Image by jcomp on Freepik.

Collaboration

No government or business can work independently to address the social and economic challenges caused by global events, like the Covid-19 pandemic. By working together with a common objective, governments, public and private organizations across the globe can achieve results that are exponentially greater than their individual efforts. However, it is key that the interests of a single country do not prevail over the interests of other countries, and the interests of private businesses do not prevail over the interest of the citizens. So, private businesses and governments, no matter who they are, must be held accountable for their actions and decisions.

Stockholder capitalism

Companies, no matter their size, must continually reassess the way they operate, build trust, and create value for all their stakeholders and not just their shareholders. This means that a company’s aim for profit must be balanced with efforts to help address and ameliorate society’s biggest challenges (social inequalities, race-, gender-, and identity-based discrimination, climate change, access to education, and more). This adds long-term benefits to communities in which these companies operate, which in turn can help create and sustain a more vibrant and stable economy. In “Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation”, a white paper from the World Economic Forum (September 2020), authors suggest that companies focus on four main pillars:

1. People: Evaluating and improving how a company treats employees and demonstrates equity in their business practices (wage gaps; discrimination based on race, gender or identity; etc.)
2. Planet: Evaluating and improving a company’s dependencies and impacts on natural resources (land protection, greenhouse gas emissions, etc.)
3. Governance: Demonstrating transparency in and alignment of the company’s stated vision, mission and accountability practices with their actions (ethical behavior, priorities, etc.)
4. Prosperity: Evaluating and improving a company’s impact on the financial well-being of its community (employment contributions and wealth generation, R&D, etc.).

A company’s stated values and mission need to be backed up by their decisions and actions. In addressing the needs of all stakeholders, and not just the shareholders, a company can achieve its best form and actually live up to its mission and vision.

Small and Medium Sized Enterprises (SMEs)

The Covid-19 pandemic has confirmed the important role that SMEs play in their communities. It has also highlighted the economic weaknesses created by continued globalization and limited government regulation.

SMEs thrive when they are fully integrated into global value chains, but it’s unlikely that many will have the resources necessary to rebuild these connections in a post-pandemic environment. As trade and supply chains reopen, SMEs will need support to connect and compete; technology, infrastructure, and tailored short-, medium- and long term financial support will allow SMEs to innovate and subsequently power local and global economic recovery.

For many SMEs, investments in digital technology have been essential for survival during the pandemic. Moving forward, these same technological advances will be important to creating new business opportunities as SMEs strive to reach global markets and take advantage of the push toward economic recovery.

A recent article from McKinsey & Company ("Setting up small and medium-size enterprises for restart and recovery," June 2020) suggests that governments’ interventions should focus on four main actions:

1. Facilitate SME access to support by easing administrative processes to increase SME access to and participation in government programs.
2. Orchestrate and focus the support ecosystem through an ‘SME nerve center’ “that will serve as a single orchestrator. Activate the full ecosystem and ensure that all efforts are aligned with the overarching goals”.
3. Sharpen the focus on building sustainability and competitiveness. “Policy makers should direct their focus to delivering three foundational interventions: access to local demand, support for internationalization, and enhancement of productivity.”
4. Replan for the next normal by introducing measures that: “a) prioritize sectors heavily affected but that can recover quickly; b) accelerate efforts to support high-performing and innovative companies with scale-up potential, c) promote a culture of entrepreneurship aimed at enhancing business creation in priority industries, increasing the number of high-quality jobs, and improving the socioeconomic resilience and competitiveness of SMEs.”

Integrated ecosystems give SMEs easier access to data, resources and connections. We at Expandigo believe that by supporting SMEs we establish the foundation for a sustainable, more equitable long-term growth strategy.