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C2C Journal

Indecent Proposals: How Activist Investors Hijacked Responsible Corporate Governance

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39 minute read

From the C2C Journal

By Gina Pappano of InvestNow

It’s a central tenet of the free-market economy: a corporation’s job is to maximize investment returns to its shareholders. Bluntly, to make money. And “shareholder proposals” have been a powerful tool enabling investors to pressure a company’s board to take a particular action to increase its value. In recent years, however, activist groups have been weaponizing shareholder proposals to pressure companies into pursuing ideological goals, especially environmental and “progressive” social-welfare causes. In the case of the oil and natural gas industry, they’ve even pushed for companies to take actions that would drive them out of business. Veteran markets expert Gina Pappano examines this damaging phenomenon – and the new movement pushing back.

No matter what business they engage in, the purpose of all corporations – their raison d’être – is to generate returns on their shareholders’ investment and to maximize shareholder value by achieving a rising price in the stock market, paying dividends to shareholders, and eventually perhaps engineering a profitable “exit” from the market by being taken over at a premium. This understanding is known as “shareholder primacy” and it is so central to good corporate governance that companies and regulators have developed a mechanism, the shareholder proposal, whereby anyone who holds stock in a corporation can petition its board of directors to examine some practice or other with an eye towards improving the company and its value.

But in the 21st century – especially in the last decade or so – activist groups have repurposed shareholder proposals into weapons used to pressure companies to adopt policies informed by the group’s ideological concerns. No sector in Canada has been targeted by ideologically driven agendas more than the oil and natural gas industry, a crucial branch of Canada’s economy that includes hundreds of producers, pipeline companies, refinery operators and service companies, many of which are publicly traded. Using shareholder proposals whose goal is the limitation and eventual elimination of Canada’s oil and natural gas production, activists who are shareholders-of-convenience are attempting to villainize one of the most productive, vital and longstanding pillars of our country’s economy.

Popular delusions: Climate activists push for an end to the oil and natural gas industry even as an energy-hungry world set records last year for energy consumption and oil production; the world will need crude oil and natural gas for decades to come and Canada could be a preferred supplier. (Sources: (photo) Rainforest Action Network, licensed under CC BY-NC 2.0; (chart) Energy Institute)

Stand.earth, Investors for Paris Compliance, the BC General Employees’ Union, Environmental Defence Canada, the Shareholder Association for Research and Education and MÉDAC are just a few of the activist groups that over the past few years have presented anti-fossil-fuel shareholder proposals to Canada’s “Big Five” banks and to oil and natural gas companies. Last year, for example, Stand.earth demanded that the Royal Bank of Canada’s (RBC) “Board of Directors adopt a policy for a time-bound phase-out of the RBC’s lending and underwriting to projects and companies engaging in new fossil fuel exploration, development and transportation.” In other words, they were asking Canada’s biggest bank to stop supporting an industry that provides hundreds of thousands of Canadian jobs, pays tens of billions of dollars in taxes annually and forms the economic backbone of three Canadian provinces.

The demands of these groups are premised on convincing shareholders that eliminating one of our country’s most productive sectors will benefit Canada socially and environmentally and reduce global COemissions, when the facts demonstrate that nothing Canada could do domestically could influence emissions on a global scale. The most recent Statistical Review of World Energy, for example, described 2023 as a “year of record highs in an energy hungry world”.

The world will continue to need crude oil and natural gas for decades to come – not only the energy these fuels provide, but the thousands of crucial products that are made from them. Canadian oil and natural gas companies, with their high environmental and safety standards and technical expertise, should be among the preferred suppliers of the energy that powers the world. Yet the activists driving these economically ruinous crusades, based on dogma and ideology, want shareholders, investors and Canadians at large to vote in favour of their proposals. How did we get here?

