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Social Investment Organization addresses Senate Committee on corporate corruption
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The SIO has recommended new national rules requiring mandatory social and environmental disclosure by corporations, board supervision of social and environmental reports, social investment disclosure by pension funds and proxy voting information by mutual funds and pension funds. The recommendations appeared in a brief Nov. 6 to the Senate Committee on Banking, Trade and Commerce. The committee is holdings hearings into the state of the financial system in the wake of the Enron collapse. The brief was presented by SIO Executive Director Eugene Ellmen. In his presentation he said the socially responsible investment community supports measures to strengthen board accountability and auditing standards. Specifically, he said SIO supports recent Ontario legislation to toughen penalties for securities offences. However, he said these new rules fail to address pressing social and environmental issues. "We believe that these new rules – in and of themselves – are not sufficient to fully reform Canadian governance law," he said. "What’s missing is a more holistic view of the corporation – a view that situates the corporation in its social and environmental context." The recommendations include:
"These recommendations would help to establish Canada as a jurisdiction where responsible corporate behaviour is encouraged in our governance system," Ellmen said. A copy of the brief is available on the Policy and Advocacy page.
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