Impact of COVID-19 on CSR and Sustainability in Global Business Case Study

Post-Covid-19 Pandemic CSR Challenges and Sustainable Development Goals

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Introduction: Impact of COVID-19 on CSR and Sustainability in Global Business

Corporate social responsibility has become an essential component of commercial activities as businesses become more aware of their obligations to their communities and the environment. However, the COVID-19 pandemic has posed formerly unthinkable difficulties, affecting economies as well as companies all over the globe. In the post-COVID-19 world, CSR reporting's future is critical because it can have a big impact on how companies move towards a future that is more environmentally friendly and sustainable. It can be analysed that post covid there is already an impactful effect on the political, social, cultural, and economic aspects. Therefore, in the wake of the COVID-19 pandemic, special attention should be given to the operations of businesses in the fields of corporate social responsibility (CSR) along with sustainable development (SD) sectors (Ranjbari et al. 2021). Sustainable growth goals are frequently pursued by businesses and supported as part of their organisational CSR. To assess the level of CSR commitment and execution of Sustainable Development during the initial year of the Covid-19 pandemic, the paper will employ a narrative research methodology to employ the various perspectives of post-Covid corporate responsibilities.

Research Questions

• What are the impacts of the COVID-19 pandemic on economies and resource competition?
• How have businesses changed to more sustainable and responsible businesses?
• What are the effects on international business development?
• How has business adapted to uncertainty and refocused on climate change?

Literature Review

Corporate social responsibilities of companies have been significantly impacted by the pandemic of COVID-19, which has brought attention to the requirement for increased responsibility, openness, as well as sustainability in corporate practices. This literature review represents the different ways through which the pandemic has affected the various facets of CSR reporting as well as the possibilities and difficulties that businesses will encounter in the years following COVID-19.

Impact of the Pandemic on Economies and resource competition of the Globe

With extensive interruptions in commerce, transportation, and consumption, the COVID-19 pandemic has left a significant impact on the world economy. This review of the literature will look at how the pandemic has affected both developed and emerging economies, as well as the possibilities and difficulties that they have faced. Through numerous layoffs, reduced expenditure, and a significant drop in growth in the gross domestic product (GDP), the pandemic has significantly hurt the economic systems of developed nations. According to the statement of Wang and Huang, (2021), the pandemic has caused the most severe global economic contractions in history after the global recession, with advanced nations seeing an average decrease in “GDP of 7.5%” in 2020. Moreover, the pandemic has highlighted the developed economies' risk factors for global unexpected events, including their inadequate readiness for pandemics and their excessive reliance on international corporations.

On the contrary, Sarkodie and Owusu (2021) state that the global pandemic has had a serious impact on economies in developing nations, which have struggled with several issues like scarce resources, shoddy health systems, and extreme poverty. According to the statement of Hörisch (2021), “The United Nations Development Program,” More than one hundred million individuals have fallen into severe poverty as a result of the pandemic, and developing country’s economic growth has also shown a sharp decline in “3.3%” in that year. Furthermore, the pandemic has increased inequality and led to the emergence of new ones, such as inequitable access to vaccinations and healthcare equipment.

Further, Oldekop et al (2020) state that governments and financial institutions have adopted previously unprecedented strategies to support the economies of their nations in response to the pandemic, resulting in an enormous shift in financial and monetary policy. According to Elavarasan et al. (2021), monetary policy actions in 2020 encompassed a combination of interest rate reductions and purchasing of assets, with global fiscal assistance totaling sixteen trillion dollars. On the other hand, Ibn-Mohammed et al. (2021) state these measures have also increased public debt and promoted rising inflation, making it harder to recover the economy in the near term.

Moreover, Sarkis (2020), states that due to the pandemic, there have been major impacts on productivity and employment, including extensive layoffs, shortened workdays, and adjustments to working conditions. In 2020, more than 255 million full-time employment opportunities were lost as a result of the pandemic, with women as well as young people being most severely impacted, claims the World Labour Organisation. In addition, Taghizadeh-Hesary et al. (2021), state the pandemic has sped up the transition to remote work and automated processes, posing significant challenges and opening the potential for both workers and corporations.

