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Annual Report 2016/2017 Annual Report ABOUT THE COUNCIL Founded in 1976, the Business Council of Canada is the senior voice of Canada’s business community, representing 150 chief executives and leading entrepreneurs in all sectors and regions of the country. Member companies employ 1.7 million Canadians, account for more than half the value of the Toronto Stock Exchange, contribute the largest share of federal corporate taxes, and are responsible for most of Canada’s exports, corporate philanthropy, and private- sector investments in research and development. Through supply chain partnerships, service contracts and mentoring programs, Business Council members support many hundreds of thousands of small businesses and entrepreneurs in communities of all sizes across Canada. Aimia Inc. Table of contents 6 Message from the Chair 8 Message from the 24 Making a difference President and CEO 34 Factories 10 Year in review of the future 10 Economic and Fiscal Policy 42 CEO summits 11 Trade and Investment 43 Calgary 12 North America 44 Toronto 13 Energy and the environment 47 Kitchener-Waterloo 14 Corporate and public 48 Events and governance publications 16 Innovation and competitiveness 48 Event highlights 17 Jobs and skills 49 Selected publications 18 Opportunities Board of Directors to succeed 50 52 Membership 58 Council staff 10 18 24 34 42 48 6 BUSINESS COUNCIL OF CANADA • 2016/2017 Annual Report Message from the Chair “One of the unique strengths of the Business Council is its ability to bring together CEOs and entrepreneurs from across Canada and every sector.” 7 No matter what you make, sell or My colleagues and I at the Business As this report went to press, we service, if you are running a large Council are experiencing this were preparing for two more company these days you are transformation in real-time. To meetings that will give Canadian thinking – obsessing isn’t too succeed, we need to harness business leaders unparalleled strong a word – about the impact technology in ways that unlock exposure to ideas and technologies on your business of digital transfor- value for our customers and that are changing our world. In mation, artificial intelligence and new growth opportunities for Palo Alto, California, in late 2017 machine learning. our enterprises. we will sit down with the heads of some of the world’s most influential These technologies, at the core of One of the unique strengths of tech giants for briefings on what’s innovation in so many areas, are the Business Council is its ability coming next and how it will affect having a profound effect on almost to bring together CEOs and entre- our businesses. This will be the every industry, enabling us to preneurs from across Canada and largest delegation of Canadian design new products and services every sector. We get together three chief executives ever to visit Silicon and produce them more efficiently. times a year to share experiences, Valley at one time. exchange insights and hear from Over the past 20 years, the mass leading thinkers about the challenges Then, in early 2018, we will fly adoption of digital devices has facing our companies – and to Munich to see how some of revolutionized not only the creative our country. Europe’s most dynamic enterprises industries – publishing as well as are seizing new technologies to music, film and video production – In the fall of 2016, we met in reinvent themselves. but also telecommunications, Alberta to deepen our understand- retailing and financial services. ing of the energy sector. We saw This series of meetings represents how technology is driving down a once-in-a-generation chance for A similar wave of change is now costs and dramatically improving Canada’s business leaders to gain a hitting other industries, from environmental performance in the window on the future and exchange natural resources to manufacturing, oil sands. And we visited a pipeline ideas with key innovators who are transportation and construction. control centre where engineers are helping to design it. Connected sensors provide vast managing state-of-the-art monitoring amounts of data that can be tracked, technology with incredible precision. As Canadians we need to take a analyzed and acted upon. We are leadership role in embracing digital managing our production facilities In January, we toured a new transformation to create enormous more effectively, predicting outcomes automotive software design centre new value and ensure that our more reliably, creating bespoke near Toronto. The next morning we organizations stay globally compet- solutions for every problem, and sat down to discuss how the age itive. My colleagues and I in the bringing individualized solutions of intelligent machines promises Business Council I look forward to to the mass market. to transform manufacturing. the challenge of building a stronger, more successful and more innova- Some call it the Internet of Things Then, in April 2017, we met in tive Canada. (IoT), while others refer to the Waterloo, birthplace of hundreds Fourth Industrial Revolution or of technology startups and home Linda S. Hasenfratz, Chair Industry 4.0. It translates into every to some of the world’s top math, industry intersecting with the tech science and engineering talent. sector, every company becoming a tech company. 