will reemployés demeureront rentables et producLL.B, ICD.D main profitable and productive, but directors tives, mais les administrateurs devraient y President and CEO, should be paying close attention. With reporter une attention particulière. Compte The Institute of Corporate Directors sponsibility for oversight of culture, strategy tenu de leurs responsabilités de surveillance and risk, boards should recognize that there’s de la culture, de la stratégie et du risque, les a new space and place for work, and that the conseils devraient reconnaître que le monde hybrid work environment carries uncertaindu travail recèle de nouveaux espaces et ties that will need to be properly managed. qu’un environnement hybride porte des inIn addition, with greater board diversity today than ever, it will be certitudes qui devront être gérées adéquatement. Les conseils étant important to understand that the benefits of broader points of view plus diversifiés que jamais, il sera important de comprendre qu’on ne around the table won’t be realized until those new voices are included. récoltera pas les avantages d’un éventail élargi de points de vue tant The Institute of Corporate Directors provides the learning space for que de nouvelles voix n’y seront pas incluses. directors to navigate these and other challenging issues. Director Journal L’Institut des administrateurs de sociétés fournit un espace d’apmagazine serves up insights and analysis, our local chapters host events prentissage pour aider les administrateurs à gérer ce défi et bien where members can exchange ideas, and our education program offers d’autres. Le magazine Director Journal offre divers points de vue courses and webinars designed for today’s evolving environment. et analyses, nos sections régionales organisent des événements qui If boards are to be resilient and effective, they need to keep learning sont autant de lieux d’échange et nos webinaires et programmes de and evolving, and the ICD plays a key role in that development. After 20 formation sont conçus pour l’environnement évolutif actuel. years, our Directors Education Program, which we created and operate Pour que les conseils soient résilients et efficaces, ils doivent contiin partnership with the University of Toronto’s Rotman School of Mannuer d’apprendre et d’évoluer. L’IAS joue un rôle clé à cet égard. Depuis agement, continues to be the pre-eminent director training program in vingt ans, notre Programme de perfectionnement des administrateurs, the country. The huge success of the DEP over the past two decades is demeure le principal programme de formation pour administrateurs au testament to the culture of board improvement we have in Canada. As pays. Son succès témoigne de la culture d’amélioration des conseils qui Rick Powers, the national director of the DEP says in an interview on fleurit au Canada. Comme le rappelle Rick Powers, le directeur national page 26, “Director education is no longer a ‘nice to have’ but rather it is du PPA, c’est « un élément essentiel du coffre d’outils d’un administraan essential part of a director’s toolkit.” With the right tools, directors teur ». Ainsi équipés, les administrateurs sont mieux positionnés que are better positioned to deal with whatever comes next. DJ jamais pour faire face à tous les défis qui se présenteront. DJ

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COMPILED BY Prasanthi Vasanthakumar

Dispatches A digest for diligent directors

POLAR RUSH It’s getting crowded at the top of the world. Marine traffic across the Arctic doubled between 2009 and 2018 as melting sea ice unveiled new sea routes. In the past year alone, cruise ship traffic grew 50 per cent, reports Bloomberg. But as vessels burn fossil fuels to traverse these waters, remote ecosystems are feeling the heat: A cruise ship leaves a larger carbon footprint than a passenger plane per traveller. Rush hour in the Far North also raises the risk of pollution, collisions with marine wildlife, and disease spread to Indigenous communities. It’s risky for the seafarers, too. A 2021 report found a significant jump in Arctic accidents from 2005 to 2017. In September, a luxury cruise ship ran aground in a Greenland fjord with 206 passengers aboard. The Ocean Explorer was stuck in glacial silt for three days before being pulled free. But Greenland isn’t the only risky territory. Canada’s own Arctic waters are poorly mapped, and the Coast Guard has about eight ice breakers on hand to cover 162,000 kilometres of northern coastline. Explore at your own peril. 6 | DIRECTOR JOURNAL

NEWS

PHOTOGRAPHY BY ALEXANDER HAFEMANN/UNSPLASH (LEFT), ART MARIE/ISTOCK (TOP RIGHT). ICONS BY NOUN PROJECT

THE DEATH OF IN-STORE SHOPPING? The great North American pastime of “going shopping” may indeed be a thing of the past. Gone are the days of spritzing on perfume or mentally redecorating your home as you stroll from store to store. Retail therapy was about entertainment and impulse buys. Today, there is nothing therapeutic about shopping for most consumers, reports Vox’s Whizy Kim. Understaffing, empty shelves, extreme theftprevention measures and the ubiquity of selfcheckouts are taking the fun out of it. But the root cause of the problem, she explains, is poor working conditions for retail workers. In the late 1800s and early 1900s, retail was a dream job. With benefits and vacation, it offered more security and safety than many other sectors. Today, working at a store is a thankless job, as employers cut hours and angry customers pile on. A 2023 U.S. study of 190 jobs ranked retail at the bottom. Customer dissatisfaction mirrors employee woes, observes Kim. The shopping experience will be better in a store that is well-staffed with well-paid and well-trained employees. The state of the retail sector shows why it’s important to recognize cause and effect, and the impact of top-line business decisions.

RETAIL DETAILS U.S. figures paint a bleak picture, but changing shopping habits, the cost-of-living crisis, abusive customers and crime are global problems for the sector.

7.3 million

75%

40,000 to 50,000

U.S. retail workers who quit in 2022

Turnover rate for hourly in-store positions in 2022

Expected U.S. retail store closures in the next five years

Source: Vox

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FOR THE LOVE OF LANGUAGE MASTERING A NEW TONGUE IS NO EASY FEAT. A language’s difficulty depends on its writing system, sounds, words and grammar. Languages can have unique complications, too. For example, Arabic letters change shape depending on where they appear in a word (beginning, middle, end or alone). But the main reason a language is hard to learn is it is different from your own, says the Economist’s language expert. LANGUAGE LEARNING TIMES

24 to 30 weeks • French • Portuguese • Spanish

36 weeks • German • Swahili

44 weeks • Bengali • Hindi • Russian • Urdu

88 weeks • Arabic • Mandarin • Japanese

12 weeks

24 weeks

36 weeks

48 weeks

60 weeks

72 weeks

84 weeks

Sources: CIA World Factbook, US Department of State, The Economist

THE BUSINESS OF BUSINESS CARDS Business cards have had a rocky history. This networking necessity was born in the 15th century when Chinese nobles used bamboo slips with their names and credentials to request meetings with aristocrats, reports Canadian Business. Centuries later, the printing press made it cheaper to produce cards, allowing middle- and working-class Londoners to join the fun. Craftspeople passed around these trade cards to promote their shops. In a time before GPS, they often came with a map to the business location. Their heyday came to a screeching halt with the advent of print advertising circa 1906. But they still had their use. American gangster Al Capone was rumoured to hand out business cards as a cover for his nefarious dealings. According to his card, he was merely a second-hand furniture dealer.

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By the 1980s, newer printing technology gave way to stylish business cards, which became a status symbol for the wheelers and dealers of Wall Street. Three decades later, digital business cards, complete with QR codes or microchips, were the pinnacle of efficient networking. But the Covid-19 pandemic nearly put the business card out of business. As hand sanitizer became the accessory du jour, experts estimate business card printing fell 70 per cent. Nonetheless, people still like to put things on paper. A 2023 report by an American business card company finds 100 billion paper business cards are printed each year worldwide, reports Canadian Business. Source: The Evolution by Canadian Business

NEWS

PHOTOGRAPHY BY NATHAN DUMLAO/UNSPLASH (TOP), CHRISTINA WOCINTECH/UNSPLASH (RIGHT). ICONS BY NOUN PROJECT

TIPSY TIMES From Zoom cocktails to “Quarantinis,” many of us have been drowning our sorrows since Covid-19 showed up. And it seems the pandemic has fundamentally changed the way we drink, Mickey Lyons reports in Fast Company. Canned cocktails are in, happy hour has moved to the suburbs, and spirits are up. Studies show Americans are buying hard liquor in record numbers, and many distillers are still playing catch up after three years of labour shortages and supply chain chaos. Between 2020 and 2021, sales of luxury beverages – bottles that cost more than US$50 – rose by 43 per cent. According to one expert at Moet Hennessy USA, many Americans used their federal stimulus cheques to sample high-end brands. “It’s hard to go back once you try the good stuff,” he tells Lyons. Drinks to go helped many bars stay in business during lockdowns, but consumers still like the flexibility of portability. This could explain why canned cocktails outdid wine to make up 12 per cent of all American alcoholic beverage purchases. Even with lockdowns a distant memory, some bars are faring better than others. Happy hour has a new home in the burbs, while downtown watering holes are feeling the pinch of empty offices. We are drinking differently, but we are also drinking more: A 2022 study by the Public Health Agency of Canada found that a quarter of Canadians reported consuming more alcohol.

THE FUTURE OF WORK Many bosses are still wrapping their heads around remote work, but the four-day workweek may be coming soon. A study of 41 Canadian and U.S. companies that participated in a six-month trial shows a shorter working week can be a win-win situation. EMPLOYER BENEFITS 0% plan to return to a five-day workweek

15% average increase in revenue during the trial

EMPLOYEE BENEFITS 69% reported a reduction in burnout

40% were less stressed 32% reported they were less likely to leave Source: 4 Day Week Global

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Foundation Scholarship

Help enable underrepresented organizations to elevate their governance oversight. If you are a board director or Executive Director of a registered charity whose purpose is to improve outcomes for the community the organization serves, then the ICD invites you to apply to the ICD-RBC Foundation Scholarship. This needs-based financial assistance, will provide the opportunity to attend the ICD-Rotman NFP Governance Essentials program. As Canada’s leading program for foundational board governance education, participation in the program will provide high-level training, expanded leadership capabilities and insights from other community minded leaders. A limited number of scholarships* are now available for virtual programs that are scheduled between January and June 2024. Applications are considered on the basis of merit, need and factor in how governance education will benefit the registered charity. Preference is given to equity-seeking organizations that serve the underrepresented.

Apply now at EDUCATION.ICD.CA/RBCSCHOLARSHIP24

® [The RBC Foundation] is a registered trademark of Royal Bank of Canada. Used under license.

ICD RBC

ISSUES

BY Andrew Gray and Rima Ramchandani

Managing conflicts of interest Early identification is essential for an effective board

THE AVOIDANCE OF CONFLICTS OF INTEREST, real and perceived, is critical for directors. It’s important that boards are aware of – and know how to handle – conflicts that can arise from overlapping directorships, a nominee director’s involvement in merger-and-acquisition (M&A) transactions, or directors employing defensive tactics in a contested election. Let’s take a closer look at each. Overlapping directorships

Directors who serve on boards of companies that are competitors, vendors or customers of one another can find themselves in positions of conflict. Directors may feel constrained in receiving, or having access to, commercially sensitive information in these circumstances; this may make it difficult for a director to properly discharge their duties to both companies. Corporations may also be concerned that a director may use information learned from one board role to benefit a competitor where that person also serves as a director. Overlapping directorships at competitors can also result in anti-trust law risk as regulators may also be concerned with potential anti-competitive issues.

ILLUSTRATION BY MARIA STAVREVA/ISTOCK

M&A transactions

Nominee directors are often caught in a legal crossfire. When the interests of the appointing shareholder and the company diverge, the perceived conflict becomes a legal concern because the nominee director cannot fulfill their corporate director duties and also represent the interests of a particular shareholder. In this situation, the director must act in the best interests of the corporation as a whole. The problem is exacerbated where the nominee also owes fiduciary duties to the shareholder that nominated them. Courts may carefully review nominee director decision-making in the M&A context, taking into account their connection to, and the objectives and practices of, the nominator. Contested elections

Where an incumbent board is challenged in a contested vote, the spectre of conflicts is pervasive: To what extent are directors taking steps to protect themselves and their positions at the expense of shareholders, thereby disenfranchising those shareholders? And to what extent are these directors really acting in the best interests of the corporation? In Canada, this particular conflict dynamic has occurred when a board misused its authority to delay the date of a requisitioned shareholder meeting.

Key takeaways

Here are three ways for Canadian directors to identify and manage conflicts of interest. • When recruiting directors, companies should be rigorous in assessing potential areas of conflict that may arise as a result of a candidate’s other board positions with competitors, vendors or customers. Governance policies should require that directors clear any new directorships with the chair of the board or one of its committees. • In an M&A transaction, striking a special committee of independent directors to lead the process is a key way to demonstrate independent decision-making. Nominee directors who may have competing interests in a transaction as a result of their dual roles should recuse themselves and, in some cases, consider resigning. • In a contested election where corporate control is at issue, board action that may interfere with shareholder franchise rights will come under intense scrutiny. In these instances, a board must act equitably and with particular sensitivity. DJ ANDREW GRAY and RIMA RAMCHANDANI are partners at the law firm Torys LLP.

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The dilemma Is it time to move beyond the term ESG, and does the term still do justice to the idea it represents?

