The COVID-19 Pandemic Is Sparking An Era Of ‘Smart Generosity’

During challenging times, companies with purpose are often better positioned to adapt and endure than peers without a purpose. Why? Purpose serves as a vision and lens for smart decision-making during both good times and bad. More than just a reason for existing, purpose can help leaders prioritize stakeholders, redirect resources, and more precisely respond during crises such as COVID-19. Historically, what we today call purpose is based on the evolution of various linkages between companies and causes, from philanthropy and cause branding to corporate citizenship and CSR. COVID-19 is forcing the next iteration of purpose, one that falls in line with the emerging stakeholder capitalism movement. This is taking shape as “smart generosity”—the innovative application of a company’s resources (cash, personnel, operations, reinvented products/services) toward an urgent social issue, which puts the needs of stakeholders before short-term profits. Read more at Fast Company.