Madam Speaker, I am pleased to rise to speak in support of Bill C-25, an act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act, and the Competition Act.
Our government understands that Canada needs all the available talent to stimulate innovation and economic prosperity. To ensure that this happens, we must engage people of different genders, with different backgrounds, skills, experience, and ideas to manage all segments of the economy.
We see diversity as a source of Canada's strength. With the bill, we are calling on all leaders and decision-makers, including shareholders, to promote diversity and inclusion.
In today's global economy, it is to our economic benefit that our workforce reflects our rich diversity. Ensuring we have diversity in all aspects of our society contributes to better performance and innovative thinking, which affects the economic security of our communities and our country. We need leadership and commitment not only in government but also in the private sector to instill diversity and inclusion as core to good corporate governance.
Bill C-25 promotes diversity in leadership roles, something that is integral to creating environments where a diversity of voices make decisions that are of consequence to all of us. Research shows that leaders who embrace diversity in their organizations and give diverse voices equal exposure are more likely to have employees contribute to their full innovative potential. Change can happen. For example, the Canadian Board Diversity Council, the leading Canadian organization advancing diversity on Canada's boards, in order to help drive increased shareholder value, established diversity 50.
Diversity 50 is designed to help directors identify diverse board-ready candidates beyond their own networks. The initiative expands the definition of experience, expertise, education, geography, and age to include such considerations as women, visible minorities, aboriginal peoples, and people with disabilities. There are 13 CEOs from the telecommunications, energy, financial, and media sectors that support diversity 50.
Organizations such as Catalyst Canada have also created voluntary measures, such as the catalyst accord, which, in 2012, called on Canadian corporations to join and increase the overall proposal of the Financial Post's FP500 board seats held by women to 25% by 2017.
Canada's 30% club, whose membership comprises leading directors and executive officers, established an aspirational goal of 30% female representation on boards by 2019 and works with Catalyst on the catalyst accord. These are important targets that I am certain corporate Canada can reach, not only because we have the talent but because meeting these targets will drive stronger companies, better decision-making, and ultimately, a richer economy.
Another important dimension of the bill complements these measures by further facilitating the conversation between shareholders and corporations on how they are pursuing diversity in their leadership. The bill would also require distributing corporations and co-operatives to hold annual elections. This not only supports accountability but can provide opportunities for diversity on boards. Women make up 48% of the workforce and earn half of the university degrees, yet the latest figures show that women hold 13.1% of all Canadian board seats, 19.1% of seats on the boards of the FP500 companies, and 20.8% of seats on the boards of Standard & Poor's TSX 60 companies.
If Canada's workforce and economy are to remain modern and competitive internationally, we need to tap our full potential. We need to encourage change to ensure that the full diversity of Canada is represented in the business world. Bill C-25 would require Canada Business Corporations Act corporations to disclose diversity information such as the composition of their boards and policies to their shareholders, or to explain why they do not have diversity policies. The bill would also require corporations to provide diversity information to the director of Corporations Canada, so that progress can be monitored.
With the introduction of Bill C-25, it is important that boards and recruiting committees review the diversity of their boards and senior management and consider more inclusive practices. When businesses expand their pool of candidates, they can find new backgrounds, skills, and experiences that may have been overlooked in the past. This is true at the senior level and down through the organization.
I am honoured to have the opportunity to participate in the debate on Bill C-25 during Women's History Month. In October, we celebrate the women who shaped Canada's history.
It is an opportunity to honour their courage, sacrifices, and leadership. Our government is determined to eliminate the problem of under-representation of women and other groups at the highest levels of corporate management.
The amendments in Bill C-25 would allow government and businesses, working together, to promote diversity and put innovation at the core of their business strategy. It is essential that corporations demonstrate progressive leadership and create a culture of inclusivity and innovation.
By recognizing diversity as a strength and ensuring we have the full spectrum of ideas at the table, Canada stands to benefit with firms that are increasingly innovative and increasingly financially successful.