VALERIE CHORT ESG (ENVIRONMENTAL, SOCIAL AND GOVERNANCE) principles have taken centre stage in corporate governance in recent years, garnering widespread attention and adoption, as well as some skepticism. While some criticism is valid, much of it stems from a lack of clarity around the term and how it should be measured. To assess the future of ESG, it’s important to clarify two distinct yet interconnected concepts: ESG and sustainability. ESG encompasses a set of criteria used by investors, lenders, rating agencies and businesses to assess the financial implications of environmental, social and governance behaviour. These metrics help organizations determine risk and inform investment decisions. Critics argue that the term ESG has become too vague, lacking specificity and consistency. The criteria under its three pillars — environmental, social and governance — can vary widely among rating agencies and organizations requesting disclosure. This inconsistency fosters confusion and raises concerns that ESG information might be inaccurate or serve more as a tool for marketing and reputation management than genuine environmental and social progress. This issue is not new and reflects the complexity of reporting comparable ESG information across various sectors. Financial regulators

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are working to enhance standardization, but it remains a work in progress. Regardless of the degree of harmonization achieved, it’s clear that mandatory, standardized sustainability reporting by corporations will continue to increase globally in the coming years. Sustainability, on the other hand, is a broader and more encompassing concept. It centres on a company’s role in society — how it can create and preserve value by actively managing environmental and social considerations throughout its value chain, taking into account evolving stakeholder perspectives. Challenges such as climate change, biodiversity loss and inequality already impose costs on businesses and society. Companies that develop sustainable products and services, actively engage with stakeholders and employees in pursuit of their mission, enhance their operational efficiency and resilience, and collaborate with industry peers on systemic challenges unique to their sector, will realize better financial results, attract top talent, and strengthen their brand and reputation. The key to deriving differentiated value lies in ensuring that ESG reporting serves the broader corporate strategy. When a company embeds sustainability into its core business processes in service of its corporate purpose, it can then identify relevant, material ESG metrics, set performance targets, and transparently report progress, building trust and earning social licence in the process. ESG is undoubtedly here to stay, but it is the broader concept of sustainability that will guide companies toward a more holistic and enduring form of value creation. As boards and corporations continue to navigate this evolving landscape, a comprehensive understanding of both ESG and sustainability will be indispensable. VALERIE CHORT, an ESG expert and operational risk management professional, serves on the boards of Transat A.T., Legrand S.A., North West Rubber Group of Companies, Women’s College Hospital Foundation, and the International Institute for Sustainable Development. She was vice-president of corporate citizenship and ESG for Royal Bank of Canada from 2015 to 2023, and a partner and Americas leader for sustainability and climate change with Deloitte Canada from 2004 to 2015.

PHOTOGRAPH BY SAKORN SUKKESAM/ISTOCK

Q.

DIRECTORS’ DILEMMA

VALERIE CHORT LES PRINCIPES ESG (environnement, social et gouvernance) ont occupé le centre de la scène ces dernières années, suscitant à la fois attention et adoption ainsi qu’un certain scepticisme. Même si certaines critiques sont fondées, beaucoup proviennent d’un manque de clarté autour du terme et de la manière dont on devrait le mesurer. Pour évaluer l’avenir des facteurs ESG, il importe de clarifier deux concepts distincts mais reliés : les facteurs ESG et la durabilité. La notion d’ESG englobe un ensemble de critères utilisés par les investisseurs, les bailleurs de fonds, les agences de notation et les gens d’affaires pour évaluer les implications financières du comportement des entreprises concernant l’environnement, les questions sociales et la gouvernance. Les critiques font valoir que le terme ESG est devenu trop vague, qu’il manque de précision et de constance. Les critères peuvent varier considérablement d’une agence de notation à l’autre et parmi les organisations exigeant certaines divulgations. Ce manque de cohérence suscite de la confusion et soulève des craintes selon lesquelles les informations relatives aux facteurs ESG pourraient être inexactes ou s’avérer davantage un outil de marketing et de gestion de la réputation qu’un authentique progrès environnemental et social. Cette question n’est pas nouvelle et témoigne de la difficulté de présenter des renseignements comparables sur les facteurs ESG entre divers secteurs. Les autorités des marchés financiers travaillent à améliorer la normalisation, mais cette tâche n’est pas complétée. Sans égard au degré d’harmonisation déjà réalisé, il est clair que la publication par les sociétés de rapports obligatoires et normalisés ira en augmentant dans les années qui viennent. La durabilité, par ailleurs, est un concept plus large et plus inclusif. Il s’articule autour du rôle d’une entreprise dans la société – comment elle peut créer et préserver de la valeur en gérant activement les conséquences environnementales et sociales de ses

activités tout au long de sa chaîne de valeur, tout en tenant compte des points de vue évolutifs de ses parties prenantes. Les défis tels que les changements climatiques, la perte de biodiversité et l’inégalité imposent déjà des coûts aux entreprises et à la société. Les entreprises qui intègrent les considérations sociales et environnementales à leurs principaux processus d’affaires, développent des produits et services durables et s’engagent activement auprès des parties prenantes et des employés dans la poursuite de leur mission, améliorent leur efficacité opérationnelle et leur résilience et collaborent avec leurs pairs de l’industrie autour de défis systémiques propres à leur secteur, obtiendront de meilleurs résultats financiers, attireront des talents de premier plan et renforceront leur marque et leur réputation. La clé pour obtenir une valeur différenciée réside dans l’assurance que les rapports relatifs aux facteurs ESG sont au service de la grande stratégie d’entreprise. Lorsqu’une société intègre la durabilité à ses principaux processus d’affaires au service de ses objectifs d’entreprise, elle peut identifier les paramètres pertinents de mesure de ses facteurs ESG, établir des cibles de performance et faire état de ses progrès de façon transparente, établir la confiance et obtenir une reconnaissance sociale. Alors que les entreprises continuent de naviguer dans cet univers en évolution, une solide compréhension des facteurs ESG et de la durabilité devient indispensable. VALERIE CHORT, spécialiste des impacts ESG et professionnelle de la gestion du risque opérationnel, siège aux conseils de Transat A.T., Legrand S.A., North West Rubber Group of Companies, de la Women’s College Hospital Foundation et de l’Institut international du développement durable. Elle a été vice-présidente, Citoyenneté et développement durable et impacts ESG de la Banque Royale du Canada de 2015 à 2023 et leader des Amériques pour le développement durable et le changement climatique chez Deloitte Canada de 2004 à 2015.

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need to have answers to key questions: What effects do our products and services have when they are consumed? Does their impact affect our brand and our ability to attract talent and customers? And what are the best measurements to rely on as we try to choose the best course? Board directors and senior management need to dig into these questions if they are to ensure the longterm health of their organizations. DJ ERIC WETLAUFER, ICD.D, serves on the boards of the Investment Management Corp. of Ontario (IMCO), TMX Group, Niyogin Fintech Ltd. and Enterra Solutions LLC. He is a managing partner at TwinRiver Capital and has over 35 years of experience as an institutional investor.

ERIC WETLAUFER

ERIC WETLAUFER AS AUTHOR MICHAEL LEWIS documented so well in his book Moneyball, it took more than 100 years for baseball to realize that its traditional performance metrics didn’t accurately capture the value of a player’s contribution. And it took about the same time for investors to recognize that traditional accounting metrics don’t entirely tell the story of a company’s financial value – a realization sparked in part by Baruch Lev and Feng Gu’s seminal The End of Accounting and the Path Forward for Investors and Managers. Today, just as ESG measures are beginning to be broadly mandated and reported, there’s a realization that the information is not fully capturing what many stakeholders want to see. The situation is made worse by the current anti-ESG backlash, where mischaracterization runs rampant, and by data vendors scoring and rating companies on their ESG performance using differing definitions and weighting schemes that produce conflicting results. (Misplaced trust in credit rating agencies helped fuel the global financial crisis in 2008. We need not make a similar mistake with ESG scoring.) It’s now imperative for businesses and regulators to work out ESG standards. It wouldn’t make any more sense to discard ESG measures than it would to abandon the metrics of RBIs (runs batted in) or EPS (earnings per share). As board members responsible for understanding and stewarding our companies’ long-term future, we need to do the work to gain a deeper understanding of the ESG risks and opportunities before us. Of course our companies need to understand and measure their social and environmental footprints. That’s table stakes and good housekeeping, critical to the resilience required to sustain healthy financial returns. But as the social and environmental effects of our organizations are increasingly scrutinized, boards and their executive teams

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COMME L’AUTEUR MICHAEL LEWIS l’a si bien documenté dans son livre Moneyball, le base-ball a mis plus de 100 ans à réaliser que ses paramètres de performance traditionnels ne saisissaient pas avec précision la valeur d’un joueur. Et les investisseurs en ont mis autant à reconnaître que les paramètres comptables ne disaient pas tout sur la valeur financière d’une entreprise, comme l’ont démontré Lev et Gu dans The End of Accounting and the Path Forward for Investors and Managers. Aujourd’hui, on réalise aussi que les mesures d’impact ESG ne saisissent pas non plus pleinement ce que plusieurs parties prenantes aimeraient savoir. La situation est empirée par certains mouvements anti-ESG et des fournisseurs de données qui notent les performances des entreprises à cet égard en utilisant des critères différents qui suscitent des résultats contradictoires. Il est aujourd’hui impératif qu’entreprises et autorités réglementaires raffinent les normes ESG, afin d’obtenir une compréhension plus approfondie des risques associés aux facteurs ESG et des opportunités qui s’offrent. Bien sûr, nos entreprises doivent comprendre et mesurer leur empreinte sociale et environnementale, un élément essentiel pour maintenir des rendements financiers sains. Mais au moment où les effets sociaux et environnementaux de nos organisations font de plus en plus l’objet d’examens minutieux, les conseils et leurs équipes de direction doivent répondre à des questions essentielles : quels effets ont nos produits et services lorsqu’ils sont consommés? Leur impact affecte-t-il notre marque et notre capacité d’attirer des talents et des clients? Quels sont les meilleurs étalons de mesure pour ce faire? Il faut répondre à ces questions pour assurer la santé à long terme des organisations. DJ ERIC WETLAUFER, IAS.A, siège aux conseils de l’Investment Management Corp. of Ontario (IMCO), du Groupe TMX, de Niyogin Fintech Ltd. et d’Enterra Solutions LLC. Il est associé directeur de TwinRiver Capital et possède plus de 35 ans d’expérience comme investisseur institutionnel.

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In search of a better deal ILLUSTRATIONS BY Cajsa Holgersson

From Hollywood to Detroit and ports to grocery stores, labour unrest is sweeping the continent. As organizations navigate these choppy waters, boards can guide management to deliver better outcomes for everyone, Prasanthi Vasanthakumar writes De Hollywood à Détroit, des ports aux supermarchés, les conflits de travail s’emparent du continent. Alors que les organisations naviguent dans ces eaux troubles, les conseils peuvent pousser leurs directions à offrir de meilleurs résultats pour tous, écrit Prasanthi Vasanthakumar ICD.CA | 17

A spring strike by the Public Service Alliance of Canada was settled after the union negotiated a 12.6-per-cent compounded wage increase over four years. Justin Tang/The Canadian Press

MAGGIE BUTTRUM WAS FED UP. Federal government workers had been without a collective agreement since 2021, which meant annual pay increases negotiated in 2017 were still in effect five years later, even though they didn’t reflect the current economic reality. With a growing cost-of-living crisis and stagnating wages, the pressure was building on the 46-year-old, Ottawa-based civil servant. The government’s return-to-office mandate at the end of 2022 was the final straw. Families like Buttrum’s had to scramble to find after-school child care. Not only was the timing bad, but the rationale offered – “for collaboration” – was weak and not data-driven, says the mother of two. “People don’t think public servants are competent or the best in the biz,” Buttrum says. “[We’re portrayed as] being overpaid and lazy. Well, I can tell you, I don’t work with people like that. We all felt overworked and underappreciated.” Going on strike was a big move for her. Buttrum and her colleagues share a love of spreadsheets, are “super-organized,” and favour routine, she says. Strike action, which is unpaid and unstruc-

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MAGGIE BUTTRUM EN AVAIT ASSEZ. Les travailleurs du gouvernement fédéral n’avaient plus de convention collective depuis 2021, ce qui signifiait que les augmentations de salaire annuelles négociées en 2017 étaient toujours en vigueur cinq ans plus tard, même si elles ne reflétaient plus la réalité économique. Avec une inflation en hausse et des salaires stagnants, la fonctionnaire de 46 ans d’Ottawa subissait une pression croissante. Le retour aux affaires du gouvernement, fin 2022 fut la goutte qui a fait déborder le vase. Des familles comme celles de Mme Buttrum ont dû se démener pour trouver des places de garderie après les heures de classe. Non seulement était-ce le mauvais moment, mais les raisons invoquées – « la collaboration » – étaient faibles et non fondées sur des données, affirme la mère de deux enfants. « Les gens ne croient pas que les fonctionnaires sont compétents ou qu’ils sont les meilleurs dans leur domaine, explique-t-elle. [Nous sommes décrits comme] des gens surpayés et paresseux. Mais je ne travaille pas avec de telles personnes. Nous avons tous le sentiment d’être débordés et sous-estimés. »

In April, Buttrum walked off the job for the first time in her 17 years as a civil servant, joining more than 120,000 union workers with the Public Service Alliance of Canada in Canada’s largest-ever public sector strike. En avril, Mme Buttrum a débrayé pour la première fois en 17 ans, se joignant à plus de 120 000 syndiqués de l’Alliance de la Fonction publique du Canada dans ce qui fut la plus importante grève du secteur public jamais enregistrée au Canada.

tured, wasn’t on anyone’s wish list, but Buttrum decided to vote in favour of a walkout because she felt nothing would improve without drastic action. “You can’t just talk about us in terms of productivity,” she says. “There’s a whole person behind those numbers. … Piling on these little, small changes over the years and not really acknowledging how that’s affecting your workforce … I think it will come to a head eventually.” In April, Buttrum walked off the job for the first time in her 17 years as a civil servant, joining more than 120,000 union workers with the Public Service Alliance of Canada in Canada’s largest-ever public sector strike. (The strike was settled about two weeks later, with the government agreeing to 12.6 per cent in compounded wage increases over the contract).

