34 C
Wednesday, May 27, 2020

Corporate leaders face economic challenge of a lifetime

Corporate leaders face economic challenge of a lifetimeNew Delhi, April 4 (IANS) As the new coronavirus pandemic hits enterprises and individuals alike — businesses large and small shut their doors and millions retreat to enforced isolation — the magnitude of the crisis confronts corporate leaders with the economic challenge of a lifetime, a new report has stressed.

Many employees and their families are suffering from isolation and loss of income, leaving them thinking about what is truly important.

- Advertisement -

“Crisis leaders” actions now can foster collective unity and a sense of belonging. When those decisions derive from the principles and purpose that an organisation stands for it will make it easier to convey confidence in positive outcomes, even when decisions are painful ones,” said the report by McKinsey & Company.

Coronavirus job losses could total 47 million and unemployment rate may hit 32 per cent in the US, according to Fed estimates.

In India, a staggering 136 million jobs are at immediate risk, say estimates based on National Sample Survey (NSS) and Periodic Labour Force Surveys (PLFS) data.

In such a scenario, “executives are uniquely poised at this pivotal time to bring corporate power, guided by social purpose, to the aid of millions of dislodged and vulnerable lives,” the report said.

Done well, their actions in this crisis can bridge, in unprecedented ways, the divide between shareholders and stakeholders in the communities they serve — and leave a lasting, positive legacy on their corporate identity, it added.

“Examine exactly what is at stake for your employees, communities, customers, partners, and owners. All will have urgent, rapidly evolving needs that you should fully understand and prioritize. Some of these needs will be new and require creative thinking,” the findings showed.

Prepare for tension, too, as trade-offs arise among stakeholder groups, each with their own important needs. For example, increasing the pay of frontline workers might raise the prospect of cutting back on supplier bills.

“For retailers and delivery services, shutting down warehouses temporarily to keep workers safe might mean customers have to wait longer for deliveries,” said the report.

“At some point, the COVID-19 crisis will pass. Households and companies alike will take stock of their losses and begin to rebuild. Acting in concert with the tenets of your organisation”s purpose will help balance these perspectives and demonstrate confidence in your company”s ability to deliver a good outcome,” the report elaborated.


Total Cases

Active Cases






Covid 2019 India Stats Overview. Source: Ministry of Health and Family Welfare. Updated: 26 May 2020, 08:00


Please enter your comment!
Please enter your name here

Must Read

More than 19,100 crore released during lockdown, says Government

New Delhi, May 22 (IANS) The Centre has released an amount of Rs 19,100.77 crore under the Pradhan Mantri...

India’s GDP likely to contract 5% in FY 2020-21: Crisil

New Delhi, May 27 (IANS) Days after the Reserve Bank of India (RBI) said that India''s GDP growth for the financial year 2020-21 may...

Number of air passengers, flights set to rise: Minister

New Delhi, May 27 (IANS) The number of passengers and flights were set to rise as air services to Andhra Pradesh were resumed on...

”Crime Patrol” actress Preksha Mehta commits suicide

Indore, May 27 (IANS) "Crime Patrol" actress Preksha Mehta has committed suicide. She was 25.Preksha took her life by hanging from a ceiling fan...

Huawei’s order for MediaTek chips up 300% this year

Beijing, May 27 (IANS) Chinese smartphone manufacturer Huawei has reportedly increased orders for MediaTek chips by 300 per cent this year from the previous...

More Articles Like This