Opinion: Corporate Canada needs to guard against ‘Indigenous-washing’ – Financial Post

Sep 19, 2024

Big money is now going to Indigenous suppliers of goods and services. Businesses need to be sure these suppliers are actually First Nation

Corporate Canada is investing tens of billions of dollars in Indigenous procurement. But with any significant investment comes the risk of fraudulent claims. Recent revelations that Ottawa has awarded millions of dollars in contracts to companies falsely claiming Indigenous ownership should be sending shockwaves through the business sector. If the federal government, with its elaborate oversight mechanisms and procurement rules, can be so vulnerable to manipulation, what’s stopping the same from happening in the private sector? The answer, unfortunately, is very little.

We need reliable verification to ensure the Indigenous spend is legitimate. Corporate Canada has embraced economic reconciliation with Indigenous peoples. But its efforts will mean little if they are not anchored by verification. As companies commit to supporting Indigenous communities, they must ensure the businesses they partner with are, in fact, legitimate Indigenous enterprises. Not doing so may expose companies to unnecessary reputational risks, not to mention waste significant resources in ways CEOs and boards of publicly traded companies will have to explain to their shareholders.

Read More: https://financialpost.com/opinion/corporate-canada-guard-against-indigenous-washing