Pope Francis prays at a gravesite at the Ermineskin Cree Nation Cemetery in Maskwacis, Alta., during his papal visit across Canada on July 25.Nathan Denette/The Canadian Press
Tammy Brown is deputy chair of KPMG in Canada’s board of directors and National Industrial Markets Leader. She is also a member of the Shawanaga First Nation.
Elio Luongo is senior partner and chief executive officer of KPMG in Canada and sits on KPMG’s global board of directors.
The gruesome discovery of unmarked graves at the site of a former residential school in Kamloops, B.C., in the spring of 2021 – and the many discoveries that have followed since then – awakened Canadians to an ugly part of our history many did not know or understand. The Pope’s recent healing and reconciliation visit further exposed the impacts of colonialism and the need to address the systemic injustices faced by Indigenous peoples in this country.
Canadians are now expecting governments and the business community to take more action on reconciliation. A June, 2021, Ipsos poll found 65 per cent of Canadians agreed businesses need to play a bigger role in reconciliation, and 54 per cent of Indigenous respondents strongly agreed. Shareholders are also making their voices heard. During proxy season, a number of major Canadian companies faced shareholder resolutions calling for the adoption of reconciliation frameworks and formal strategies, and many adopted them.
According to a recent KPMG in Canada poll of 500 small and medium-sized enterprises, more than two thirds (67 per cent) of respondents said they currently factor in reconciliation as part of their social targets. This is promising, but what’s missing is concrete measures and transparent disclosures. A March, 2021, report from the Shareholder Association for Research and Education found “regular and standardized reporting on company performance related to reconciliation is still regrettably far from commonplace.” Without tangible actions and proper disclosures, it will be difficult to know whether organizations are truly making a difference.
Economic reconciliation with Indigenous peoples must become more common on Bay Street
The only way for the business community to make significant progress toward reconciliation is to commit to it publicly, with specific measures and accountability mechanisms that are transparent. It’s time for more members of Canada’s business community to own their role in reconciliation by developing and adopting reconciliation action plans.
So why should businesses do this when they have other pressing issues to contend with, such as the threat of a looming recession, inflation, geopolitical instability, climate change and labour shortages?
Because governments, public and private enterprises and individuals all have a role to play in helping Canada heal from the damaging effects of colonialism. If we stand idle while Indigenous peoples continue to face systemic social and economic barriers, Canada will not progress.
Because organizations are facing increased scrutiny from stakeholders demanding action on their environmental, social and governance strategies. Companies that don’t include substantial reconciliation commitments in their ESG frameworks will increasingly face reputational risk, potentially driving away investors, clients, partners, employees and prospective recruits as well.
Because the role of businesses in advancing reconciliation was highlighted seven years ago in the Truth and Reconciliation Commission of Canada’s call to action No. 92. Continued inaction on answering the call only increases the divide and pushes the consequences forward to the next generation.
Because it’s the right thing to do.
Since 2018, only 15 Canadian companies have established new Indigenous rights policies, cultural awareness training and/or targets for Indigenous employment and procurement, according to the Reconciliation and Responsible Investment Initiative. But we can do better than that. In a few weeks, KPMG Canada will implement its own Truth and Reconciliation Action Plan, and we hope to inspire other organizations to do the same.
For organizations ready to start a reconciliation journey, here are some key considerations to get you moving down the path:
- Focus on Education. The starting point for any reconciliation action plan is awareness about Canada’s shared history. Offering staff members opportunities for Indigenous educational courses and training is the first step toward reconciliation.
- Establish a comprehensive strategy that engages the entire organization. A reconciliation action plan is not just the responsibility of the human resources, diversity, or equity and inclusion departments, it’s incumbent on everyone, from finance to procurement to marketing. A reconciliation action plan needs to be comprehensive and well communicated to staff throughout the year.
- Commit to hiring more Indigenous people and measure progress. Canada’s Indigenous population grew almost twice as fast as the non-Indigenous population from 2016-2021, and Statistics Canada expects that trend to continue, with the Indigenous population projected to grow by more than 50 per cent by 2041. Establishing an Indigenous recruitment strategy will identify and break down the systemic barriers to employment and engage the skills and knowledge of this fast-growing population. Setting specific goals for recruitment and retention of Indigenous people (beyond including them in BIPOC metrics) will enhance progress.
- Engage and work with Indigenous groups. Directly supporting Indigenous peoples is critical to establishing respectful and sustainable relations with First Nations, Inuit and Métis communities. There are numerous Indigenous organizations across Canada that are helping businesses of all sizes make positive and progressive change.
- Establish an Indigenous procurement strategy. Creating an active directory of Indigenous contractors, hiring an Indigenous procurement manager (for companies with the resources to do so), and offering Indigenous awareness training for procurement teams will help organizations stick to their strategies.
Implementing these changes will take time and commitment and require engagement from the C-suite to the most junior employee.
Change won’t happen overnight and will require extensive consultation with internal and external stakeholders, including Indigenous communities.
Business has a key role to play in advancing reconciliation and we must step up now to do our part.