Caring CEOs: do they really and does it matter?
Let’s take a show of hands.
Over the last six months, how many of you have received an inordinate number of ‘We Care About You’ emails from companies – half of which you didn’t even realise you were on the mailing list for?
Everyone, then.
And did you believe them? Did you buy something from them? Did you add them to your list of Companies Who Care About Me with a smile and carry on with your day? Or did you scan the copy and press delete?
The truth is that we can’t always tell the difference between companies who care and companies who pay lip service to caring and an email popping up in our inbox won’t help resolve that.
Given the triple threat of a pandemic, the ongoing climate emergency and persistent socioeconomic and racial inequality, it’s no wonder our business leaders are under more scrutiny than ever before. They are widely recognised as some of the most powerful people in the world so it’s not new news that we are looking to them to help solve these global issues.
The Milton Friedman era of profit above all else is over, we know that, and purpose is the new buzzword. But as The Times’ Patrick Hosking recently pointed out, back then things were rather simpler: the top priority was to make money and no one pretended they were doing anything else.
Today, everyone says they’re pursuing positive change but some of them are pretending and it’s up to us to separate those genuinely pursuing positive impact from the fakers.
Results from KPMG’s CEO Outlook 2020 corroborate this murkiness. They showed that 22% of CEOs see their primary objective as improving society, while 23% still see it in narrow ‘managing for shareholder value’ terms. While 81% have publicly announced new anti-racism measures or plan to do so imminently, only 6% acknowledged their personal responsibility to be a ‘leader of change on societal issues’.
Clearly, there’s a range. It makes sense; no one is arguing that money isn’t important – how else will companies exist to do any good if they don’t turn a profit?
And importantly, there’s a lot of good going on at the top.
Monzo’s Tom Blomfield forwent his salary for a year from March to minimise the company’s use of the UK government’s furlough scheme. A move mirrored by a handful of senior executives, largely in the airline sector.
Within her first two months as CEO, Aviva’s Amanda Blanc spent £1million of her own money on 324,887 shares, putting her money where her mouth is and demonstrating her commitment to the company’s success.
Just last week BP’s Bernard Looney put considerable flesh on the bones of the company’s 2050 net zero plan, which he announced when he took up the role in February. The clear and detailed strategy has been commended by Greenpeace activists as an appropriate step towards tackling climate change and an example that must be followed by other key players in oil and gas.
Bold, decisive moves like these have the capacity to create a corporate culture that selects honesty and morality over greed and individualism. They should be acknowledged, encouraged and engendered.
COVID-19 has been, and will remain, a leveller. It may not have affected us all equally, but it has made us all feel vulnerable in some way. It has caused us all, regardless of culture, country, industry or job title, to worry about our health, our freedom, our income, and our relationships.
We need business leaders who aren’t afraid to show their own vulnerabilities and keep in mind everyone else’s. Who are relatable, moral, honest and proactive. Who are capable of taking on the challenges of today. Who really care. And it is through concrete action that we will see which ones do.
Written by Fiona Johnston, Research Manager at Audley