Corporate Canada has been called a timid place full of risk-averse leaders and a new study says it’s hurting the bottom line, adding that just 11% of businesses in Canada are considered "truly courageous."
The conclusion comes from a poll of 1,200 businesses across Canada by Deloitte, which on Monday released a 36-page report, The Future Belongs To The Bold.
"At a time when Canada needs its businesses to be bolder and more courageous than ever before, almost 90% aren’t up to the task," the report concludes. "This lack of courage has serious implications for these organizations and for the Canadian economy overall."
The survey measured courage in five ways. It asked whether a business defies existing practices, takes risks, takes moral positions, has leaders who embody their convictions, and taps the potential of Canada’s many cultures.
Deloitte categorized 15% of respondents as fearful, 43% as hesitant, 30% as "evolving," and 11% as courageous.
The report says that, as a result of this lack of courage, Canadian firms invest less in machinery and equipment than in comparable industrialized nations, while investments in training have dropped 40% in 20 years. These kinds of risk-averse behaviours are a drag on an economy that will grow just 1.3% this year, compared to global growth of over 3%