A time of discontent

Public Service Alliance of Canada union members such as Maggie Buttrum say they felt pressure to strike for better wages in part because of the growing cost-of-living crisis.

This year, labour action has taken the country by storm. From port workers in British Columbia to grocery workers in Toronto, many Canadians have an axe to grind with their employers. According to Royal Bank of Canada, strikes or lockouts led to a loss of 160,000 working days in 2022 – a 49 per cent increase over the 10-year, prepandemic average. So far, 2023 has proved worse: The number of unfulfilled working days was up 25 per cent in the first six months from the same period a year earlier.

Faire la grève fut pour elle un événement majeur. Mme Buttrum et ses collègues partagent une prédilection pour les tableaux, sont « super-organisés » et aiment la routine du bureau, dit-elle. Le recours à l’arrêt de travail, non payé et non structuré, n’était l’option préférée de personne, mais Mme Buttrum a décidé de voter en faveur du débrayage parce qu’elle avait l’impression que seule un geste radical était susceptible d’améliorer les choses. « On ne peut pas parler de nous seulement en termes de productivité. Il y a des gens derrière ces chiffres. …L’accumulation de ces petits changements au fil des ans sans la reconnaissance de la façon dont la main-d’œuvre est affectée… Je pense que ça mènera tôt ou tard à l’affrontement. » En avril, Mme Buttrum a débrayé pour la première fois en 17 ans, se joignant à plus de 120 000 syndiqués de l’Alliance de la Fonction publique du Canada dans ce qui fut la plus importante grève du secteur public jamais enregistrée au Canada. (Un règlement est intervenu quelques semaines plus tard, après que le gouvernement eut accepté de verser des hausses de salaire composées de 12,6 pour cent pour la durée de la convention.

Une époque de mécontentement Cette année, les conflits de travail ont pris le pays d’assaut. Des débardeurs de Colombie-Britannique aux employés d’épicerie de Toronto, beaucoup de Canadiens ont des comptes à régler avec

ICD.CA | 19

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This labour unrest isn’t unique to Canada. South of the border, striking actors and writers turned Hollywood into a ghost town for five months, while the United Auto Workers (UAW) strike cost the economy an estimated US$1.6-billion in the first week alone. Nonetheless, many North Americans are rallying behind workers. Nearly half of Canadians say the right to strike outweighs the risk of economic consequences, while three in five believe unions benefit those they represent, according to a Labour Day survey by the Angus Reid Institute. Similarly, a Gallup poll conducted before Labour Day shows that 75 per cent of Americans side with the UAW striking members. Politicians are reading the room, too. In September, Joe Biden made history, becoming the first sitting U.S. president to visit a picket line. These levels of public support are unprecedented, says Stephanie Ross, associate professor of labour studies at McMaster University in Hamilton. It shows the demands of striking workers are resonating with the broader public. New technologies such as artificial intelligence are a “clear and present danger” for workers in many industries as they have been used to replace labour over time, Ross says. But the question of who gets to share in the benefits of technological progress is often glossed over. “Are those technologies going to be used to make work less onerous?” Ross asks. “And are we going to share the productivity gains from those advancements? Or are those advancements going to accumulate in smaller and smaller hands? The question that confronts us is whether corporations in particular are willing to share the benefits of technological innovation.” Ross finds the UAW’s demand for a 32-hour work week with no pay reduction an attempt to tap into the benefits of technology – and one that speaks to the pent-up desire of workers across the economy for a fairer distribution of wealth. The gap between the corporate world and working people has become “quite stark,” Ross says. This disparity creates widespread feelings of economic anxiety and abandonment, mistrust in institutions, and political instability, which are detrimental to the economy’s long-term health. “This is a moment for corporations to consider carefully what this labour upsurge is telling them in terms of what workers need,” Ross says. “It’s an opportunity for them to consider, what is the balance we’re going to strike between serving the short-term interests of our corporations versus the long-term interests of a more sustainable, equitable economy?”

A perfect storm Indeed, as real wages decline and corporate profits grow, workers have felt left behind for a long time. Covid-19 has only exacerbated this discontent. “It’s hard to underestimate how the experience of working during the pandemic has created a perfect storm of conditions that increased workers’ frustrations,” Ross says. Many experienced sudden unemployment, while essential workers, such as grocery store clerks and health-care workers, had to continue working with the ever-present risk of illness and death.

leurs employeurs. Selon la Banque Royale du Canada, les grèves et lock-out ont mené à la perte de 160 000 jours de travail en 2022 – une augmentation de 49 pour cent par rapport à la moyenne des dix années précédant la pandémie. Jusqu’à maintenant, 2023 s’est avérée pire : le nombre de jours de travail perdus a augmenté de 25 pour cent au cours des six premiers mois de l’année par rapport à la même période l’an dernier. La situation n’est pas unique au Canada. Au sud de la frontière, le débrayage des acteurs et des scénaristes a transformé Hollywood en ville fantôme pendant cinq mois, alors que la grève des Travailleurs unis de l’automobile (TUA) a coûté à l’économie une somme estimée à 1,6 milliards $ US au cours de la seule première semaine. Néanmoins, beaucoup de Nord-Américains appuient les travailleurs. Près de la moitié des Canadiens affirment que le droit de grève l’emporte sur le risque de conséquences économiques, tandis que trois d’entre eux sur cinq croient que les syndicats profitent à ceux qu’ils représentent, selon un sondage de l’Institut Angus Reid mené le jour de la fête du Travail. De la même façon, un sondage Gallup mené auparavant montre que 75 pour cent des Américains sont du côté des grévistes des TUA. Les politiciens comprennent aussi le message. En septembre, Joe Biden a marqué l’histoire en devenant le premier président américain en exercice à visiter une ligne de piquetage. Ces niveaux de soutien populaire sont sans précédent, affirme Stephanie Ross, professeure associée d’études sociales à l’Université McMaster de Hamilton. Cela démontre que les demandes des travailleurs en grève trouvent des échos auprès du grand public. Les nouvelles technologies telles que l’intelligence artificielle représentent un « danger évident et immédiat » pour les travailleurs de plusieurs industries, alors qu’au fil du temps on y a eu recours pour remplacer la main-d’œuvre, souligne Mme Ross. Mais la question de savoir qui devrait partager les bénéfices du progrès technologique est souvent escamotée. « Ces technologies seront-elles utilisées pour rendre le travail moins ardu? demande Mme Ross. Et allons-nous partager les gains de productivité issus de ces progrès? Ou est-ce que ces gains vont s’accumuler entre des mains de moins en moins nombreuses? La question qui se pose est de savoir si les grandes sociétés en particulier désirent partager les avantages de l’innovation technologique. » Mme Ross estime que la semaine de 32 heures de travail sans réduction de salaire réclamée par les TUA est une tentative de profiter des avantages de la technologie – laquelle tentative traduit le désir latent des travailleurs d’une plus juste distribution de la richesse. Le fossé entre l’univers corporatif et les travailleurs est devenu « tout à fait flagrant », affirme Stephanie Ross. Cette disparité entraîne des sentiments généralisés d’anxiété économique et d’abandon, de méfiance envers les institutions et d’instabilité politique qui sont préjudiciables à la santé économique à long terme. « C’est le moment pour les entreprises d’envisager quel équilibre il faudra atteindre entre les intérêts à court terme de nos organisations et les intérêts à long terme d’une économie plus durable et plus équitable », soutient-elle.

ICD.CA | 21

When ‘hero pay’ or ‘pandemic pay’ was rolled back despite ongoing safety concerns, workers felt undervalued, resentful and angry. Lorsque les « primes de héros » ou « primes de pandémie » ont été abolies malgré les préoccupations de sécurité toujours présentes, les travailleurs se sont sentis dévalorisés, amers et furieux. When “hero pay” or “pandemic pay” was rolled back despite ongoing safety concerns, workers felt undervalued, resentful and angry. These feelings, coupled with the fact that many lost loved ones to Covid, led Canadians to reconsider their priorities. “I think a lot of people have emerged from those worst months and years of the pandemic rethinking how much they want to sacrifice for their jobs,” Ross says. In this environment of low unemployment and high inflation, workers finally feel they have the upper hand and can act on these frustrations, Ross says. She hasn’t seen these labour market conditions in decades, and doesn’t expect this unrest to dissipate any time soon.

Crisis averted Miranda Keating Erickson serves on the board of directors and is chair of the human resources committee at Via Rail, which averted a strike last year. She attributes labour discontent in part to disruption and transformation, and the uncertainty it creates for workers. For management of unionized organizations, this means building and nurturing a relationship with the union long before you get to the bargaining table, Keating Erickson says. It also means clearly communicating how transformation is part of the company’s strategy as well as its implications for employees. For boards, this task boils down to asking the right questions: Has management considered the implications of executing its strategy on the workforce? Does it clearly understand what’s worrying workers, and therefore, unions? Is it thinking about how transformation might change how work is done? Are there ways to make the shift in a positive way, whether through training or expanding the labour pool to create more diverse and inclusive workplaces? “Ultimately, it all comes down to how you’ve worked to build trust” and find those areas of compromise where everybody wins, Keating Erickson says. “By the time you get to strike action, while

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Une tempête parfaite En effet, alors que les salaires réels baissent et que les profits des entreprises augmentent, les travailleurs se sentent délaissés depuis longtemps. La Covid-19 a exacerbé ce mécontentement. « Il est difficile de sous-estimer à quel point l’expérience du travail pendant la pandémie a créé une tempête parfaite de conditions qui ont accru la frustration des travailleurs », soutient Mme Ross. Beaucoup de gens ont connu une perte soudaine d’emploi, alors que les employés des services essentiels – commis d’épicerie et travailleurs de la santé – ont constamment risqué leur santé et leur vie en poursuivant leur travail. Lorsque les « primes de héros » ou « primes de pandémie » ont été abolies malgré les préoccupations de sécurité toujours présentes, les travailleurs se sont sentis dévalorisés, amers et furieux. Ces sentiments, auxquels s’ajoutent le fait que plusieurs ont perdu des êtres chers à la Covid, ont mené les Canadiens à reconsidérer leurs priorités. « Je crois que beaucoup de gens sont sortis des mois et des années de pandémie en se demandant à quels sacrifices ils étaient prêts à consentir pour garder leur emploi », dit Mme Ross. Dans cet environnement de bas chômage et d’inflation élevée, les travailleurs estiment finalement qu’ils ont le gros bout du bâton et qu’ils peuvent agir sur leurs frustrations. Mme Ross n’a pas vu de telles conditions dans le marché du travail depuis des décennies et ne s’attend pas à ce que cette agitation se dissipe de sitôt.

Une crise évitée Miranda Keating Erickson siège au conseil et préside le comité des ressources humaines de Via Rail, qui a évité une grève l’an dernier. Elle attribue en partie le mécontentement des travailleurs aux perturbation et aux transformations qui créent de l’incertitude. Pour

The United Auto Workers union escalated its walkout against Detroit’s Big Three automakers in October. AP Photo/Paul Sancya

sometimes it may become necessary, nobody wins. Employees don’t win, the union doesn’t win, the company doesn’t win, [and] customers don’t win.”

Board preparation Despite being a lose-lose situation, labour disruption is a current reality. But there are ways boards can prepare for the hit. Bob Thompson, who serves on the board of the Human Resources Professionals Association (HRPA) and has participated in labour negotiations on behalf of corporations, offers five pieces of advice for directors. First, conduct a risk assessment that covers the financial, reputational and worker safety implications of labour action. Second, determine ahead of time the roles and responsibilities of the board, management and the labour relations negotiating committee. This committee must know it has the board’s support and is clear on

la direction d’organisations syndiquées, cela signifie qu’il faut bâtir et nourrir leurs rapports avec le syndicat bien avant d’arriver à la table de négociations, explique Mme Keating Erickson. Cela veut aussi dire qu’il faut communiquer clairement de quelle manière une transformation s’inscrit dans la stratégie de l’organisation et ses implications pour les employés. Pour les conseils, cette tâche se réduit à poser les bonnes questions : la direction a-t-elle envisagé les implications de la mise en œuvre de sa stratégie sur son personnel? Comprend-elle clairement ce qui préoccupe ses travailleurs et, par conséquent, les syndicats? Réfléchit-elle à la façon dont la transformation pourrait modifier l’exécution du travail? Y a-t-il des moyens d’instaurer le changement de manière positive, que ce soit par la formation ou l’élargissement du bassin de main-d’œuvre afin de créer des lieux de travail plus diversifiés et inclusifs?

