020 March 2022

Ten measures companies need to take to tackle a pandemic (part 1)

When most countries are fighting a pandemic, the role of companies in this scenario is crucial. As key players in the economy, the social responsibility of companies consists of good corporate governance and, above all, ensuring the safety and proper organisation of all their employees.

At the moment, companies are facing a number of strategic and operational risks, such as a delayed or interrupted supply of raw materials, changes in customer demand, rising costs, logistical reductions leading to delivery delays, employee health and safety protection issues, insufficient workforce or difficulties related to import and export trade.

Based on an analysis of leading business practices in business continuity planning and emergency management, we outline ten measures to deal with this situation.

1. Establish emergency decision-making teams

All companies should have an Emergency Action Team that sets the strategy and objectives of the emergency plan, ensuring that decisions are made as quickly and accurately as possible.

This group should also assess the strengths and weaknesses of the company and its professionals to adjust processes in times of crisis.

2. Assess risks and establish emergency response mechanisms

Many multinational companies have established “emergency contingency plans” or “corporate sustainability plans”, which are usually implemented immediately in the event of a major emergency.

Suppose a company does not have such a plan. In that case, it should conduct a thorough assessment of all risks immediately, looking at its human capital, subcontractors, supply chain, customers and the public sector (governments).

Based on the risk assessment, the company must respond to issues related to office space, production plans, procurement, supply and logistics, personnel security and financial capital, as well as organise other relevant aspects related to emergency plans and division of labour.

3. Establish a positive information communication mechanism for employees, customers and suppliers, and create standardised communication documents.

It is necessary to maintain fluid communication with both internal and external audiences and strengthen customer services. This will prevent negative public opinion.

At the same time, the information system established in the company should be used to collect, transmit and analyse information on epidemics and to issue immediate risk warnings.

4. Maintain the physical and mental well-being of employees

According to a recent survey conducted by Deloitte, 82% of companies state that flexibility at work is currently the most important means of managing professionals.

It is advisable for companies to establish holiday and flexible working mechanisms, using the technical and technological means available to establish non-face-to-face working methods during extraordinary periods.

In addition, the company must establish a system for monitoring employees’ health and keep personal information on their health with a total guarantee of confidentiality.

The company should ensure the safety of working environments by cleaning and disinfecting these spaces, complying with the hygiene management requirements of national and regional public health authorities for periods of serious infectious diseases.

The company should strengthen epidemic safety education, establish proven employee self-protection guidelines and raise awareness of safety and risk prevention.

5. Focus on supply chain risk response plans

Companies usually have sufficient raw materials and different procurement channels to avoid stopping production or restarting production as soon as the quarantine period is over.

In managing inventories, organisations must consider factors such as consumption lock-in, the corresponding increase in financial costs and pressure on cash flow.

At the same time, in industries with long production cycles, organisations should prepare in advance for a spike in consumption when the epidemic has subsided to avoid the risk of insufficient inventory.