The Annual General Meeting as Town Hall Meeting

Annual general meetings (AGM) used to be mostly stodgy affairs, dedicated to discussing a company’s financial statements and general business; the rise of shareholders’ proposals has made some of them much more contentious. Depicted, (top) Ford’s AGM, 1980; (middle) Bank of America’s AGM, 2024; (bottom) an activist is removed from Shell’s 2023 AGM. (Sources of photos: (top) Ford Motor Company; (middle) Rainforest Action Network, licensed under CC BY-NC 2.0; (bottom) Sky News)

Historically, the annual general meeting (AGM) of a corporation (whether privately held or publicly traded) was called to present and discuss the previous year’s results as embodied in the audited annual financial statements, to elect any new directors that might be required, to announce the retirement of existing directors if applicable, to announce any major changes to the company’s executive team, and to discuss any other relevant business as the company’s leadership might deem necessary. These were often stodgy and boring events, especially if things were ticking along smoothly. And these are still the core matters to which the majority of AGMs are devoted among Canada’s approximately 3,500 publicly traded companies as well as the vastly more numerous privately held companies.

But since the Second World War, and especially over the past 30 or so years, AGMs have become more – much more. In the United States’, the Securities and Exchange Commission’s (SEC) Shareholder Proposal Rule (Rule 14-a8) came into force in 1942. In testifying before Congress on the then-new rule in 1943, SEC Commissioner Robert H. O’Brien explained that its motivation was to “approximate the widely attended town hall meeting type of forum characteristic of the days when nearly all corporations were closely held and geographically limited.”

The Town Hall analogy is a good one. In a 2022 speech entitled The Shareholder Proposal Rule: A Cornerstone of Corporate Democracy, former SEC Director Renee Jones laid out the role and the rights of the shareholder. “Shareholders, that is individuals or institutions that invest in a corporation, are purchasing a share of the company with the understanding that the board of directors and senior management team will use their investment wisely, making sound corporate decisions with the intent of increasing profits, to which [the shareholders] are entitled to a share. They are also entitled to certain governance rights including the right to elect directors, approve major corporate transactions and express their views on corporate governance matters and other fundamental issues related to the corporation’s business. Additionally, shareholders generally have the right to bring matters before other shareholders for a vote at a shareholder or ‘town hall’ meeting.”

The bulk of the foregoing paragraph is a good synopsis of a shareholder’s rights and roles as it has been understood for the past 200-300 years. But Jones packed a lot into the sentence following the word “Additionally”. What she mentioned has in fact happened – with a vengeance. Since the enactment of the U.S. Shareholder Proposal Rule and the U.S.-inspired Canada Business Corporations Act’s Shareholder Proposal Regime, the number of shareholder proposals being presented every year in each country has increased exponentially.

The mechanism allows for any shareholder to present a proposal to a corporation provided the shareholder meets certain technical requirements set out by the SEC or the Canada Business Corporations Act, as the case may be. The proposal is printed in the set of corporate documents sent to all stockholders prior to any AGM. At the AGM, the shareholder presents the proposal and there is a vote.

In the early years, most shareholder proposals concerned matters of corporate governance. It was not until the 1960s and 70s that the phenomenon took off, possibly reflecting the era’s increased social activism. For example, in 1969 a group called the Medical Committee for Human Rights filed a shareholder proposal asking Dow Chemical Corporation to stop manufacturing napalm, an explosive chemical used with at-times horrifying effects in the Vietnam War. In the 1970s and 1980s, the anti-Apartheid movement used the shareholder proposal process to pressure corporations to terminate their business dealings in South Africa.

Renee Jones, a former director of the U.S. Securities and Exchange Commission, defended the right of shareholders to bring matters to a vote at AGMs; many such proposals have focussed on left-leaning environmental, social and governance (ESG) topics, and companies have been anxious to play along. At right, a screenshot from the presentation entitled “Unlocking the Power of Environmental, Social and Governance Data” by the World Economic Forum. (Source of right photo: World Economic Forum, licensed under CC BY-NC-SA 2.0)

Most such proposals did not tend to get very far, however; Boards of Directors typically recommended voting against them, and that tended to be the end of it. Most shareholders in publicly traded companies do not delve very deeply into the affairs of the often-numerous companies in which they might hold a position. A small business owner who is saving for retirement, for example, might well hold shares in several dozen companies via their RRSP portfolio; what they or their investment adviser monitor above all is whether dividends are being paid and share prices are doing well.

Accordingly, most shareholders take their cue from the Board of Directors and vote according to their recommendation, via so-called “proxy” forms, which also cover votes on standard matters like approving the financial statements and electing new directors. In this vein, proxy advisory firms have arisen, which institutional investors and large public pension funds rely upon to guide their voting. This is why it is very difficult to vote against a board and why most shareholder proposals fail at the AGM ballot.

