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 1 CSR & Economic changes brought by Covid 19
The lockdown, implemented globally in order to guarantee social isolation and fight the spread of Covid 19, brought an unprecedented economic impact with factories closing, workers having to work from home, transports being limited and a lower consumption especially in the tourism, hospitality and catering sector. This situation sparked a reflexion on our economic and production systems.
- Valuing local supply chains
As demonstrated in this article, when supply chains were paralyzed in China, the dependence the world economy has towards delocalized production became blatant and overly problematic. Companies began reflecting on how to re-localize production of essential goods.
The most typical example was the production of masks and hydro alcoholic gel in France notably by companies such as LVMH, Loréal and Pernot Ricard. French company Decathlon even adapted its diving products to offer ventilators. In Spain, SEAT and Corte Inglés also produced masks. Each country started valuing the competences and industrial knowledge present in its territory.
- A more responsible financial system
This article also shows that as the lock down progressed all over the world, stock exchanges plumbed in a record time putting into evidence the downside of high frequency trading. In the United States, Wall Steet was closed over three times during the Covid pandemic. If it was already the case before the pandemic, after this live test case, there is no doubt that responsible finance will have the wind in its sails.
- Financial aid conditioned to social and environmental guarantees
In April 2020, the French National Assembly approved a law giving companies a financial support of over 20 billion euros. The text provides that “the State Holdings Agency shall ensure that these companies fully and exemplarily integrate the objectives of social, societal and environmental responsibility into their strategy, in particular with regard to the fight against climate change“. This decision is in line with the governments’ recent actions regarding entrepreneurship and CSR. The law of 22 May 2019 relating to the growth and transformation of companies, known as the PACTE law, was designed to help French companies grow and rethink the place of companies in society.
- Local and digital consumption
Covid 19 favored the rising local consumption, direct purchase from producers and organic farming. Practices of “from farm to table”, association of neighbors and local producers (AMAP in France) and renationalization of supermarket production have multiplied, especially in France. This trend values season products preventing food waste.
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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