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Analysis of coronavirus outbreak by spheres of corporate
The outbreak of coronavirus remains one of the significant pandemics to hit the world that has almost affected all sectors of the economy. The current pandemic has brought severe consequences to the economy, with millions of people losing their jobs worldwide. The outbreak of coronavirus caught the work by surprise, and its impact has been felt across all sectors with the public health and global business being hardly hit by the outbreak. The effect of ongoing world pandemic has caused serve global socio-economic problems. The world has found itself in a puzzle that may take years to answer as the implications of coronavirus seem to be out of control. The outbreak of the pandemic has sent ripples across the world with stern measures being taken to control its impacts. The global growth rate has been dramatically hit leasing to a significant drop in economic growth (Schwab, 2020). The consequences of the pandemic are expected to have negative impact calling for all stakeholder to take stern measures on rescuing the world economy. Coping with the epidemic in the business world calls for all stakeholders to pull resources together and unite their efforts.
The outbreak of coronavirus led to the shutdown of almost all factories and business and leading to halting of transportation and other social activities. The world monetary found predicted that the world economy would shrink by almost 3%, making it the worst since the outbreak of great depression. A surge in the number of patients needing specialized care across the globe called for all stakeholder to embark on an effort to support the health sector, which faced serious problem (Schwab, 2020). The corporate social responsibility and different stakeholders have been at the forefront in addressing a key issue affecting the world. The outbreak of the pandemic has raised serious business ethical issues on whether to reopen the economy or not. Although their way to explain the impactions of the economy from the global covid-109 pandemic, it is evident that its impacts will have serious implications for the global economy. The outbreak of the pandemic came at a time the world was facing serious trade war between China and the United States.
Covid-19 is not only a public health problem but also a global economy that have greatly affected financial and global markets. The pandemic has led to a significant reduction in revenue generation, increase in unemployment cases and disruptions of normal operations. It is many clear governments and companies across the world had not prepared to face off the pandemic which has turned to haunt them. The outbreak of coronavirus pandemic has highlighted the main reason why the global markets should shift their focus on employing sustainable measures to counterattack any form of pandemic (Spash, 2020). Over the years, many organizations have failed to offer significant attention to the role of stakeholder in the business. Since the outbreak of the pandemic, many companies have been exposed thus being forced to close their operations as they could not cope with the implication of the virus. Many countries adopted stern measures to control the spread of coronavirus, such as closing their airspace. This resulted in a significant loss of revenue, leading to many workers being laid off.
Corporate social responsibilities have been in the past years shown to play a critical role in different companies. During the coronavirus pandemic, corporate social responsibility has turned out to be the cornerstone of address key issues facing global markets. The impact of corporate social resp0onibilioties on economic development cannot be ignored. The presence of corporate social responsibilities in organizations has a significant impact that goes beyond making profits (Spash, 2020). Companies that have, for many years, ignored to incorporate organizational social responsibilities in their operations have been hit hard by the pandemic. The consequences of the pandemic may take years to address. The definition of corporate social responsibility has evolved over the years from normative to ethic oriented arguments to an integrative approach, and now its focus on performance-oriented perspective.
As the world, covid-19 health emergency continues, the world economy has been greatly affected as fallout continue to mount. Economic growth has gone reverse with many organizations laying off their workers in response to the impact of the pandemic. The implications of the virus on the world economy raises serious concerns on what happened to stakeholder capitalism. Over the past months, many companies had embraced the economic model. However, the pandemic seems to be a litmus test to its effects on business. Many organizations have been deeply shaken by the pandemic causing most of them to revolt to painful decisions. If the right measures are taken early in advance through use stakeholder capitalism, many businesses could have been in a position to withstand the impacts of the covid-19 (Marom, and Lussier, 2020). All business has been greatly affected by the pandemic. The world has witnessed a significant decline in domestic demand, causing the global cross domestic to decrease up to around $76.7 billion. The travel business is expected to experience a dramatic decline of up to$810.7 billion.
Coronavirus has exposed major vulnerabilities to the global economy, leading to a high number of job loses across all sectors. According to a recent report by the United Nations coronavirus presents a serious threat to the attainment of Sustainable Development Goals. It has also created great serious challenges for small and large enterprise globally. The outbreak of covid-19 has created major disruption to the life of business and the economy leading to many organizations straining financially to revive their operations. The outbreak of coronavirus exposed major flaws in the economic strictures stakeholders must step up and take action to curb the impacts of the pandemic (OECD, 2020). Governments have not taken any measures to shield their citizens against the shocks of the pandemic, and this is expected to have long term implications on global economic growth. In the United States, household debt has risen to almost $14.15 trillion since the outbreak of the pandemic more than it was recorded in 2008. This seems to expose the world into financial crisis hard to address.
Corporate social responsibility and stakeholders must up in addressing the impacts of the pandemic. The coronavirus outbreak allows companies to reveal how resilient and prepared they are to cope with the pandemic in adapting to new changes (Kramer, 2020). Organizations must fully involve stakeholders in making key decisions affecting the operations of their organizations. Organizations must understand that corporate social responsibility compliance is not enough to address impacts brought by the pandemic. For many years companies have been playing around with corporate social responsibly, but nothing has been done to get the best from it. Stakeholder must also be engaged in spearheading the world economy to sustainable development goals.
Many business critics have come out to questions the measures taken to the compact spread of the virus, with leaders being the most affected. There is growing dismayed and anger across the globe concerning how leaders are addressing the condition. Boris Johnson, the United Kingdom prime minister, has been criticized to his stern measures which have paralyzed almost all sectors of the economy. According to Willie Walsh, the decision is “irrational and disproportionate.” Michael O’Leary, chief executive officer of Ryanair, has also criticized the government describing the handling of the situation as lamentable. The world has been greatly divided on the consequences of covid-19 on the business world (Marom, and Lussier, 2020). The pandemic has posed serious ethical concerns on reopening the economy despite a surging number of coronavirus. Business critics feel it is high time to reopen the economy to rescue the drowning economy. In the United States, Donald Trump has failed to take stern measures to address the issue despite becoming a public health concern. For any country to flourish its population, an economy must be healthy.
In conclusion, the impacts of coronavirus pandemic on the global economy will take many years to address. Developing corporate social responsibility is important to any organization because it will help in shielding organizations against impacts of pandemics. Companies and business enterprise continue to contribute their efforts and resources in coping with the impacts of the pandemic credit to the adoption of corporate social responsibility. Business ethics and politics have become major change to efforts taken to address the situation. Therefore, all stakeholder must join hands in curbing the consequences of the pandemic on the global economy.
References
Kramer, R., M. (2020). Coronavirus Is Putting Corporate Social Responsibility to the Test. Retrieved from https://hbr.org/2020/04/coronavirus-is-putting-corporate-social-responsibility-to-the-test
Spash, C. L. (2020). ‘The economy’ as if people mattered: revisiting critiques of economic growth in a time of crisis. Globalizations, 1-18.
Marom, S., & Lussier, R. N. (2020). Corporate Social Responsibility during the Coronavirus Pandemic: An Interim Overview. Business and Economic Research, 10(2), 250-269.
OECD (2020). COVID-19 and Responsible Business Conduct. Retrieved from https://media.business-humanrights.org/media/documents/files/documents/OECD_COVID-19_and_Responsible_Business_Conduct_Full_Note.pdf
Schwab, K. (2020). COVID-19 is a litmus test for stakeholder capitalism. Retrieved from https://www.weforum.org/agenda/2020/03/covid-19-is-a-litmus-test-for-stakeholder-capitalism/