2) Growing Criticisms of Capitalism

Stelco, and Senior Advisor at Bennett Jones LLP, laments that there is such an abundance of misinformation and disinformation that citizens are unsure who to trust. She is of the view that this leaves society with non-rational discourse as there are no agreed-upon principles or facts. A notable number of the Survey Participants explain that they suspect this can lead to poor decision making on important topics such as the appropriate and desired role of business in society.

Brianna Brown thinks that this same type of division is happening between businesses and their employees as well, “There’s a growing disconnect, not only between business and society in a broad sense, but also businesses and their employees when employees notice a wide gap between what the corporation is doing versus what they care about as an employee and as an individual”.

Most Survey Participants agree that the reputation of industries as a whole and even the business community, in general, can be tarnished on account of a few ‘bad apples’ acting irresponsibly or selfishly. Some Survey Participants argue this is yet another reason business leaders should care deeply about strengthening the relationship between society and business, and they voice optimism that this represents an opportunity for businesses to do more, which can be beneficial to society and to a business’ bottom line.

“Business creates jobs, wealth, and investment. That’s what we do. So, if people lose trust in us, what will they trust in?” – Louis Audet, Executive Chairperson of Cogeco Inc.

2) Growing Criticisms of Capitalism

“I think the population broadly understands and believes that the capitalist system is a good one for the creation of wealth, and for economic development, but there’s increasing concerns about concentration, privacy, and income disparity.” – John Manley, the Chair of the Board at CAE

The state and rules of the economic system in which a business operates will clearly have an impact on the economic and financial success of the said business. For this reason, it is paramount for business leaders to care about the conversation concerning the role of business in society as any outcomes stemming from the conversation will most likely have a profound impact on the way in which capitalism functions moving forward.

A significant number of the Survey Participants point out the benefits produced by capitalism, namely the prosperity it has generated along with the human ingenuity and innovation it has unlocked. All the same, many of the Survey Participants acknowledge it has shortcomings in its current form.

Tariq Fancy, a former Managing Director at BlackRock Investments, comments, “While much progress has been made in human development in recent years, the world still faces many large-scale challenges – ranging from climate change to the growing inequality of wealth and opportunity. And while capitalism has unlocked significant progress and prosperity, in recent years many have started to question a system whose side effects have put increasing strain on both people and planet.”

The idea that capitalism needs to be modernized seems to be enjoying broad public support – even in the heart of the capitalist system. A poll conducted in May 2020 by JUST Capital and The Harris Poll in the United States concluded: “It’s clear the American people – across all demographics and political persuasions – want change. Our six years of polling has always supported this, but our latest survey results (…) are loud, clear, and urgent. Only 25% of Americans think capitalism is working for society today.”

According to most of the Survey Participants, it is no different in Canada as there is added pressure and expectations on Canadian businesses as well. Mark Little, President and CEO of Suncor Energy Inc., states, “I think there is some pressure. And I think some of it is just people view the existing system has failed so much.” The President of the Business Council of Alberta, Adam Legge, mentions there is recent data suggesting that a notable percentage of Canadians do not necessarily believe their lives will be better if business in the country does better.

A recent research survey supports the view of many Survey Participants in that there is an appetite amongst Canadians to have capitalism reformed. It found that 55% of Canadians “believe capitalism should be reformed so that it is more inclusive, fairer and more sustainable” while 17% are of the view that capitalism should be replaced altogether.6

Some Survey Participants flat out suggest that capitalism needs to change. Peter Wrinch advocates change is necessary, “I don’t even think that business as usual is possible anymore. I think that the inequality that is so embedded in our business culture is no longer forgivable. And people aren’t willing to have it anymore.” Darcy Riddell is advocating for capitalism to be replaced altogether, “I feel like capitalism is not a sustainable solution on this planet.”

Often, the defenders of the principles of capitalism point out how it rewards positive behaviours such as working hard, furthering one’s education and training, and taking calculated risks. Joel Solomon states these concepts may make more sense theoretically than they do practically, “We have built what sounds excellent on paper, which is to reward those who work hard and are the smartest, but we’re enabling extreme concentration of resources in the few, with no limits.”

Quite a few Survey Participants warn there is some type of change coming. Some add that they worry it may be a change that drastically throws away capitalism instead of merely modernizing it. Tariq Fancy explains that there is “a growing public perception that there is only one version of capitalism – one that is rigged toward elites and corporations that benefit from monopolistic and rent-seeking activities, often leading to the conclusion that capitalism itself is the problem.”

A noteworthy number of Survey Participants warn that if capitalism is not modernized by the business community willingly soon, it may have modernization thrust upon it. Mary Ellen Schaafsma, Director of the Social Purpose Institute, sounds the alarm that the current gap levels of wealth and inequality match the problems of the times societies saw great societal upheaval. Lloyd M. Segal, CEO of Repare Therapeutics, advises to take this possibility seriously, “History has shown us that when the income and wealth gap gets too big, the systems such as they are at the time fall apart.”

The Right Honourable David Johnston, former Governor General of Canada, implores leaders to learn from the past, “The Roman Empire began to fall not simply when it extended supply lines too far, but when it needed to have watchmen to watch the watchmen. And when the inequalities of wealth, and therefore the power, became so great that they had inner rot.”

Jean La Rose who is of the view that there is currently substantial disparity between the rich and the poor and that this disparity is being put on display during the COVID-19 pandemic points out, “Every time there have been major upheavals in the world, they happen when the people that have nothing to lose decided that they weren’t going to accept the status quo anymore. I’m seeing us drifting towards that.” Some of the Survey Participants point out that in some ways the world is seeing this upheaval commence with many of the world’s