Sustainable business practices by business corporations to attain sustainability post-Covid-19 pandemic

Based on the analysis, it can be reviewed that the business corporations are changing towards more sustainable business practices to attain sustainability in their operations post-pandemic of covid 19. Through this literature review, the role that sustainable business practices play in achieving sustainability and how they can aid organisations in coping with the challenges posed by the pandemic have been highlighted. According to the statement of Norouzi (2021), the practices include circular economy, social responsibility, corporate social responsibility, and sustainable distribution networks, as well as sustainable and eco-friendly innovations. In addition, Ibn-Mohammed et al. (2021) state that a key component of sustainable business practices is the circular economy.

The analysis shows how companies can implement a circular economy strategy by cutting waste, recycling, and reusing materials, and creating products that are durable and recyclable. To support sustainable development, businesses must practice social responsibility. Further, Humphreys and Trotman (2022) emphasise how crucial it is for companies to reduce waste, pollution, and other adverse effects. Organisations must also consider how their actions affect society as a whole and the economy. On the contrary, Hassan et al. (2021), also highlights how crucial sustainable chains of supply are to achieving environmental sustainability. Businesses must make sure that their vendors follow sustainable business practices, such as social and environmental accountability. Further... suggests establishing standards for choosing suppliers and conducting routine supply chain audits.

Furthermore, sustainable business practices must include corporate social responsibility (CSR). It emphasises the value of CSR for minimising carbon footprints, fostering local communities, and promoting educational and healthcare programmes. According to the statement of Zhang et al. (2022), sustainable innovation is a critical component of sustainable business practices because technological advancement is a key component of sustainability. Business enterprises can use sustainable business models, create sustainably beneficial products and services, and invest in energy produced from renewable sources.

Post-covid effects on international Business development

International business growth has been significantly impacted by the COVID-19 pandemic. The global pandemic has had an impact on costs all over the world, causing interruptions to the supply chain, changing consumer behaviour, and limitations on travel.

According to the statement of Zhao (2021), The COVID-19 pandemic has significantly disrupted supply chains everywhere, and the distribution of goods and services has been hampered by factory closures and transportation constraints, causing hindrances and shortages in supplies. Many companies have had to review their sourcing plans and supply chains. Businesses with a high reliance on imports from the affected regions have seen vendor chain disruptions, whereas businesses with diversified distribution networks have performed better. On the other hand, Bai et al. (2021) state the COVID-19 pandemic has left a significant impact on the purchasing habits of consumers. Higher purchasing through the internet, deliveries to homes, and cashless transactions have resulted from lockdowns and pandemic protocol and limitations. Businesses have been forced to adjust these modifications by making investments in logistics, e-commerce, and internet marketing. Also, as per Fasan et al. (2021), the pandemic has driven up consumer interest in goods that are related to hygiene, wellness, as well as good health. In addition, there have been prospects for expansion in international business development despite the difficulties caused by the pandemic. The global pandemic has sparked the implementation of digital and e-commerce platforms, opening new channels for business customer engagement. In addition, according to Freze et al. (2023), the pandemic has increased demand for goods related to hygiene, health, and fitness. Companies that were able to adjust to these changes were able to develop businesses and grow operations. Furthermore, it can also be analyzed that Governments from all over the world have helped enterprises that were impacted by the pandemic. To aid in the survival of businesses, numerous nations have enacted monetary support, tax incentives, and other policies. Government assistance has been essential in ensuring that businesses have survived the pandemic and are still operating.

Business adaptation to uncertainty and refocusing on climate change

Corporations are having a harder time dealing with uncertainty, and one of the biggest problems they face is climate change. Businesses have turned their attention in the past few years to sustainable development, especially post-COVID conditions, as stakeholders call for greater responsibility from businesses concerning their effect on the environment. The study of literature aims to investigate how businesses have switched their focus on the effects of climate change and adjusted to unpredictability. According to the statement of Ciravegna and Michailova (2022), Companies have used a variety of strategies for responding to uncertainty, which includes scenario development and management of risks. Through planning for a scenario, businesses can evaluate possible outcomes in the future and create appropriate backup plans. Identification, evaluation, and prioritisation of risks as well as the implementation of mitigating strategies are all part of risk management (Norouzi, 2021). These tactics aid companies in foreseeing and coping with uncertainties, which include those brought on by the effects of climate change. Business organisations have refocused their efforts on sustainability in reaction to the increasing concern over the effects of climate change. On the contrary, Kumar et al. (2021) say that organisations have been implementing tactics to lessen their environmental impact and perform better. To lessen their dependence on petroleum and natural gas, many businesses are making investments in energy from renewable sources like wind and solar power. Furthermore, they are implementing energy-saving techniques and incorporating environmentally friendly methods into every aspect of their business, from acquiring raw materials to getting rid of waste.

