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The lockdown resulting from Covid-19 was challenging, to say the least. A period from which we have long to recover, first emotionally and then economically. History well into the future.

By now we are several months along and the door to an "unlocked" society is almost completely open again. Dinners and parties are carefully planned and we meet our colleagues again. Terraces fill up and local entrepreneurs are generously supported by making postponed purchases after all. We all talk about how nice it is to be able to see, hold and look each other in the eye again.

Feel

But if we are honest, the forced pause was quite welcome in a number of ways. We realized how nice those empty schedules were, we didn't really need those dinners after all, and time could always be made for dear friends by walking, zooming or calling. We appreciated nature more, had an eye for the birds around us and enjoyed the clean air. And we turned out to be pretty good at coming up with fun alternative activities such as playing ping-pong on the kitchen table, cooking dishes that previously seemed so complicated and the backyard was set up as a boot camp ground. Through this small life, we returned to our core and "felt" again. It turned out that values such as security, respect and gratitude, while hidden deep within us, were certainly not extinguished.
Now that public life has almost fully resumed we are going to see if we remain true to these values. Each of us can now once again make choices for the future. And, of course, we can inspire and encourage each other to do the "right thing. The call to be more responsible with our living environment grew during the corona crisis. Citizens want to do their part but expect the same from governments and businesses.

Ethics and business

These terms are not always mentioned in the same breath. But public support for forcing entrepreneurs to think about corporate social responsibility is growing rapidly. Under pressure from shareholders, the capital market, clients or politics, internationally operating companies have long been required to demonstrate that they act ethically. They must make the entire supply chain transparent (due diligence) to avoid reputational and consequent financial damage. Internationally, ethical rules for business are becoming increasingly stringent. In countries like Switzerland, France, Germany, we see the trend of making companies and all affiliated entities far responsible for violations of human rights and environmental laws. This trend also seems to be picked up by Brussels.

On topics such as child labor, harrowing working conditions, exploitation, illegal logging, dumping of chemical waste, we are in agreement: this really can't go on. Unfortunately, it is still the order of the day. But citizens are also less and less tolerant when it comes to violating other ethical norms. The public debate is increasingly about the ideal of a sustainable economy in which a balance is sought between economic objectives (Profit) with social (People) and ecological preconditions (Planet). Think about employing people with labor limitations, reducing waste or keeping business partners afloat by temporarily granting them longer payment terms. The Covid-19 crisis demonstrates that our current globalized economy is unsustainable and it needlessly hurts the most vulnerable in our supply chains. Should entrepreneurs not be intrinsically motivated to do something about it, hopefully the crisis has convinced them that the whole chain is only as strong as its weakest link. This makes the entire economy vulnerable and underscores the need to move to cleaner, fairer and less vulnerable business models.

Compliance useful?

Although many businesses are struggling right now, it is especially important now that ethics come before profits. A prime time for entrepreneurs to take the lead and develop a post-corona business model. A sustainable business objective not only breeds goodwill but also makes you an attractive business partner. This will ultimately result in economic benefits such as higher stock prices, increase in long-term value and better access to emergency and capital funds. Companies need strong ethical leadership to make these decisions quickly, decisively and transparently. Working with the board, a compliance or integrity officer can play an important role in this. Huge changes are currently underway in the way financial institutions operate and in the expectations of regulators and supervisors. It is the task of the compliance officer to direct these changes, manage risks and determine the right course of action in consultation with management. It is tempting to take ad hoc decisions to repair the short-term consequences of the crisis. It makes more sense to invest now in a sustainable business plan with a fundamental role for compliance as one of the pillars of your organization. Not only will this ultimately lead to a more pleasant living environment and a crisis-proof economy, your company will also be more appreciated by your customers.

We are curious what your company is doing to mitigate coronavirus risks to employees and clients. What are the most difficult decisions you have had to make? What crisis management strategy works(s) well for your firm? Curious to hear your comments.

Regien Haarbosch