As this crisis has unfolded, many companies have put the health and safety of their employees, customers, and communities first. Unfortunately, due to the unforeseen magnitude of the pandemic, essential employees were often put in the position of working without the appropriate personal protective equipment (PPE) and without adequate prevention standards in place.
There is an assumption that only healthcare workers in the frontline of the COVID-19 battle require PPE (which for the most part they don’t get enough of). However, essential workers include those providing services that are critical to the very survival and peaceable living of the rest of us. There is a need to ensure that essential employees will be well protected going forward.
For the reopening to be successful and sustainable, the health and safety of nonessential employees, customers, and communities must also be addressed effectively. Ultimately, this protection will be built upon the foundation of widespread testing and monitoring of individuals, which presently is not available.
In the interim, guidance from the Nigeria Center for Disease Control (NCDC) with respect to social distancing, the use of face masks, restriction on gatherings, handwashing, temperature checks and other individual practices to prevent the spread of COVID-19 should be implemented.
In this regard the National Association of Corporate Directors (NASD) recommends that the Board should ask the following questions – How has the company’s workforce been impacted by COVID-19? How has the company responded to the crisis with respect to employees, customers, and the community? Are there corrections that need to be effected to address existing issues? To what extent is the company able to enforce social distancing? Does the company have an adequate supply of PPE? How long will the current supplies last? Does the company plan to test and monitor employees’ health? What plan does the company have to address the emotional well-being of employees? What is the company’s emergency response plan should there be an outbreak of COVID-19 in the workplace?
The question of whether it is safe to return to the office, store, or factory follows an equally important question – who sets the standards and is responsible for defining “safe” in a COVID-19 world? Expectedly, one would look to the government for clear guidelines. These have for the most part been inconsistent – understandably so as no one has travelled this path before. In addition to whatever guidance is provided by the government, companies will need to ensure that additional attention is paid to the ethical and legal considerations raised by reopening. Of concern to the Board is to what extent does the company want to and is able to monitor employee health and whether or not there are privacy and compliance considerations in this regard. The Board will also need to require periodic reporting by Management of the reopening procedures.
Another consideration would be how to restart the company and adapt the workforce to operate effectively in an uncertain environment. NASD recommends that the Board should ask the following questions of Management are COVID-19 related events covered under the company’s insurance? Has the company updated its contracts to protect itself and its customers? Has the company reviewed its supply chain and other vendor/customer relationships for adherence to applicable government guidelines? What is the company’s plan to accommodate employees who do not feel safe returning to work?
Companies have an opportunity to significantly affect the public’s sentiment regarding exposure to the virus through clear communication and refreshed policies and procedures that put employees, customers, and vendors at the heart of company operations.
A significant first step is to understand the current sentiment among employees, customers, and suppliers. Understand what their expectations, abilities, and concerns are, and communicate clearly about how the company is addressing or plans to address those areas. Consideration will need to be given to the broader infrastructure questions that employees face, such as commuting and childcare (given that schools are still closed). The Board will need to consider if and to what extent the Covid-19 crisis has affected employee morale and company culture. It will also need to review what Management has done with regards to redesigning the workspace to facilitate a safe working environment.
From a governance perspective, the Board needs to evaluate the potential reputational and other risks of reopening that may conflict with the company’s risk appetite or, even more important, its values and purpose. While it has been rightly said that a company that goes bankrupt has no purpose, a company that survives but breaks the trust of its stakeholders likely has a limited future. If a reopening is done well, the company should emerge stronger than before, with a more engaged workforce, more loyal customer and supplier base, and a stronger brand.
Given the deficiency in testing capacity and the daily increase in the number of new cases, questions hang heavy – can the economy open safely sooner and put people back to work, or would such a move increase the risk of infection. Is the economy better served in the long run by waiting longer to allow the virus to further subside? The consequences of a reopening done incorrectly could prove catastrophic. On the other hand, a reopening done correctly could be lifesaving. This is a balancing act, and one that Boards will have to carefully navigate.
Reference – Board Consideration for Reopening Business – National Association of Corporate Directors
Adeyemi is the Managing Director, DCSL Corporate Services Limited. Kindly forward comments and reactions to [email protected].
