Guests provided insights from different industries, sectors, and geographies, providing a unique set of vantage points on how global business is approaching COVID-19 and how it will progress in the aftermath. Among the chief observations our Members discussed:

Responding to the crisis

As one participant put it, “Our 10-year planning has suddenly turned into 10-week planning.” For many leaders, the onset of COVID-19 has taken what were once thought to be longer-term objectives and turned them into immediate needs. Specific actions include:

• Ensuring people are paramount. Safeguarding employees’ welfare is the priority for virtually every company and will be important to sustaining them during and after the crisis.
• Completely rethinking travel. One guest remarked that their company’s billion-dollar travel budget has dropped to zero calling into question the necessity of such extensive business travel moving forward. Not only does this make sense in the near term, but it will have a long-lasting effect on companies’ impacts on climate change.
• Managing both the short and long term. Some organizations are creating distinct teams to focus on COVID-19 response and on preexisting and long-term initiatives. One participant noted that we need to “keep up the ambition” despite unfamiliar working conditions.

Acclimating to the future of work

There was broad agreement that employees will not universally revert to the old model of work once the crisis is over. Rather, companies will acclimate to a new way of working and continue the innovations borne of necessity – one participant thought about this concept as “sustaining the gain” beyond the crisis. There were a number of other ideas on how to adapt to a newer idea of work:

• Embedding more flexibility into work. Many companies have responded well to remote operations and have found ways to increase productivity while operating independently. While 100% remote work will not last, there is a recognition that productivity does not necessarily require the real estate, commutes, and face time of the past.
• Adapting to the increased role of government. A Member commented that this crisis will “herald the return of big government in a way that we have not seen in 20-30 years.” Today the focus is on stimulating economies, but over time the bill will come due and the expectations for government support have risen. Many are questioning the acceptance of markets as allocators of goods and services, or as one participant put it “society has accepted that financial returns no longer matter most.”
• Emphasizing the benefits of global collaboration. Some countries’ responses to the pandemic have led to a rising sense of nationalism, both socially and economically. While the private sector depends on cross-border cooperation, the crisis has already sent deep shockwaves into global supply chains and trade. The implications – particularly in the case of the US-China relationship – will be far-reaching.

Preparing for future crises

Members on the call recognized that the past few months have served as a lesson for similar situations in the future. Learning more about an organization’s resilience now will help leaders prepare for whatever may come next. Actions taken today that can have a ripple effect well beyond 2020 include:

• Recognizing the urgency of climate change. While this pandemic had a fairly short lead time, we are forewarned about the impact of climate change. Whether by climate-sensitive portfolios, climate competent board members, or climate aware supply chains, the question of how to mitigate the effects of climate change and bring about a greener economy must be addressed today.
• Questioning the longevity of “winner take all” economies. We have seen this crisis exacerbate the existing rifts in income and healthcare inequality among populations worldwide. This raises questions over the role of a corporation, especially those in tech and healthcare sectors where access is increasingly essential. Those on the call felt that decisive action now is necessary to build sustainable economies with broader opportunities for advancement for everyone.
• Building trust in leadership. Companies and investors are now drawing on the reserves of trust and culture they have built over the years. Companies need to rebuild those reserves by providing strong leadership with transparency toward all of their stakeholders – suppliers, customers, employees, shareholders, and communities.

What’s next?

FCLTGlobal’s mission is to rewire capital markets to support a sustainable global economy. Maintaining this focus, while at the same time incorporating the lessons of this crisis, is critical to this work. In light of our Members’ insights, several recommendations and agenda items have come to the forefront:

• Seizing the opportunity for companies and investors to engage. Even before the crisis, public company boards were becoming more accustomed to hearing from their top investors. COVID-19 has heightened the influence of a company’s shareholder base, and it will provide a unique chance for companies and investors to engage in productive discussions about the future.
• Pushing for non-traditional metrics that reflect a new path forward. “We must be bolder in what we do and what we report,” said one Member. Participants agreed that the way companies and investors report on their businesses – to investors, to customers, to employees – must change to suit the new social and sustainability norms that this situation demands. There was also consensus that those companies ending quarterly guidance in response to uncertain forecasts should not take it up again once the crisis eases.
• Rethinking governance for the 21^st century. As one Member put it, we need to be “backing the leaders of the future” and understanding the traits that lead to long-term success. Another pointed out that some are trying to govern “21st-century organizations with 19th-century governance structures.” Building boards and teams that can anticipate and adapt to seismic change is what is required today.

Thank you to all who joined our roundtables in April and May. We look forward to continuing these critical discussions for as long as they are helpful. To learn more about our upcoming events or future programming opportunities, contact us at [email protected].