How Did Past Pandemics Affect Businesses And What Can We Learn From Them?
The World Health Organization (WHO) states that a pandemic is the worldwide spread of a new disease. As devastating as the First World War was, there was an even greater loss about to happen in 1918. Estimates are 50 to 100 million people died of a flu that spread across the globe right after the war, known as the Spanish flu. This was before the existence of the WHO. The majority of the victims were anywhere from 15–40 years old. Although it is hard to predict what the economic effects were due to the lack of economic data, looking at the newspapers from the year, a decline of 40–70% were seen by merchants and department stores, retail revenue was reduced by one-third. Telephone operators were reporting an absence of hundred operators from their posts, as result, the telephone companies were asking people to avoid unnecessary calls. Many of these losses were due to the fear of the virus itself rather than the government restrictions. The only businesses that saw an increase in activity were the drug store and mattresses. Some reports suggest that the 1918 pandemic resulted in as many deaths as it did due to lack of, or inaccurate information. Today we can find the information we want through our smartphone. But back in 1918, information was not as easily accessible as it is today.
Then a virus that started on June 5, 1981, is still is among us. HIV has so far affected 76 million people and about 33 million have died. 690,000 people died of HIV-related illnesses worldwide just last year (2019).
Learning from 1981’s pandemic, big businesses responded by increasing medical care and starting communicating ways that would prevent contracting the virus with their team members. Many companies changed their hiring practices; some firms reduced employee benefits and restructured employment contracts. Companies starting to outsourced less-skilled jobs. As most victims of HIV were people from 13–34, firms started to hire and train older workers, who were less likely to have HIV.
Take, for example, the American International Assurance (AIA), the largest public listed pan-Asian life insurance group, offering insurance and financial services for individuals and businesses. AIA entered into a partnership with various NGO’s and public health organizations on a range of projects involving community donations and corporate philanthropy, focusing on ways to prevent HIV. AIA also educated and shared information on the prevention of HIV with its workforce. For AIA the benefits go beyond the positive public perception, the measures they took, also helped them reduce insurance payouts.
Then there is Larsen & Toubro (L&T), an Indian technology, engineering, construction conglomerate, with global operations, headquartered in India. They were quick to see that HIV was affecting their most productive age brackets and that there was an absence of good quality medical facilities in India. L&T launched an awareness-raising program, by initially training the trainers, in order to give them the knowledge and skills to conduct HIV/AIDS awareness programs. The company also started to provide counseling to people living with HIV and engaged in partnerships with governmental organizations and NGO’s. Due to the long-term commitment and willingness to share knowledge on HIV/AIDS, L&T was well respected throughout the private, governmental and NGO sectors within India.
So why does it matter and what can business do today? For one, even though the information is easily available to everyone, if businesses can get in touch with their local NGO’s they should. They should find ways to help out during these tough times. But for some business owners, if a second closure happens that could mean they may have to close their door permanently. And with the news of another wave, businesses may need to change the way they buy, sell and they may also need to look for ways to minimize interaction between people. Some business has started to stock up on essential supplies, they have moved their work entirely online. In-person customer service has been moved to the call center. In the coming days, retailers may start to increase the frequency of curbside pickup. Businesses that are focused on a single product or service may consider exploring new products and services.
All in all, the way we do business has changed and by the looks of things, these changes may stay for a long time, if not forever.
