To date, more than 150 business leaders, such as Jeff Bezos, Larry Fink, and Jamie Dimon have become signatories to the statement20. How much it changes the actual behaviour of their corporations remains to be seen. Just as some business leaders are playing a role in clarifying the purpose of the corporation, the courts are doing so as well. Take for instance the fact that in 2008, the Supreme Court of Canada helped debunk the long-standing prevalent view of the 20th century of shareholder primacy in BCE Inc. v 1976 Debentures21 (hereinafter referred to as “BCE”). The decision is widely cited as shedding much-needed light on the legal obligations of corporate leaders in Canada. Additionally, governments are trying to help clarify the purpose of the corporation. Several governments within Western democracies are attempting to apply a legislative framework to enable – and in some cases force – the purpose of the corporation to be about more than just profits for shareholders.22 Different institutions are chiming in and reforming the purpose of the corporation to be more stakeholder-centric and less about profits for shareholders. Institutions in Canada have been voicing their opinions and acting as well.
3) The Purpose of the Canadian Corporation “Canada’s responsibility is to support all stakeholders, not just shareholders. That means the stakeholder group is much broader. Our employers, our customers, our suppliers, of course our shareholders, and the communities we live and work in.” – Chuck Magro, CEO of Corteva Agriscience Much like other Western countries, Canadian business leaders, courts, and governments are pushing forward the idea that the purpose of the corporation must include the interest of all stakeholders and not simply the interest of shareholders which drives corporate leaders to prioritize the maximization of profits. To that end, most Survey Participants advocate that Canadian businesses do unquestionably have a responsibility towards all stakeholders and not just shareholders. Goldy Hyder observes, “I actually think that Canadian businesses have long ago, believed that their role in society is well beyond the shareholder. We want to do good.” Further, the Supreme Court of Canada rendered a decision in the 2008 BCE case that members of a corporate board must act for the interest of the corporation itself and not solely in the interest of the shareholders. Even further, in doing so, the court clarified that corporate directors may consider other stakeholders of the corporation while exercising their responsibility to decide what is in the best interest of the corporation. Moreover, there are governments in Canada seeking to enable corporations to espouse a stakeholder model or a more purpose-driven approach instead of a simple focus on generating profits for shareholders. Most likely the most impactful example is the fact that the Government of Canada has further cemented the principles of the BCE decision when it amended the Canada Business Corporations Act in 201923. The Federal government’s amendments effectively codified the BCE decision by legislating the concept that directors and officers, while deliberating on what is in the best interest of the corporation, may take into
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