COVID AND THE AGE OF CONSTANT CRISIS: ARE YOU PREPARED?

Unprecedented’ is a word that comes up nearly as often as COVID-19 or coronavirus at present. Each new day seems to beget a fresh unprecedented challenge during these unprecedented times.

As experts seek economic comparisons from past global recessions and depressions, they conclude there has been simply nothing like it. In an interview, Filippo Taddei, a Johns Hopkins associate professor of international economics, explained that the most notable economic crises such as the Great Depression and the 2008 financial crisis were ‘demand shocks’ where the cause was a crash in demand. The current calamity reflects a massive drop in supply triggered by a shortage in labour as hundreds of millions around the world shelter in place.

This crash in supply across industries and borders introduced both immediate and long-term challenges for businesses. While huge uncertainty exists on what the future holds, public health experts appear to agree that COVID-19 will be a part of everyday life for the foreseeable future.

Change in expectations

The sudden shock to the global economic system has created a dramatic shift in what consumers expect from the business sector. According to our 2020 Trust Barometer, consumers not only expect businesses to take care of their employees, they expect employers to find ways to lead the fight to combat COVID-19.

According to the Trust Barometer, 65 percent of respondents agreed that “CEOs should take the lead on addressing the pandemic rather than waiting for government to impose restrictions and demands on their businesses”.

But many CEOs are falling short of meeting those expectations. Only 29 percent of respondents agreed that “CEOs are doing an outstanding job meeting the demands placed on them by the pandemic”. That percentage compares to 53 percent for academics and scientists, 47 percent for national government leaders and 46 percent for global health authorities. A clear gap exists between what is expected and what is being delivered.

Jul-Sep 2020 Issue

Edelman