Major CEOs say mandates for the Covid vaccine are coming

Seventy-two percent of current and recent CEOs of large companies said they were open to vaccine mandates, according to a poll held Tuesday at a virtual summit by the Yale Chief Executive Leadership Institute.

The broad question did not specify whether the mandate would apply to all employees or only those who have to work in close proximity to clients and colleagues.

Several CEOs indicated that such a mandate has not yet been formulated at their companies and they want to see how early vaccination rounds go. Companies may also be reluctant to require employees to take vaccines until they are fully approved by the FDA. Last week, the agency issued an emergency use permit for Pfizer’s (PFE) vaccine.

The debate comes as health authorities seek to reassure the public about vaccine safety and as Corporate America takes a more outspoken stance on crucial issues, including climate change.

“There was a surprising amount of openness to the idea of ​​vaccine mandates,” said Jeffrey Sonnenfeld, founder of the Yale Chief Executive Leadership Institute.

‘Too early to say’

The Yale summit was made up of executives from major US companies, including Walmart (WMT), Goldman Sachs (GS) and eBay (EBAY).
“It’s too soon to say,” American Airlines (AAL) CEO Doug Parker said during the virtual summit. “Get the vaccines distributed, see what the acceptance rate is … Ultimately, we will all have to make the best decision for our individual businesses.”

Parker added that some countries may require vaccines before airlines can enter the country.

Could Your Job Get You Vaccinated?
MetLife (MET) CEO Michel Khalaf said his focus now is on ensuring employees have access to vaccines.

“Along the way, we can make a decision on whether or not to make a mandate mandatory,” Khalaf said at the event in Yale. “For now it is too early to say that we should prescribe a vaccine.”

Others feel that vaccine obligations go a step too far.

“The business community plays a big role in leading the way on the importance of vaccines,” said Mark Weinberger, former EY CEO and director at MetLife and Johnson & Johnson (JNJ), CNN told Business. “But to say that you’re fired for being terrified of taking a vaccine is a tough position for CEOs to take.”

Are vaccine obligations legal?

Legal experts say companies can require their employees to be vaccinated. Some jobs already have such requirements. For example, hospitals may require employees to receive flu or hepatitis B vaccines.

“Employers have the right to establish health and safety conditions in the workplace,” said Dorit Reiss, a law professor at the University of California, Hastings.

However, there are limits to such mandates. For example, Reiss said companies may need to grant exemptions or adjustments to employees for medical or religious reasons.

Another question is whether vaccines may be necessary if they have not yet been fully blessed by regulators.

“There is some legal uncertainty as to whether you can require a vaccine under an emergency use permit,” Reiss said. “I suspect some employers will go ahead and mandate. It will be challenged and the courts can go either way.”

Who would the mandate apply to?

Sonnenfeld said vaccine mandates can help companies promote a safety culture.

“When a safe work environment is part of their culture and brand, they gain more power,” he said.

David Gibbs, Pizza Hut’s CEO and Taco Bell owner Yum brands (YUM), said at the Yale summit that his company is currently focused on enforcing its policy of wearing masks and washing hands.
It will be months before vaccines help the economy

“I don’t think we made a decision on that,” Gibbs said of a vaccine mandate. “It’s something we’ll look at.”

Howard Forman, founder of Yale’s MD / MBA program, said the next few months may reveal certain populations for which vaccines may not be suitable.

“Maybe you should make exclusions for those groups,” he said.

Still, Forman said it makes sense for some companies to mandate vaccines after the FDA fully approves them.

“If you want to have your people in the office, on factory floors, or in front of customers, you want them to be as safe as possible,” Forman said in an interview. “Not every employee, but they fit into categories in which you cannot work from home all the time.”

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