Under second wave, firms put safety first

India’s largest consumer companies have put business targets on the backburner and are prioritising safety of workforce amid the raging pandemic, and have issued advisories on compassion taking precedence over business goals.Unilever global chief executive Alan Jope said in an earnings call on Thursday that with the human crisis unfolding in India, the company’s first reflex is to care for its people. “We literally are in the business of procuring hospital beds, oxygen supplies and ambulances for our people and their families,” Jope said.The maker of Lux soap and Taj Mahal tea said it added nearly half a million small stores to its online ordering app in the past year and that it helped digitised sales. "That's greatly helpful when our feet on the streets to take orders are restricted. Despite the public health and humanitarian crisis in India, we are looking forward to continued growth in the second quarter,” Jope said.The massive surge in Covid positive cases came at a time when Indian business had started recovering from the pandemic-induced slowdown, and large companies had firmed up plans to push distribution and new products in the financial year.Britannia managing director Varun Berry said the company is asking its sales workforce not to go to the market. “We don't care if our distribution drops. We will work harder and build it back, even if we are going to see a downtrend as far as our distribution is concerned.”Berry said companies have “no choice but to tread on the side of caution” as far as employees are concerned. “It's unfortunate that you build your distribution but then something like this happens. This just seems to be a very, very vicious wave of Covid-19,” he added.Amid curfews and curbs on operating hours at heavy caseload markets like Delhi-NCR and Maharashtra, companies are stepping up supply chain agility and reducing replenishment cycles by half.“At the moment, the safety of our colleagues is our key priority. In this context, we advised our sales teams — including in rural — to work from home. We have a tele-calling model which we are using right now. Our factories continue to follow the most stringent hygiene and safety protocols,” said Deepak Iyer, managing director at chocolate maker Mondelez India.Financial institutions have cautioned the impact on economic recovery from the second wave of Covid. The Indian economy is projected to grow 11% in the current financial year, the Asian Development Bank said on Wednesday, adding also that the current surge in Covid-19 cases could put the recovery at risk.Durables and appliances maker Samsung has issued advisories to employees that compassion is its top priority and PepsiCo and Nestle too prioritised employee health over business goals across all functions.“PepsiCo is de-prioritising non- discretionary work, so employees have more time to take care of themselves and their families. Compassion and empathy have taken centrestage and employee safety is number one priority,” a spokesperson at the snacks and beverages maker said.For multinational players, many of who had followed global guidelines last year to manage business amid the pandemic, the situation is different this time.“Unlike Covid One last year, which was a global crisis and MNCs were following global guidelines issued by their parent companies, the second wave is an India problem. Hence, we are issuing heightened domestic protocols to deal with the devastating crisis in the country,” said the chief executive of a large global company, requesting not to be named.

from Economic Times https://ift.tt/3vwelHw