More corporate sponsors reassessing WE sponsorships

Major corporate sponsors are starting to distance themselves from WE Charity amid an ongoing controversy over a deal to run a $900-million student volunteer program.

Virgin Atlantic Airways said it is suspending its sponsorship of the embattled organization and the Royal Bank of Canada confirmed it is reviewing its relationship. Virgin Atlantic Airways, whose website refers to WE as its “main charity partner,” said it has halted payments after contributing more than $10 million to the organization since 2010, when it launched its partnership with the group run by brothers Craig and Marc Kielburger.

“We are in contact with WE Charity and whilst investigations continue, we have temporarily paused our donations to them,” the company said in an email.

RBC is also taking a second look at its close ties to the group.

“We are reassessing the programs we’ve been delivering with WE to support young Canadians over the past several years,” said spokeswoman Gillian McArdle.

“Foundational to all our relationships, RBC expects our partners to conduct their business in accordance with our values, policies and practices.”

The bank has strong ties to WE. In 2012 the charity, then known as Free the Children, announced a multimillion-dollar partnership with RBC that saw the financial institution come on board as a “national co-title sponsor” of We Day events across the country.

RBC chief executive David McKay served as a co-chairman of the organization’s signature event in Toronto last year.