In addition, Ikram et al. (2020) state that businesses are realising the value of cooperation and alliances in combating climate change. To create and put into action initiatives related to sustainability, lots of companies are working with stakeholders, such as communities in general, non-governmental organisations, and government agencies (Kumar et al. 2021). By working together, companies can identify optimal methods, share resources and knowledge, and forge a more sustainable future for businesses.

Findings and Discussion

Based on the findings of the literature review, it can be discussed that corporate social obligation and long-term sustainability practices are crucial, as the COVID-19 pandemic indicates. Before the pandemic, businesses that prioritised these procedures were better positioned to handle the social and economic challenges that the crisis triggered (Sigala, 2020). This study will discuss how business CSR and sustainability practices affect economic growth, rivalry for resources, the impact of climate change, and uncertainty following the COVID-19 pandemic. The beneficial impact regarding job creation as well as retention serves as one of the main effects of business CSR and sustainability actions on economies (Kumar et al. 2021). Customers are more loyal to businesses that adhere to these practices, and this can result in higher revenues and a steady workforce. Furthermore, they typically employ improved supply-chain administration techniques, which can aid in their ability to quickly respond to competitive changes and lessen the effects of economic unexpected events (Brammer et al. 2020).

However, it is not simple to determine how sustainability and corporate responsibility practices affect economies. It has been derived that the profitability of an organisation may be impacted by the additional costs associated with implementing such procedures. The pandemic additionally draws attention to the technological division, which can worsen social inequality (Bag et al. 2023). Businesses that engage therefore must coordinate their ethical behaviour and environmentally friendly initiatives with economic considerations. Furthermore, based on the findings of different literature, it can be discussed that sustainable business practices also have a significant impact on competition for resources (Ciravegna and Michailova, 2022).

The competition for resources can be significantly impacted by sustainability practices. These procedures can assist businesses in lowering their resource consumption, which can lessen competitiveness for resources (Huang and Farboudi Jahromi, 2021). Therefore, firms that place a high priority on sustainable production techniques are more inclined to come up with novel ways to address shortages of resources, such as identifying new applications for recycling and reusing materials.Concerns exist, though, that CSR and sustainability initiatives might result in "greenwashing" or mostly cosmetic changes that fail to deal with the underlying causes of environmental damage (Kumar et al. 2021). As a result, it is imperative to confirm that these methods are sustainable rather than just being a ploy to attract customers.

One of the most important things to consider after a pandemic is how business sustainability practices affect climate change. By lowering businesses' carbon footprints and encouraging environmentally friendly manufacturing and consumption patterns, these practices can aid in reducing the effects of the changing climate (Hörisch, 2021). One of the most important things to consider after a pandemic is how business sustainability practices affect climate change. By lowering businesses' carbon footprints and encouraging environmentally friendly manufacturing and consumption patterns, these practices can aid in reducing the effects of the changing climate (Ibn-Mohammed et al. 2021). As a result, the extent of the climate crisis may not be adequately addressed by corporate actions alone. The path to sustainability must involve the participation of organisations such as NGOs, governmental authorities, and consumers. Moreover, the effects of CSR and sustainability initiatives may differ for communities that are vulnerable (Hörisch, 2021). Businesses that engage and invest in energy produced from renewable sources, which is further related to producing job opportunities, might also cause residential development or relocation.

The necessity of managing uncertainty has been made clear by the COVID-19 pandemic. CSR and sustainability initiatives can aid businesses in becoming more flexible and improving risk management (Humphreys and Trotman, 2022). For instance, businesses can lower their risk of interruptions in the supply chain and other risks by embracing sustainable practices. The ability of businesses to control uncertainty has a limit, though, and this must be understood. The pandemic has demonstrated that some risks, like a worldwide health emergency, are outside of a company's control. To build more durable systems that can handle uncertainty, businesses must collaborate with other stakeholders.

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Conclusion

Based on the analysis, it can be concluded that even though these actions have a great chance to benefit economies, resource competition, the environment, and uncertainty, they must be taken seriously and not just as a marketing ploy. Governments, non-governmental organisations (NGOs), and consumers must all play a critical role in building a sustainable future. Businesses must strike a balance between their social responsibility and sustainability practices with economic viability.

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