Workforce Principles for the COVID-19 Pandemic: Stakeholder Capitalism in a Time of Crisis:

While there currently is a significant focus on the public health and economic impact of the COVID-19 pandemic, the workforce and societal implications are no less profound.

In 2019, less than 10% of business leaders from G20 and OECD countries considered the spread of infectious diseases as a looming global risk, according to the World Economic Forum Executive Opinion Survey. Nor were companies anticipating that a pandemic might test their public reputation as a responsible employer. Yet in early 2020 all organizations are facing just such a crisis and the need to address the urgent concerns of various categories of workers: those who can and continue to work remotely, non-remote workers who can work remotely with proper support, those who can no longer work for a variety of reasons and those who continue to work in person. Additionally, most companies, across sectors, had not implemented flexible or remote working arrangements. In the current environment most businesses, having to put in place new measures for their workforces rapidly – often with no previous comparable experiences. The following principles can help guide organizations in shaping a responsible course of action that balances short-term pressures against medium- to longer-term needs:

• See this crisis as a defining leadership moment— and continue delivering the best possible outcomes for all stakeholders.
• Adopt an agile and continuous learning mindset to ensure your response is (re-)calibrated to the circumstances at hand
• Understand the perspectives of and engage all stakeholders (e.g., employees, shareholders, customers, suppliers, unions, healthcare providers, community) in decision making.
• Focus on the intersection of employee and company wellbeing
• Make decisions and take actions that take into account medium-term needs and longerterm business objectives

While businesses may need to adjust measures according to different policy environments, the concept of stakeholder capitalism can provide a framework for a responsible course of action at this pivotal moment.

1. Prioritize planning, wellbeing and communication
2. Focus on employee experience, engagement and motivation
3. Ensure responsible work redesign
4. Balance short-term cost concerns with medium-term resilience and rebound

Investing in stakeholder capitalism in a time of crisis:

As organizations address the longer-term implications of COVID-19, it is imperative to focus on the needs of all stakeholders — from customers to suppliers to shareholders and, specifically, employees to ensure no one is left behind. This crisis presents an opportunity to take bold actions and show leadership and solidarity by applying the principles and guidelines set out in this document to better balance short-term crisis measures against the medium- and long-term objectives of responsible employers. These actions can include protecting salaries and benefits or providing learning opportunities to make progress against re-skilling and workforce transformation objectives. Such an approach enables organizations to earn the trust of employees and unlock the discretionary effort needed to move the organization forward in turbulent times.