Lecture 10: Corporate Leadership

Question 1

coprorate leadership Investopedia definition

Answer 1

the capacity of a company’s management to set and achieve challenging goals, take fast and decisive action when needed, outperform the competition and inspire others to perform at the highest level they can

Question 2

hero and modern saint

Answer 2

• “The influence of the CEO of a large, powerful business is often culturally and socially pervasive…CEOs are often very public figures who engage actively in public debate on what they assert to be important issues of the day…CEOs of mega-corporations often cultivate the dual status of “hero and modern saint.”’ (p.ix)
• Amernic and Craig reveal how CEOs resort to language and exploit themes (such as those found in frontier myths) to create an influential ideology of “rugged individualism of the North American entrepreneurial ethos.” (p.138)
• Despite a “seductive, placatory, variegated, socially constructed language of accountability…we have shown how [words] can permit CEOs to be unaccountable.” (p.137)
• They are insulated from the everyday experiences of the average person, yet the public narratives they create have significant influence

Question 3

CEOs

Answer 3

run businesses on a day-to-day basis (public face of a company)

Question 4

board of directors

Answer 4

• Chosen by shareholders to lookout for shareholders’ interests
• Legally required to put shareholders’ interests ahead of their own
• Generally, the role of the board is to provide high-level oversight of corporate activities and performance, while some individual board members may take on more involved or activist roles

Question 5

women on corporate boards statistics

Answer 5

• Women held 23.4% of the total board seats among companies providing disclosure (an increase of 2.2 percentage points compared to full-year 2020); mid-year report in 2022 showed 26% (increasing), and higher percentages reported for S&P/TSX 60 companies (33%) in 2021
• An average of 18.3% of executive officer positions were held by women (an increase from the 17.2% reported in 2020)
• 33.5% companies reported having zero women executive officers (compared to 34.1% for full- year 2020)

Question 6

common barriers to corporate leadership

Answer 6

• Limited time for activities other than home and farm work;
• Primary caregiving responsibilities that make travel and time commitments
  difficult
• Some sense of gender bias, including an “old boys’ club” mentality that can serve to alienate and demotivate women

Question 7

strategies for improving representation in corporate leadership

Answer 7

• Building confidence by improving public speaking skills and growing their industry knowledge
• Access to peer mentorship
• Larger industry networks and relationships;
• Opportunities to participate in meetings remotely or online;
• More inclusive environments that welcome women’s participation and ideas
• Familial and peer support for their involvement.

Question 8

diversity beyond gender on corporate boards statistics

Answer 8

• Members of visible minorities on boards: 6.8% (total pop. 22.3%)
• Indigenous peoples on boards: 0.5% (total pop. 5%)
• Persons with disabilities on boards: 0.5% (total pop. over 16 years, 24%)

Question 9

policy recommendations for improving representation in corporate leadership

Answer 9

• TMX Group Ltd. and the Institute of Corporate Directors, Charting the Future of Canadian Governance: A Principled Approach to Navigating Rising Expectations for Boards of Directors: Report of the Committee on the Future of Corporate Governance in Canada (December 2022)
• Covers topics from leadership to financial reporting to climate change and rising environmental, social and governance standards
• In its diversity recommendations, however, that “it suggests companies adopt an aggressive policy that federal law has yet to require.” (Globe and Mail)
• “Comply and explain” approach not enough
• “Every board should reflect the diversity of the company’s stakeholders and the communities where it operates. To achieve diversity within a reasonable time, set targets for the makeup of the board to have no less than 40% of people who identify as women and no less than 40% of people who identify as men, which leaves room for individuals from the 2SLGBTQI+ community. In addition, aim for at least 30% representation from underrepresented racial groups, Indigenous persons in Canada, and disabled persons.” (p. 24)

Question 10

corporate leadership key takeaways

Answer 10

• Corporate leaders have an outsized influence; important to understand how they influence society and the ideas they help cultivate
• Diversity in corporate leadership has been shown to improve decision-making and performance of organizations
• Barriers continue to exist and affect groups differently
• Leadership characteristics and advice: what is privileged speaks to broader societal values

Question 11

Being Black in Corporate Canada video

Answer 11

• Amara Nwogu was an employee at RBC
• She was the only Black person on the team
• Nwogu faced a lot of microaggressions (ex. Black panther comment, being called another woman’s name, comments about Black womens’ hair)
• Racial insensitivities take a toll on a person’s well being
• Many Canadian corporations like RBC have made statements condemning systemic racism but don’t appear to have the internal mechanisms to deal with microaggressions