Solidarity in Business is Put to the Test

March 18, 2020

"I have given up two-thirds of my managerial salary, and all of my colleagues could decide the rate of the salary cut they can tolerate in the hope of our joint survival. We then discussed what we could do to make up for the roughly 90 percent loss in revenue."

It is how Monday morning kicked off at a small Hungarian enterprise. They work in the creative industries. Canceled orders equal immediate losses. Not a spillover months later. Employees, parents, shoppers, users, consumers. We don't know how long this will last, but we know nothing will be the same. Some anticipate a 2–3-year crisis, and even more cautious observers are drawing parallels with 2008.

In more accessible moments, I can see the bigger picture and understand that each crisis is an opportunity. Tremendous things evolved from troubles. And this was the case before the Renaissance. And now Earth can finally catch its breath, and some long-lost balance will be restored because we have been incapable of self-restraint. Okay, but while meditating on the bigger picture, the phone rings on the first day of voluntary self-isolation, and all one of our friends has to say is that she no longer has a job.

It's challenging to stay calm and patient in these situations, not to be bossy and demagogic. And a comparison in my head has kept me preoccupied since yesterday. How much money did the world collect in a few days when Notre Dame burned barely a year ago? I'll look it up… here it is. Just a day after the tragedy, almost one billion dollars were collected. Apple, Dior, Chanel, the luxury goods retailer LVMH Group, and billionaires — some champions of tax optimization — joined the donation race. Many donors barely had anything to donate. I'm honestly surprised that right now, there are no headlines about huge donations of even equipment (ventilators, masks, disinfectants, or anything considered valid and available) or the creation of private funds to finance these once the world is restarted in a far-off future. Now is the time to think about this and to take action at a time when we have yet to see the end when we are still struggling with health issues.

Fortunately, solidarity and compassion are already felt. The number of non-financial donations is rising. People, experts, and helpers offer their time, knowledge, and capacities instead of money. We are also building a database and are continuously seeking

· lawyers (mainly to work regulations, employer's and employees' rights)

· financial advisors

· logistics specialists

· authors of online business teaching materials, who can make available free materials for financial crisis management and replanning, and

· any service providers that can help struggling companies and NGOs with know-how.

With their permission, we will make accessible to anyone on a simple platform the list of collected experts and service providers. We will screen them with the best of intentions and to the best of our abilities, currently without justification for screening. You can also apply on this form!

We could say that this isn't our responsibility. That's what the state is for, to solve these problems. There should be enough ventilators and masks, with a moratorium on installment and contribution payments until the epidemic's end. The duties of the state are one thing. We hope that it's doing its job and taking the necessary measures. The state has several options, and its maneuvering room is significantly more significant than we have. Its impact is huge, whatever it decides to do. There is also a growing number of foreign examples of efforts to save the SME sector and prevent the shutdown of markets, disruption of supply chains, and a collapse. Moratoriums. It is expanding theories and actions related to basic income. Will it become a reality as fast as the introduction of online learning in a matter of days? It is merely speculation for the time being. We at Bridge Budapest never focus on what we expect from the state but on what we, as business sector members, can do for a change.

The quoted company, recalculating everything, is a Conscientious Business. One of roughly 1,000 companies that agree to go public as part of a community to act responsibly with employees and business partners, financial discipline, and responsibility. They regard performance and value creation as the open standard of operation. They agree that they have as much to gain from competition in the marketplace as from win-win forms of business cooperation. Their positive philosophy is based on acquired knowledge and the goal of continuous development. They also genuinely believe that their performance can serve as a reference for other businesses and contribute to improving Hungary's performance and competitiveness and making the country an even better place.

The time has come for joining forces and taking fast but not rushed action under the given circumstances. We are also concerned with many questions and uncertainties. We are worried for our loved ones and ourselves, but as company executives, we all share the responsibility for our staff, the company, and a shared future. The stabilization of companies and drafting crisis scenarios is our present-day reality. Most of us are working day and night to save what we can, to build and replan at a time when concentration is most difficult. Our community is now put to the test and is performing sensationally. It offers an island amidst the chaos, sharing knowledge, experience, and doubt.

We asked the Ambassadors of Conscientious Business Culture and the Qualified Businesses to send us any policies, Q&A, proposals, employee communications, action plans, or company protocols they may have available to support others. Unfortunately, these possibly smaller businesses don't have teams and/or preliminary scenarios ready. The strength and value of our community lie in cooperation between big and small companies in different sectors, offering a wide variety of knowledge and experience. These businesses immediately sent materials to assist those who were hesitant and desperate. Received materials are available here. The collection is continuously expanded.

In Hungary, small and medium-sized enterprises account for 99.1% of all businesses. We are constantly told that compared to their share, they lag behind corporations in terms of economic weight. They only account for 44% of output in the corporate sector. Their role, however, will be crucial in shaping our sense of well-being in the years of recovery.

Minimization of losses, replanning, and revised planning. It can be observed everywhere. Everybody is rationalizing, putting the brakes on. Those who can afford to. Others nose-dive. Those with reserves will get by. No one has a plan "B" because it is no longer valid.

Others have more excellent maneuvering rooms because they have reserves. Much depends on them.

Are those with a solid footing able and willing to help others who are struggling or collapsing? I sincerely hope so. We can't expect everyone to save somebody else, as this would be naive and idealistic, but we don't have to think big. There are simple ways to go about this. For example, by not hampering each other. Companies could be more patient with each other than in times of peace. Or by sharing their best practices because these are available to them. They have a team, capacities, and money to think and plan. Solidarity in business is now also put to the test. And so is creativity. And a fast response and focus.

Beyond the health concerns, we also face existential anxiety, which poses an enormous mental burden with the lockdown and weakens the immune system. Let there be no doubt: the crisis facing businesses entails the situation of NGOs. It is mainly the case in a country where the culture of support and donation is still in its infancy. What if this were also to change suddenly? If we realize the vast quantity of knowledge and experience we can mobilize immediately, everyone with the capacity could consider simply helping those in desperate need in their environment. Payment with no strings attached, no questions asked, no appearance required.

I would encourage all NGOs that are now concerned about being able to continue their mission and the funds necessary to carry out activities that no one else will perform to ask for help. There is no shame in asking for help now. Let's not judge and dismiss others just because they do their math and are forced to admit that all their plans and creative financing ideas for times of peace were in vain, and all of their efforts go down the drain. Let's give it if we can.

The author is the managing director of Bridge Budapest and co-founder of Bridge Institute.