Corporate Social Responsibility and the Coronavirus Pandemic

A Call for action

The definition of Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility. Companies should be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. So, in order for any corporation to engage in CSR, in the ordinary course of business, it should be operating in ways that enhance society and the environment, instead of contributing negatively to them.

The question here is how well corporations reacted to the Coronavirus Covid_19 pandemic, and how far they took CSR in consideration, given the fact that humanity is facing one of its worst times in decades or more. There was always a problem going on somewhere but on some parts of the planet people were still feeling safe, able to socialize, major events were going on, giving hope for humanity, people were able to embrace their loved ones and share a laugh, there were still some parts of the world where people were not so scared of going homeless, losing their main source of income or not being able to support their daily spending. Now, meeting basic essential needs is questionable for so many, only a few hours a day is allowed by the local authorities, or in some cities by the Armed Forces, to get the essential needs like food or medicine home. Now, the fear is worldwide, and the fear is great. 

What was the reaction of big Corporations?! 

Those who’ve made billions of dollars from their customers who are spread all over the world, billions of dollars in net profits year on year for decades. 

One of the biggest Food and Beverages companies announced that they are providing emergency help - donating food, medical nutrition products, bottled water and what is nearly USD 10 million to countries in greatest need. Bravo, well done but it is not enough. The same group made more than 13 Billion dollars of net profits in 2019 and needless to say, they are now probably one of the very few businesses not struggling during these tough times. They’re even making better profits than ever.

One of the CEO’s of the biggest mobile phone companies have announced that the company sourced, procured and is donating 10 million masks to the medical community in the United States, and millions more for the European regions hit hardest by the COVID_19 pandemic. Bravo, well done but it is not enough. The same corporation made more than USD 55 Billion of net profits in 2019. Needless to say that the donations going to the USA and Europe only is quite a question mark for a company that has customers and employees worldwide. 

One of the biggest social media companies has announced they will commit to spending USD 20 million to fight the coronavirus. Bravo, Well done. But it is not enough. The same giant corporation has reported 2019 net profits of more than USD 18.5 Billion. 

Big corporations worldwide are reacting in a way that reflects no proportionality towards the problems the world is facing today. 

It is usually the case during the likes of such hard times that the reaction of the business community is faster than governments. Even when such hard times require liaising with efforts between governments and corporations, it is usually the corporations who start earlier their measures, then sit down with the government officials to harmonize the efforts. We are used to seeing those big corporations and the business communities worldwide reactions are the driving force towards government reforms or reactions. However, this time is different. The governments - worldwide - seem to be much more responsible, reactive and reasonable in their decisions and measures towards the pandemic. I make reference to countries like the United Arab Emirates, Egypt and China.

The negative effects of the social distancing and the lockdown on economies are much greater than whatever donations made to hospitals and to healthcare systems only, the efforts and the donations shown are not even close to cover the needed supplies for the healthcare professionals at the first line of defence against the virus. Examples in the USA, Italy and Spain are very clear.  

Focusing all the donations and support to healthcare systems from falling apart should not be the stop sign to the endeavors.

Everyday humanity is losing lives because of the pandemic. 

Every day hundreds are being hospitalized and they need medical care.

Every day big numbers are losing their income and they need financial support. 

What is going to happen if Corporations keep acting as if they are socially responsible? Would it backfire one day? 

Corporations claiming to be socially responsible should:

• Spend more in donations, less on advertising 
• Spend more on education, fewer on celebrities
• Spend more on medical research, less on football 
• Spend more on food supply, less on bonuses to CEO’s
• Spend more on protecting values in our societies.
• Spend more on supporting small and medium-sized businesses.
• Create more jobs, less unemployment. 

In my opinion, corporations must step up their game and take much more serious measures to support the public. In other words; start acting socially responsible.