During the time when surviving a business is a big question defining the purpose of it has become essential. Either corporates define their purpose, or they might be impacted by this situation adversely. For years, the highly trained and experienced executives have tried to strike a perfect balance between maximizing profits for the shareholders and protecting the interests of the stakeholders like the customers, employees and society as whole.
But now due to this pandemic situation all businesses are faced with the challenge of existence. No economic theories or management principles could come to their rescue. Even the most experienced business leaders are failing to combat this condition. Every board meeting real or virtual, are flooded with questions on what next measure the company can take to sustain themselves and also benefit the society in this global crisis.
Decisions taken by leaders during this crisis will shape a corporation’s future and help generations to refer to these if again such crisis arises. In this difficult time every purposeful corporation is trying to utilize their profits for the good of the stakeholders and the society. Few principles that can help the executives determine their future course of actions are:
Understanding Stakeholders Needs
Every individual is facing a difficult time presently. The needs of every people are changing rapidly. Companies need to analyze and understand those evolved needs of its stakeholders and cater to them accordingly. Product companies can make online purchase options for the customers whereby they can get the item without being exposed to the viral infection. Similarly, employees may fear job loss which the executives need to address with empathy. A trade-off may arise too is this situation between groups of stakeholders, for which the company needs to be well prepared.
Using the Unseen Strength
The corporations should collaborate more with its different stakeholders like the vendors, suppliers and customers to identify its strengths which might be even unknown to the company. In this trying time the companies can take up the responsibility of delivering items that are essential to the society like medical kits and equipment, sanitizers, etc. and serve the community better.
Involving the Employees in Decision Making
In the crisis time many decisions are to be made which might be harsh but very essential for the moment. Making the employees a part of such decision making will make them more responsible for the execution of the decision made. A true crisis management leader will always engage the team members to make a purposeful decision ensuring everyone abides by it.
Leading from Front
Leading any organization during a crisis is difficult but a successful executive is one who can give the company better direction and perspective in this trying time. They need to be empathetic with the stakeholders who along with the company is facing huge losses. But at the same time act judiciously to balance between the stakeholders and shareholders.
Executives now have to deliver corporate responsibility guided by social purpose to strike a perfect balance.