An increasing number of British boards are worried about the impact of a potential exit from the EU, but there remains little planning for a Brexit and most businesses remain unwilling to speak out on the topic.
The risk of Brexit is playing on the minds of FTSE 350 company boards, according to research by ICSA, the governance body, in conjunction with the FT: 61 per cent of those who responded to ICSA’s Boardroom Bellwether said EU membership had a positive effect on their business, up from 53 per cent in December 2014 and 42 per cent the previous year.
If the UK were to leave the EU, 70 per cent of respondents said they expected either “some” or “significant” damage to their business, up from 63 per cent in the summer. A total of 28 per cent said Brexit would make no difference to them.
However, just over a quarter of boards said they were planning for a UK exit and a majority — 53 per cent — said they would not speak out either for or against it. Only 4 per cent said they were prepared to take part actively in the debate.
Alison Carnwath, chairman of Land Securities, the FTSE 100 property group, said she would be prepared to speak out on Brexit closer to a referendum when the results of David Cameron’s renegotiation efforts in Brussels were known.
“Not much would discourage me,” she said. “At the end of the day I take the point of view that business leaders are influential and therefore perhaps the population would like to know [our views].”
70%
Respondents who expected Brexit would damage their business
Last month, Stuart Rose, head of the campaign for Britain to stay in the EU, wrote to some 3,000 directors of FTSE 350 companies urging them to speak out about the UK’s place in Europe.
The former chief executive of Marks and Spencer, who chairs the Britain Stronger in Europe campaign, urged the directors to be a “vital voice” in the debate ahead of the referendum on EU membership.
His intervention came amid mounting evidence that many big companies would not get involved, in striking contrast to their public enthusiasm during the UK’s last referendum on European membership in 1975. In November Dave Lewis, chief executive of Tesco, said the retailer would maintain a neutral position over the referendum out of respect for the diverse views of its stakeholders.
In November, eurosceptic campaign group Vote Leave sent protesters to the CBI’s annual conference and vowed to disrupt annual meetings of companies that backed the campaign to stay in the EU.
Dame Alison said the “kerfuffle” with the CBI had contributed to businesses’ wariness about speaking publicly on Brexit.
The findings in this report echo what most, though not all, CBI members tell us — the majority want to remain within a reformed EU
Paul Drechsler, CBI president
“I also think business thinks we have some time to run before all the facts emerge,” she said. “When the voting date is set and the various pros and antis have had their full say, you might find business more willing to speak up.”
Paul Drechsler, president of the CBI, said the approaching EU referendum was “beginning to concentrate minds”.
“The findings in this report echo what most, though not all, CBI members tell us — the majority want to remain within a reformed EU,” he said.