The federal government is bailing out many vulnerable industries as the economic impacts of Coronavirus are felt. Hospitality, travel, airlines, aerospace, food, retail and manufacturing are just some of the major sectors that stand to benefit from this assistance, with more possible in the weeks and months to come.
For business leaders, a financial stimulus will have immediate impact on managing the day-to-day response to the pandemic. Alongside those immediate decisions, executives will be wise to consider the long-term reputational impacts these forms of federal assistance will have on the business well into the future.
In a memo to clients, Purple offers the following key questions for executives to consider that will factor into reputational impact for companies and industries:
1. How vast and diversified do people believe the bailout was?
2. Was the problem beyond your control or a result of negligence?
3. What does it mean for the American economy and jobs?
4. What are your competitors doing?
5. What does your leadership say and what commitments do they make?
6. What are the terms of the bailout?
7. What are you doing for your consumers, stakeholders and communities?
8. How are you treating your own employees?
9. Are you indispensable?
For more, read the complete memo on The Reputational Impact of Accepting a Federal Bailout from Purple managing director Rory Cooper. If you have questions or want a sounding board on issues you are confronting in the COVID-19 health crisis, please don’t hesitate to reach out to Rory or another member of the Purple team.