Embracing diversity in the workplace: A good business decision

News release

Government of Canada launches 50 – 30 Challenge, a joint initiative with the private sector to promote diversity in corporate Canada

December 10, 2020 – Ottawa, Ontario

Canada’s greatest resource is its people. Businesses and organizations benefit from having the right people, reflecting Canada’s full diversity, putting their talents to use. The leadership of corporate Canada and our major organizations should look like Canada—not simply because it’s fair but also because it makes good sense. Time and time again, research has shown that businesses and organizations that embrace diversity on their boards and management teams outperform their peers. Intuitively, a broader range of perspectives and talents results in better performance.

Yet, the reality is that women, racialized persons, people who identify as LGBTQ2 and people living with disabilities (including invisible and episodic disabilities), as well as First Nations, Inuit and Métis peoples, are under-represented in positions of economic influence and organizational leadership, including on corporate boards and in senior management.

That is why today, the Honourable Navdeep Bains, Minister of Innovation, Science and Industry, launched the 50 – 30 Challenge to advance and recognize diversity, inclusion and economic prosperity from coast to coast to coast.

Minister Bains announced a $33-million investment in the Challenge, including for the development of tools and resources to help participating organizations advance diversity and inclusion in workplaces across Canada. Additionally, Innovation, Science and Economic Development Canada (ISED) will leverage its programs to encourage companies that receive ISED funding to advance diversity and inclusion within their organizations.

The Standards Council of Canada, Canada’s respected voice for and advisor on standards and accreditation, will collaborate with 50 – 30 Challenge partner organizations to develop Canadian standards for diversity in organizational leadership. Beginning with a guidance document, the Council’s work will serve as a roadmap to help organizations of various sizes and sectors across the country achieve measurable, concrete change.

The Government of Canada has been working together with private sector and diversity-focused organizations in a co-creation effort to develop the 50 – 30 Challenge. So far, more than 470 organizations—of every size and from every province and territory—have signed up for the challenge.

At the heart of the 50 – 30 Challenge are two goals for the board(s) and senior management of each organization: gender parity (50%) and significant representation (30%) of under-represented groups. To address the unique needs of various sectors in Canada, the Challenge offers three streams for participation: large corporations; small and medium-sized enterprises; and post-secondary institutions, not-for-profit organizations and charities. Organizations in all three streams will commit to working toward the 50 – 30 objectives in ways that show meaningful progress toward creating a workplace that reflects the diversity of the communities in which they operate across Canada.

The Challenge will also build on important work over the past years to advance equality, including Bill C-25 from the previous Parliament, which introduced diversity disclosure requirements for distributing companies; the Women Entrepreneurship Strategy; a charter on equity, diversity and inclusion for post-secondary institutions; and the recently announced Black Entrepreneurship Program—the first of its kind in Canada.

Quotes

“The existence of systemic discrimination is not up for debate, as we’ve witnessed with particular intensity through recent events. The status quo is neither sustainable nor beneficial for Canada. The 50 – 30 Challenge encourages companies and organizations of all sizes to embrace the full diversity and talent of their communities, and doing so will bring key insights and perspectives to their decision-making tables. It just makes sense to bring in and nurture the all the right talent, and we are helping organizations do just that. The 50 – 30 Challenge is another step forward in advancing inclusion, diversity and economic prosperity across the economy from coast to coast to coast."
– The Honourable Navdeep Bains, Minister of Innovation, Science and Industry

“In Canada, diversity is one of our greatest strengths – diversity of ideas, of perspectives, and of lived experiences. The successes of having truly diverse companies and organizations makes good business sense and are crucial components of innovation.  As we build back even better and consciously more inclusive, we must ensure that companies and organizations from coast to coast to coast truly reflect society and the 50 – 30 Challenge will help us do that.”
– The Honourable Bardish Chagger, Minister of Diversity and Inclusion and Youth

Quick facts

  • The 50 – 30 Challenge builds on the 2018 amendments to the Canada Business Corporations Act that require distributing companies to report on their board and senior management diversity.

  • The Government of Canada will partner with the Challenge’s co-creators to identify the best tools, programs and levers to encourage organizations to embrace the 50 – 30 Challenge.

  • 50 – 30 Challenge funding of $33 million will include support for participating organizations through the development of an online toolkit; programs to assist SMEs, including through mentorship and training; and other incentives that will be linked to government programs.

  • Research shows that organizations that are diverse at the board and senior management levels are more likely to outperform their peers, twice as likely to meet or exceed financial targets, and eight times more likely to achieve better business outcomes.

Associated links

Contacts

John Power
Press Secretary
Office of the Minister of Innovation, Science and Economic Development
john.power@canada.ca

Media Relations
Innovation, Science and Economic Development Canada
343-291-1777
ic.mediarelations-mediasrelations.ic@canada.ca

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