ICD.CA | 23

‘It is really critical to remember it is management that is negotiating; the board is not negotiating.’ « Le conseil devrait aussi être engagé auprès de la direction et demeurer constamment au courant de l’état des négociations. » —Konata Lake, partner, Torys LLP

its mandate at the bargaining table. Third, perform a stakeholder analysis that considers the impact of an upcoming labour disruption on all stakeholders, including employees, customers and suppliers. “In a unionized environment, your stakeholder analysis gets bigger because you’re thinking about your employees, but you’re also thinking of them as [union] members, and of course, you’re thinking about the union that represents them,” says Thompson, who teaches industrial relations and labour arbitration at three postsecondary institutions in Ontario. “You may want to anticipate what [your stakeholders] do next.” Fourth, get up to speed on legal compliance. The board and management should be aware of obligations like the duty to bargain in good faith and the duty to disclose material changes, such as plans to close a facility, says Thompson, who is also a lawyer. Finally, have a communications strategy. “I see a strike as a crisis,” Thompson says. “A strike happens because the parties haven’t properly communicated with each other.” Management should be armed with key messages and ensure the company communicates with internal and external stakeholders to minimize any reputational fallout.

At the bargaining table Labour negotiations can get heated, but it’s important to remember that the people on the other side of the bargaining table are part of the same team. Konata Lake, who serves on the board of governors at York University, which in 2018 endured the longest strike in Canada’s postsecondary sector, urges boards to set the right tone for management. Outside of labour action, unionized employees are “part of your team,” says Lake, who is also a partner at law firm Torys LLP. “You’re one team, advancing the mission of your organization, trying to serve clients or customers. … You’re all kind of rowing in the same

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« Ultimement, cela revient à bâtir la confiance » et à trouver des zones de compromis où tout le monde gagne, poursuit Mme Keating Erickson. « Quand on en vient à la grève, même si elle est parfois nécessaire, personne ne gagne. Ni les employés, ni le syndicat, ni l’entreprise, ni les clients. »

La préparation du conseil Même si tout le monde y perd, les conflits de travail sont une réalité. Mais il y a des moyens pour les conseils de s’y préparer. Bob Thompson, qui siège au conseil de l’Association professionnelle des ressources humaines et a représenté des organisations dans des négociations, propose cinq conseils aux administrateurs. D’abord, menez une évaluation du risque couvrant les implications d’une grève sur les finances, la réputation et la sécurité des travailleurs de l’organisation. Ensuite, déterminez à l’avance les rôles et responsabilités du conseil, de la direction et du comité de négociations. Ce comité doit savoir qu’il a le soutien du conseil et que son mandat à la table est clair. Troisièmement, réalisez une analyse sur l’impact d’un éventuel conflit de travail sur l’ensemble des parties prenantes, y compris les employés, les clients et les fournisseurs. « Dans un environnement syndiqué, votre analyse sur les parties prenantes est plus large parce que vous songez à vos employés, mais aussi au fait qu’ils sont syndiqués et, bien sûr, vous songez au syndicat qui les représente, explique M. Thompson, qui enseigne les relations industrielles dans trois institutions post-secondaires en Ontario. Vous voudrez sans doute prévoir les réactions de vos parties prenantes. » Quatrièmement, actualisez vos connaissances sur la conformité juridique. Le conseil et la direction devraient être conscients de leurs

direction. That may sound a bit trite, but it’s really obligations, comme le devoir de négocier de bonne important to keep that at the front of your mind, foi et de divulguer des changements importants, in the midst of the negotiation, [that] it’s not comme les projets de fermer une usine. just ‘us versus them.’” Enfin, ayez une stratégie de communiEven though the board is not at the barcations. « Je considère la grève comme gaining table, it can set a tone of respect and une crise, affirme M. Thompson. Il y a tolerance that builds trust and permeates grève parce que les parties n’ont pas the organization and negotiations. communiqué correctement ensemble. » Lake also urges boards to look at negotiaLa direction devrait se doter de messages tions through a long-term strategic lens, inclés et s’assurer que l’entreprise commustead of as a blip. Compensation and benefits nique avec les parties prenantes internes should be viewed against a five- and 10-year et externes afin de minimiser les risques à plan with an eye to where the organization sa réputation. is going. Grounding negotiations in the strategic plan – which ideally employees have helped to À la table de négociations shape – assists the company to draw a line in the sand Des négociations collectives peuvent devenir while justifying why it cannot meet certain demands. enflammées, mais il importe de se rappeler que les It’s important to “When management sits at the bargaining table, [they gens de l’autre côté de la table font partie de la même remember that the people on the other can say]: ‘Remember the strategic plan? This is what we’re équipe. Konata Lake, qui siège au conseil des gouverside of the negotitrying to do.’ It adds credibility to whatever position the neurs de l’Université York – qui a subi la plus longue ating table are part organization has taken,” Lake says. grève survenue au Canada dans le secteur post-secof the same team, The board should also be available and engaged with manondaire – exhorte les conseils à donner à la direction says Konata Lake, a agement, and continually aware of the status of negotiations. le ton qui convient. member of the board At the same time, directors must trust management to get Quand il n’y a pas grève, les employés syndiqués font of governors at York the right deal and resist the temptation to step in, which can « partie de votre équipe », souligne M. Lake, qui est University and a partbe especially strong with a strike or public outcry. aussi associé du cabinet juridique Torys LLP. Vous forner at Torys LLP. “It is really critical to remember it is management that is mez une seule équipe qui fait progresser la mission de negotiating; the board is not negotiating,” Lake says. “[It’s] votre organisation et s’efforce de bien servir les clients. important to trust and allow management the flexibility to lead the …Il ne faut jamais oublier, même au cœur d’une négociation, que ce negotiation with oversight from the board.” n’est pas seulement « nous contre eux ». M. Lake presse aussi les conseils de considérer les négociations en garMaking peace with unions dant à l’esprit la stratégie à long terme. La rémunération et les avantages Many organizations would prefer to not have the headache of dealdevraient être envisagés en fonction d’un horizon de cinq à dix ans. En ing with strikes or negotiating with unions. The Economic Policy ancrant les négociations dans le plan stratégique – auquel les employés Institute, a think tank that aims to include the needs of low-and ont idéalement contribué – l’organisation peut tracer une ligne tout en middle-income workers in policy discussions, estimates U.S. emjustifiant le fait qu’elle ne peut accéder à certaines demandes. ployers spend more than US$400-million a year on union-avoidLe conseil devrait aussi être engagé auprès de la direction et ance consultants to discourage their workers from unionizing. In demeurer constamment au courant de l’état des négociations. Canada, corporations such as Amazon and Walmart have been Du même souffle, les administrateurs doivent faire confiance à la accused of spreading disinformation about union membership, direction et résister à la tentation de s’y impliquer. intimidating workers and closing stores in retaliation. According to Lake, an important approach is one of communicaFaire la paix avec les syndicats tion and respect. It’s critical to make clear what a company offers L’Economic Policy Institute, un groupe de réflexion, estime que employees, including benefits and opportunities, says Lake. But it’s les employeurs américains consacrent plus de 400 millions $ US also essential to respect the employees’ right to decide how they chaque année à l’embauche de consultants pour empêcher leurs want to engage with an organization, whether individually or coltravailleurs de se syndiquer. Au Canada, des organisations comme lectively, through a union. “You can’t take away that choice and you Amazon et Walmart sont accusées d’intimider leurs employés en shouldn’t try to take away that choice,” he says. menaçant de fermer leurs magasins s’ils décidaient de se syndiquer. Union resistance, where an employer promotes the benefits of Selon M. Lake, la communication et le respect constituent une remaining union-free during an organizing drive, can be a fair meilleure approche. Mais il est aussi essentiel de respecter le droit and legal part of corporate strategy, says Bob Thompson, of the des employés d’adhérer à un syndicat. « On ne peut pas éliminer Human Resources Professionals Association. But when corporations ce choix et on ne devrait pas tenter de le faire. » employ aggressive union-busting tactics, such as firing union Il peut être juste et légal, dans le cadre d’une stratégie d’entre-

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organizers, promising higher wages if the union loses, or threatening to shut down if the union wins, they can also take a reputational hit with employees and customers. For example, Starbucks, which bills itself as “progressive,” has faced intense scrutiny for its anti-union practices. “This signals to me that they are reluctant to share power with workers over the shape of the workplace and the contract,” says McMaster’s Stephanie Ross. “In that sense, there are limits to how progressive they are. Progressive employers accept that unions have a role to play in representing workers and bargain with them.”

Safety in numbers Between 1981 and 2022, unionization rates fell by 9 per cent, according to Statistics Canada. But RBC notes that Canada’s unionization rate has ticked higher, likely due to a growing number of employees working in industries where union coverage is greatest, rather than a revival of unions. Generational change may tip the scales. Last September, a Sephora store in Kamloops, B.C., became the first in the beauty chain to unionize in North America. At the time, the union president said “young workers” led the unionization campaign. Thompson is noticing this shift in today’s youth. For 15 years, he has run simulations in his labour relations courses that measure students’ interest in unionizing. In the first eight years, most students would vote against unionizing. However, over the past seven years, the majority has voted in favour. Thompson finds this prounion stance is driven by a desire for the betterment and protection of the collective, rather than the individual. With social media amplifying social issues, Thompson doesn’t see this spirit of labour activism petering out. “Economists would say this [activism] will pass whenever these economic conditions do,” Thompson says. “I’m saying it won’t. I think it’s a social shift. … We’ve got a long haul of engaging with unions.” Thompson describes himself as “pro-management,” but acknowledges unions can be good for workers because they give them a voice and promote equity, better pay and fairness. “Unions have a role to play and if that’s the era we’re entering, then members of boards need to embrace it.”

The future of workers

prise, de promouvoir auprès de ses employés les avantages d’une organisation sans syndicat, admet Bob Thompson. Mais quand un employeur recourt à des tactiques agressives, sa réputation risque d’en souffrir. Par exemple, Starbuck, qui se décrit comme une entreprise « progressiste », a fait l’objet d’une intense surveillance pour ses pratiques antisyndicales. « À mes yeux, cela indique qu’elle est peu disposée à partager le pouvoir avec les travailleurs quant à la forme du lieu de travail et au contrat qui les lie, indique Stephanie Ross. En ce sens, son prétendu progressisme a des limites. Les employeurs vraiment progressistes acceptent que les syndicats aient un rôle à jouer pour représenter les travailleurs et négocier en leur nom. »

La sécurité en chiffres Entre 1981 et 2022, le taux de syndicalisation a décliné de 9 pour cent, selon Statistique Canada. Mais RBC souligne que ce taux a augmenté légèrement, dû sans doute au nombre croissant d’employés travaillant dans des industries où la couverture syndicale est plus élevée plutôt qu’à un regain des syndicats. Le changement de génération pourrait faire pencher la balance. En septembre dernier, une boutique Sephora de Kamloops en Colombie-Britannique est devenue la première franchise de cette chaîne de magasins de produits de beauté à se syndiquer. À ce moment, la présidente du syndicat a déclaré que c’étaient les « jeunes travailleurs » qui avaient dirigé la campagne de syndicalisation. Bob Thompson a remarqué ce changement chez la jeunesse actuelle. Depuis 15 ans, il mène des simulations dans ses cours de relations de travail pour mesurer l’intérêt des étudiants envers la syndicalisation. Au cours des huit premières années, la plupart d’entre eux votaient contre. Ces sept dernières années, la majorité a voté pour. M. Thompson estime que cette attitude est mue par un désir d’améliorer le sort des collectivités plutôt que des individus. « Des économistes diraient que ce point de vue changera en même temps que les conditions économiques, dit-il. Je ne le crois pas. Il s’agit d’un changement social. » Aux yeux de M. Thompson, donc, il est essentiel pour les conseils d’embrasser ce changement.

The wild card, of course, is the ever-present threat of a recession. Can labour activism and unionization survive an economic downturn? Stephanie Ross isn’t reading the tea leaves, but she’s confident the recent wave of strikes will be transformative in the long run. “Thousands of people have been on strike, most for the first time in their lives,” she says. “The lived experience of acting together with co-workers to defend and improve your shared working lives – that stays with people. I think we will see a new generation of labour activists emerging from these years that will push for workers to be protected from any coming downturn. And that is a good thing for all of us.” DJ

L’avenir des travailleurs

PRASANTHI VASANTHAKUMAR is the ICD’s manager of editorial content.

PRASANTHI VASANTHAKUMAR est directrice du contenu éditorial de l’IAS.

26 | DIRECTOR JOURNAL

Le grand point d’interrogation, bien sûr, demeure la menace toujours présente d’une récession. La syndicalisation pourrait-elle survivre à un ralentissement économique? Stephanie Ross croit que la récente vague de grèves est le signe d’un changement à long terme. « Des milliers de gens ont fait la grève, la plupart d’entre eux pour la première fois de leur vie, dit-elle. Je pense que nous verrons émerger une nouvelle génération d’activistes syndicaux qui se battra pour la protection des travailleurs contre toute récession. C’est une bonne chose pour nous tous. » DJ

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PHOTOGRAPHS BY Steve Carty Education has become ‘an essential part of a director’s toolkit,’ says Richard Powers, national academic director of the ICDRotman Directors Educa­tion Program.

