Written by Piera Sciama, project manager, E-Juniors
With the Covid19 pandemic, corporate social responsibility (CSR) commitments are being put to the test. They are under scrutiny by the public as well as by analysts and decision-makers. A long term solid CSR policies and a coherent sustainability strategy can insure company resilience in this time of unprecedented economic and social challenges.
PART 2 CSR & Social Resilience during Covid 19
- Coordinating effort
Companies that had institute a CSR policy and CSR mechanisms have reacted faster to the crisis and put into place concrete solutions. According to Francesco Bellino, sustainability director at the Boston Consultancy Group (BCG): “at the operational level, it is clear that companies that paid close attention to social issues, in particular with a strong dialogue with stakeholders, were able to act more quickly and in a coordinated manner with their employees”. Some companies diminished the bonus of their high level managers; others didn’t distribute dividends.
- Sanitary and social protection
Questions of sanitary and social protection were also raised reminding companies of their duty to preserve workers rights, health and well being. Not respecting social distancing and protection, Amazon was condemned by the French authorities to stop its production for some days.
- Flexibility of work and teleworking
Eight million people were teleworking in France. When possible, this practice, which was previously confronted to managers’ skepticism, was widely accepted all over world. This will profoundly change the relation between workers and companies demanding specific attention to issues such as privacy and balance between private and professional life pushing for a new set of rules and a new social pact.
- Solidarity
The solidarity was very visible, especially towards older people, medical staff and the poorer population. In Spain, the employees of Naturgy and their own company board made a donation of 1,1 million dollars to the Red Cross. A list of solidarity actions in Spain can be found in this article.
- Reputation
According to a study by RSE Global Spain, Covid 19 has provoked fear and pessimism about the future of the economy and concern about the impending recession. This state of mind also extends to individuals, affecting the forecast of future purchases, especially in terms of durable goods, travel and tourism or financial products. In this situation nevertheless, large companies have managed to change this trend thanks to the social and solidarity initiatives (see above) improving their reputation and consumer’s trust.
The most relevant cases are the ones of Inditex, a Galician textile company , of Mercadona and El Corte Inglés (supermarket, distribution stores), Santander (bank) and Telefónica (internet & phone provider).
Interviewees would like to see companies prevent contamination between employees and customers (masks, gloves, physical barriers, sterilisation measures, etc.), maintain jobs despite the economic crisis, and make the company’s skills and assets available to national authorities.
- A new perception of CSR priorities
According to a study made by EY in Spain with 250 entrepreneurs in May 2020, CSR relevance has increased but the priorities have shifted. 86% of respondents believe that CSR will be the “new normal” and 64% believe it will be a permanent change. The respondents that give priority to health have increased by 40% , security of the production chain increased 36%, those that prioritize the social impact of digitalization increased by 31% and trust and reputation by 22%. The Sustainable Development Goals will be more important in the wake of the virus: 91% believe that external partnerships will help them to achieve them and 55% say that their company has already made changes to meet them.
- Covid 19 test casing the sustainable development goal
All in all, as this article demonstrates, Covid 19 has been a test case of the 2030 agenda and of the Sustainable development goals (SDG). If social and economic pessimism were dominant at first, rapid reactions in line with sustainability fostered optimism. Covid 19 has given visibility to the following SDG priorities:
- (3) Good Health and Well Being, especially focusing on prevention
- (4) Quality Education, notably with the possibilities of online learning
- (8) Decent Work and Economic Growth, with the accountability of companies for workers’s well being and the emergence of teleworking
- (11) Sustainable Cities and Communities, notably with the actions around sustainable transport
- (12) Responsible Consumption and Production, with a more local footprint
- (17) Financial Partnerships, with the social involvement of stakeholder
Copyright Pixabay
TO GO FURTHER ON CSR & COVID 19
FRANCE
La crise du Covid-19, stress test grandeur nature de la RSE, Béatrice Héraud, Novethic, April 15th 2020
Coronavirus, des engagements RSE pour les entreprises aidées, Valéry Laramée de Tannenberg, Journal de l’environnement, April 24th 2020
Covid 19 : un test pour la responsabilité sociale des entreprises, Anne Laure Chouin, France Culture, April 30th 2020
Six Leçons Du Covid-19 : Ce Que La Crise Va Changer Dans Notre Économie, Ludovic Dupin and Béatrice Héraud, Novethic, May 4th 2020
Intérêt social et RSE face à la pandémie Covid 19, Armand Grumberg, Françoise Barrière and Aurore Martinelli, Le Club des Juristes, July 17th 2020
Covid-19 : la Plateforme RSE donne la parole à ses membres
SPAIN
Reputación y responsabilidad social durante la crisis del Coronavirus, Fernando Prado, Diario Responsable, April 6th 2020
Las empresas dan muestras de responsabilidad social ante el coronavirus, Xavier Gil Pecharromán, El Economista, April 16th 2020
Responsabilidad Social en tiempos de COVID-19, Marcos Ruiz Abad, Caja Siete, May 12th 2020
La reconstrucción tras la COVID-19 supondrá un cambio estructural en la responsabilidad social de las empresas, Virginia Martinez, EY, June 15th 2020
15 Tendencias En Responsabilidad Social Corporativa Ante El Covid-19, Elena Galante Marcos, Ethic
ITALY
Pandemia e Responsabilità Sociale d’Impresa, Valentina Gentile, LUISS, May 16th 2020
È il momento di investire nella sostenibilità, Euler Hermes Magazine, May 18th 2020
Gli effetti del COVID-19 sul cambiamento di approccio alla Responsabilità Sociale d’Impresa, Eleonora Tossini, 4C Legal, June 16th 2020
La responsabilità sociale dell’impresa ai tempi del Covid-19, Vicenzo Bancone, Diritto 24, June 22nd 2020