Good Governance in Canada: Perspectives of Black Leaders

The conversation around equity, diversity and inclusion (EDI) in leadership takes on even greater significance during Black History Month. The Honourable Marci Ien, Minister for Women and Gender Equality and Youth, delivered remarks ahead of a panel discussion on Good Governance in Canada: Perspectives of Black Leaders at a Canadian Club of Canada – Toronto luncheon, co-presented by the Diversity Institute (DI). Minister Ien reminded the sold out in-person and online audience of more than 350 people that representation is not just about visibility—it’s about creating meaningful opportunities for those who follow.

Minister Ien stressed, “we know that diversity in leadership is not a box to check. It's a competitive advantage. It strengthens institutions. It drives innovation. It builds trust when governance reflects the real world, when leaders bring different lived experiences to the table, decisions are better and our society grows stronger

She also spoke about the collective responsibility to advance equity. “Change doesn’t happen when we ask for permission,” she says. “It happens when those with power and influence decide to make space.”

Minister Ien cited the 50 – 30 Challenge (external link, opens in new window)  which aims at advancing gender parity and increased diversity in leadership as well as the Black Entrepreneurship Program (external link, opens in new window)  as examples of programs that are moving the dial. s. She concluded with the reminder “Representation isn’t symbolic; it’s substantive.” It determines who gets hired, who gets funded, whose ideas are heard, and whose communities are prioritized. True diversity in leadership means ensuring that inclusion is not just an invitation into the room, but a seat at the table where decisions are made.”

A panel of distinguished Black leaders followed Minister Ien including Dexter John, Chief Executive Officer, The Financial Services Regulatory Authority of Ontario (FSRA), Charlene Theodore, Chief Inclusion Officer, McCarthy Tétrault and Tamara Thermitus, Visiting Scholar, McGill Centre for Human Rights and Legal Pluralism and moderator Jodi Butts, partner, Watson Board Advisors.

When asked if she was worried about backsliding in the USA affecting Canada, Charlene Theodore reminded the audience that Canada operates under a different constitutional framework than the U.S., making direct comparisons difficult. “The short answer is no,” she said. “There are differences between our countries. There are different constitutional structures.” While EDI policies have been rolled back in some American states, she noted that the last five years have seen an unprecedented pace of change regarding race, gender, and inclusion. “”Uncertainty can lead to inertia, where organizations hesitate due to concerns about what might happen next. It’s important to focus on the work ahead rather than getting lost in "what if" scenarios.

Tamara Thermitus was also optimistic, emphasizing that DEI is not optional — "it is good governance. Research from the Diversity Institute supports the idea that diversity fosters innovation, inclusion, and necessary conversations, even when those conversations are difficult.” She noted even in the U.S., despite the political pressures companies like Costco and Apple have refused to back down on diversity commitments, and even when Walmart initially rejected EDI measures, its shareholders stood firm in support of diversity. “Because its not just based in values but good business”

She noted the evidence that representation of diverse groups among leaders in senior management teams and on boards of directors contributes to improved organizational performance. It can build a deeper understanding of diverse and global markets, better recognition and attraction of available skills and talent pools, improved innovation and lower legal, financial and reputational risk.

Dexter John reinforced these points, highlighting that the business case for diversity lies in fostering a diversity of thought. He also pointed to evidence from Europe. “Where you had diverse boards, the numbers showed that within two years of that being in place, the total shareholder returns increased, market capitalization increased, and there was positivity.” Despite these proven benefits, there is still resistance to change among boards.

Theodore noted that resistance is not new, drawing on her personal experiences as a Black professional navigating barriers in the legal field. Many firms historically refused to hire Black candidates, limiting opportunities. However, companies that fail to adapt are now facing the reality of market forces and consumer choice. Businesses must evolve or risk financial consequences, as the companies embracing diverse talent are outperforming their more exclusionary counterparts.

An important key takeaway shared by all panelists is that individuals and corporate stakeholders hold power, and they must use it. Thermitus encouraged leaders and board members to be vocal and proactive—"this is not the time to be shy.” The fight for EDI in leadership is not new, and for many, simply being in the room has required overcoming countless obstacles. “Change happens when people take a stand,” she added. Progress is not about chance but about persistent effort. “If we’re in the room, it’s because we fought to be here,” she says, reminding us that we have the tools to continue pushing for inclusive and equitable leadership.

John warned that, “we still have a mentality on boards that they don't like change.” He added, "if we don't keep on top of history, we're going to repeat ourselves.”

