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The lockdown caused by COVID-19 was challenging, to say the least. It was a period from which we will take a long time to recover—first emotionally, and then economically. It will go down in history for a long time to come.

Several months have now passed, and the door to an “unlocked” society is once again almost fully open. Dinner parties and get-togethers are being cautiously planned, and we’re seeing our coworkers again. Outdoor seating areas are filling up, and local businesses are receiving generous support as people finally make those purchases they’d put off. We’re all talking about how wonderful it is to be able to see each other again, to hug, and to look each other in the eyes.

Feel

But if we’re honest, the forced pause was actually quite welcome in a number of ways. We realized how nice those empty schedules were; we didn’t really need those dinner parties anyway, and we could always make time for dear friends by going for walks, meeting on Zoom, or calling them. We appreciated nature more, took notice of the birds around us, and enjoyed the fresh air. And we turned out to be pretty good at coming up with fun alternative activities, like playing ping-pong on the kitchen table, cooking dishes that had previously seemed so complicated, and turning the backyard into a boot camp area. Through this simpler life, we returned to our core and began to “feel” again. It turned out that values like security, respect, and gratitude—though buried deep within us—were by no means extinguished.
Now that public life has almost fully resumed, we’ll see if we remain true to these values. Each of us can now make new choices for the future. And, of course, we can inspire and encourage one another to do the “right” thing. The call to treat our world more responsibly has grown during the COVID-19 crisis. Citizens want to do their part, but they also expect governments and businesses to do theirs.

Ethics and Business

These concepts are not always mentioned in the same breath. But public support for requiring businesses to adopt responsible business practices (corporate social responsibility) is growing rapidly. Under pressure from shareholders, the capital market, clients, or politicians, internationally operating companies have long been required to demonstrate that they act ethically. They must ensure transparency throughout the entire supply chain (due diligence) to prevent reputational damage and the resulting financial losses. Internationally, ethical standards for business are becoming increasingly stringent. In countries such as Switzerland, France, and Germany, we see a trend toward holding companies and all affiliated entities strictly accountable for violations of human rights and environmental laws. This trend also appears to be gaining traction in Brussels.

We all agree on issues such as child labor, appalling working conditions, exploitation, illegal logging, and the dumping of chemical waste: this simply cannot continue. Unfortunately, these issues are still the order of the day. But citizens are also becoming less and less tolerant when it comes to violations of other ethical standards. The public debate is increasingly focused on the ideal of a sustainable economy that seeks a balance between economic goals (Profit), social considerations (People), and ecological constraints (Planet). Examples include employing people with disabilities, reducing the waste stream, or supporting business partners by temporarily granting them more generous payment terms. The COVID-19 crisis demonstrates that our current globalized economy is unsustainable and unnecessarily puts the most vulnerable members of our supply chains at risk. If business owners are not intrinsically motivated to do something about this, then hopefully the crisis has convinced them that the entire chain is only as strong as its weakest link. This makes the entire economy vulnerable and underscores the need to transition to cleaner, fairer, and less vulnerable business models.

Is compliance useful?

Although many companies are struggling right now, it is especially important at this time to prioritize ethics over profit. This is an ideal moment for entrepreneurs to take the lead and develop a post-COVID business model. A sustainable business objective not only fosters goodwill but also makes you an attractive business partner. This will ultimately result in economic benefits such as higher stock prices, increased long-term value, and better access to emergency and capital funds. Companies need strong ethical leadership to make these decisions quickly, decisively, and transparently. In collaboration with the board, a compliance or integrity officer can play a key role in this process. Enormous changes are currently underway in the way financial institutions operate and in the expectations of regulators and supervisory authorities. It is the compliance officer’s responsibility to steer this process, manage risks, and determine the right course of action in consultation with management. It is tempting to make ad hoc decisions to address the short-term consequences of the crisis. It is wiser, however, to invest now in a sustainable business plan that assigns a fundamental role to compliance as one of the pillars of your organization. Not only will this ultimately lead to a better quality of life and a crisis-resilient economy, but your company will also be more highly valued by your customers.

We’re curious to know what your company is doing to mitigate the risks of the coronavirus for employees and clients. What are the most difficult decisions you’ve had to make? Which crisis management strategy has worked well for your company? We look forward to your comments.

Regien Haarbosch