Writing about purpose-driven companies has never felt more right. In times of global uncertainty caused by Covid-19, companies that send clear signals of security and support to their employees have an opportunity to create an advantage and secure their position over those that don’t.
Before the pandemic outbreak, turbulent economic times were mainly associated with the financial crises we have experienced a few times in the past decades, but never really a virus. These were more likely to be topics of movies than real-life events; that is until the real disruption happened (apart from SARS, but it had limited impact outside of Asia, hence felt less real). No one was prepared for borders and most economies to close. Business leaders are now scratching their heads and trying to make sense of it all, but most importantly, finding ways to survive.
Suddenly, many small companies and jobs have disappeared, at least temporarily. It goes without saying that this will have far-reaching consequences beyond the estimated 0.4% drop in economic growth amounting to almost $3.5 trillion in lost economic output, as indicated by Statista. With some comfort from their financial cushions, larger companies have not and likely will not disappear overnight. However, their leaders must now search for the best possible ways out of this predicament while identifying new operational models going forward.
Will they put all their focus on profitability, or will they use the pandemic as an opportunity to realign on their purpose to achieve long term plans?
Companies with clear purpose and values seem to have an advantage in this situation, as their moral compasses impact how they approach communicating with their employees about job security or stress management. Similarly, assurances for other stakeholders, investors, local communities and consumers play a vital role in the wellbeing of their businesses. Many cases of companies mobilizing to switch parts of their production to make sanitizer or face masks (like Procter and Gamble) or goggles and face shields for healthcare workers (like LEGO) to help with the difficulties of unprepared systems can be considered good examples. Of course, there are many others, including crowdsourcing, but the above-mentioned companies serve as a good example of corporations with clear purpose and value systems that place a lot of emphasis on the impact they make. They are also leading in sustainability initiatives and seem to live by the motto of ‘doing well by doing good’, which we mentioned recently in our Britetrend Reviews.
Airbnb offers a different example. While tourism is currently one of the hardest-hit industries, where part of the burden is passed on to employees, the company’s co-founder and CEO Brian Chesky wrote a message to his employees, ultimately setting the bar for other companies that will have to part ways with employees as a consequence of Covid-19. In his message, Chesky explained the reasons for having to let employees go, the long-term business needs to realign with the company’s original vision and laid out a roadmap for all those who stay and those who will have to part ways with Airbnb. The letter was emotional enough to move me as a reader and I am sure it provided some consolation for the departing employees, as they have not just been made redundant. Chesky made it very clear that the company’s goal is to help everyone transition as smoothly as possible to their new destinations. Likely not an easy task, but the approach taken is one of responsibility and it serves as a great example.
Otherwise, at the employee level, all small, medium and large companies capable of continuing business without layoffs have allowed employees to work remotely where possible. Adjustments have happened on the fly, but most organizations and employees tried to embrace the situation. No one knew how long it would last and after the first few weeks, it became clear that working from home is not the same from household to household. Space, children, pets, and partners all became more overwhelming, causing new issues, including mental health problems. Again, companies with stronger value systems responded promptly with well-being initiatives. A survey by Willis Towers Watson suggests that 86% of employers in the US believe that offering access to online well-being, health and physical care resources is critical to helping their employees cope with the circumstances created by Covid-19. Well-being and mindfulness programs might have started as nice-to-have initiatives in companies but we can expect to see more of them offering support for both managers and employees in difficult times.
Once again, it seems like purpose-driven organizations will likely lead the way.
This prompts a final reflection regarding the question we started with. If having a clear purpose was not a concern of some business leaders before this pandemic outbreak, the damage to their organizations will likely be greater. Lack of clarity and fear may impact performance and some companies will not find their way back to profitability. On the other hand, companies that stay true to their values and consider purpose as part of their vision will be able to refocus and get buy-in from all stakeholders. They will strengthen their brands in the eyes of investors, customers, and will have more committed employees willing to go the extra mile in the name of purpose.
Karolina Sudwoj-Nogalska
Marketing Lead