WHY SCHOOL IS NEVER OUT FOR DIRECTORS As boards face more demands and greater scrutiny, directors are seeing the benefits of a program that’s tailor made for them ON THE 20TH ANNIVERSARY of the ICD-Rotman Directors Education Program (DEP), jointly developed by the Institute of Corporate Directors and the University of Toronto’s Rotman School of Management, Director Journal caught up with the national academic director of the program. RICHARD POWERS has helped design and implement the DEP at 13 universities across Canada. He also teaches in Rotman’s MBA programs, and serves on the board of TSX-Vlisted Pivotree Inc. as well as several not-for-profit organizations. You’ve been the national academic director of the ICD-Rotman Directors Education Program for 18 of its 20 years. How have the education needs of board members changed in that time?

I think it is fair to say that when the DEP was created, the benefits of director education were still being evaluated. Topics were still being developed and assessed as to their applicability and resonance in the boardroom. We are well past that now. Director education is no longer a “nice to have” but rather it is an essential part of a director’s toolkit.

28 | DIRECTOR JOURNAL

ICD.CA | 29

Corporate boards are attracting greater public attention as more of them consider ESG issues, says Richard Powers.

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‘I think that social issues such as climate change and our responsibility to the environment will continue to be hot topics for boards to consider and have positions on.’

focus that boards are taking on social issues which have been dubbed ESG – environmental, social and governance. Add to that the focus on EDI – equity, diversity and inclusion. Companies are expected to have positions on these issues and serve as role models, and that is often reflected in the senior management and the board of directors. You’ve taught hundreds of candidates for the ICD.D designation, a sign of a commitment to excellence in the boardroom. Have you observed any consistent characteristics among the students from year to year? Has their thinking changed? Do their ambitions and goals change?

What has been particularly gratifying is that candidates for the ICD.D are still there for one main reason – to learn to be better in their role as directors. Regardless of the sector they serve, they are eager to participate and have helped shape the changes in the program’s curriculum over the years. Their feedback has helped to shape the topics and issues we tackle in the program, and we are grateful for their contributions. You teach the DEP at locations across Canada. Do you notice any regional differences when it comes to how students think about good governance and what they seek from the DEP?

I believe so and with that has come increased responsibility. Depending on the sector and your role on the board, it is not uncommon for directors spending upwards of 300-plus hours per year on board-related matters. Much more if you serve as the chair or chair of a committee.

As you know, about 80 per cent of the content in the DEP is similar across the country, but we have anticipated and incorporated some regional differences, depending on where the program is being offered. For example, in Vancouver, Halifax and St. John’s, we have a session on the governance of family business. That is not to suggest that this topic is important only in these centres, but it is more acute in those regions. Similarly, governance through an Indigenous lens was a topic in Western Canada offerings, although we are now making this a core topic across Canada.

How has the world of corporate governance evolved in the past two decades? It certainly seems to have a greater public profile today.

What makes an outstanding board director to you?

I’m not sure the general public and even employees appreciated the role that directors and the board had in governance two decades ago. They do now, and that has come as a result of the increased

Outstanding directors understand their role in the governance of an organization. By that I mean that directors will never

Has the role of the director become more professionalized during this period?

ICD.CA | 31

‘Outstanding directors are ones who have keen listening skills, come prepared for meetings, have read the board materials, have questions to ask to clarify the issues being discussed, and are clear about the decisions they are being asked to make.’

know as much as management. We call this the “information chasm” and it is simply a result of the time management spends managing the organization – 2,500-plus hours annually versus 300 or more hours by the board. Outstanding directors are ones who have keen listening skills, come prepared for meetings, have read the board materials, have questions to ask to clarify the issues being discussed, and are clear about the decisions they are being asked to make. What advice would you give to aspiring directors?

That’s an easy one – enrol in the DEP! I firmly believe that it is the pre-eminent director training program in North America and possibly the world, based on feedback we have received from the ICGN [International Corporate Governance Network]. It is certainly the most in-depth. We spend 12 days examining the governance issues of the day, tackling numerous case studies and scenarios in boardlike conditions. I think that directors who have not participated in this type of training are at a disadvantage to colleagues who have.

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What will be some of the most pressing governance challenges for board members in 2024 and beyond?

I think that social issues such as climate change and our responsibility to the environment will continue to be hot topics for boards to consider and have positions on. It will be their responsibility to encourage dialogue on these pressing issues, while at the same time maintain their responsibility to do what is best for the organization. What is best for the organization can be a moving target at times, requiring boards to make decisions that affect shareholder and stakeholder value, often in the midst of uncertainty. Depending on the organization, geopolitical issues will also bear heavily on boards with an international mandate.

What keeps the DEP course fresh for you? Where do you see it going in the next 20 years?

That’s another easy one – it is the participants, and the injection of new material and examples that keep all of the instructors on their toes. To be leaders in education, we have to be constantly in touch with the issues of the day and finding innovative ways to present them to the participants. Fortunately, over the past 20 years, we have been able to assemble an outstanding faculty to do just that. What are some of your favourite memories from the classroom over the years?

It’s really hard to recall all the times that have contributed to my enjoyment of being involved in the DEP. Each class in unique and I have been known to describe cohorts as “the best ever.” Well, they were until the next class came along! And every class has their moments, and their characters. Honestly, think several of the partic-Disclosure ICD Ad FileIname: CG5355_Diversity ipants would be successful stand-up comics. They are smart, witty, Size: Custom and they help create a dynamic that promotes learning in both a 8.125” W x 5.375” H, 0.125” bleed serious but also a fun environment. Trim: 416-565-9767

Colour Mode: CMYK Your students know you for your signature sweater vests. What’s the story behind this fashion statement?

Diversity in corporate Canada: Is progress being made? Osler’s 2023 Diversity Disclosure Practices report provides a snapshot of the representation of women, members of visible minorities, Indigenous peoples and persons with disabilities in the boardrooms and at senior leadership levels of Canadian organizations. Gain insight into recent developments and best practices for improving diversity and inclusion among boards and executive teams. Download a free copy of our report at osler.com/BoardDiversity2023

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I’m always cold, but not enough to wear a sweater – then I’m too hot. I stumbled on sweater vests by accident and have found them to be perfect for me in regulating my body temperature. That was the start, but as classes started to tease me about wearing them, suggesting that they harkened back to a fashion long gone, I embraced them as my personal statement. Whether they ever achieve the status of a fashion statement remains to be seen, but I like to consider myself “fashion forward.” Tell us something about yourself that your students never knew? What keeps you busy outside the classroom? Client: OSLER

I have a number of interests outside of the 3 October, 2023 DEP, including part ownership in several bars Modifi 6 October 10:22 AM anded: restaurants, a craft 2023 brewery, vineyards and a winery. I’m also 300 veryDPI involved in severResolution: at least al boards, primarily in sport, both nationally and internationally. I try to keep busy. DJ Created:

Your board is now diverse. What happens next? 34 | DIRECTOR JOURNAL

Many boards have opened up their ranks, but few have tapped the full power of that broader experience. Fortunately, some are showing the way, Virginia Galt writes Beaucoup de conseils ont ouvert leurs rangs, mais peu d’entre eux ont exploité le plein potentiel de cette expérience élargie. Heureusement, certains montrent la voie, écrit Virginia Galt ILLUSTRATIONS BY Judith Rudd AS MORE DIRECTORS from underrepresented populations take their seats at the table, boards at the vanguard of this cultural evolution are reimagining onboarding to ensure everyone has a shot at advancing to clout positions as committee chairs and board chairs. They’re revising succession plans, addressing board practices that perpetuate the dominant culture, and conducting audits to identify barriers to equity and inclusion.

ALORS QUE DE PLUS en plus d’administrateurs issus de populations sous-représentées accèdent à la table, les conseils à l’avant-garde de cette évolution culturelle effectuent les changements nécessaires pour s’assurer que chacun ait la chance d’accéder à des postes d’influence. Ils révisent les plans d’orientation et de succession, remettent en question les pratiques perpétuant la culture dominante et mènent des contrôles afin d’identifier les obstacles à l’équité et à l’inclusion.

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Boards in the broader governance community are under pressure to follow suit. Most have made slow, steady progress on board diversity, but less on inclusion, governance researchers say. It’s not sufficient to “put the pencil down” once the representation numbers are up, says veteran director L. Robin Cardozo, co-author of a recent study on best practices in inclusive governance in the not-for-profit sector. “Board diversity is unlikely to be effective without a parallel commitment to inclusion,” says Cardozo, a Fellow of the Chartered Professional Accountants of Ontario, board chair at Toronto’s Soulpepper Theatre Co., and a governance training consultant with the Institute of Corporate Directors. Global leadership advisory firm Egon Zehnder, which has tracked board diversity in publicly traded companies for the past 18 years, reports much the same: Inclusion remains a challenge for many corporate boards. “While it is more difficult to measure, inclusion is what brings the power of diverse representation to life. You can gather a diverse group of people in the boardroom, but if the environment is not fully welcoming of their perspectives, then you have missed the opportunity to create a more effective board,” the firm said in its 2022-23 Global Diversity Tracker, which included Canada in its survey of almost 1,800 companies in 44 countries.

The next level Expanding disclosure requirements and investor/stakeholder/funder expectations about diversity representation has prompted boards to gradually become more reflective of society. The scrutiny now is shifting to inclusion “as boards face increasing external pressures to modernize their operations,” Egon Zehnder says. Some of the key questions boards face include: How well are these diversified boards functioning? What are they doing with this assembled talent? Do their decisions reflect the broader range of experience and perspectives in their ranks? Are they keeping up with the times? This resonates with financial technology entrepreneur Michael Katchen, co-founder and CEO of online investment management service Wealthsimple Inc. and a board member at Intact Financial Corp., a major provider of property and casualty insurance. “A diverse, intergenerational boardroom helps address complex corporate issues, inspires innovation and, in today’s market – where many companies serve diverse audiences – helps you understand the clients you aim to serve,” Katchen said in an interview following the ICD’s 2023 national conference, where he was the youngest participant in a panel discussion on age diversity and intergenerational boards. Katchen raised the importance of inclusion at the ICD assembly. As someone new to the world of public company boards, he said, “I’ve felt integration would be one of the more challenging components. There is a group, a cohort of people, who have been doing this for a long time … and if you are not from that world, it takes some time to get comfortable, understanding how to build relationships when you are not necessarily part of the same social circuits.” It takes extra effort by sitting directors to ensure that newcomers are made to feel supported, confident and – in the parlance of today’s workplace – psychologically safe, so “they can actually be showing up as themselves, with their own diverse perspectives and

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Les conseils de la communauté élargie de la gouvernance ressentent la pression de suivre ce mouvement. Les recherches sur la gouvernance indiquent que des progrès lents mais constants sont réalisés en matière de diversité, mais moins pour l’inclusion. Il ne suffit pas de poser son crayon une fois que les chiffres sur la représentation augmentent, affirme le vétéran administrateur L. Robin Cardozo, co-auteur d’une récente étude sur les meilleures pratiques de gouvernance inclusive dans le secteur des organisations à but non lucratif. « La diversité aux conseils a peu de chances d’être efficace sans un engagement similaire envers l’inclusion », affirme celui qui est aussi un membre des Comptables professionnels agréés de l’Ontario, président du conseil du Soulpepper Theatre Co. de Toronto et consultant en formation en gouvernance de l’Institut des administrateurs de sociétés. La société mondiale de conseil sur le leadership Egon Zehnder, qui a étudié la diversité au conseil des sociétés cotées en bourse au cours des 18 dernières années, fait le même constat : l’inclusion demeure un défi pour beaucoup. « Même si elle est plus difficile à mesurer, l’inclusion est ce qui donne vie au pouvoir d’une représentation diversifiée. On peut réunir au conseil un groupe diversifié de gens, mais si l’environnement n’accueille pas pleinement leurs points de vue, on rate l’occasion de créer un conseil plus efficace », lit-on dans le récent Global Diversity Tracker, d’après un sondage mené auprès de 1 800 entreprises dans 44 pays, dont le Canada.

