Chief executive officer

• Big corporations such as North Face, Anheuser-Busch InBev, Target and Kohl’s have all recently ran inclusive ad campaigns featuring Lesbian, Gay, Bisexual, Transgender, Queer, and Intersex (LGBTQI+) people.
• This makes sense from a business perspective, with “pink money” weighing 3.5 trillion euros globally and around 874 billion euros in the EU.
• And I can testify that diverse corporate boards are a long shot from becoming reality.
• This comes as a particular surprise given the European Commission’s recent pledges to boost opportunities for the community.

The case for diversity

• And yet, the case for board diversity is stark.
• What’s more, a truly diverse board could boost companies’ ratings in environmental, social and governance (ESG) and diversity, equity and inclusion (DEI).
• For example, this could mean advocating for queer rights in some of the near 70 countries that continue to criminalize same-sex relationships.

Step forward

• For DEI initiatives to reach a successful outcome, there must first and foremost be reliable demographic data.
• Due to historic discrimination against LGBTQI+ people, there has long been a justifiable reluctance to self-identify.
• The findings showed that when companies are not inclusive, LGBTQI+ employees are willing to leave for those that are.
• The organization encourages out LGBTQI+ corporate directors to self-identify, be counted, and mentor qualified candidates for board seats.

Leveraging gender policies to appoint more LGBTQ+ women at the top

• After the share of CEOs in the Fortune 500 dropped by 25% in 2018, a host of European countries, including Norway, Germany, Finland, France and Spain, introduced gender quotas in 2022.
• As companies look to comply with this law, there is an opportunity to appoint women who identify as LGBTQI+.

• About 5,600 UAW members at 38 General Motors and Stellantis distribution centers for auto parts in 20 states walked off the job on Sept. 22, 2023, after an announcement by UAW President Shawn Fain.
• Workers at the only Ford plant affected by the strike since it began on Sept. 15 will remain off the job.
• The total number of UAW members involved in the strike stands at about 18,300.
• Rather, I believe management and labor will need to swiftly move on following the strike and work together constructively to meet that goal.

UAW’s demands

• In addition to these demands, the UAW wants defined-benefit pensions for all workers restored, company-paid health benefits for retirees reestablished and the right to strike over plant closures guaranteed.
• Other demands include more paid time off and seeing all temporary workers made permanent.

Precedents for working together

• The company’s approach to its Saturn brand of compact vehicles, launched in 1985, was unique in many respects.
• Its governance structure was characterized by shared decision-making at different levels throughout the plant.
• GM invested billions of dollars in this venture, through which it tried to compete with Japanese imports and transplants that were quickly eroding GM’s market share.
• The plant, which assembles Cadillacs and Chevy Camaros, continues this approach successfully today.

Shift the focus to the future

• Undergoing this transformation with labor and management at loggerheads can’t possibly benefit the UAW or the auto companies.
• Instead, they’ll need to focus on finding solutions together that increase productivity, build a skilled workforce and efficiently convert plants that make conventional vehicles today to EV factories tomorrow.
• In so doing, the UAW is more likely to meet its goal of seeing those EV factories employ its members.

• This situation has placed the prime minister in a new role as a separated parent, raising questions about the political implications of separations and divorces among public figures.
• This news comes at a time when divorce has become a common occurrence in modern societies.
• The impact of divorce on job performance can be profound, affecting individuals on both personal and professional levels.

Impact of divorce on job performance

• When it comes to CEOs, researchers have recently started looking at the impact a CEO’s divorce may have on their firm and its stakeholders.
• However, we’re still not sure about how a CEO’s divorce affects their job performance.
• Since CEOs are the chief decision-makers and architects of company strategy, divorce-related distractions and cognitive limitations can have severe consequences on their job performance and, subsequently, on their company’s performance.

CEO divorce and company performance

• Our research paper based on data from Danish firms and their CEOs shows that CEO divorces can have a negative impact on their company’s performance.
• The level of control and decision-making power the CEO has in the company also plays a crucial role in determining the extent of the impact.

Implications for political leaders

• Our research has important implications for political leaders, including individuals like Trudeau who hold high-level positions of power and responsibility.
• If a political leader is in a country where people have more liberal perspectives on family issues and divorce, societal pressure might be low.
• This results in reduced societal stigma towards political leaders undergoing divorce.
• In some parts of the U.S., there is stronger emphasis on traditional family values, which can result in more scrutiny and negative perceptions when political leaders go through a divorce.

Personal and professional lives

• As our research implies, it’s crucial for political and business leaders to be mindful of how their personal lives may impact their professional roles.
• Additionally, research on how politicians balance their family and work lives, and how it affects their decision-making, can provide valuable insights for improving leadership performance and public service.
• Ultimately, the impact of a political leader’s divorce depends on a complex interplay of cultural norms, media dynamics and a leader’s ability to navigate public perception during challenging personal times.

• One way of doing this is for employers to effectively communicate their ethical values to outsiders.
• This is key because the younger generation of workers values social responsibility, transparency and ethical behaviour from their potential employers.

Skepticism about CSR

• Companies have historically demonstrated their commitment to ethical values through corporate social responsibility (CSR) efforts.
• However, the public is growing increasingly skeptical about CSR.
• Many view CSR initiatives as misleading attempts to appear ethical.

Why candidates care about CEO ethics

• First, job seekers are likely to believe that the ethical CEO’s company treats its employees fairly.
• Lastly, job seekers tend to experience feelings of awe, admiration and inspiration when they learn about the CEO’s ethical goodness.
• Not surprisingly, we found that, because of the above reasons, job candidates who strongly identify as moral persons are more attracted to the ethical CEO’s organization.

Cisco: A case study

• For example, during his tenure as CEO of Cisco, John Chambers focused on building a diverse and inclusive workforce through strategic recruitment initiatives.
• He also emphasized the importance of creating an inclusive culture where employees could thrive and contribute their unique perspectives.

Strategies for attracting workers

• Based on our research findings, we suggest a number of ways organizations can effectively use their CEO’s ethical leadership to attract good workers.
• Recruitment strategies can include videos of CEOs speaking about their personal ethical values and how they shape their companies’ values.
• By implementing these strategies and effectively communicating the ethical values of their CEOs, organizations can differentiate themselves in the market and attract top candidates that share similar values.
• Tunde Ogunfowora received funding for this study from the Social Sciences and Humanities Research Council of Canada (SSHRC).