Still, the number of shareholder proposals has grown dramatically and this increase has coincided with a rise in ideologically driven proposals. And none more than those associated with the environmental, social and governance (ESG) movement. In even a cursory investigation into this issue, one is struck by the degree to which shareholder proposals and ESG have become inextricably linked. Many of the current definitions of shareholder proposals one comes across, in fact, claim that they are “an important corporate governance tool which allow[s] shareholders to engage with public companies with respect to environmental, social and corporate governance issues.” Effectively, the shareholder proposal mechanism has been hijacked and harnessed to one dominant purpose.

Shareholders vs. Stakeholders

The evolution away from shareholder primacy to what is known as stakeholder primacy in the purpose and governance of corporations has been closely aligned with the rise of ESG investing. Proponents of so-called “stakeholder capitalism” contend that corporations should care less about superficial concerns like profits for shareholders and instead focus on the good of all their “stakeholders”, by which they mean anyone who is affected by, depends on or makes use of a company: customers, employees, the communities in which a company operates, the environment, governments and society as a whole. Klaus Schwab, founder of the World Economic Forum, is a prominent proponent of stakeholder capitalism, writing a book of that title.

The company’s actual investors, who make its work possible, should presumably get some consideration as well, but their good tends to get lost in the idealistic rhetoric which accompanies the ESG approach. The corporation’s original purpose as a profit-maximizing entity dedicated to serving its shareholders’ financial interests becomes subsumed by the deluge of social welfare-oriented activities (“giving back to the community”) and support for environmental causes. It is noteworthy that all of this is heavily skewed towards “progressive”, i.e., left-leaning, causes. In some cases, this has become self-destructive if not borderline suicidal, such as the BP CEO who some years ago infamously stated that the “B” in British Petroleum should be reimagined as “Beyond”.

Advocates of “stakeholder capitalism” believe companies should care less about profit – but it’s the push for those profits that makes companies successful, creates jobs and wealth, and finances retirement for millions. (Source of photo: Scott Beale, licensed under CC BY-NC-ND 2.0)

An important and current statement of ESG principles can be found in the United Nations-supported Principles of Responsible Investing (PRI), which has been signed by over 3,500 asset managers pledging to further “environmental, social, and corporate governance” goals in order to “better align investors with broader objectives of society.” Under this vision, society presumably no longer has much need for profitable companies whose earnings help build up the retirement accounts of tens of millions of future pensioners, but has become primarily focused on saving whales, fighting climate change or paying for free social housing.

It is interesting to note that the Canada Pension Plan (CPP) Investment Board is one of the PRI’s founding signatories. As a future beneficiary of Canada’s public pension system, I find myself worried by this fact. Like millions of other Canadians, my future wellbeing depends on the continued solvency of the CPP which, in turn, depends on the ongoing profitability of the companies in which it invests. The same can be said about dozens of other pension funds such as those for teachers, nurses and government employees.

The United Nations-supported Principles of Responsible Investing, signed by 3,500 asset managers – including the Canada Pension Plan Investment Board – demanded that companies pursue ESG goals to “better align investors with broader objectives of society”; ideological dogma has replaced the pursuit of shareholder value. (Source of photos: (left) expatpostcards/Shutterstock; (right) Sheila Fitzgerald/Shutterstock)

The two most prominent concepts among ESG investing principles and in shareholder proposals meant to push ESG agendas are: (1) diversity, equity and inclusion (DEI), and (2) “sustainability”. DEI is a highly ideological, neo-Marxist doctrine with which C2C readers are by now amply familiar. Sustainability is a somewhat older term that refers to goals pursued by the environmentalist movement, which currently include “net zero”, so-called decarbonization and the divestment from, reduction or outright banning of fossil fuel production and consumption.

Most shareholder proposals focused on sustainability are sector-specific. Oil and natural gas companies and financial institutions received the largest number in the 2023 AGM season. In Canada, most proposals have been aimed either at pushing oil and natural gas companies to net zero and decarbonization goals or at pressuring the Big Five chartered banks to stop investing in oil and natural gas companies and projects.