Le prochain niveau Les exigences croissantes sur la divulgation et les attentes de la part d’investisseurs, parties prenantes et bailleurs de fonds concernant la diversité a incité les conseils à devenir graduellement plus représentatifs de la société. L’attention se déplace désormais vers l’inclusion, « à mesure que les conseils font face à des pressions externes croissantes afin de se moderniser », écrit Egon Zehnder. Parmi les questions qui se posent figurent celles-ci : dans quelle mesure des conseils diversifiés fonctionnent-ils bien? Que font-ils avec cette réunion de talents? Leurs décisions reflètent-elles le large éventail d’expérience et de points de vue qu’on trouve dans leurs rangs? Réussissent-ils à suivre le rythme? Ces questions trouvent un écho chez l’entrepreneur en technologie financière Michael Katchen, co-fondateur et chef de la direction du service en ligne de gestion de l’investissement Wealthsimple Inc. et administrateur d’Intact, un fournisseur majeur d’assurance générale. « Un conseil diversifié et intergénérationnel facilite la gestion d’enjeux complexes, inspire l’innovation et, dans le marché d’aujourd’hui, vous aide à mieux comprendre les clients », a-t-il souligné en entrevue après le congrès national 2023 de l’IAS, dont il était le plus jeune participant. Lors de l’assemblée de l’IAS, M. Katchen a soulevé l’importance de l’inclusion. Comme nouveau venu aux conseils d’entreprises cotées en bourse, il a déclaré : « J’ai senti que l’intégration serait l’un des éléments les plus difficiles à faire valoir. Il existe un groupe, une cohorte de gens qui sont là depuis longtemps et si vous n’êtes pas de cet univers, il faut du temps pour vous sentir à l’aise et comprendre comment établir des rapports. »

‘One of the most important things for the board to get right is the onboarding of all board members and not just board members from designated groups. Everyone has something to learn.’ « L’une des choses les plus importantes pour que le conseil s’acquitte bien de sa tâche consiste à intégrer tous les membres du conseil et pas seulement ceux provenant de groupes désignés. Chacun a quelque chose à apprendre. »

—L. Robin Cardozo, chair of Soulpepper Theatre Co.

background, and participate as a full director,” says Katchen, who is still in his mid-30s. Intact recruited Katchen to its board in July, 2022, with an eye to the future as the company “continues to invest in transforming its competitive advantages through digital acceleration and artificial intelligence,” the appointment notice said. Having grown up digital, Katchen says he also brings a different perspective on “just how fast the world is changing, the relationship with customers is changing, the workforce is changing. “But I am still in the phase of learning how to be a great board member.” Intact’s extensive integration process is welcoming and supportive, he says. “They set me up when I came in with the expectation that ‘Hey, we really want you to lean into these things’ and they actively seek my input. … That’s made it really easy for me to step in with whatever insights I might have to share. There’s been the structure around it to be receptive to those ideas and I think that’s really important to making it work.” Successful inclusion depends on a strong and determined chair, observes Cardozo, who collaborated with governance researcher Matt Fullbook on the report “From Window Dressing to Real Change: Success Stories from Boards on a Journey of Diversity & Inclusion.” Their work was published by the University of Toronto’s Rotman School of Management in 2022. Real change takes time, commitment and buy-in, Egon Zehnder says in its Diversity Tracker report. Boards recognize the need for directors who bring a mix of perspectives. Taking it to the next level involves heavy lifting, as they now “must build and sustain an inclusive culture that requires them to rethink old practices and styles of operating.”

Les administrateurs en place doivent consentir des efforts supplémentaires pour que les nouveaux venus se sentent soutenus, en confiance et – dans le jargon actuel – psychologiquement en sécurité pour « pouvoir se montrer comme ils sont, avec leurs propres points de vue et leur bagage d’expérience et ainsi assumer pleinement leur tâche d’administrateur », explique Michael Katchen, un homme à la mi-trentaine. Intact a recruté M. Katchen en juillet 2022, ayant à l’esprit l’avenir d’une entreprise qui « continue d’investir dans la transformation de ses avantages concurrentiels par l’accélération numérique et l’intelligence artificielle », soulignait-on dans l’avis de nomination. Ayant grandi dans le monde numérique, le jeune homme affirme qu’il apporte aussi un point de vue différent sur le fait que « comme le monde change rapidement, la relation avec les clients change aussi, tout comme la main-d’œuvre. » Le processus d’orientation d’Intact est accueillant et encourageant, dit-il. « Je sens les gens réceptifs à mes idées et je pense que c’est vraiment important pour que les choses fonctionnent. » La réussite de l’inclusion doit s’appuyer sur un président du conseil solide et déterminé, observe M. Cardozo, qui a collaboré avec le chercheur en gouvernance Matt Fullbook à l’élaboration du rapport « From Window Dressing to Real Change: Success Stories from Boards on a Journey of Diversity & Inclusion » (« De la façade au véritable changement : histoires à succès de conseils d’administration sur la route de la diversité et de l’inclusion »). Leur rapport a été publié par la Rotman School of Management de l’Université de Toronto l’an dernier. Il faut du temps, de l’engagement et de l’adhésion pour que le vrai changement arrive, explique Egon Zehnder

ICD.CA | 37

In Canada, progressive boards are benchmarking themselves against best practices in their sectors and sharing their own successful strategies in governance forums and academic circles. Director Journal spoke to Cardozo and other boardroom diversity, equity and inclusion champions about what’s making a difference so far.

Board buddies and field trips At Soulpepper Theatre Co., the year-long onboarding process is all-inclusive. Jane Doe doesn’t get a pass because she is senior vice-president of a bank with experience on other boards, Cardozo says. “One of the most important things for the board to get right is the onboarding of all board members and not just board members from designated groups. Everyone has something to learn.” The learning and development process is tailored to each newcomer’s individual needs (Jane Doe can likely skip the governance basics workshops). However, all new directors are paired with board buddies who check on them before and after board meetings. Is there anything they would like explained, anything they wondered about but didn’t want to raise in front of the entire board? All directors go to the opening nights of plays. New directors are also encouraged to attend events that will give them a better feel for the organization – graduation ceremonies for the theatre’s educational programs, for instance. At Centennial College, where Cardozo previously served as a director, board meetings were sometimes held at satellite campus locations across the Greater Toronto Area so directors could see specialized programs such as auto body repair or aerospace manufacturing engineering in action. Corporate director Brenda LaRose says her first year and a half on the board of First Nations Bank of Canada has been incredibly immersive. “There’s lots to learn, and my steepest learning curve is on the regulatory side,” says LaRose, a former director at the Canadian Chamber of Commerce and a human resources professional specializing in leadership development, change management, and diversity and inclusion. Board colleagues with banking expertise and regulatory knowledge “are very good at explaining processes, policies and compliance rules to me individually.” The board meets once or twice a year in Saskatoon, where the head office is located, and holds the rest of its meetings to be closer to other bank operations or stakeholders. “We try and stay at Indigenous-owned hotels and resorts, and meet with CEOs or board chairs and members of Indigenous corporations.” Pre-meeting dinners, road trips, and get-togethers with clients and shareholders make for a great board culture, says LaRose. “We are a really good combination of different board members, Indigenous and non-Indigenous, men and women and different perspectives. And we have fun, too,” says LaRose, an Indigenous woman and a member of the board’s human resources and compensation committee.

Pathways to leadership Proactive and comprehensive succession plans are critical to inclusion, says corporate director Anita Braha, a lawyer, board chair and faculty member with the ICD’s effective governance educational program. “As new directors come in, you need to make sure that you

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dans son rapport sur la diversité. Les conseils reconnaissent la nécessité pour les administrateurs d’être en présence d’une mixité de points de vue. Le passage au prochain niveau exigera beaucoup de travail, dans la mesure où on doit maintenant « bâtir et soutenir une culture inclusive qui les oblige à repenser les vieilles pratiques et les styles d’opération. » Au Canada, les conseils progressistes se mesurent aux meilleures pratiques dans leurs secteurs et partagent leurs propres réussites stratégiques dans des forums de gouvernance et des cercles académiques. Le Director Journal a discuté avec M. Cardozo et d’autres champions de la diversité, de l’équité et de l’inclusion de ce qui fait la différence.

Les copains du conseil et les visites sur le terrain Au Soulpepper Theatre Co., le processus permanent d’orientation est tout axé sur l’inclusion. Mme Unetelle n’obtient pas de passedroit parce qu’elle est vice-présidente principale d’une banque avec de l’expérience à d’autres conseils, explique M. Cardozo. « L’une des choses les plus importantes pour que le conseil s’acquitte bien de sa tâche consiste à intégrer tous les membres du conseil et pas seulement ceux provenant de groupes désignés. Chacun a quelque chose à apprendre. » Le processus d’apprentissage et de développement est conçu pour répondre aux besoins individuels de chaque nouveau venu. Toutefois, tous les nouveaux administrateurs sont jumelés à des copains administrateurs qui les suivent avant et après les réunions du conseil. Ont-ils besoin d’une explication quelconque, une question qu’ils n’ont pas osé soulever devant tout le conseil? Tous les administrateurs vont aux premières des pièces. Les nouveaux sont aussi incités à assister à des événements qui leur donneront une meilleure appréhension de l’organisation. Au Collège Centennial, dont M. Cardozo a été administrateur, les réunions du conseil étaient parfois tenues à des campus satellites du Grand Toronto, de façon que les administrateurs puissent être informés des programmes spécialisés qui y étaient dispensés. L’administratrice de sociétés Brenda LaRose affirme que sa première année et demie au conseil de la Banque des Premières Nations du Canada fut incroyablement immersive. « Il y a beaucoup à apprendre et ma courbe d’apprentissage la plus abrupte est celle touchant la réglementation », explique Mme LaRose, ancienne administratrice de la Chambre de commerce du Canada et professionnelle des ressources humaines spécialisée dans le développement du leadership et la gestion du changement, de la diversité et de l’inclusion. Les membres du conseil se rencontrent une ou deux fois l’an à Saskatoon, où est situé le siège social, et tiennent le reste de leurs réunions de manière à être proches des autres opérations de la banque ou des parties prenantes. « Nous tentons de demeurer dans des hôtels ou des lieux appartenant à des Autochtones et de rencontrer des dirigeants ou membres du conseil de sociétés autochtones. » Les dîners précédant les réunions, les voyages en auto et les rencontres avec les clients et actionnaires permettent aussi aux administrateurs de baigner

ICD.CA | 39

have supported these directors, encouraged them to think about future leadership roles [as committee chairs and board chairs] and provided them with the education, resources and pathways to become future leaders – whether that’s tighter mentorship with the chair of a committee they might eventually chair, or whether that’s offering external help,” says Braha, chair of the Vancity Community Investment Bank board and past chair of Vancouver City Savings Credit Union (Vancity). Inclusive governance is woven into all the modules of the ICD course she conducts for board chairs. Egon Zehnder notes that most companies it works with have historically used informal processes to determine committee leaders, “perhaps through natural inclinations for some directors to raise a hand or through the chair unsystematically gauging individual interest.” Board chairs can do better by talking to current committee chairs about current and future needs and creating a formal process. An intentional, strategic succession plan gives chairs the opportunity to consider diverse representation across leadership roles and helps avoid biases in the selection process, the firm says.

A bold proponent of targets By 2022 – during Braha’s final term as chair – Vancity Savings Credit Union achieved its goal of having a leadership team representative of the community it serves. More than 40 per cent of board members and senior managers identify as Indigenous, Black, People of Colour, 2SLGBTQIA+, or people living with a disability. (2SLGBTQIA+ is an acronym for Two-Spirit, Lesbian, Gay, Bisexual, Transgender, Queer or Questioning, and additional sexual orientations and gender identities.) In the 2021 annual report, Braha said another of the board’s goals was to become “a proactively anti-racist governing body.” Doing more to identify and remove systemic barriers is a board priority, she says. It’s equally important to monitor the effectiveness of anti-racist and other DEI initiatives. “I am a bold proponent of targets around equity and diversity,” says Braha, who has addressed social and economic inequities throughout her career as a lawyer, educator and director. Soulpepper Theatre has set a goal that 40 per cent of the board be BIPOC (Black, Indigenous, People of Colour), says Cardozo, a retired not-for-profit executive who was born in Pakistan and educated in Pakistan and Britain. “It’s really helpful to not just say you want to be diverse, but to specifically have a goal, which will vary from organization to organization.” The starting point for boards is to figure out what diversity means to them and why they need to diversify. The diversity needs of an organization serving the farming community in Western Ontario will be different than the diversity needs of an organization serving youth in downtown Toronto. Francophone representation will be a priority for some, young people for others. From there, the board can identify the gaps and recruit. The Canadian Securities Administrators, an umbrella organization that harmonizes securities regulations in the provinces and territories, recently issued a discussion paper with two options to expand diversity disclosure requirements, one more prescriptive than the other. In addition to gender diversity, already covered under current

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dans une magnifique culture, souligne-t-elle. « Nous formons vraiment une bonne combinaison, Autochtones et non-Autochtones, hommes et femmes qui offrent chacun des points de vue différents. Et nous avons aussi beaucoup de plaisir ensemble », dit Mme LaRose, une Autochtone qui siège aussi au comité des ressources humaines et de la rémunération du conseil.

Les voies vers le leadership Des plans de succession proactifs et complets sont essentiels à l’inclusion, affirme l’administratrice de sociétés Anita Braha, avocate, présidente du conseil et membre du corps enseignant du programme de formation de l’IAS sur l’efficacité de la gouvernance. « À mesure qu’on accueille de nouveaux administrateurs, on doit s’assurer de les appuyer, de les encourager à envisager éventuellement des rôles de leadership et de leur fournir la formation, les ressources et les voies leur permettant de devenir de futurs leaders », explique celle qui préside le conseil de la Vancity Community Investment Bank et a aussi présidé le conseil de la Vancouver City Savings Credit Union (Vancity). La gouvernance inclusive est intégrée à tous les modules des cours qu’elle dispense à l’IAS à l’intention des présidents du conseil. Egon Zehnder observe que la plupart des entreprises avec qui elle travaille ont historiquement eu recours à des processus informels pour désigner les leaders des comités. Or, les présidents du conseil peuvent faire mieux en discutant avec les présidents actuels des comités sur les besoins présents et futurs et en créant un processus formel. Un plan de succession intentionnel et stratégique donne aux présidents du conseil l’occasion d’envisager une représentation diversifiée pour les fonctions de direction et d’éviter les biais dans le processus de sélection.

