Businesses are dealing with busts, booms and everything in between amid the COVID-19 pandemic. Unemployment in the U.S. has climbed to nearly 15%, the highest level since the Depression and roughly double the number during the 2008 recession, and thousands of small businesses are scrambling for federal financial assistance.
The recession of 2008 and its ripple effects provide some lessons in how stakeholder engagement can build more resilient businesses and provide a solid framework for business leaders to handle tough times.
The recession of 2008 and its ripple effects provide some lessons in how stakeholder engagement can build more resilient businesses and provide a solid framework for business leaders to handle tough times. B The Change sought the perspective of three B Corp leaders whose businesses weathered challenging economic times, including the 2008 recession:
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Frick of Mightybytes: I learned to be intentional and focused regarding who Mightybytes’ clients should be. During those early years, I took on several projects that weren’t aligned with my personal values to put food on my table. It felt awful. As Mightybytes emerged from its cloud of financial uncertainty, I vowed that we would always prioritize values-aligned, mission-driven work.
Rowe of Eco-Bags Products: Say “Thank you” to your team and customers. Practice thankfulness. If you’re a mission-driven business, you’re still a business like all others. We’ve made a point as a smaller business to pay other small businesses first.
Busse of Kinesis: Family businesses tend to outperform non-family businesses in recessions. The thinking is when times get tough, family members are willing to sacrifice for one another. There’s a commonality between that idea and between businesses that are purpose-driven, where leaders are willing to sacrifice for their employees. I want to challenge folks to say, “How do I create an engaged workforce that’s not only loyal but is creatively inspired and motivated to help us through this hard time?”
Frick of Mightybytes: Austerity measures are important during a crisis, but they shouldn’t be considered business as usual for any organization. It is important to balance running lean with supporting all the things a company needs to succeed. As business leaders, it is our responsibility to communicate these decisions in ways our stakeholders can easily understand and act upon.
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Busse of Kinesis: Recessions are a really great time to examine how authentic your mission is. An engaged workforce solves problems creatively; when things get hard, that’s what you need. We’re all facing the same shared grief. Being able to talk about that and coming together to support one another can be a real moment of energy, even among the challenges we’re facing.
Frick of Mightybytes: Lessons learned throughout the years have transformed Mightybytes into the more stable, focused, and resilient company it is today. Like most agencies, our business ebbs and flows with the economy. We have learned that times of prosperity should fuel potential economic challenges that might lie ahead, so we plan accordingly.
Rowe of Eco-Bags Products: One of the best ways we can help each other in this community is to work with and purchase from each other. Make B Corps your preferred supplier or business partner. The greatest value is knowing there’s a community of people with similar values.
B Lab is a nonprofit that serves a global movement of people using business as a force for good. B Lab’s initiatives include B Corp Certification, administration of the B Impact Management programs and software, and advocacy for governance structures like the benefit corporation.