Most Canadians Want Businesses, Economy To Be Fairer And More Sustainable
Most Canadians are eager to see the economic system reformed and businesses step up to tackle societal challenges, according to research by the Canadian Centre for the Purpose of the Corporation (CCPC), an initiative by Toronto firm Navigator, led by former premier Brian Gallant.
The survey shows that Canadians see wealth inequality (28 percent) as the top challenge facing the world today, followed by environmental challenges and climate change (25 percent), and inequitable treatment and discrimination (22 percent).
In Atlantic Canada, 56 percent of survey respondents say wealth inequalities and inequities in treatment and discrimination are the biggest challenges facing the world currently, putting aside Covid-19. Only in Quebec did climate change concerns overtake those issues, though they follow closely.
The findings are remarkable because the economy and healthcare are usually the top-of-mind issues for Canadians, said Gallant, CEO of the CCPC. The economy (21 percent) was fourth on the list, followed by the overall social environment (16 percent), and healthcare (5 percent). He says a few factors are at play.
“First it demonstrates to what extent these are very significant challenges Canadians are feeling and are worried about,” he said. “Second, I think the pandemic actually put on display these challenges in some ways, and in some ways has exacerbated them.”
The Black Lives Matter movement has also influenced Canadians and made them more aware of systemic discrimination against minorities, he added.
Moreover, the survey found 72 percent of Canadians want to see the economic system changed. Out of those, 55 percent think capitalism needs to be reformed so that it’s more inclusive, fairer and more sustainable, and 17 percent want it to be replaced altogether. Only 28 percent believe that while there are problems, capitalism is working fine.
“We’re talking about the strong majority of Canadians that believe that these challenges that are top of mind for them are not being addressed and are in fact, maybe even being exacerbated by the economic system,” Gallant said.
Reforming the economic system is not just on businesses because governments and other institutions play a role too, he said. How to go about the reform is up for debate, but those are “policy questions that certainly should be a part of the discourse,” he added.
The survey found that Canadians also don’t have the most positive views on businesses.
“Canadians do not think businesses are doing enough to tackle inequalities, address inequities and combat climate change,” Gallant said.
While 81 percent of Canadians recognize that businesses and corporations are vital to the economy because they create jobs, foster innovation and provide key goods and services, only 48 percent of respondents indicate that business is “a force of good within society.” Only 31 percent believe businesses are concerned with their impact on society.
The majority of Canadians (62 percent) agree that if corporations do better, they do better. But 78 percent believe Canadian businesses should contribute more to the betterment of society.
For 84 percent of Canadians, corporations should operate by the “stakeholder model,” which means they consider the interests of the communities in which they operate, their workers, their retirees, consumers, governments and other stakeholders on the same level with those of shareholders.
Right now, two-thirds of Canadians think businesses and corporations prioritize profits for shareholders over the well-being of their stakeholders.
Though the report doesn’t distinguish between big and small businesses, “you could argue that some of the sentiments that are maybe gearing a little more towards the negative side would be even more pronounced if it were just for large businesses in the country,” Gallant said.
Gallant says businesses need to take the results seriously and set up.
“If they don’t take it seriously there’s a risk for the collective of businesses across the country because the data demonstrate that Canadians have a very big appetite for government to force businesses to do more when it comes to societal challenges and issues.”
The poll shows 65 percent of Canadians want governments to force businesses and corporations to put environmental and stakeholder considerations on the same level as profits or shareholder return when they make decisions. Two-thirds of Canadians agree that to overcome climate change and inequalities, governments in the country need to implement tougher laws, regulations and taxation on businesses and corporations.
Gallant says businesses need to also understand and live their purpose. Based on the report, that purpose “can’t simply be to create profits for shareholders, owners or investors,” Gallant said.
Moreover, they have to analyze their potential negative impact on stakeholders and figure out how to mitigate those, while boosting positive impact. They should also analyze what positive and negative impacts they have on societal challenges and act on those, including by speaking out on important societal issues.
At the same time, businesses need to remain financially sustainable and create profit. Gallant says Canadians still expect businesses create jobs, foster innovation and offer goods and services, they just want them to step up on societal issues too.
On the other hand, the research suggests that businesses that do step up will reap rewards. It will make them more attractive to prospective talent and those already working there.
“So the business will really see an impact on productivity and on their bottom line because they’re able to recruit and retain employees that are happy to be working for the organization,” Gallant says.
The survey was conducted online between July 6 and 11, 2020, in both official languages. It includes the opinions of 3,000 Canadians aged 16 and older.