The resounding rejection of the Indigenous Voice to parliament by the public should force big company CEOs and boards to think harder before intervening in social political issues that are not strongly backed by shareholders, former Business Council of Australia president Hugh Morgan says.
The voting numbers suggest that many employees, shareholders and customers voted No in the referendum. “Given the mood of the community, maybe this is a moment for the corporate sector to reflect and rethink.Mr Morgan said using company resources was more easily justified when there was likely to be strong shareholder support – such as retailers helping out during bushfires and business support for broader Indigenous affairs work.“Business leaders should focus on their core business by prioritising their customers, shareholders and their employees,” he said.
Commonwealth Bank chairman Paul O’Malley last week defended its $2 million contribution to the Yes campaign “If there is a close correlation to the issue with the interests of the business, then it can be OK, but they’ve got to explain better how it contributes to the value of the company,” he said.Wesfarmers chief executive Rob ScottBCA chief executive Bran Black said its members remained committed to the social, cultural and economic prosperity of Aboriginal and Torres Strait Islander peoples.
ASA chief executive Rachel Waterhouse said companies could take a stance on social issues if it was consistent with their overall purpose and strategy.