In 2022, for instance, Investors for Paris Compliance (I4PC) asked Calgary-based pipeline and utilities giant Enbridge Inc. to “strengthen their net zero commitment such that the commitment is consistent with a science-based, net zero target.” I4PC defines net zero to mean “no new oil and gas fields are required beyond those already approved for development in conjunction with a historic investment surge in clean technologies.” So not only was I4PC demanding that Enbridge officially commit to long-term decline in its business (since all oil and natural gas fields deplete over time, requiring continuous reinvestment in new fields merely to maintain current production), but it was also prescribing a huge (“historic”) amount of investment in so-called “clean” technologies that are outside Enbridge’s core business (wind turbines do not require pipelines).

Oil and natural gas companies and financial institutions have been the primary targets of shareholder proposals in Canada, which typically demand aggressive decarbonization and divestment from the energy sector. Shown at bottom, protesters march at the RBC AGM, Toronto. (Sources: (chart) Harvard Law School Forum on Corporate Governance; (photo) Rainforest Action Network, licensed under CC BY-NC 2.0)

The Gathering Pushback in the United States

There are glimmerings of an awakening that the wave of activist shareholder proposals and ESG investing is materially impairing investment returns and could prove economically ruinous. Investors are, in effect, being defrauded by companies diverting capital, executive attention and employee talents towards expensive social goals that do not, say, develop new products or generate revenue.

In the U.S., pushback has been gathering from several directions. Warren Buffett, the famous “Sage of Omaha,” has openly expressed skepticism about ESG investing and things like corporate reporting on climate change efforts – although it is a sign of the ideology’s thorough penetration of the investment world that Buffett’s stance would be labelled  “unconventional” in a business magazine.

One of the world’s most successful investors, Warren Buffett, has been decidedly lukewarm on ESG, a position one business magazine called “unconventional” – an indication of how thoroughly the ideology has penetrated. (Source of photo: Fortune Live Media, licensed under CC BY-NC-ND 2.0)

More substantively, new asset management firms have been launched by entrepreneurs who concluded that the stakeholder primacy model just does not work. Strive Asset Management was founded in early 2022 explicitly to “live by a strict commitment to shareholder primacy – an unwavering mandate that the purpose of a for-profit corporation is to maximize long-run value to investors.” Its founders are private equity manager Anson Freriks and flamboyant commentator Vivek Ramaswamy, who was a candidate for the most recent Republican Presidential nomination, won by Donald Trump.

Strive believes that companies should do what they do best and not fall prey to other agendas. The fund was started specifically to “solve a problem,” as its website explains: “Large financial institutions, including the biggest asset managers, were using their clients’ money to advance social, cultural, environmental and political agendas in corporate America’s boardrooms. Asset managers and for-profit corporations have a fiduciary duty to maximize value, and that duty had been neglected.”

Strive’s pitch clearly resonated with investors, as the firm soon became one of the fastest-growing asset managers in the U.S. And its position appears to be having an effect. The latest edition of Strive’s newsletter, The Fiduciary Focus, includes the following headlines: “The Financial Times Credits Strive for Pushing Companies to Drop ESG-Linked Compensation,” “John Deere Pulling Back on ESG,” and “Wall Street Cools on Sustainable Funds.”

“Asset managers and for-profit corporations have a fiduciary duty to maximize value,” says Vivek Ramaswamy, co-founder of Strive, an asset management firm committed to the primacy of shareholders’ financial interests; the firm’s data on the fall of ESG-focussed fund launches suggests his approach is resonating with investors. (Source of left photo: AP Photo/J. Scott Applewhite)

There is also growing concern in the political arena that ESG investment and other socially motivated corporate activities pose a threat both to the financial integrity of public pension funds and a challenge to democratic governance. A number of U.S. states have taken formal steps to confront and counter the ESG investment behemoth. One such measure is the non-profit State Financial Officers Foundation (SFOF). According to its website, “SFOF’s mission is to drive fiscally sound public policy, by partnering with key stakeholders, and educating Americans on the role of responsible financial management in a free market economy.”