Partisane de cibles audacieuses En 2022, durant le dernier mandat de Mme Braha comme présidente du conseil, la Vancity Savings Credit Union a atteint son objectif d’avoir une équipe de leadership représentative de sa communauté. Plus de 40 pour cent de ses administrateurs et des membres de son équipe de direction s’identifient comme Autochtones, Noirs, gens de couleur, 2SLGBTQIA+ ou gens vivant avec un handicap. La nécessité de faire plus pour identifier et lever les obstacles systémiques est une priorité pour le conseil, affirme Mme Braha. Il est aussi important de vérifier l’efficacité des initiatives antiracistes et celles touchant la diversité, l’équité et l’inclusion. Le Soulpepper Theatre a aussi fixé pour son conseil un objectif de 40 pour cent de membres issus des communautés noires, autochtones et de couleur, explique M. Cardozo, un dirigeant à la retraite d’organismes à but non lucratif né au Pakistan et formé au Pakistan et en Grande-Bretagne. « Il est vraiment pertinent non seulement d’exprimer son désir de diversité, mais aussi de fixer des objectifs précis, qui peuvent varier d’une organisation à l’autre. » Le point de départ pour le conseil consiste à déterminer ce que signifie la diversité en fonction de la communauté qu’on dessert. Les autorités canadiennes en valeurs mobilières, une organisation parapluie chargée d’harmoniser la réglementation entre les

‘It’s really helpful to not just say you want to be diverse, but to specifically have a goal, which will vary from organization to organization.’ « Il est vraiment pertinent non seulement d’exprimer son désir de diversité, mais aussi de fixer des objectifs précis, qui peuvent varier d’une organisation à l’autre. » regulations, the more rigorous proposal would require securities issuers to report on the representation of Indigenous people, racialized people, people with disabilities, and LGBTQ+ people. The more flexible approach would require issuers to define “identified groups” – in addition to women – that are meaningful to their organizations’ diversity strategies and report on their representation. Either way, it’s prudent for boards to be early adapters and get ahead of the regulators, says LaRose.

From fitting in to adding perspectives There is a tendency on many boards, still, to minimize the differences and seek common ground with new directors from diverse backgrounds. The unwitting consequence is that incoming board members “are often subtly encouraged to subscribe to the dominant culture of the board – to ‘fit in’ rather than to add their own unique perspectives to the discussion,” Cardozo and Fullbrook wrote in their “From Window Dressing to Real Change” report. The insights came from corporate director Hamlin Grange, past chair of the Responsible Gambling Council, a former member of the Toronto Police Services board and co-founder of DiversiPro Inc., a Blackowned consulting firm that provides strategic advice on inclusion,

provinces et territoires, ont récemment publié un document de discussion proposant deux options pour élargir les exigences relatives à la divulgation en matière de diversité, l’une plus prescriptive que l’autre. En plus de la diversité de genre, déjà couverte en vertu des règles actuelles, la proposition la plus rigoureuse exigerait des émetteurs de titres de rapporter leurs taux de représentation des Autochtones, des gens racisés, des gens souffrant de handicaps et des membres des communautés LGBTQ+. L’approche plus flexible exigerait des émetteurs qu’ils définissent des « groupes identifiés » – en plus des femmes – significatifs pour les stratégies de diversité de leurs organisations. Quoi qu’il en soit, il est prudent pour les conseils d’adopter tôt de telles mesures et de devancer la réglementation, estime Brenda LaRose.

De l’intégration à l’ajout de points de vue Néanmoins, il existe une tendance chez beaucoup de conseils à minimiser les différences et à rechercher un dénominateur commun chez les nouveaux administrateurs provenant de divers milieux. L’effet pervers d’une telle attitude est que les nouveaux membres du conseil « sont souvent encouragés subtilement à souscrire à la

ICD.CA | 41

diversity, equity, anti-racism and change management. Grange was recently inducted into the Order of Canada for his pioneering work on diversity and inclusion. There’s nothing wrong with boards wanting to find common ground, Grange says, as long as directors have also developed intercultural competence, and the capacity to understand, adapt and work effectively with peers from a range of backgrounds. “By understanding the differences, you can make policy changes, program changes, changes in your products and services, changes in how you communicate to a community.” Another common barrier to inclusion is the dominant director who takes up all the air time. This is where a strong chair steps in, modelling inclusive behaviour by ensuring that every voice and perspective is heard, says Grange. It’s also important that candidates from diverse backgrounds understand what they are getting into before signing on. Prospective directors deserve clarity on why, exactly, they are being recruited and the value they are expected to bring to the table. “Obviously we want to get away from tokensim [and] we want to get away from putting the burden on members of disadvantaged groups having to educate the rest of us,” says Braha. This is a sensitive issue. Recruitment must, first and foremost, be based on the matrix of professional expertise, skills and abilities needed to enhance the board’s oversight, says LaRose. Then the board’s recruitment experts can be instructed to find a diverse slate of candidates who meet the qualifications. Katchen concurs on the issue of clarity: “Being clear on the value I bring in those early days of joining a board is important and allows me to pick moments where I should actively contribute, while getting up to speed on other aspects of the business.”

Creativity and courage It takes skill, resolve, diplomacy, creativity and courage to successfully manage the changing composition of boards and get everyone working as a team, say board chairs who are leading the transition. The old order has been disrupted. In its Diversity Tracker report, Egon Zehnder suggests that, in addition to the onboarding of new directors, current directors “may benefit from a reorientation, opening their minds to operate in a new way.” At the recent ICD convention, board chair Kimberly Keating of Major Drilling Group International Inc. and Jean St-Gelais, chair of the board at Caisse de dépôt et placement du Québec, talked about the importance of inclusive leadership and finding the right alchemy on today’s increasingly diverse boards. They were co-panelists with Katchen, who observed: “The key is a balanced perspective around the table; nothing replaces wisdom.” Under Quebec law, the Caisse is now required to have one director under age 35 on board. These are one-term appointments that prepare a new generation for future board service. It’s a good initiative, says St-Gelais. “The younger ones bring curiosity, a fresh breath of air. … We need to be more involved in looking at what’s new.” While not all organizations deem it essential to have a millennial on board – some create shadow boards or advisory councils to gain insights from younger demographic groups – the trend is definitely

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culture dominante du conseil – à « s’intégrer » plutôt que de faire valoir leur propre point de vue au cours d’une discussion, soulignent MM. Cardozo et Fullbook dans leur rapport. L’idée est venue de l’administrateur de sociétés Hamlin Grange, ancien président du conseil du Conseil du jeu responsable, ancien membre du conseil des Services de police de Toronto et cofondateur de DiversiPro Inc., un cabinet conseil appartenant à des personnes noires qui offre des conseils stratégiques sur l’inclusion, la diversité, l’équité, l’antiracisme et la gestion du changement. M. Grange a récemment été intronisé à l’Ordre du Canada pour son travail de pionnier en matière de diversité et d’inclusion. Il n’y a rien de mal à ce que les conseils cherchent à établir des valeurs communes, dit M. Grange, dans la mesure où les administrateurs développent aussi une compétence interculturelle et la capacité de comprendre et de dialoguer avec leurs partis sur un éventail de sujets. « En comprenant les différences, on peut susciter des changements, que ce soit dans les politiques, les programmes, les produits et services et la manière de communiquer avec une communauté. » Un obstacle commun à l’inclusion est l’administrateur dominant qui monopolise toute l’attention. C’est là que doit intervenir un président du conseil fort pour donner l’exemple d’un comportement inclusif en s’assurant que chaque voix et chaque point de vue soient entendus, explique M. Grange. Il est aussi important que les candidats issus d’horizons divers comprennent dans quoi ils s’engagent. Les administrateurs éventuels méritent qu’on soit clair avec eux sur les raisons exactes pour lesquelles on les recrute et les valeurs qu’on s’attend à les voir mettre de l’avant. Michael Katchen est aussi d’accord sur la question de la clarté. « Le fait qu’on soit clair sur les valeurs que j’apporte dans les premiers moments de mon accession au conseil est important et me permet de choisir les moments où je devrais apporter une contribution active, tout en intégrant d’autres aspects des activités de l’organisation. »

Créativité et courage Il faut du talent, de la détermination, de la diplomatie, de la créativité et du courage pour gérer avec succès la composition changeante des conseils et faire en sorte que tout le monde travaille en équipe, affirment les présidents du conseil qui mènent la transition. L’ordre ancien a été perturbé. Dans son rapport sur le traçage de la diversité, Egon Zehnder suggère qu’en plus de l’orientation des nouveaux administrateurs, les administrateurs en poste « puissent profiter d’une réorientation, ouvrir leur esprit à de nouvelles façons de faire. » Lors du récent congrès de l’IAS, la présidente du conseil Kimberley Keating du Major Drilling Group International Inc. et Jean St-Gelais, président du conseil de la Caisse de dépôt et placement du Québec (CPDQ), ont évoqué l’importance d’un leadership inclusif et de la recherche d’une chimie adéquate au cœur de conseils de plus en plus diversifiés. Ces deux personnes étaient dans le même panel que Michael Katchen, qui a souligné : « La clé réside dans l’équilibre des points de vue au conseil; rien ne remplace la sagesse. » En vertu des lois québécoises, la CPDQ est maintenant tenue d’avoir au moins un administrateur de moins de 35 ans. « Les jeunes

toward recruitment of more directors from diverse backgrounds. The wise old board veterans provide historical perspective and continuity, “but we also have others who are bringing different dimensions that are equally important,” says Keating. As a board, you have “to set yourself up so that you are ready for growth opportunities and more sustainable opportunities. … It takes some time, some courageous leadership to push this, and some very honest conversations.” As the population ages, a lot of people are retiring and looking for directorships, says St-Gelais. Many will be disappointed. While boards used to be heavily populated with retired executives, priorities and needs have shifted. The moderator of the ICD’s intergenerational boards panel asked St-Gelais whether – in their efforts to be inclusive – boards are excluding older people who are equally knowledgeable about AI, changing consumer needs, different cultures and emerging trends. “I agree with you,” said St-Gelais, “but that’s always the challenge when you want to change things in society, when you want to bring more justice with respect to the treatment of women and others. … The balance will shift.” DJ

amènent de la curiosité, un souffle frais », souligne M. St-Gelais. Même si toutes les organisations ne considèrent pas comme essentiel de compter un membre de la génération du millénaire parmi leurs administrateurs, la tendance est claire vers le recrutement accru d’administrateurs issus d’horizons divers. « On a besoin de gens qui apportent des dimensions différentes », affirme M. Keating. À mesure que la population vieillit, bien des gens prennent leur retraite et recherchent des postes d’administrateurs, constate M. St-Gelais. Même si les conseils ont été largement peuplés de dirigeants à la retraite, les priorités devaient changer. Le modérateur du panel sur les conseils intergénérationnels de l’IAS a demandé à celui-ci si, dans leurs efforts pour être inclusifs, les conseils excluaient aujourd’hui les gens plus âgés qui ont des connaissances sur l’intelligence artificielle, les besoins changeants des consommateurs, des cultures différentes et les tendances en émergence. « Je suis d’accord avec vous, a-t-il répondu. Il y a toujours un défi quand on veut changer les choses, apporter plus de justice quant au traitement des femmes et d’autres groupes. …Les ajustements se feront. » DJ

VIRGINIA GALT, a former business and education reporter for The Globe and Mail, covers legal, education and management issues for a number of publications.

VIRGINIA GALT, ancienne journaliste du Globe and Mail spécialisée en économie et en éducation, couvre les questions juridiques, d’éducation et de gestion pour un certain nombre de publications.

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ICD DIRECTORS ON THE MOVE

DIRECTORS ON THE MOVE

The ICD would like to congratulate the following members on their recent board appointments Not-for-Profit

Shiva Dean, ICD.D

VICE-CHAIR HABITAT FOR HUMANITY EDMONTON

Taki Sarantakis, ICD.D

Len Boggio, ICD.D CHAIR RUBICON ORGANICS INC.

Michael Detlefsen, ICD.D

DIRECTOR MARS DISCOVERY DISTRICT

DIRECTOR RUBICON ORGANICS INC.

Diane Kazarian, ICD.D

Charles Ruigrok, ICD.D

DIRECTOR MARS DISCOVERY DISTRICT

DIRECTOR FINNING INTERNATIONAL INC.

