CGI Inc. | Preparation of a Report to Address Racial Disparities and Equity Issues at CGI Inc.

Status
15.88% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Diversity, equity & inclusion (DEI)
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
Canada
Resolved clause
It is proposed that the Board of Directors of CGI Inc. (“CGI”) prepare a report, at reasonable expense and omitting proprietary information, on CGI’s plans to identify, address, mitigate, and dismantle racial disparities and racial equity issues within its workforce. At a minimum the report should include: (1) Relevant details about the Company’s plans to identify potential racial disparities and inequities within the workforce; (2) Relevant details about the Company’s diversity, equity and inclusion (“DEI”) strategy, programs, and policies to address potential racial disparities and inequities, especially as it relates to racial and ethnic representation and pay equity throughout the workforce; (3) An assessment of the related strategy, programs, and policies’ effectiveness, through the disclosure of any relevant goals, metrics, and trends related to racialized employees;
Supporting statement
The Information and Communications Technology Council estimates that the Canadian digital economy will see a significant demand for digitally-skilled workers by 2023. In order to meet the workforce growth of the technology sector, Canadian companies need to implement meaningful and effective DEI programs, initiatives, and commitments to attract and retain the best talent. However, the Canadian technology sector falls short in efforts to recruit and retain a diverse workforce. A 2019 report found that racialized technology workers in Canada, particularly Black and Latine workers, face significant barriers in the workplace. This report also found that there is a significant racial pay gap between racialized and non-racialized technology workers—and pay disparities are starker for racialized women and Indigenous peoples. According to the consultancy firm McKinsey, companies that effectively advance DEI in their operations “are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns.” In the past years, many companies have committed to improve racial representation and address workforce inequities. These commitments are often accompanied with efforts to identify, address and prevent biases and disparities and disclosure of key workforce metrics on hiring, retention, promotion or pay equity. While CGI has committed to greater diversity in its workforce, it has not demonstrated a sufficient degree of commitment to eradicate systemic racism in the workplace. For example, in contrast with many of its Canadian and U.S. peers, CGI has not disclosed workforce demographic statistics or established diversity goals beyond gender in the workforce, executive level or board of directors. CGI’s lack of disclosure is concerning because 1) it indicates that the Company may underestimate the legal and reputational risks associated with the lack of racial diversity, equity and inclusion efforts and 2) failed to anticipate the opportunities arising from the hiring and retention of talents from under-represented demographic groups. If CGI does not implement robust DEI policies to foster a positive and diverse workplace, it may find itself at odds with competitors and put shareholders’ long-term value at risk. By increasing transparency on this issue, CGI would allow investors assess the effectiveness

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