The organization and its members are firm and vocal defenders of shareholder primacy. Among their activities have been letter-writing campaigns to corporations and fund managers that urge them to scale back political activism and instead focus on the interests of their shareholders. They are putting teeth to their words: according to a recent Torys Report, 18 of the SFOF’s member states have enacted anti-ESG laws, including prohibiting fund managers from considering ESG factors in their investments and state entities from investing with asset managers deemed to be discriminating against or boycotting the fossil fuel industry.

Some of the SFOF member states have also put their money where their mouths are in pushing to restore shareholder primacy. The organization recently supported the State of Texas Permanent School Fund (a large investment fund with US$53 billion in assets that helps pay for the state’s school system) as it cancelled a US$8.5 billion investment with BlackRock, one of the world’s largest investment funds and a prominent proponent of ESG investing. As SFOF urged, “BlackRock should withdraw from international organizations seeking to orchestrate opposition to fossil fuel investment, abandon ‘decarbonization’ policies that are a form of boycotting fossil fuels, and stop using its proxy voting authority to promote an anti-fossil fuel agenda.”

Pushing back: The U.S. State Financial Officers Foundation has urged corporations and fund managers to put shareholders first; 18 member states have enacted anti-ESG laws, including prohibitions on state entities investing with asset managers deemed to be discriminating against or boycotting the fossil fuel industry. (Source of photo: Center for Media and Democracy)

Further pushback is coming from some of the recipients of activist shareholder proposals. It is perhaps not surprising that ExxonMobil is among the leaders here. The company has long been reviled by environmentalists for its insistence on keeping profitability, technical excellence and energy production central to its business. To some, it is the ugly face of “Big Oil”.

In January, ExxonMobil filed a lawsuit to block a shareholder resolution put forward by the groups Follow This and Arjuna Capital, whose stated objective was to force the company to commit to precipitous cuts in CO2emissions, including with respect to the downstream effects from the combustion of its products by customers. Exxon argued that such a resolution would force the company to “change the nature of its ordinary business or to go out of business entirely.” Which is what these “shareholders” intend; Exxon’s lawsuit quotes Arjuna Capital’s contention that “Exxon should shrink” and Follow This’s statement that its goal is “to wind down the company’s business in oil and natural gas.”

As Follow This states on its website: “We buy shares in order to work on our mission to stop climate change.” And, it says, its shareholder proposal aims to make ExxonMobil “stop exploring for more oil and gas.” While this kind of agenda is no longer surprising, ExxonMobil’s response was. Corporations generally try to deal with motivated activists by adopting some version of their favoured policies in the hopes they’ll go away (not that they do). ExxonMobil’s bolder, more confrontational tactic may be pointing the way, because in late June both activist groups not only dropped their proposals but promised not to bring forward similar demands in future; in return, ExxonMobil agreed to have its lawsuit dismissed.

Blazing the trail: ExxonMobil early this year filed a lawsuit to block two activist groups from submitting shareholder proposals demanding that the company stop exploring for oil and natural gas and, thereby, “change the nature of its ordinary business or to go out of business entirely”; in June the activist groups backed down. (Source of photo: ET Auto)

Still more pushback in the U.S. is coming from the small but growing number of advocacy organizations submitting anti-ESG shareholder proposals that call on corporations to refocus themselves on shareholder-centred capitalism. The National Center for Public Policy Research and the National Legal and Policy Center are two such organizations. According to a recent SquareWell Partners report entitled “What Do Shareholders Propose?” these kinds of proposals surged by 64 percent in 2023.

Now What About Canada?

This process is still at a much earlier stage in Canada. Last year the not-for-profit organization I lead, InvestNow, submitted and presented shareholder proposals to three Canadian banks asking for explicit commitments to continue to invest in and finance the Canadian oil and natural gas sector. These were the first proposals of this nature presented to Canadian banks and their shareholders. The overwhelming majority of the vote – 99.5 percent of it – was against InvestNow’s proposal. However, fellow shareholders and even some board members approached me after the meeting and thanked me for standing up to the banks and for advocating on behalf of Canadian oil and natural gas and everyday Canadians.

We were back again doing the same this year, presenting shareholder proposals at the AGMs of all five big chartered banks – BMO, CIBC, Scotiabank, RBC and TD – asking them to commission and issue reports qualifying and quantifying the impacts and costs of their net zero commitments. This time we received one percent support for our proposal, a 100 percent increase over last year.

