As we develop an approach for either strengthening your current business plan, or executing a success plan, we must formulate an idea of where we need to be.
The COVID-19 crisis offers three opportunities for businesses that want to expand their mandates to lead to a more sustainable, prosperous future:
Change Business Models as the World Rethinks What Matters
In 2020, we may see that staying home to mitigate the spread of COVID-19 leads people to recognize that fulfillment comes not from what they buy, but from services and experiences. So instead of coming out of the crisis by doubling down on pre-crisis consumption patterns and business models, the crisis presents the opportunity to switch from selling more stuff to more people to providing services, reselling previously-owned products and creating new kinds of jobs. If ever there was a time to double down on the journey from a linear to a circular economy, it is now.
Emphasize the Social in ESG
We know that the most vulnerable suffer disproportionately in times of crisis. Through a business lens, this divide is evident in the inequity between investors and employees. But in parallel, the crisis puts a spotlight on how interdependent we all are. Business models that don’t protect all workers’ income and health result in the poorest members of society not only suffering most, but also unable to self-isolate. The principles of environmental, social and corporate governance (ESG) are more relevant now than ever. If ever there was a time for companies to demonstrate their commitment to the health, safety and prosperity of all stakeholders by addressing inequality in the business model, it is now.
Invest in Supply Chains
As the Science Based Targets Network (SBTN) notes in its call to action for companies, businesses must prioritize mapping “value chain and assess risk to freshwater, biodiversity, ecosystems and oceans in major impact locations.” Through efforts to set scope 3 targets under the Science Based Targets initiative (SBTi), we know that understanding supply chains and having comprehensive and accurate data is complex and challenging but essential for climate change mitigation. A global health crisis highlights the same challenges and extreme vulnerabilities. If we are going to make supply chains more resilient for either situation, businesses must better understand and support them. If ever there was a time to put thoughtfulness and resources into supply chains to ensure stronger and more resilient value chain ecosystems, it is now.
The coronavirus crisis poses existential challenges for many businesses, but at the same time offers opportunity to change and pursue a future path of growth. As we emerge from the crisis, we must ensure that business does not slip back to a status quo that doesn’t adequately protect people and the planet.
If you’re not sure how to start formulating a road map to where you need to be, let’s talk. Contact Floro Business Strategies for a no-obligation conversation to get started on the right foot.
Floro Business Strategies: Where Business Leaders Meet the Future…Today