Theodore agreed. “We are not that far removed from the pandemic where women, en masse, and mostly caregivers had to leave the workforce. We have not recovered from that yet. Let's not take our eye off the ball. This is what happens again. Read your history books. This is the cycle.”

The panel agreed that mandatory disclosure rules about diverse representation on boards have made a difference.. They pointed to the historic practice of board members being selected from the same limited pools, often excluding underrepresented groups such as women and other equity deserving groups. As Thermitus pointed out, programs like the one initiated by the federal public service in 2000 aimed to address this imbalance by seeking out Black leaders who demonstrated leadership outside of the formal government sector or job roles. This initiative resulted in the selection of 20 individuals out of 2,000 applicants, illustrating both the demand for such opportunities and the systemic barriers that exist. She was one of those chosen.

Mandatory measures can encourage organizations to be more creative in their selection processes and recognize that different groups have been treated unfairly in the past. However, as Thermitus and John emphasized, resistance to change is strong, making it imperative to push for policies that ensure diversity in leadership.

John highlighted the unfortunate reality that change does not happen naturally— “if change is not pushed upon them, it doesn't necessarily happen. Now here we are in Canada, so far so good, but I'm hoping it stays that way.”

For instance, institutions such as Institutional Shareholder Services (ISS) and Glass Lewis, which have significant influence over corporate governance, initially introduced policies requiring 30% women on boards and racial diversity mandates. However, due to political and social pushback in the U.S., ISS recently reversed their stance on enforcing these rules. He expressed concern over this trend, emphasizing that without mandates, progress could stall.

Theodore stressed voluntary codes must be complementary to a robust legislative and strategic framework..

Thermitus agreed and  pointed to research conducted by the Diversity Institute which underscores the importance of data-driven decision-making. Data not only provides compelling evidence for why diverse boards and leadership teams are beneficial, but it has also analyzed the impact of reaching increased diversity on boards through participation in voluntary codes. For example, its report Diversity in Leadership at S&P/ TSX Companies, indicated that peer pressure and transparency matter - signatories to the BlackNorth Initiative have achieved the goal of 3.5% Black representation on boards almost twice the average. “People pushing the needle, it's fundamental,” she said  And when you sit around the table and you sign, your signature must mean something. And we see that when people do it, they stick to their word, and they achieve it.

When advising multinational companies operating in Canada, John was clear: They must align their practices with Canadian values and laws, regardless of political shifts in other countries. He rejected the common excuse that "there aren’t enough qualified people," noting that every board member had to start somewhere, and opportunities must be extended to diverse candidates.

Theodore echoed this sentiment, viewing this as “an opportunity for “Canada to really be a leader on the world stage.” While the U.S. has seen setbacks in DEI initiatives, Canada has strong frameworks like the Employment Equity Act that must be upheld. She also highlighted the broader implications of diversity on economic productivity, workplace culture, and overall business success.

The panelists stressed that businesses should reflect the societies in which they operate. If a company is global, its leadership should mirror the diversity of its workforce and consumer base.

Thermitus emphasized that courage is essential for leadership in times of change, “but no one said courage was easy.” But without it, no progress can be made. She referenced a philosopher’s view that courage is the foundation of all values—without it, other principles cannot be acted upon. Leaders must make difficult decisions and challenge the status quo to create a more inclusive future.

Theodore further reinforced this noting it was George Floyd’s murder, which prompted many individuals and organizations to examine their internal structures and biases despite decades of case after case after case of racist violence “Global reaction and the collective leaning in to learning what people were doing and all of a sudden noticing what life for the rest of us was like.” She also reminded the audience that it has only been four years. She urged business leaders not to abandon EDI efforts simply because external pressures might lessen. “CEOs have had to have a number of tools in their tool belt. You've got to be a strategist, you've got to be an innovator, you've got to be a leader, you've got to be a rainmaker. If you do not have a basic understanding of what creating a profitable and sustainable workplace culture, infrastructure, means and if you do not understand the basics of how you can use DEI or inclusion, it is really a risk management tool – you will not succeed over the long haul.” Just as businesses would not eliminate a CFO position after one bad financial year, they should not abandon diversity initiatives when challenges arise.

“I think leaders need to understand their shareholders, their stakeholders and their community,” said John, a true leader from my perspective, is able to maximize the tools at your feet and it is really important to empower your staff and people. Let them feel that they are part of the solution, then we can get a change that we're looking for.

Paula Allen VP, Research, Insights and Strategic Communications at TELUS Health, of the Canadian Club of Toronto summed up the discussion by reiterating a fundamental truth: "No business will survive without diversity of thought, and you don’t get diversity of thought without diversity of people."