Purpose ahead of Profit

One of Britain’s most prominent scientists, Nobel Prize winner Sir Paul Nurse, no pun on him nursing the pandemic, has launched a scathing attack on the handling of the Coronavirus crisis asking, who is actually making all the key decisions. He said, “the country had been rather too much on the back foot, increasingly playing catch up, firefighting us through successive crises”.

He has cast doubts on whether there was a proper strategy to combat not only the killer virus, also about how to come out of it.

Who really is in charge of decisions, he asked? “is it ministers? Is it public Health England, The National Health Service? The Office of Life Scientists, Sage? I don’t know, but more importantly, do they know?” 

He added: “I think you are quite right to say that everybody’s involved – not just the politicians, the scientists and the doctors – we are all making mistakes.” 

Every government, every national Task Force around the world we note, is having a  Fall Guy to blame it on, for not developing the strategy and the operation and the implementation of that strategy, as echoed in the wise words of the scientist. 

We can have as many Task Forces to get the best advice, but in my opinion, it is the Prime Minister or the President of the country, or both who are ultimately responsible. 

How about business? 

Of course, business cannot make decisions on health of a nation, but they can prepare the nation, the government, and its people to navigate the human and particularly the business impact of the pandemic. Businesses are thus rapidly adjusting to the changing needs of the customers and suppliers while navigating the financial and operational challenges.

Out of necessity, business will have to be agile to stabilise revenues and take care of their customers, particularly to reshape their business purpose. Deferred decisions, delayed actions have immediate and long-term business continuity impact. 

Some ways business is coping with the shutdown 

There is not one way that business around the world is coping with the consequences of COVID-19.A variety of organisations are working with key workers and have adapted to respond to the urgent needs of people of not only different parts of the globe, but also different parts, say of United Kingdom, as well as different sectors of business. 

With billions of Sterling Pounds of retail stock currently in in ships in the high seas on its way to the UK, analysts predict there is going to be a sales bonanza sooner or later. Shoppers are in for a treat as there is going to be a tidal wave of bargains as retailers try to flog stock since shutdown 23 March 2020. We are likely to see the best deals in spring and summer clothes throughout July, August, and September 2020.Some shops have already started their sales on the internet and H & M, a UK clothes retailer is offering as much as 70% discount.

In the hospitality sector, travel firms are planning after June 8th to exploit a loophole in the 14 day quarantine period by flying holiday makers into U.K via Ireland (which is exempt from new isolation rules). Dublin has become the “air bridge” named as the “Dublin dodge”. 

Is Profit the purpose of business today? 

You and I may think, that business is all about profit, that business people are unethical and business is all guile and greed. 

Milton Friedman of the Chicago School of Economics in 1970 defined business as “maximising profit for shareholders”. 

According to Peter Drucker: “there is only one valid purpose for a business, that is to create a customer.” The customer is the foundation of a business and keeps it in existence. 

We now need to recast the very way we think about business after Coronavirus. 

Of course, profit is the reward for risk taken in business. Every business operates in order to earn a profit. But the purpose of business today has changed along with the other “new normal.” 

A sense of perspective, some of it unconventional,l is setting over global commerce. At the 50 World Economic Forum at Davos in February 2020, a month before the spread of Covid-19, the high minded discussion centred on Climate Change, Global Trade and Artificial Intelligence (A.I) rather than business “Purpose” just for profit. 

People and businesses too are thinking of a “social conscience” in business. How you behave, rather how business behave, not solely to provide dividends for shareholders, has been spotlighted. How you behave towards your employees, customers, suppliers will have a long lasting effect on reputation and the licence to operate. 

The bail out of business by Governments

The public agree with additional economic support in these difficult times for business, there is perhaps, a cost for all business support. The public seems to want strings attached for its support. 

What we are seeing is that the general public now favour increased regulation of essential sectors of the economy such as healthcare, food supply and energy sectors.

Unless business can assert their “purpose to provide solutions for people’s lives,” there may be a risk of a powerful shift in people’s attitudes towards the role of the State and literally against the solely profit motive of business. 

Business must respond in a way that meets the moment and the expectations of the people. 

Cash was king and Profit was queen. Today, “Purpose” is both King and Queen.

Victor Cherubim