Why do brands hide during disasters?

Under Section 135 of The Companies Act, 2013, companies are required to spend a minimum of 2% of their net profit over the past two years towards CSR. Yet whenever a natural disaster or accident occurs, brands are nowhere in the picture. 

While watching the gruesome unveil of the Odisha train tragedy, a strange ‘India’ insight came to the forefront. For ‘soft’ indulgences and luxuries, we are dependent deeply on private enterprise but for ‘hard’ disaster management, the otherwise maligned public utilities are our saviour. Including the NDRF, National and State relief funds and the deeply stretched administrative and healthcare infrastructure. We do not expect corporations to come to the party and frankly, neither do they. 

Odisha, for instance, is a major consumer goods market with leading FMCGs, local and glocal, doing brisk business. Instinct 1.0 for HUL or Pepsi could well have been the setting up of Disaster Relief trucks, offering beverages, snacks and necessary nourishments. For Reckitt with a health and hygiene portfolio, everything from Dettol to Harpic would be vitally useful. One only needs to think a little to imagine the possibilities. 

Globally there are a few recorded examples. Following Typhoon Haiyan, AT&T customers were able to make calls and texts to the Philippines at no extra cost. When towns have been affected by natural disasters, Tide employees roll out their mobile Laundromats and do residents’ laundry for free. Following the devastating earthquake and tsunami in Japan, Dell and Hewlett-Packard teamed up to help with communication efforts. 250 laptops and extra long-lasting batteries were shipped to the country. Following Hurricane Isaac, P&G gave out P&G ‘Purifier of Water’ packets, which turn unsafe water into drinking water in under 30 minutes.

It is important to note that marketing organisations have feet-on-street sales forces that are comparable to state machinery, in terms of depth and width. Therefore, local level intelligence and resourcing are well within their SOP and conjuring a parallel relief mission extremely feasible, if the intent exists. The money spent can well be shown as CSR and take pressure off some of the routine activities that companies must do, in the vein of fulfilling obligations. In turn, genuinely impacting folks and building Karmic and not just policymaker goodwill. 

Perhaps it is time to build a subset of CSR called CCR, Corporate Crisis Responsibility. Where entities doing business are compelled to partner the state in relief activities, as part of War Room protocols an audit mechanism is devised to assess the cost of their involvement. Which in turn qualifies as a CSR contribution and therefore part of the CSR kitty, not anecdotal but real. Corporate crisis responsibility is, in fact, an operational front end of brand purpose, the much-favoured boardroom indulgence of current times. 

So, if ITC is obsessed about putting India first in the context of a triple bottom line, then the company must have a proactive crisis strategy, just as airlines plan for disasters. Wherein a hotline collaboration with District Administration ensures a meaningful part in relief management, through the plethora of products. Airlines can do a lot, depending on whether tourists are stranded or lost, including price freezing and charter flights. Harpic could well have ensured the hygiene of toilets in the makeshift facilities, to prevent further health issues. 

Then, of course, the technology and logistics companies. The former to ensure a war footing mobilisation of services while the latter reaching essential supplies at their much-publicised pace. WiFi facilities, waiver of excess data consumption and the emergency installation of short-term infrastructure are just some preliminary ideas. OyoRooms are now present everywhere and offering special access to kith and kin or a resting zone for beleaguered relief workers would be much appreciated. I am not even getting to the pharma and healthcare space, for plainly the opportunities to add value to a nationalised setup are incredible.

Corporate crisis responsibility is indeed an idea whose time has come, for quite a while actually. It gives truthful meaning to the concept of CSR and ensures that it is community service and not just lip service. Perhaps ITC can take a leap in this matter, given their nation building-cum-business building credentials. Others will surely follow suit. 

Info@BestMediaInfo.com