Hassan Pirnia , ICD.D

Technology

LAY BENCHER (DIRECTOR) LAW SOCIETY OF ONTARIO

Kiren Singh, ICD.D

Zabeen Hirji, ICD.D

Laurie Powers, ICD.D

DIRECTOR COMPUTER MODELLING GROUP

Grant MacKenzie

DIRECTOR PAYMENTS CANADA

Hazel Claxton, ICD.D DIRECTOR BANK OF MONTREAL

Oil & Gas

Dave Humphreys, ICD.D DIRECTOR BONTERRA ENERGY CORP.

Diane Kazarian, ICD.D DIRECTOR GIBSON ENERGY INC.

Caroline Pajot, ICD.D

Caroline Codsi, ICD.D

Rachel Moore

DIRECTOR HOME AND COMMUNITY CARE SUPPORT SERVICES

Consumer Products & Manufacturing André Hudon

ADVISORY BOARD DIRECTOR TREMCAR INC.

Banking & Financial Services

David Baldarelli, ICD.D DIRECTOR DUCA FINANCIAL SERVICES CREDIT UNION LTD.

Diane Kazarian ICD.D

DIRECTOR OMERS ADMINISTRATION CORP.

Jawaid Mirza

DIRECTOR YUM! BRANDS, INC.

DIRECTOR COMMERCIAL BANK OF EGYPT

Tania Clarke, ICD.D

Richard Stone, ICD.D

Susan Doniz, ICD.D

DIRECTOR JAMIESON WELLNESS INC.

CHAIR FOSTER & ASSOCIATES FINANCIAL SERVICES INC.

COUNCIL MEMBER COLLEGE OF PHYSIOTHERAPISTS OF ONTARIO

Kevin McBeth, ICD.D

DIRECTOR VOYAGEUR PHARMACEUTICALS LTD.

Education

Peyman Parsi, ICD.D

David Oliver

Angela Lekatsas, ICD.D

Linda Franklin, ICD.D

Frank Massey, ICD.D

DIRECTOR CAPITAL POWER CORP.

DIRECTOR SSC SECURITY SERVICES CORP.

ADVISORY BOARD CHAIR MEERANDA

DIRECTOR ONTARIO HOSPITAL ASSOCIATION

DIRECTOR CANADIAN SCHOLARSHIP TRUST FOUNDATION

Carolyn Graham, ICD.D

GOVERNOR JUNIOR ACHIEVEMENT WORLDWIDE

DIRECTOR COUNCIL OF THE GREAT LAKES REGION

Avanthi Goddard, ICD.D

DIRECTOR ALTAGAS LTD.

DIRECTOR STEP ENERGY SERVICES

Metals & Mining Justin Reid, ICD.D

DIRECTOR DELTA RESOURCES LTD.

Terrence Lyons, ICD.D

DIRECTOR CANADIAN SCHOLARSHIP TRUST FOUNDATION

Murray Angus

GOVERNOR LOYALIST COLLEGE OF APPLIED ARTS AND TECHNOLOGY

Millan Mulraine, ICD.D

CHAIR NORTHWEST COPPER CORP.

GOVERNOR GEORGE BROWN COLLEGE OF APPLIED ARTS AND TECHNOLOGY

Jeffrey Steiner, ICD.D

Linda Franklin, ICD.D

DIRECTOR KWG RESOURCES INC.

Forestry

Nicolle Butcher, ICD.D DIRECTOR INTERFOR CORP.

Medical & Healthcare

Judy Murphy, ICD.D

GOVERNOR NIAGARA COLLEGE OF APPLIED ARTS AND TECHNOLOGY

Transportation

Jane O’Hagan, ICD.D DIRECTOR GCT GLOBAL CONTAINER TERMINALS INC.

Real Estate

Diane Kazarian, ICD.D DIRECTOR CHOICE PROPERTIES REIT

Government

Catherine Woodman ICD.D

TRUSTEE CANADIAN MUSEUM OF IMMIGRATION AT PIER 21

Catherine Woodman ICD.D DIRECTOR ART GALLERY OF NOVA SCOTIA

Richard Nunn, ICD.D DIRECTOR ONTARIO PENSION BOARD

Baltej Dhillon

CHAIR WORKSAFEBC

Nazreen Ali, ICD.D DIRECTOR ASSOCIATION OF ONTARIO LAND ECONOMISTS

Thomas Wellner, ICD.D DIRECTOR ONTARIO TEACHERS’ PENSION PLAN BOARD

Martine Irman, ICD.D

DIRECTOR ONTARIO TEACHERS’ PENSION PLAN BOARD

Linda Franklin, ICD.D DIRECTOR ONTARIO MOTOR VEHICLE INDUSTRY COUNCIL

VICE-CHAIR ST. BONIFACE HOSPITAL

Send your board appointment publication requests to: Sheldon Mahabir, Director of Member Engagement, smahabir@icd.ca 44 | DIRECTOR JOURNAL

CLIMATE GOVERNANCE COURSE – FIRST TO RECEIVE CGI GLOBAL RECOGNITION Chapter Zero Canada’s* course, Board Oversight of Climate Change (BOCC), is the first to successfully pass a robust review process based on new global curriculum standards set out by the Climate Governance Initiative (CGI). This recognition confirms the ICD’s commitment to best-in-class director education, preparing boards to navigate the complex and ever-changing climate governance landscape. Apply for the next Board Oversight of Climate Change offering, starting January 31, 2024, and equip yourself with forward-thinking strategies to enhance your oversight of climate-related risks and opportunities. *Chapter Zero Canada, the Canadian chapter of the World Economic Forum’s Climate Governance Initiative (CGI), is the primary resource for information and education on climate governance and oversight at the Institute of Corporate Directors (ICD).

APPLY ONLINE EDUCATION.ICD.CA/BOCC24

Canada

BY Shirley Won

Is Canada facing a growing threat to our democracy? Rob Goodman thinks so. The political theorist and former congressional speechwriter says it’s time for Canada to think differently about its relationship to the United States and combat anti-democratic forces at home

ON JAN. 6, 2021, former U.S. president Donald Trump gave a speech inciting his Republican supporters to attack the Capitol building in Washington. The mob tried to prevent Congress from ratifying Democrat Joe Biden’s victory in the November 2020 presidential election. Rioters clashed with police, destroyed property, and sent members of Congress running to hide in offices and bunkers before National Guard troops arrived to quell the insurrection. In his book Not Here: Why American Democracy Is Eroding and How Canada Can Protect Itself, Rob Goodman

46 | DIRECTOR JOURNAL

warns that the forces giving rise to authoritarianism in the United States could endanger democracy in this country unless Canada take steps to keep this threat at bay. Director Journal asked Goodman, an assistant professor of politics and public administration at Toronto Metropolitan University (TMU), why last year’s so-called Freedom Convoy blockade led by truckers in Ottawa alarmed him; why he is critical of how Canadian and U.S. leaders are dealing with authoritarian movements, and why Canadians need to become better self-mythologizers.

It’s unusual for Americans to warn Canadians about a threat to our democracy from the United States. Was Trump’s election [in 2016] a factor when you moved to this country?

I used to be a speechwriter for [former] Senator Chris Dodd and Congressman Steny Hoyer, both Democrats. After working in politics, I went to Columbia University for a PhD in political science. I moved to Montreal in 2018 to be a postdoctoral researcher at McGill University and was then fortunate to be hired at TMU. My wife and

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If anti-democratic politicians win power in Washington, the United States could cease to be an ally and instead become ‘a source of instability and democratic erosion,’ argues the American political scientist and author Rob Goodman.

ICD.CA | 47

In your book, you describe last year’s blockade in Ottawa led by a convoy of truckers and other demonstrators protesting Covid-19 public health restrictions as a “slow motion Jan. 6th.” Why?

It’s a fair analogy because the trucker convoy represented a lot of the same political tendencies and same politics as Trump supporters – from anti-government conspiracy theories to the more recent anti-LGBTQ [lesbian, gay, bisexual, transgender, queer] protests. We have seen the overlap between these two movements and the anti-vaccine protests, so I think politically these forces are very alive. Forty-four per cent of funding for the convoy came from American sources, and it was promoted on U.S. right-wing media. I think the blockade by the convoy was not simply a non-violent protest. Although a lot of people participated in the protest in good faith, parts of the movement were also interested in using force and threats to win power. Why are you critical of the way government leaders have dealt with these antidemocratic or authoritarian movements?

I see Canada as a great place to raise our kids because of the great public education system starting from elementary schools to universities. There is also less stress – be it from medical debt, student-loan debt, gun violence or school shootings – if they grow up here. That is the bet we are making. It’s not really about [Trump]. What motivated you to write your book?

First, it was sadness, anger and frustration at watching what’s happened in American politics. A lot of Canadians are rightfully

48 | DIRECTOR JOURNAL

disturbed by the success of the authoritarian and far right in the United States. I think there is a Canadian assumption that America will always be a source of stability and democracy, and a friendly, helpful ally because that is how the relationship has been for generations. I am not sure the average Canadian is ready to face up to the possibility that we might not be able to count on the U.S. in future years, and that the relationship might be a source of instability and democratic erosion in Canada. It’s important to prepare for scenarios that aren’t as friendly.

Prime Minister Justin Trudeau and President Joe Biden’s response to radical right forces leave a lot to be desired. It shows a lack of creativity. They don’t have much of a playbook beyond law enforcement. I don’t see a lot of engagement with what factors are contributing to democratic decline, what are the reasons why these movements are so attractive and what enables them to make these really plausible bids for power. In Canada, I would like to see more institutional changes, such as how we [ensure fair] political representation, a rethinking of whether our social safety net is living up to its promise, and whether maintaining high levels of immigration is going to be possible in a time of a housing crisis. I see the way Trudeau is dealing with the far right as treating the symptom rather than the cause. The approach needs to be holistic. Do you see a greater threat to Canadian democracy if Donald Trump wins the Republican nomination and 2024 presidential election?

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‘PRIME MINISTER JUSTIN TRUDEAU AND PRESIDENT JOE BIDEN’S RESPONSE TO RADICAL RIGHT FORCES LEAVE A LOT TO BE DESIRED. IT SHOWS A LACK OF CREATIVITY. THEY DON’T HAVE MUCH OF A PLAYBOOK BEYOND LAW ENFORCEMENT.’ Yes. A Trump government would not necessarily see eye to eye on foreign policy with Canadian parties – be it Liberal or Conservative. Should Trump pursue a policy that is more Russia-friendly, more American first and protectionist, a lot of Canadians would see it as a threat. But ideas also travel across borders. If Trump were to win the presidency, it would be a big victory for the far right or authoritarian movements and give them more international prestige. I think it would embolden figures in Canadian politics who identify with that. You see Canada’s multiple founders – the Indigenous nations, the English, and the French – as key to our democratic resilience. Why?

When I look at what threatens democracy in the U.S., there is Trump’s appeal to the “real people.” It is an expression of who is entitled to rule that country. In Canada, that view is less plausible because it is a

country that sees itself as having multiple founding elements and multiple conflicting histories. It is harder for any political group to say that it represents real Canadians. That is something to build upon and is distinct from how the U.S. understands its own history. This theme of not having a “real people,” but a country of multiplicities gets to be part of the national political culture here in a way that I don’t think has quite permeated U.S. politics, even though it is a multicultural nation. You say that Canadians need to become better self-mythologizers to help maintain our democratic tradition. Why?

clude the idea of Canada as a fundamentally multiple-founding country, and one with a historically deep suspicion of its leaders and political charisma. Canadians live in a country of some 38 million that is next to a country that is 10 times its size with a dominant position in media and culture. The images that get reflected at Canadians are made to fill the needs of U.S. politics and culture. That image is going to be absorbed here because a lot of that gets echoed back and filtered to us through American media. If we don’t actively start to think about our own anti-authoritarian stories, they are going to be someone else’s stories for someone else’s needs. DJ

Myths are stories we use to tell ourselves what we value, what is important and where we are going to orient ourselves. What I try to do in the book is to suggest that we should think about the kind of myths and beliefs that we need to make the far right less plausible here. They can in-

SHIRLEY WON is a Toronto-based freelance journalist and former business and investment reporter for The Globe and Mail. She also worked as a business reporter for the Montreal Gazette, covering transportation, real estate, retail and banking.

ICD.CA | 49

PARTING SHOT

In October, Claudia Goldin became the third woman to win the Nobel Prize for economics and the first to do so without a male collaborator. Among her many findings, the Harvard economist showed that the gender pay gap starts to widen soon after the birth of a woman’s first child. Among the solutions to this inequity are subsidized child care, jobs that allow couples to share domestic duties, and workplace flexibility, she says. The latest Women in the Workplace report from McKinsey and LeanIn.org, also released in October, finds hybrid and remote work are enabling ambitious women to aim higher. Ironically, on

50 | DIRECTOR JOURNAL

the same day, KPMG released its 2023 CEO Outlook, which finds that 64 per cent of business leaders predict a full return to the office within the next three years, with 87 per cent leaning toward linking financial rewards and promotions to in-office work. In a working paper, “Why Women Won,” circulated hours before her Nobel nod, Goldin outlined how women moved toward equality at home and work. It’s hard to predict what will happen tomorrow, let alone in 2026. But the fact that a woman won in a field traditionally dominated by men is cause for optimism today.

AP PHOTO/JOSH REYNOLDS

Why this woman won

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