This year InvestNow also submitted our first shareholder proposal to an energy company. We asked Suncor Energy Inc., one of Canada’s largest oil producers and refiners (with production this year estimated at approximately 800,000 barrels per day), to drop its pledge to achieve net zero carbon emissions by 2050 and rededicate the company to its core business of producing and refining crude oil. In our view, Suncor should be producing more oil and getting it out to more customers in Canada and around the world – not contributing to its own demise and that of its industry. And it should do this unapologetically. In the face of growing global demand and concerns over energy security, Suncor should increase Canada’s energy supply, thereby helping to reduce energy costs for Canadians and the world.

In the first actions of their kind in Canada, the not-for-profit group InvestNow – led by the author – submitted several shareholder proposals to Canadian banks, asking them to commit to keep investing in the oil and natural gas sector, and to Suncor Energy Inc., asking it to drop its “net zero” commitment; Suncor, the author points out, has held its overall greenhouse gas emissions virtually flat year-over-year, and should unapologetically keep producing oil. (Sources: (photo) Suncor; (graph) Statista)

Like Exxon, Suncor has received many anti-fossil-fuel shareholder proposals over the years. Unlike Exxon, however, Suncor has not yet publicly pushed back. But why not? Suncor has worked concertedly to improve its “emissions intensity”, which is the volume of greenhouse gas emissions per unit of oil or natural gas produced, and has held its overall greenhouse gas emissions essentially flat, as the accompanying graph shows. [Editor’s note: the recent passage of the Liberals’ Bill C-59, which makes it illegal for energy companies and advocacy groups to defend themselves, on pain of criminal penalties, caused a vast amount of useful technical information to be abruptly removed from the internet.] Why commit to an arbitrary target like net zero, especially one that would necessitate massive declines in the use of oil and natural gas? Net zero wouldn’t increase shareholder value. Quite the opposite, since fossil fuels are Suncor’s main business.

Although InvestNow’s proposal was rejected by Suncor’s board, our hope is that we planted a seed in the directors’ minds about their duty of care and fiduciary obligations to the company’s shareholders and that they will soon find the courage and conviction to say “No” to the activists and “Yes” to shareholder proposals like ours.

Canada’s shareholder proposal regime was put in place as a response to the U.S.’s rule on shareholder proposals. Hopefully, the boards of directors at Canadian corporations and financial institutions, investors, customers and citizens at large will see what is happening south of the border and will add to the still-budding pushback movement in our own country. It’s time.

Gina Pappano is executive director of InvestNow and was formerly head of market intelligence at the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV).

Source of main image: Kenzie Todd, retrieved from History and Future of Divestment at St. Olaf.

C2C Journal

Charlie Kirk and the Fragility of Civic Peace

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By Patrick Keeney

The brutal assassination of Charlie Kirk was shocking not only for its violence but for the chilling aftermath – the revelling on the left, the mendacious reporting, and the calls for more political violence.

Kirk embodied a conversational politics now rare. As founder of Turning Point USA, he brought millions of young people to conservatism by touring campuses and inviting critics – not just supporters – to the microphone. He strode into the lion’s den of higher education, taking hostile questions with civility, good humour, and reasoned argument rather than rancour.

“Disagreement,” he liked to say, “is a healthy part of our systems.”

It wasn’t necessary to share his convictions to recognize his courage and composure.

The reaction to Kirk’s death on September 10 at Utah Valley University was particularly disturbing. News outlets and social media overflowed with callous gloating and demands for further violence. “He got what he deserved” was among the milder responses. A conservative group logged more than 50,000 such comments in four days. Democratic members booed a motion for silence in Congress. A Secret Service agent called Kirk’s death “karma.”

How did it become virtuous to cheer a fellow human being’s death? Part of the answer lies in what literary critic George Steiner called the passing of the tragic vision. In The Death of Tragedy (1961), Steiner argued that tragedy – once the highest expression of human dignity amid suffering – had perished in Western culture, and its loss was civilizational.

The tragic view holds that suffering is an inherent part of the human condition. Chance, flaw, and necessity are woven into our very existence. This recognition distinguishes the tragic sensibility from utopian schemes of collective redemption. Enlightenment rationalism envisioned the world as scientifically perfectible; Marxism reinterpreted conflict as a class struggle culminating in utopia; the managerial state promised that expertise would eliminate disorder.

