In 1876, just under a decade after Canada was born, the federal government created the Indian Act, which gave them control over many aspects of the Aboriginal people’s life, such as education, land, resources, and wills. These policies were intended to assimilate the First Nations with the rest of Canadian Society and essentially dispose of their traditional culture. Aboriginals have had varying views on these policies, as some agreed that the tax exemptions were fairly beneficial. However, in 2010, First Nations Chief Shawn Atleo demanded the Indian Act be completely repealed, and for all groups to reclaim their rights to education and land claims.
There are many ethical aspects of this situation that must be considered, but for now, I want to focus specifically on the influences revoking the Indian Act may have on the business world. With the Indian Act revoked, the Aboriginals would have to pay taxes, and in turn that would increase the economic growth of the country, which opens up economic opportunities for all businesses in general.
However, with the Aboriginals claiming their land, how will this affect the scarcity of food for the general population? The Aboriginal people have been self-sustained for generations, so without the command power of the government, it is likely that they will grow their own food and keep it from the rest of the market. This means a serious loss of consumer population for the food industry in Canada.
Revoking the Indian Act is an example of a Legal factor in the PEST analysis. The Indian Act has acted as a cause for discrimination in Canada, and with it removed, businesses have the opportunity to promote equality for the First Nations. Maintaining a strong stance against discrimination can appeal to consumers that have the same mindset and, of course, the Aboriginals as well.
Work Cited
Background: The Indian Act. (2011). CBC News Canada. Retrieved from http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988