8 BUSINESS COUNCIL OF CANADA • 2016/2017 Annual Report Message from the President and CEO “We at the Business Council have been proactive in building the case for the importance of NAFTA and reaching out to our U.S. partners, including at the level of individual states and congressional districts.” 9 As of November 2016, Canada’s In addition, all three countries There are some areas where Canada relationship with the United States, should see the merit in streamlining must stand firm. A prime example and the future of the North American NAFTA’s rules-of-origin provisions, is NAFTA’s Chapter 19, which estab- Free Trade Agreement, surged to the which determine whether a good lished a system for independent, top of our Business Council agenda. imported from one NAFTA country binational reviews of alleged “unfair” The Canadian government took into another is eligible for duty-free trade cases. In the absence of a seriously Donald Trump’s frequent treatment. At a minimum, it makes robust dispute-settlement mechanism, assertions on the campaign trail that sense to eliminate the complex Canadian exporters would be left NAFTA was “the worst deal ever” – tracing requirements that drive to the mercy of the U.S. Commerce and rightly so. Even before election up costs and erode the competitive- Department acting as prosecutor, day, it was obvious that support ness of North American companies judge and jury – subject only to for NAFTA in Congress was weak. relative to their international compet- appeals to U.S. courts that are But the new President’s full-throated itors. Here again, the TPP offers a not specialized in the intricacies attack on the architecture of North useful template, with rules that are of trade law and whose impartiality American trade was new and far simpler and easier to administer. will be suspect. potentially damaging to Canadian (and American) interests. The Some U.S. demands may prove I have no criticism of the Trudeau Business Council has worked closely challenging for the Government of government’s handling of the with the Government of Canada, as Canada. Calls by other countries to Canada-U.S. relationship since the well as with other Canadian groups dismantle Canada’s system of supply 2016 election, or of their willingness and our U.S. counterparts at the management for dairy and poultry to listen to business concerns and Business Roundtable, to manage are always sensitive politically. I have interests. We at the Business Council this issue. long believed that this system serves have been proactive in building the no-one’s interests except those of a case for the importance of NAFTA At the time of writing we still do small number of farmers and bureau- and reaching out to our U.S. partners, not know in detail what the U.S. crats. But the truth is that no country, including at the level of individual Administration expects to achieve including the United States, has clean states and congressional districts. from the proposed renegotiation. hands when it comes to agricultural In the coming year we will continue But there are several items that subsidies. If the federal government to dedicate concentrated resources deserve to be on Canada’s wish list. lacks the ambition to free Canada to the preservation of this all- The Trans-Pacific Partnership (TPP) from this system by compensating important – and mutually talks, which wrapped up in 2015, farmers for the quota they hold, it beneficial – trading relationship. produced a number of chapters that will almost certainly have to increase could serve as the basis for NAFTA duty-free quotas for U.S. producers – The Honourable John Manley, modernization. They deal with the same approach it took in both P.C., O.C., President and CEO everything from electronic com- the TPP and Canada-EU trade merce and intellectual property to negotiations. competition rules and the treatment of state-owned enterprises. 10 BUSINESS COUNCIL OF CANADA • 2016/2017 Annual Report Year in review the regulatory environment. “A comprehensive plan to Economic and fiscal policy both broaden the tax base and reduce corporate and The Business Council of Canada believes that the primary personal tax rates,” we said, “would strengthen Canada’s goal of economic and fiscal policy should be to promote ability to attract and retain investment and talent.” growth and economic opportunity for all citizens. To that Like competitive tax rates, high-quality public infrastructure end, governments must establish the conditions in Canada influences where individuals choose to work and where for global economic success, paying close attention to our companies choose to do business.
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