– Apple’s Racial Equity and Justice Initiative. Apple has committed US$100 million to a new initiative known as the Apple Racial Equity and Justice Initiative. The initiative is based on the principles of representation, inclusion and accountability. Apple will, among other things, use the initiative to launch a new entrepreneurial camp for Black developers, enhance the representation of under-represented groups across the companies that Apple does business with and commit to hiring from, and supporting, under-represented groups. When discussing the initiative, Apple CEO Tim Cook stated, “Whether it’s at Apple or anywhere in society, the burden of change must not fall on those who are underrepresented. It falls heaviest on those in positions of power, leadership, and influence to change structures for the greater good.” 143 – Resignation of Alexis Ohanian from Reddit board. Alexis Ohanian, founder of U.S.-based social media aggregator and web-rating company Reddit, resigned as a director of Reddit in June 2020 and publicly requested that his position be filled by a Black individual, which it ultimately was. When making his announcement over Twitter, Mr. Ohanian stated, “It is long overdue to do the right thing. I’m doing this for me, for my family, and for my country. I’m saying this as a father who needs to be able to answer his black daughter when she asks: ‘What did you do?" 144 Mr. Ohanian also noted that he will use future gains on his Reddit shares to support the Black community. He started with a US$1-million donation to Colin Kaepernick’s Know Your Rights Camp initiative. Mr. Ohanian ended his series of tweets regarding his
resignation by noting that “resignation can actually be an act of leadership from people in power right now. To everyone fighting to fix our broken nation: do not stop.” 145 – Resignation of Stockwell Day from TELUS board and Bay Street law firm. Stockwell Day resigned as a director of TSX-listed TELUS Corporation and as a strategic adviser to McMillan LLP following his comments claiming that systemic racism was not an issue in Canada. Mr. Day also compared the experience of people facing racial discrimination to his experience of being mocked for wearing glasses as a child. Aside from the significant reputational harm that companies can face from such comments or similar situations, the statements from Mr. Day also fuelled demands for greater diversity in Canadian boardrooms and executive offices and underscored the need for training and education regarding systemic racism, discrimination and unconscious bias. 146 While the long-term impact of all of these recent events remains uncertain, a profound business shift appears to be underway, with Canadian businesses facing significant pressure to increase their commitment to diversity, to disclose their diversity data and to improve diversity more broadly. Companies are expected to move beyond verbal and financial commitments. It is clear that diversity will and should continue to play a large role in board composition practices and issuers’ overall corporate governance framework.
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Governance Insights 2020
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