Coronavirus Putting Corporate Social Responsibility to the Test
Reputed large companies talk about their values, or about how much they care for their employees and other stakeholders. The coronavirus crisis is the time for them to make good on that commitment.
The way large and small companies in Zimbabwe are responding to Covid 19 crisis has been phenomenal and highly commendable. Over the last two years we have seen a lot of support coming from both the public and private sectors a development which has greatly neutralized the spread of COVID 19. It is a defining moment that will be remembered for decades.
Research suggests that people only truly believe that their company has a purpose and clear values when they see management making a decision that sacrifices short-term profitability for the sake of adhering to those values.
I understand that corporate leaders face pressure from investors and bankers to conserve cash and reduce losses, but neither investors nor bankers will go hungry. Even retirees, who have seen their savings depleted, can expect to see stocks recover as long as they don’t sell in panic. Companies write off the costs of restructuring, product failures, or acquisitions that go wrong all the time. Everyone will understand writing off losses due to the coronavirus pandemic. Here are some things that companies can do to help their employees, small suppliers, health care providers, and communities.
Employees. What companies do to help their laid-off employees — above and beyond what is required or expected — will be remembered and repaid in increased loyalty, higher productivity, and a lasting reputational benefit for many years to come.
Continuing to pay wages, even at less than full pay, is one option. This is essential not only as a matter of corporate responsibility; it will also substantially reduce the costs of rehiring employees when the economy returns to normal.
Lending money to employees is another option.. Corporations should use their corporate credit and collateral to arrange low- or no-interest loans to their employees. They should calculate employees’ take-home pay after payroll deductions, and ask their banks to make loans available equal to a month of net wages at lower interest rates guaranteed by the corporation. Employees can pay the loans back over the next year out of their salaries when they return to work.
Small suppliers. Companies should offer advance payments to their small suppliers, giving them cash today for goods that they will need when they return to production. It’s the corporate equivalent of buying gift cards to keep your local store in business.
Communities. Major corporations should use their foundations to aid food pantries, free clinics, and other non-profits in addressing immediate needs of the communities where they have operations.
No one expects or requires major companies to take extraordinary measures to help their many stakeholders, but the bold and creative steps they take today to deliver immediate assistance will define their legacy tomorrow. OPINION