But when we forget life’s limits, politics ceases to be the art of prudence and compromise and becomes a fever dream of utopia. Once utopia is the aim, violence is reimagined as a form of purification. The French Revolution’s Terror, Stalin’s gulags, Mao’s Cultural Revolution, Pol Pot’s killing fields – each arose from rejecting Kant’s warning: “Out of the crooked timber of humanity, no straight thing was ever built.”

Tragic sensibility is not fatalism. It tempers ambition with humility, recognizing that motives are mixed, victories partial, and knowledge flawed – and that opponents share our frailties. To acknowledge this crookedness is clarity, not despair. Only those who accept tragic limits can build anything lasting.

Politics lacking tragic sensibility becomes a substitute religion, promising salvation through power. Opponents become enemies; compromise becomes betrayal; violence follows. Those convinced of their righteousness feel justified in demonizing others. This tendency is especially apparent on today’s left; its ‘virtuous’ rhetoric of compassion often masks self-righteousness – and self-righteousness without humility can be deadly.

Consider Kirk’s accused assassin, 22-year-old Tyler Robinson. Raised in a stable, conservative family, Robinson drifted leftward and was recently radicalized, seemingly influenced by his transitioning roommate. He referred to himself as a leftist who loathed Trump. One can envision him then, cloaked in righteousness, believing he struck a blow against evil. The opponent becomes not a fellow human being but a symbol of oppression. Murder is no longer malice but moral necessity – the cost of purity. As Robespierre said, “Terror is nothing other than prompt, severe, inflexible justice; it is therefore an emanation of virtue.”

Canadians often imagine themselves immune to such eruptions. Yet our history tells another story: the October Crisis, the Air India bombing… seventy churches burned after unproven residential-school claims, and on-going anti-Jewish protests. Violence disguised as virtue is not alien to our soul.

Canadian academics exhibited hatred comparable to Kirk’s worst American foes. “Shooting is honestly too good for so many of you fascist c—-,” posted University of Toronto professor Ruth Marshall hours after Kirk’s death. Toronto schoolchildren reportedly cheered the news, while teachers watched passively.

This moment is perilously fragile. Social media amplifies outrage, rewarding anger while penalizing restraint. Every disagreement becomes an “existential crisis.” Every opponent is Hitler. The language of “emergency” and “genocide” floods politics, quickening the slide from rhetoric into violence.

The antidote is not repression but the recovery of tragic wisdom: we must temper politics with humility. This requires cultural renewal and virtues that allow citizens to live with differences: prudence, courage, humility, and charity. We need a civic ethos that balances rights with responsibilities, diversity with shared norms. Without restraint, pluralism degenerates into tribalism.

As Solzhenitsyn wrote in The Gulag Archipelago: “the line dividing good and evil cuts through the heart of every human being.” This understanding counters ideologies dividing the world into pure and impure, oppressor and oppressed. The battle is within each heart – and that recognition demands humility.

Kirk’s assassination serves as a grim warning. The decline of civic peace is never accidental; it springs from ideological fanaticism, the conviction that one’s cause is so virtuous that opponents must be demonized and destroyed. Every destructive ideology cloaks itself in righteousness even as it paves the road to cruelty.

Charlie Kirk’s death exposes the danger of politics detached from a tragic sensibility. We must foster a politics tempered with humility, recognizing that our victories are partial and our understanding imperfect. Without this humble wisdom, freedom itself cannot survive.

The original, full-length version of this article was recently published in C2C Journal.

Patrick Keeney is a Canadian writer who divides his time between Kelowna, B.C., and Thailand.

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Alberta

Jason Kenney’s Separatist Panic Misses the Point

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By Collin May

Time was a former political leader’s expected role was to enjoy retirement in relative obscurity, resisting the urge to wade into political debate. Conservatives generally stick to that tradition. Ralph Klein certainly did after his term ended. Stephen Harper has made no attempt to upstage his successors. Yet former Alberta Premier Jason Kenney can’t seem to help himself.

