In my last article I talked about how the Covid-19 crisis could help organisations discover a broader purpose beyond shareholder returns. This is my third attempt at a follow up - each one I write seems out of date by the time I’m ready to post it as the economic crisis unfolds. This one addresses the existential crisis we are told is affecting many businesses.
As covid hospital admissions appear to have peaked, the focus has now shifted onto exit strategies from the lock-down. Many companies are now looking at their business models to see how they could be adapted to take account of on-going restrictions and people’s potential reluctance to work or socialise alongside others. This will prove particularly challenging for many industries, not least entertainment, leisure and sport, but for many sectors it provides an opportunity for businesses to reflect on how the experience of covid changes their core purpose.
I argue that such a radical rethink should involve considering how creating value for the shareholders can be achieved at the same time as addressing needs highlighted by the crisis, such as skills gaps and over-reliance on low-cost overseas suppliers, and by climate change. This is the much-trumpeted concept of shared value and sustainable practice that goes beyond merely complying with stakeholder demands. Instead in this situation it means that these demands and societal pressures are used as a source of inspiration for identifying new areas of focus and ways to re-deploy a company’s resources and expertise. This approach places corporate responsibility experts at the core, rather than the periphery, of corporate decision making, as their expertise and perspective can help ensure that responsible business principles and values are taken into account.
How does this relate to our business? Like many others, we don’t have the answer yet. We are, however, asking ourselves the question. We are fortunate enough to have clients already focused on creating value for their wider society and their business. We also set up ten years ago with flexible working, employee profit share and a focus on positive social impact. This doesn’t mean we are complacent though. We, like many others, will need to consider how the crisis affects our core purpose so we can ensure we continue to make a positive contribution in a post-covid world. In particular, we will be looking at how the challenges of achieving equitable quality education and meaningful work (UN Sustainable Development Goals) have changed and what the implications are for the research we undertake and the advice we give our clients.
Jon
