Bentley steering wheel

10 Responsible Business Conduct (RBC) that help business to navigate through COVID-19 crisis!

Spread the love

The COVID-19 crisis has posed significant impact to the people, planet, and society. The implementation of global standards of the responsible business conduct (RBC) is important to identify, mitigate and address these negative impacts.

How to implement responsible business conduct (RBC)?

The implementation of RBC will help the company or business to navigate through the storm of COVID-19, by avoiding and addressing the potential adverse impacts on people, planet and supply chain. Companies that take proactive RBC steps to address the risks of COVID-19 are likely to build more long-term value and resilience.

The following RBC issues are seen as relevant in helping business to respond to and recover from the supply chain crisis and operational shocks:

1.Social dialogue

For social dialogue, industrial relations and stakeholder engagement issue, the effective industrial relations and stakeholder engagement, including direct engagement with workers and their representatives can help to identify short-term or long-term solutions to address the cost-cutting pressure, and can help to smooth operation during recovery phases.

2. Worker leave

For worker leave, benefits and access to healthcare issue, companies that have robust practices on worker benefits are more likely to retain critical employees’ skills and know how during the crisis and able to recover quicker in its medium- and long-term effect, as long as the companies can survive in the short term.

3. Employee’s benefits and access to healthcare

Companies with strong employee benefit package can boost worker’s morale and trust, which will increase productivity and worker retention.

4. Environmental, health and safety management

On environmental, health and safety management, firm which has robust health and safety management practices, can quickly response to the COVID-19 threats quicker.

5. Corporate governance related to disaster preparedness, continuity and contingency planning

On the corporate governance related to disaster preparedness, continuity and contingency planning side, leadership and clear defined responsibility for disaster, continuity and contingency planning at the senior management are important to deal with the recovery from the crisis.

Investor and consumer will pay attention on the business leaders action towards crisis management, a strong leadership will rise in times of crisis and able to build confidence among the stakeholders.

6. Supply chain management

On supply chain management; the information from supply chain due diligence can be used to understand the impact in the supply chain and manage disruptions.

7. Disclosure

On disclosure, shareholders, regulators and the public will expect more frequent and transparent reporting on financial, environmental, social and governance risks of the companies and also the contingency plan in place.

8. Stock price and long term value

Reports suggest that COVID-19 crisis and market volatility has increased investor interest in environmental, social and governance (ESG) issues.

9. Access to emergency funds and capital

Companies that have put in place contingency planning which takes into account of RBC issues are in better position to access fresh fund, special emergency funds and relief program.

10. Mitigation of crisis related legal risks

Taking proactive RBC action can help to mitigate legal risks.

11. Protection of brand value and reputation.

The RBC practices are closely associated with brand strength and corporate reputation, which also apply in times of crisis.

All in all, the COVID-19 has created major risks to companies, and companies that apply RBC will see to be more resilient in the long term and help in value creation.

👉👉👉Don’t want to miss a post here, follow 7greengreen for more updates!

Leave a Reply

Your email address will not be published. Required fields are marked *