Tuesday, June 5, 2001

OTTAWA - Today, the nation-wide Corporate Responsibility Coalition, made up of 32 citizen groups representing over two million Canadians, criticized the federal government for failing to listen to Canadians on corporate responsibility issues. The Coalition testified this morning before the Industry Committee on Bill S-11, which amends the Canada Business Corporations Act (CBCA).

The House of Commons Industry Committee only held the one hearing this morning before referring Bill S-11 back to Parliament for third reading. This continues the federal government's refusal to consult with Canadians in any meaningful way on corporate responsibility issues. During its 1998 consultation on the question of corporate directors and executives taking into account stakeholders (e.g. workers, customers, communities) when making decisions and in corporate activities, Industry Canada sent a consultation letter on the issue to only 41 citizen groups, while over 1,700 corporations, corporate associations and corporate lawyers were consulted.

Industry Canada decided not to include a measure in Bill S-11 concerning corporations taking into account stakeholders interests based on only 68 responses to its consultation letter, of which 29 were from corporations, 8 from corporate associations, 15 from corporate lawyers, and only 4 from citizen groups. Also, former Industry Minister John Manley refused to meet with representatives of the Corporate Responsibility Coalition, and current Industry Minister Brian Tobin has failed for 3 months even to respond to a request for a meeting.

Polls show that Canadians want laws to ensure corporations act responsibly, but Bill S-11 contains only one measure concerning shareholder rights and none of the Coalition's proposed stakeholder rights proposals.

"The federal government has ignored Canadians call for strong laws to deal with irresponsible corporations and bowed to a powerful corporate lobby coalition including Alcan, BCE, Imperial Oil, Nova Corporation, Northern Telecom, TransAlta Corporation and large corporate law firms," said Duff Conacher, Coordinator of Democracy Watch and Chairperson of the Corporate Responsibility Coalition.

Among other measures, the Corporate Responsibility Coalition wants the following changes to the Bill S-11:

• add requirement that corporate directors take into account stakeholder interests when making decisions, and account publicly for how they do so;
• add requirement to disclose the corporation's compliance record with many laws;
• add whistleblower protection for corporate employees;
• add a right for stakeholders to initiate a review of a corporation's overall activities;
• increase penalties for corporate wrongdoings; and
• require corporations to help create a nation-wide corporate watchdog group.