Leaders need optimism and courage more than ever as we shape the 'new normal'

How will your business be remembered when we look back on early 2020?

COVID-19 is proving to be a defining moment for leaders. I believe how businesses respond now will shape their reputation for years to come.

There’s a saying popular with teens my daughter’s age: Don’t judge me. But as governments spend public money to keep businesses and the economies afloat, don’t we all have a stake in how it is spent? Employees, customers, suppliers and the broader public – they’re all watching (and yes, judging) businesses to see how they treat people, customers, suppliers and stakeholders. They’re also noting the sacrifices some are making to see people through this crisis.

Optimism and courage

There’s a quote that I keep coming back to from Ernest Shackleton: “Optimism is true moral courage.”

I think optimism and courage are needed more than ever as we shape our “new normal.”

I think optimism and courage are needed more than ever as we shape our “new normal.” It takes both qualities to see beyond the immediate crisis. To hold true to an organization’s purpose. To take the long-term view through this overwhelming pandemic. I believe leaders who can demonstrate these qualities will emerge stronger, more trusted, and more valued.

Expectations of business are broadening. Governments are spending public money – and rightly so – to top up wages, to provide funds to businesses, to keep economies going. In accepting public money, there comes a wider public scrutiny for how they behave. Stakeholders have expanded to employees, customers, suppliers and society – and they’ll remember who treated them well in their time of need.

Keeping purpose front and center

At the beginning of the crisis, some wondered whether purpose, long-term value and environmental concerns would be shelved as companies struggled to survive. I think the opposite has been true. It’s been heartening to see companies doing the right thing and taking action. 

As a member of the EY executive team, and someone who has been fortunate enough to return to health after the virus, I’m proud of how EY is taking care of its people. Our Global Chairman and CEO, Carmine DiSibio, was clear that during the crisis our top priority is our people: protecting their health and reassuring them that their jobs are intact during this critical time.

Walking the talk

This was a common theme in the CEO perspective webcast that EY was delighted to convene on 17 April: taking care of your people and putting values into action. Prominent CEOs from global businesses – Barclays Bank, BP, Dell Technologies and Unilever – held a frank discussion of how they’re responding to the crisis, what gives them hope and how COVID-19 has changed conversations they’re having in the business.

It’s not enough to talk the talk on purpose anymore. The current crisis demands that companies walk the talk.

The uniting theme was action. It’s not enough to talk the talk. The current crisis demands that companies walk the talk. This is being done in many ways, for example:

• Barclays is offering free banking and overdrafts to small businesses, payment holidays and waiving fees for customers, a ￡100m COVID-19 Community Aid package for charities, and is helping to implement the UK Government’s support schemes for businesses.
• BP, despite the oil price slump and the current crisis, has redoubled its commitment to tackling climate change and the energy transition. The company has deferred pay rises across the company, donated fuel in the UK for emergency services and announced a large donation to a mental health charity to help people through this critical time.
• Dell Technologies has donated US$3m in cash and technology to front-line organizations dealing with COVID-19, as well as millions and in-kind technology to help communities treat and contain COVID-19.
• Unilever, which manufactures many of the products in high demand right now – is donating €100 million worth of basic hygiene products and food to support efforts around the world. CEO Alan Jope also outlined how the company is helping its supply chain, with €500 million of cash flow relief for small to mid-sized retailers whose businesses rely on Unilever.

A time of reckoning

It very much feels like this is a time of reckoning. I would say that if this pandemic has taught us anything, it’s confirmed that value extends across profit to people and the planet.

As we begin to build the “new normal,” we need to ask if we can rebuild it better. Do we have the courage to tackle the tough challenges like climate change, inequality, and building more inclusive societies?

If we do, we will build trust. Trust in businesses that focus on their wider purpose and value. Businesses that don’t shy away from challenging conversations about what to do today, as well as how to balance economies down the road. The companies that are going to come out stronger on the other side are those that demonstrate optimism and courage. That remain true to their purpose. That take the longer-term view to help others and make the short-term financial sacrifices needed for the good of communities and society.