The Role of Business in a COVID-19 World

Like every one of you, over the past few days my various social media feeds have been chock full of COVID-19 posts (I even shared one myself a few weeks back). Some of these have been helpful, but many contain, at best, misleading information and in the worst cases recommendations that, if followed, would exacerbate the situation. I don’t believe that my family, friends, colleagues and business acquaintances are trying to mislead others. Rather, this is the result of a combination of good intentions mixed with a dose of fear and a sprinkle of panic as people try to regain a modicum of control in a world that, at the moment, is not operating under its normal rules. Our human inclination is to fix this, and since we (at this time) don’t have a fix, we’re sharing any option that feels like it might even have a remote chance of working. Instead, I encourage us as business leaders to focus on the areas over which we do have control, expertise and where we can make a difference.

I’m the wrong person to share medical advice, but I’ve spent the last ~18 years paying attention to the concept of “value” and its various sources and expressions in commerce, so during this period that is decidedly not “business as usual”, let us take the long view and protect our value.

1.      We must start by supporting our most valuable resource – our employees. Many of our people are being directly impacted by COVID-19. They or their family members may have contracted the virus or come into contact with someone else who has, or they may simply have kids that have to be at home as schools close. Their household income may be disrupted, they’re thinking about postponing retirements as they see their 401Ks decline, and they’re worried about job security watching your stock prices fall. Or they are just generally panicked as they see all of the above happening around them. If we truly value our employees, we must first recognize that each person’s situation is unique and we cannot take a one-size-fits-all approach. We should provide as much flexibility during this time as they need – not as much as we think we can give, but push beyond that and trust that they have the very best intentions and allow them to make the choices that they believe are best for themselves and for their families. Part-time, hourly and contract employees also have unique financial needs – if you’re in a position to provide for them during this period where you may find them the easiest expenses to cut, you’ll find that the goodwill it buys you in the future will more than compensate.

2.      Secondly, let’s think about our customers. Typically, I consider customers to be the primary determinant of a company’s value. They decide how much we can sell our products and services for, and depending on if they buy, whether or not we deserve to exist. However, our customers are often smaller than we are and without similar resources. We may be in a position to provide invaluable services, even without the usual remuneration. At my company, Cengage, we’ve spent years preparing for fully digital course content that can be delivered in the classroom or virtually. However, a lot of classrooms are still traditional, and even in digitally enabled classrooms, students don’t always purchase resources. As campuses all over the country scramble to adapt to virtual classrooms, we’re ready to help so that our students are not disadvantaged: https://www.cengage.com/covid-19-support/

If your company is similarly positioned to support its customers, do so. When things return to normal, they will remember how you went above and beyond in their time of need.

3.      Lastly, consider the partners that enable your supply chain, from conception to point of sale. Some may be doing fine, but others rely on our support to stay open. It is in our best interest that they be there down the road, so again, to the extent that you’re able, consider creative ways to keep them afloat – small projects, advance payments, shared contracts, etc.

So why do all of this? If I asked you to tell me the purpose of a business, many would say “to make money” – and you’d be wrong. Businesses exist to serve societies needs and money is merely an indicator of how effectively we do so. Right now, our society has needs and as business leaders we must play the roles we are uniquely positioned to play… or we do not deserve to exist.