From the boardroom of Bennett Jones, one of Calgary’s oldest law firms, Kenney recently offered his thoughts on the unspeakable horrors that await the province should it entertain a debate (perhaps even call a referendum) on separating from Canada. While dismissing Alberta separatists as a “perennially angry minority”, Kenney nevertheless declared a vote on separation would “would divide families, divide communities, divide friends for no useful purpose.” Business partnerships, church and community groups, even marriages and families would break apart, he warned, “shredding the social fabric of the province.”

It was a remarkable burst of untethered hyperbole, but it says more about the former premier than it does about the province he once led.

Kenney’s take on the history of Alberta separatism is telling. It’s a 50-year-old “discredited concept,” he said, whose acolytes “couldn’t get elected dogcatcher in this province.” Exhibit A in his analysis was Gordon Kesler, an Alberta rodeo rider and oil company scout who believed independence was the only way to save Alberta from Ottawa’s depredations. In a 1982 byelection, Kesler got himself very much elected as an MLA under the Western Canada Concept banner. He later lost in the general election to Peter Lougheed’s Progressive Conservatives, but Lougheed did not belittle Albertans for entertaining separatist notions. Instead, he asked for a mandate to fight Ottawa more effectively — and got it.

Kenney, by contrast, ridicules separatists while simultaneously painting them as an existential menace. Worse, he likens them to followers of Vladimir Putin and (perhaps even worse?) Donald Trump. “[I]f you just follow them on social media,” he claimed, one will quickly see that they cheered on Putin’s attack on Ukraine and Trump’s threat of making Canada the 51 st state.

Kenney’s latest intervention fits a pattern. As premier from 2019 to 2022, he could not resist trying to stamp out dissent. During the pandemic, he alienated political allies by dismissing their concerns about mandatory vaccines with contempt. He saw his ouster as UCP leader as the result of a Trumpian-inspired or “MAGA” campaign. UCP party faithful, however, said their rejection of him had far more to do with his top-down leadership style and habit of “blaming other people for the errors he made.”

What’s especially striking about Kenney’s separatist obsession is that he seems to understand as little about Albertans now as he did while premier. Albertans have long debated separation without the province descending into chaos. When Kesler won his seat, people talked about separation, argued its pros and cons, but couples were not running to their divorce lawyers over the issue and business partners were not at each other’s throats.

And there are legitimate reasons for concern about Canada’s social and political structure, as well as the role provinces play in that structure. Canada’s institutions operate largely on an old colonial model that concentrates power in the original population centre of southern Ontario and Quebec. This has not, and does not, make for great national cohesion or political participation. Instead, it feeds constant fuel to separatist fires.

The current threat to Canadian identity comes as well from the ideological commitments of our federal government. Early in his time as Prime Minister, Justin Trudeau declared Canada to be a “post-national” state. This sort of moniker is consistent with the popularly-designated woke doctrine that eschews the liberal nation-state, democratic procedures and individual freedom in favour of tribalist narratives and identity politics.

The obsession with post-nation-state policies has initiated the dissolution of the Canadian nation regardless of whether Quebeckers or Albertans actually vote for separation. We are all becoming de facto separatists within a dissolving Canada, a drift that current Prime Minister Mark Carney’s ineffective “elbows up” attitude has done nothing to reverse.

Kenney’s panicked musings about Alberta separatists would have us believe the province need only continue the fight for a better deal within the Canadian federation. Kenney pursued just such a policy, and failed signally to deliver. For too many Albertans today, his advice does not reflect the political reality on the ground nor appreciate the worrying trends within Canadian institutions and among our political class.

Kenney likes to associate himself with Edmund Burke, the father of conservatism and defender of venerable institutions. But Burke was known as much in his day for his sympathies with the American revolutionaries and their creation of an experimental new republic as he was for his contempt towards the French Revolution and its Reign of Terror. Burke’s conservatism still linked real actions with true words. It would be advisable, perhaps, to keep our own political language here in Alberta within the bounds of the plausible rather than fly off into the fanciful.

The original, full-length version of this article was recently published in C2C Journal.

Collin May is a lawyer, adjunct lecturer in community health sciences with the Cumming School of Medicine at the University of Calgary, and the author of a number of articles and reviews on the psychology, social theory and philosophy of cancel culture.

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