Leadership Is…
Total Page:16
File Type:pdf, Size:1020Kb
LEADERSHIP IS… ANNUAL REPORT 2014 2 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 CREATING HIGH QUALITY JOBS TAKING CANADA TO THE WORLD INVESTING IN COMMUNITIES HELPING OTHERS SUCCEED CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 3 Aecon Group Inc. CCCE member companies collectively lead companies with: 1.5 million employees $ 6 trillion in assets $ 850 billion in revenues Canadian Tire Corporation, Limited $ The Canadian Council of Chief Executives 7.3 billion brings CEOs together to shape public invested annually in R&D policy in the interests of a stronger Canada and a better world. 4 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 6 10 28 8 CONTENTS 6 17 28 34 Message from From acorns CEO Events and the chair to mighty oaks summits publications 8 18 29 36 Leadership is… New York Message from the creating high Board of directors President and CEO quality jobs 31 Toronto 38 21 10 Membership Leadership is… 33 Year in review taking Canada Winnipeg to the world 42 Council staff 24 Leadership is… investing in sustainable communities 27 Leadership is… helping others succeed CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 5 MESSAGE FROM THE CHAIR t its core, free enterprise is about hope, side views corporate governance as a process of “ about providing avenues for people to compliance with ever more restrictive regulations A pursue their dreams of better lives for and procedures. I and my colleagues in the business themselves and their children.” community, on the other hand, see corporate governance as an expression of values rather than Those words, from a 2002 statement by the a list of hard and fast rules. While governments Canadian Council of Chief Executives on corporate have a vital role to play in protecting the integrity governance, sum up for many of us our belief in of markets, simply adding more rules does not economic freedom as a driver of human progress. necessarily make markets fairer or better. They help to explain why we as entrepreneurs and Members of the Canadian Council of Chief executives are committed to the long-term health Executives head companies with a variety of and performance of our enterprises. But just as corporate ownership structures, and no single important as what we do is how we do it. To quote governance framework is appropriate for all again from that 2002 statement, “Canadians circumstances. Nevertheless, there is growing should be able to count on business leaders to concern within our ranks – and beyond – about instill confidence in the integrity of our financial the ever-increasing volume of corporate govern- markets; to add to Canada’s reputation as a country ment requirements with which boards of directors that is well-governed and home to well-run must comply. The result is a rigid, “check-the- enterprises; and to help Canada in its continuing box” approach that may well prove harmful to quest to spread the benefits of democracy the long-term performance of companies. Boards and free markets to the less fortunate around increasingly spend most of their time on the the world.” processes and procedures that have come to define so-called “good” governance – leaving There was then, and still is now, a debate about little time to cope with critical issues such as the future of corporate governance, and how best long-term strategy, evolving customer needs to ensure that Canadian business is conducted in and the changing competitive environment. the most transparent and ethical manner. One 6 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 Leadership in business means making decisions and taking calculated risks in a world that is increasingly competitive and unforgiving of missteps. What is needed in any company is a robust governance system that helps to produce sustained performance over the long term to the benefit of all stakeholders. In short, I believe that the pendulum has swung national policy providing guidance for proxy too far and that we must return to governance advisory firms. This is a step in the right direction, basics. This return to basic principles would signal but more must be done. As the CCCE said in its a refocusing on long-term performance and a submission to the CSA: “Our members are retreat from the short-termism that afflicts too concerned that [proxy advisory firm] requirements much of current corporate management. can too easily become de facto corporate gover- nance standards, without adequate consideration One example of how far the pendulum has swung and discussion with affected stakeholders.” is the rise of what are sometimes referred to as “private regulators”. Proxy advisory firms, gover- Leadership in business means making decisions nance lobby groups and corporate governance and taking calculated risks in a world that is rankings have emerged as the unofficial developers increasingly competitive and unforgiving of mis- and enforcers of governance standards. They steps. What is needed in any company is a robust often focus on so-called “best practices”, governance system that helps to produce sustained as opposed to value creation. performance over the long term to the benefit of all stakeholders. Let us not abandon tried and true These third-party influencers have promulgated practices for a one-size-fits-all mentality imposed by a long list of corporate do’s and don’ts as they self-appointed “governance experts”. seek to enforce a standardized approach to governance. Some of these organizations are On behalf of Canada’s business leaders, thank you for-profit businesses that operate with little for your interest in our initiatives and policy agenda. regulatory or fiduciary oversight, and their posi- CCCE members look forward to working with other tions on any given issue could be influenced by decision-makers in all regions and sectors in our any number of factors and potential conflicts of mission of building a stronger Canada. interest. The Canadian Securities Administrators (CSA) have recognized these concerns and Paul Desmarais, Jr. recently published for comment a proposed Chair CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 — 7 MESSAGE FROM THE PRESIDENT AND CEO ver the past couple of years, concern Consider the most recent findings of the Program about Canada’s labour market has risen for International Student Assessment (PISA), a Osharply. Some people say we are suffering triennial study by the Organisation for Economic a “skills crisis”, while others point to regional and Cooperation and Development (OECD) that industry-specific labour shortages, skill mismatches tests the knowledge and skills of 15-year-olds and, in a few sectors, over-reliance on temporary from 65 countries and education systems. To be foreign workers. sure, Canadian students still score well above average in key subject areas. But since the first The issues are real, but in focusing on today’s round of PISA tests in 2000 we have dropped problems we risk ignoring an even more funda- from 9th place to 13th in math, from 2nd to 9th in mental challenge. We need to ask whether our reading and from 5th to 10th in science. country is doing an adequate job of preparing young people – especially those still in school – In some countries, numbers like that would spark for the jobs of the future. a national debate about the quality of the school system and what is needed to improve it. Not Canada invests heavily in education, and historically so in Canada. For the most part, elected officials we have taken pride in the quality of our public who have spoken publicly about the results have education system. Among other achievements, our tended to shrug them off. At a meeting this past country is a leader when it comes to ensuring summer, provincial and territorial ministers of equal access to education for young people from education insisted that Canada’s schools are still a wide range of socio-economic backgrounds. among the best in the world. As if to prove it, they But past performance, as they say, is no guarantee instructed their officials to look for new ways of of future results. And several recent indicators measuring student achievement that might cast suggest that the quality of Canada’s education Canada in a better light. system is slipping at a time when education PISA, however, is not the only sign of weakness outcomes in many other countries are improving. in Canadian education and skills development. 8 — CANADIAN COUNCIL OF CHIEF EXECUTIVES ANNUAL REPORT 2014 To succeed in the 21st century, young Canadians need an education system that is much better than average – it must be among the best in the world. Another recent OECD study, the Program for the are dedicated, hard-working professionals. And International Assessment of Adult Competencies yes, employers have important roles to play in (PIAAC), found that Canadian post-secondary sponsoring experiential learning opportunities graduates rank below average in both literacy and and investing more in workplace training and numeracy relative to their peers in the developed skill development. world. Some suggest that the comparison is unfair because it lumps together university and commu- But it is shortsighted to suggest, as many have, nity college grads. Yet the same study also found that we need not worry about the downward that more than a quarter of Canadians with at trend in Canadian educational outcomes. As least a bachelor’s degree – and more than half of columnist Thomas Friedman of The New York all Canadians – fall below what is widely consid- Times observes, the time is past when a person ered the minimum standard of literacy to function with average skills, doing an average job, could in modern society. enjoy an average lifestyle.