BBU Blog | Responding to a crisis - what can companies learn from this?

Responding to a crisis

One of the huge and unexpected outcomes of the global public health crisis has been the intense focus on behaviour and leadership. Over the past few weeks leaders of countries, regions and companies have had to make difficult decisions to protect public health while ensuring a functioning level of infrastructure and trying to mitigate huge economic impacts. Part of the strategy to protect public health has been to impose social distancing with restrictions on travel, gatherings and work.

Of course, this is challenging and with no fixed date in sight for a return to normal working, it has been a rollercoaster for many individuals and businesses. However, recent reports have demonstrated that many organisations, some of which are household names, have revealed behaviours that have fallen short of public expectations. The stories make sombre reading.

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Examples of this include the hotel chain that in one fell swoop fired their staff and simultaneously made them homeless; the book retailer who celebrated the company’s increased sales while failing to provide even basic protection for frontline staff and; the highly profitable football clubs that announced their intention to request government/taxpayer assistance to pay their non-player staff. It has been astounding to see how many organisations have treated staff poorly and have just not “read the room” in terms of public perception and opinion.

There are two key questions here. Firstly, have our expectations of companies’ behaviours changed? And secondly what exactly is a “good company”? Let’s look at the second question first.


How do we define a “good” company?

A company is a legal entity formed by people and can be defined as an artificial person. Most companies have a “culture” or personality (created with purpose or unintentionally). 

Organisational culture/personality can be described in many ways. One way is to view it as an observable pattern of behaviour which informs how the organisation operates and how it is perceived. 

Perception is intrinsically linked to reputation and it is an issue which is often on the agenda of the executive boards of organisations with “loss of reputation” as a key issue on their risk registers. When assessing risk potential, scenarios are typically assessed alongside how these risks can be treated or mitigated.

But, as we have seen in recent responses to the health crisis, companies must go beyond mitigation such as Health and Safety or Company Social Responsibility policies. A policy is a statement of intent. In order to be perceived as responsible and concerned about employees’ safety, perception must be linked to behaviour and actions and supported by effective communication. 

Based on public reactions, being a good company at a time of crisis involves a degree of transparency and empathic leadership that goes beyond protecting shareholder value and profit. The highest standards of behaviour are expected, particularly in the midst of uncertainty, with a demonstrable value-driven link between perception and action. 


Have our expectations of companies changed?

I believe that those companies that have found themselves at the centre of recent storms, lack a vital connection to the widely held values of their stakeholders and the public, and have demonstrated a lack of empathy for their staff. This has led them to take actions with little regard to the wider implications for anyone or anything beyond profit protection. This has been followed by, in many cases, a swift backtrack or u-turn after being publicly shamed. If anything can be learned from this behaviour, it is that people matter and this should not need to be said, but recent reports suggest that it is worth repeating. 

According to an article in campaignlive.co.uk · by Danny Rogers on March 31, 2020, not putting people first impacts customer behaviour:

One in three respondents said they had already stopped using a brand that was not acting appropriately in response to the public-health crisis – a figure that rose to 76% of consumers in Brazil and 60% in India.

People must be put front and centre of any considerations when devising emergency strategies; ignore risk assessments and the negative impacts of your decisions on the people you serve or lead, at your peril! Engagement and customer loyalty, which may have taken you years to build, can be lost in an instant, and not only by the action taken but also by the way the decision is communicated. 

This is not just about how leaders and companies are perceived during a crisis. It could impact, for example, a company’s ability to attract or retain new talent when the situation improves. 

Almost half the workforce (42%) now want to work for an organisation that has a positive impact on the world, according to research carried out by consultancy Global Tolerance. The survey of more than 2,000 people in the UK found 44% thought meaningful work that helped others was more important than a high salary and 36% would work harder if their company benefitted society.


The change, it would appear, is being driven by the so-called millennials. Of those born between 1981 and 1996, 62% want to work for a company that makes a positive impact, half prefer purposeful work to a high salary, and 53% would work harder if they were making a difference to others.


This has serious ramifications for employers. Ignoring the mood of the next generation means closing yourself off to two-thirds of the young talent pool.

https://www.theguardian.com/sustainable-business/2015/may/05/millennials-employment-employers-values-ethics-jobs

It is far from clear what the situation will be for employment and skills as we exit the crisis, but what does seem clear is that people will be seeking employers with a demonstrable commitment to values and principles beyond the bottom line.

At Built By Us, we believe that inclusion is part of the value matrix that companies need to address as part of their core business plan and by doing this will they will engender a more inclusive talent pool and a more inclusive built environment. If you are seeking support with driving inclusion and diversity in your business, contact us.

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