4 Biggest Effects of COVID19 on Corporate Social Responsibility
In 2020, the Covid-19 virus spread like wildfire throughout the world. Many organizations had to reroute their plans. In many ways, corporate social responsibility became even more important for organizations as they had to ensure that they could contribute to mitigating the issues created by the pandemic. However, like every other aspect of business, CSR also faced numerous challenges during this time. All of this led to a lot of changes in the way organizations approached their CSR & sustainability efforts.
1. More Focus on the Health Sector
We used to place a lot of our focus on dealing with socio-economic & environmental issues. However, the Covid-19 effects put the health sector at the forefront. Many organizations channeled their funds & other resources to make sure that front liners & other underprivileged people could get basic health support & protective gear during this time.
In addition, the pandemic raised concern over our preparedness to deal with a pandemic like this, and many organizations are working towards making sure we are prepared for similar pandemics in the future.
2. More Focus on Donation
Pre-pandemic, volunteer work by employees used to be a prominent part of many companies’ CSR efforts. However, as work moved online and most companies did not want to put their employees at risk, they moved towards donating funds to NGOs or health sector organizations to avoid risk and still be able to contribute.
3. Higher Demand from Employees to Contribute
Many companies are also seeing an increase in the number of employees who want to be able to actively contribute to a social cause. The pandemic has been a wake-up call for almost all members of society and people are looking for ways to be able to help each other & especially those from underprivileged sections of society.
4. Doing all of This with Fewer Funds Available
One of the biggest causes of concern for many companies has been an overall decrease in revenue. This has resulted in fewer funds available for the CSR & sustainability departments as companies struggle to stay afloat. It could be a great opportunity to reassess the way you spend funds, improve the efficiency of projects in order to make more impact per dollar spent.
5. Closer Scrutiny from consumers
A trend that started pre-pandemic but has gotten strengthened since the last year is the awareness among consumers about the role played by corporations in creating negative environmental and social effects. It has made people demand more from their brands. This has increased the pressure on companies to go beyond CSR and move towards sustainability. Consumers are also asking for more evidence-based claims from companies challenging the current status quo.
Covid-19 has brought the world to a halt and brought to the fore the inequality that exists in this world. Today more than ever, we need companies with resources and skills to come forward and help the underprivileged section of the society and also take a reality check; where we are right now, the world we want to create and how can we avoid a situation like this again.