Coronavirus provides an opportunity for firms to reflect and change

When the dust settles, politicians might find it easier to go after large corporations. And if businesses respond in the right way, the rewards could be huge, writes Chris Blackhurst

Waiting for the clouds to clear: London’s Canary Wharf (Getty)

When this is all over, where will be? It’s a question occupying the minds of senior executives as they sit in their homes. For the first time in many a year they’ve got time to think.

Of course, they’re managing their businesses, as much as they can, via conference calls on Microsoft Teams or Zoom. They’re making sure they take up their daily exercise allowance. And they’re reading, watching box sets, pursuing that pastime they’ve always said they would do but never got around to doing, such as painting or learning a musical instrument.

They’ve still got space left over in which to brood. They’re hearing and viewing and reading online about daily PR foul-ups, tales of perceived callousness by their fellow bosses, and are grateful not to be hitting the headlines themselves.

It should be clear to them, too, that the old order is about to shift. That, certainly while the crisis is in full flow, and in all probability for a long period afterwards, what could be explained as commercial pragmatism is no longer acceptable. Being seen to put profits and shareholders first, despite there being a “sound business reason” is likely to be poorly received and may backfire heavily.

Out of adversity, however, comes the prospect of wiping the slate clean, of making a fresh start. For some operators within sectors like high street retailing, bars, restaurants, airlines and travel, the pandemic is all about sheer survival. They just have to get through to the other side.

For others, though, there is the opportunity to rethink and redefine. Their industries were strong before corona struck. Sure, there are weaker players – there always are – and they may succumb. But for the stronger ones they’re contemplating life beyond, in the new normal.

There will be a reckoning after this. Somebody is going to have to pay for the mind-boggling, budget-busting rescue packages and handouts. Governments do not make money; they collect and spend other people’s. It’s inevitable then that attention will turn to those who can best fork out. That is bound to point to the wealthiest in society, to the richest individuals and corporations.

Firms that already attract public ire are going to find little sympathy. But instead of retrenching and doing nothing, and letting politicians do their worst, they should be proactive and positive. And they should be so, not just with one eye on a possible financial levy, but with a view to reclaiming lost public regard and trust.

They must show how they benefit others, how they behave fairly to everyone at all times, how they do not erect tall barriers

Those in the firing line will include the oil companies, utilities, banks, insurers, financial services groups and tech giants. They are seen as making lots of money too easily, some of them are viewed as not paying enough tax. All of them enjoy poor images, they’re never far away from a new controversy, another attack. Joining them, too, are the tech giants. This, if handled properly, could be a chance for them – for all businesses, but definitely them – to reset and rebalance their relationship with politicians and the media, with society.

In a sense they do not have a choice. If they don’t act, citizens and their elected representatives will do it for them. Over the past few weeks, we’ve witnessed state intervention on a vast scale. We’ve suddenly gone from an era of winding-down government, reducing its size and reach, to big government, able and empowered to pass laws and regulations affecting all manner of enterprises.

While they’re driven by necessity, there’s no doubt that political leaders have their tails up. Anyone who imagines we will return to how we were, that there won’t be more after this, must be mistaken.

They’ve shown how they can act when pushed, and not least to stump up the cash and avoid increasing taxes on their voters, they must be tempted to hit those who they believe can absorb the pain. They know they’re unlikely to be criticised heavily – who is going to stand up for these corporations? How many votes will be lost as a result?

On the contrary, political support may strengthen, so low is the regard in which many of these businesses are held. We’re heading for payback. A period of price and profit caps, tax raids and tighter regulation beckons.

Those in the crosswires still have time to act. They must make their purposes avowedly clear. They must show how they benefit others, how they behave fairly to everyone at all times, how they do not erect tall barriers of entry. Where possible they must be open about their activities, which must be honest. They should respond to public concerns. They should not enter into sham schemes to reduce their taxes. They should not pollute or treat their staff and customers badly. And they should be seen to mean it. In essence, they should behave as good citizens.

Get all that right and they have a chance. They’re starting from a low base, after years of displaying in some instances arrogance and disdain. The damage has been done – when it comes to bad apples, not enough of their sector members spoke up and the whole lot has been tarnished.

They may find that if they do step up, if they do enter into a new compact, they will receive an even bigger reward. In the age of the three letters that haunt them – ESG or environmental, social and governance – they may discover that people actually like them, that they want to do business with them, meet them, listen to them, help them, work for them, own shares in them. Forget merely avoiding charges and government interference, that could reap undreamt of prosperity. They do not have much time.