Leading CEOs indicate that Covid vaccine mandates could be on the way

Seventy-two percent of current and recent CEOs of major companies signaled an opening to vaccination mandates, according to a poll held Tuesday at a virtual summit of the Yale Chief Executive Leadership Institute.

The general question did not specify whether the mandate would apply to all employees or only to those who needed to work very close to clients and colleagues.

Several CEOs indicated that this mandate has not yet been formulated in their companies and they want to see how the first rounds of vaccinations go. Companies may also be reluctant to require employees to take vaccines until they have been fully approved by the FDA. Last week, the agency issued an emergency use permit for Pfizer (PFE) vaccine.

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

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

“Too soon to say”

The Yale summit included business leaders from major U.S. companies, including Walmart (WMT), Goldman Sachs (GS) i eBay (EBAY).
“It’s too early to tell” American Airlines (AAL) Said CEO Doug Parker during the virtual summit. “Let the vaccines be distributed, see what the acceptance rates are … In the end, we will all have to make the best decision for our individual companies.”

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

Can your job get you vaccinated?
MetLife (MET) CEO Michel Khalaf said he is now focusing on ensuring that employees have access to vaccines.

“Along the way, we can make a decision on whether to send or not,” Khalaf said during the Yale event. “At the moment, it’s too early to say we should order a vaccine.”

Others think the vaccine mandates go too far.

“The business has a huge role to play in helping to set the tone for the importance of vaccines,” said Mark Weinberger, former CEO of EY and director of MetLife and Johnson & Johnson (JNJ), he told CNN Business. “But to say they will be fired if you are afraid of dying from a vaccine is a difficult position for CEOs to take.”

Are vaccine mandates legal?

Legal experts say companies can demand that their employees be vaccinated. Some jobs already have these requirements. For example, hospitals may require workers to be vaccinated against influenza or hepatitis B.

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

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

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

“There is some legal uncertainty about whether a vaccine can be required under the emergency use permit,” Reiss said. “I suspect some employers will go ahead and mandate. They will be challenged and the courts could go either way.”

To whom would the mandate apply?

Sonnenfeld said vaccination mandates can help companies promote a culture of safety.

“If a safe work environment is part of their culture and brand, more power for them,” he said.

David Gibbs, the CEO of Pizza Hut and owner of Taco Bell Brands Yum (YES), told the Yale summit that his company is currently focusing on enforcing its policies on mask wear and hand washing.
Vaccines will take months to help the economy

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

Howard Forman, founder of Yale’s MD / MBA program, said it is possible that in the coming months it will reveal that there are certain populations for which vaccines may not be appropriate.

“You may have to make exclusions for these groups,” he said.

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

“If you want your people to be in the office, on factory floors, or in front of customers, you should want them to be as safe as possible,” Forman said during an interview. “Not all employees, but those who fit into categories where you can’t be working from home all the time.”

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