Hon. Marilou McPhedran: As a senator for Manitoba, I acknowledge that I live on Treaty 1 territory, the traditional lands of the Anishinaabe, Cree, Oji-Cree, Dakota and Dene, and the homeland of the Métis Nation.

I acknowledge that the Parliament of Canada is situated on unceded and unsurrendered Algonquin Anishinaabe territory.

[English]

Honourable senators, I rise today to speak to Senator Omidvar’s Motion No. 3, which asks us to adopt Recommendation 8 of the 2019 report of the Special Senate Committee on the Charitable Sector, chaired by former senator Terry Mercer, with Senator Ratna Omidvar as deputy chair.

Specifically, Recommendation 8 is simple and achievable, requiring the Canada Revenue Agency to include questions on tax forms for registered charities and federally incorporated not-for-profit corporations on diversity representation on boards of directors. I applaud Senator Omidvar for bringing this motion forward. Too often, excellent Senate reports with sensible, needed change strategies are not pursued in such a practical manner.

The non-profit sector is an economic driver and influencer in this country. Canada has over 170,000 charitable and non-profit organizations that are largely governed by boards of directors that often do not represent the diversity of the communities they serve and Canada as a whole. In supporting this motion, I do not wish to take away from the work these organizations are doing, but to highlight that a lack of diversity and representation saps legitimacy, limits voices and ideas and sows disconnect between groups and the communities that these boards serve.

Efficacy in the charitable sector is undermined where there are perceptions of bias, exclusion or mistrust. Further, when boards do not address diversity, a disconnect with the communities they serve will inevitably occur, resulting in limited networks, limited funding sources and difficulty in developing new ideas. The lack of diversity can create a conformity bias or groupthink mentality, which can lead to making the wrong decisions at a strategic level for effectiveness.

Senator Omidvar has detailed how Canada’s charitable sector lacks diversity, particularly in management positions, sometimes called “snow capping.” Snow capping occurs when racialized workers appear on the front lines while top positions are maintained by non-marginalized individuals. Another unintended consequence is the “cloning effect,” which refers to the bias, unconscious or otherwise, that sometimes occurs when, in recruiting new board members, trustees tend to seek out those from their immediate circles of influence, almost cloning themselves with look-alike and think-alike individuals who experience life much like they do, creating a homogeneous board that risks being disconnected from the communities in need.

Boards of directors who are not representative of their communities underserve their populations and create barriers for equity-deserving groups to advance to positions of authority. Conversely, a diverse board of directors can bring a realistic view of the community, strengthen the organization’s connections and credibility to its constituency, improve fundraising and assist with targeted, effective policy creation and implementation. In essence, it makes a board more effective at carrying out its mission.

Notably, Canada lacks comprehensive reporting mechanisms and statistics on diversity in its charitable sector. In 2021, Statistics Canada launched its first voluntary questionnaire to gather information on diversity among Canada’s charities and non-profit boards of directors. While the data was not collected using probability-based sampling, the results demonstrate the lack of equity in Canada’s charitable sector. Over 40% of respondents indicated that their organization does not even have a diversity policy. Conversely, organizations that did report a written diversity policy indicated they had higher proportions of diverse representation among their boards, including individuals living with a disability, First Nations, Métis, Inuit, visible minorities and LGBTQ+ individuals.

Recent developments in Canada’s corporate sector indicate that increased diversity reporting requirements can result in concrete diversity advancement for boards of directors. Since amendments were made to the Canada Business Corporations Act in 2020, requiring publicly traded organizations to disclose information on the diversity of their boards of directors and information related to their written policies concerning diversity, there have been substantive, measurable and positive developments. The amendments likely assisted in spurring a normative change, wherein boards of directors saw increases in the representation of minorities, women and Indigenous peoples.

The starting point for good policy and reform begins with transparency and data and leads to accountability. Motion No. 3 would galvanize necessary reporting requirements on board diversity within Canada’s charitable sector and lay the foundation for more targeted reform based on information and data collected. It may also spur a normative change within the sector by requiring organizations to consider and reflect upon the composition of their boards of directors and their diversity policies or lack thereof.

I commend Senator Omidvar for her long and dedicated leadership in the non-profit sector. This motion builds on the crucial work of civil society by shining a spotlight on where further study, data collection and inquiry are essential to building paths for growth and change that are necessary for a more just and effective Canada with a more inclusive economy and, in turn, a stronger democracy.

Thank you, meegwetch.

(On motion of Senator Seidman, debate adjourned.)

[Translation]

On the Order:

Resuming debate on the motion of the Honourable Senator McCallum, seconded by the Honourable Senator LaBoucane-Benson:

That the Senate of Canada call on the federal government to adopt anti-racism as the sixth pillar of the Canada Health Act, prohibiting discrimination based on race and affording everyone the equal right to the protection and benefit of the law.

(On motion of Senator Petitclerc, debate adjourned.)

On the Order:

Resuming debate on the motion of the Honourable Senator Omidvar, seconded by the Honourable Senator Dean:

That, given reports of human rights abuses, repression and executions of its citizens, particularly women, in Iran by the Islamic Revolutionary Guard Corps (IRGC), the Senate call upon the government to immediately designate the IRGC as a terrorist entity.