Aside from improving a company’s ESG score, or meeting SDG Goal targets, employers have legal obligations to ensure there is no gender discrimination within their organizations.
Social and gender inequalities are critical factors to address when forming a sustainable business strategy.
A foundational element of gender equality is eliminating the gender pay gap. In July of this year, new commitments were made at the G20 meetings in Brazil to strengthen the Equal Pay International Coalition (EPIC). Canada has been a member of EPIC since it was formed in 2017. Statistics show that in 2021, Canadian women earned 89 cents for every dollar a man earned, measured in hourly wages. In Canada, the Pay Equity Act established a pay equity regime to ensure men and women receive equal pay for work of equal value. This legislation applies to both the federal and private sectors, and cases are brought before dedicated Tribunals. In addition, the Employment Equity Act requires federal employers to ensure employment practices increase the representation of women, people with disabilities, visible minorities and Indigenous peoples.
There is also the Canadian Charter of Rights and Freedoms which provides, in Section 15:
"Every individual is equal before and under the law and has the right to the equal protection and equal benefit of the law without discrimination and, in particular, without discrimination based on race, national or ethnic origin, colour, religion, sex, age or mental or physical disability."
This right allows an affected employee to file a claim for gender discrimination with the Human RIghts Tribunal. Provincial legislation, such as the Ontario Human Rights Code, provides additional protections for employees, including gender identity and gender expression.
Inequalities can arise within the organizational structure as well as within its supply chain. For example, under the Modern Slavery Act, certain corporations in Canada are now required to report on measures taken to prevent forced and child labour. The International Labour Organization estimates that there are 28 million men, women, and children, in forced labour, with 63% of that labour occuring in the private economy. While companies over a certain threshold are now required by law to report on their activities, it is in any company’s reputational interest to ensure its supply chain is not complicit in supporting slavery.
Yet, despite legislative protections, gender inequality still persists, with very adverse consequences for organizations. Below are some impacts of gender inequality in the workplace:
Workplace conflict: tensions between employees when inequality is known
Poor morale: resulting in high employee turnover and additional hiring costs
Reduced productivity: poor morale also impacts work performance
Risk of litigation: discrimination lawsuits hurt the company’s finances and reputation
So, how should companies address this sensitive issue and prevent the negative consequences of gender inequality? There are several proactive steps any organization can take to comply with legislative requirements and enhance its ESG score:
Adapt hiring practices to consider a wide range of applicants and implement an evaluation process that does permit gender bias.
Implement regular reviews of employee pay rates to comply with the Pay Equity Act.
Maintain detailed records of employee skills, qualifications, and roles, which should be reviewed when evaluating promotions and advancements.
Introduce salary transparency to let employees know they are being treated fairly.
Adapt flexible work requirements to allow working parents time for childcare.
Invest in and promote female leadership and provide mentorship opportunities.
Ensure equal access to training and development opportunities for all employees.
Enforce strong anti-harassment policies and maintain a responsive complaints process.
Share company policies with your supply chain and work with suppliers who share the same values.
Provide employee benefits that alleviate stresses on female employees related to health and personal wellbeing.
Business sustainability is not solely about reducing carbon emissions and minimizing environmental impact. An employer’s social impact should be evaluated in terms of employees’ financial security, health, wellness, safety, career development, engagement and satisfaction. After all, these factors will affect the company’s bottom line.
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