A York University governance, law and ethics professor says it is “hardly surprising” that most CEOs have stayed out of the public debate ahead of Alberta’s separation referendum.
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The silence from many Alberta business leaders ahead of the provincial referendum comes as no surprise to a corporate leadership expert, according to commentary provided by Richard Leblanc of York University.
Leblanc said there is a tradition in Canada for CEOs to stay in their lanes and avoid taking political positions that could alienate shareholders or employees.
He also noted that there may be times when a company’s board of directors supports a CEO speaking out, particularly when a political issue could affect the well-being of the business, as would a potential split from Canada.
The provincial referendum is set to include 10 questions, including one on whether Alberta should remain in Canada or move toward a binding separation referendum, plus five questions on immigration and four questions on constitutional matters.
Leblanc said there are more than 70 signatories to an open letter from the Calgary Chamber of Commerce warning about the economic fallout of separation, with a handful of leaders from major publicly traded companies among the signatories, while top executives at many prominent firms have remained publicly quiet.
He pointed to examples of CEOs who have spoken: Imperial Oil’s John Whelan has spoken in favour of Alberta and Canada sticking together, and Atco Ltd.’s Nancy Southern has warned of the disruption a split would cause.
Leblanc said, “It’s hardly surprising that a majority of CEOs are not speaking up,” adding that “There’s more to be lost than gained, generally, by speaking up about a political matter.”
Leblanc also said some corporate boards include former prime ministers, premiers and cabinet ministers, who can help advise on when and how to weigh in on politics, though obtaining board sign-off on public statements can be difficult.
He added that customers and employees may have “legitimate expectations” that a CEO take a public stand when something could affect the business, and said, “Sometimes the risk of not doing something can be far greater than doing something and dealing with the blowback.”
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