Times of crisis put intense pressure on CEOs and leadership teams. How do we maintain business continuity? How do we support employees and their families? How do we reset expectations with investors when the future is uncertain? And how do we make tough calls on layoffs, closures, return to work and other critical decisions with a higher purpose in mind?
I am encouraged by the actions of many CEOs who are putting the safety and wellbeing of their employees and the larger world community ahead of short-term profits. This signals that they deeply understand the value of taking care of all stakeholders and that the decisions they make in the short-term for the greater good will ultimately benefit their companies in the long-term.
Johnson & Johnson recently announced it will make its’ COVID-19 vaccine (in development now) available on a not-for-profit basis. This puts a stake in the ground and sends a message to others in the industry, who are expected to follow J&J’s lead. Johnson & Johnson Chairman and CEO Alex Gorsky is contributing half a million dollars of his own money to the effort to speed delivery of the vaccine, which begins human trials in September. An April 4th profile of Gorsky in the Financial Times also highlighted some of his personal leadership practices. For example, since the start of this crisis, he has started every video call by asking his colleagues to talk about something positive in their lives.
Golden State Foods Chairman and CEO Mark Wetterau is also an inspiring example. Mark wrote a letter April 17th to employees, customers and partners highlighting all the ways GSF employees are helping during this crisis. GSF, a global business, has a unique Foundation model which allows employees to fund and run the foundation at local levels. Among their many activities, the Foundation has fast-tracked grants for food banks across the U.S. and offered matching funds for 25 local Foundation committees. Hundreds of thousands of dollars have been donated by GSF employees. The company has redeployed tractor-trailers and equipment to transport surplus product across the U.S. to food banks nationwide. GSF chefs have planned and prepared hundreds of meals in GSF’s Chicago Innovation Center for families and local medical personnel at four local Ronald McDonald Houses. They are now working to figure out how all sorts of food sources, such as milk, which are currently being dumped back into the earth because of oversupply, can be captured, bottled, and redistributed to food banks.
On March 19th, Arne Sorenson, president and CEO of Marriott International, spoke directly to associates through a powerful and emotional video, a great example of clear communication in a crisis. Marriott is taking actions such as partnering with American Express and JPMorgan Chase to provide $10 million worth of hotel stays for medical professionals. Sorensen is also forgoing a salary for the rest of this year and cutting those of his executive team by 50 percent.
What are some common characteristics across these CEOs?
They have been committed to their purpose long before the crisis. And their employees and customers know it. The actions these CEOs are taking match what people have come to expect from them. All of this is leading to greater loyalty and flexibility from these important stakeholders, even during these difficult times.
They put their people ahead of themselves. It’s inspiring to see so many CEOs stepping into the frontlines to work alongside their teams and make financial decisions that will help keep employees whole as long as possible.
They are honest and transparent, even when the news is hard to hear. There is no posturing, “spinning,” or sanitizing of information. They don’t hide the truth.
They don’t let ego or competition get in the way of solutions. There are many examples of companies who typically compete, now coming together to find solutions during this crisis. From rushing the development of tests, treatments and vaccines, to rapidly expanding manufacturing capacity for ventilators and personal protective equipment, companies are setting aside competition and seeking ways to find solutions together.
The challenge of any business leader today is to preserve the long-term future of their business and do so in a way that models leadership through personal sacrifice, empathy for the challenges employees are facing, and compassion for the local communities where they live and work. The executives who make the right choices are building up a deep bank account of trust and respect. The executives who show only consideration for their own welfare or the company’s bottom line may forever lose the trust of their customers and employees.