Whether backed by true altruism or promotion, many companies are competing to do good these days. Among these companies are GM that shifted their car production, and JP Morgan with $950 million in new loans for small businesses. Besides these corporate moves, there is also a transparency of the Twitter CEO and Wallmart CEOs’ personal touch. Contributing to these efforts, Infidia is doing good by enabling invoice financing to companies that do good.
Needed more than ever, as we are hitting another recession. Yet, this one is different than all before. The reason is the complete shift in human behavior. According to McKinsey & Yale, companies need to adapt to this change in human behavior. In doing so, they should analyze and build strategies for their consumers in these circumstances.
At the same time, companies should rethink their internal processes to survive during the crisis. Moreover, to align these survival tactics to the possibilities for their future growth. Sounds complicated? Well, it is.
However, with a bit of advice from those that survived the crisis, and the help of Infidia invoice financing – it is possible.
Companies Doing Good for the World
More astonishing than his $1 billion worth donations is that Twitter CEO makes them transparent via Google Doc. At this point, Jack Dorsey’s donation is ~28% of his wealth, gained during this tech innovator’s remarkable life. This is not a novelty for successful people, as most of them thrive for success, not money.
Since 2010, there is “The Giving Pledge,” as the group of people giving most of their wealth to philanthropy or charitable causes. However, the donation doesn’t have to be only monetary. In these rough times, one of the Wallmart CEOs wrote personal notes to his staff, recognizing their efforts.
In the transparent world of social media, these small acts of kindness could have an immense influence on consumers. It is because the future world might be different than it was today, and the “new normal” might outlast 2020.
Those that can craft products to fulfill the emerging needs will grow. Of course, we are not writing about the supply and demand discrepancy, but about the long-term gains. In this case, the quality of fulfilling these needs is more than providing a product. It includes doing good in all aspects of your business.
By the Deloitte 2030 Purpose report, those that communicate a clear purpose have a better future:
- These businesses can attract and retain talent
- Consumers seek their brand as it brings trust
- Partners offer non-financial and financial benefits
- More constructive dialogue with regulators
- They are in the focus of investors
- Transparency gets improved
- It is easy to engage and collaborate with customers
- More enduring basis of corporate identity
Doing Good for the Long-term Growth
Besides customer-centric behavior and culture of giving, there is a challenging task in front of many CEOs. Nowadays, they should steer the crisis thoughtfully and hold the course toward long-term growth.
By the Harvard Business Review, there are four responses that companies can take when the recession hits:
- Focus on prevention – defensive moves of avoiding losses and risks.
- Focus on promotion – offensive actions and investing more.
- Pragmatic companies– combine defensive and offensive actions.
- Progressive companies – the optimal combination of defense and offense.
Apparently, pragmatic and progressive companies look similar. However, these are quite different in terms of their approach. For example, pragmatic companies slash costs (firing workers) and invest only in the likely results (following the demand).
On the other hand, progressive companies cut costs only by improving the efficiency of operations. Similar to holding on to their people, their investments are in the long-term gains. In times when everyone sells, these companies are buying machinery and plants. Furthermore, these companies are investing in R&D to tackle some new opportunities.
Not a surprise that progressive companies make the best results in post-recession. It is because of their sustainable business practices and ethical approach to their employees and suppliers.
Infidia is Doing Good for Ethical and Sustainable companies
Moreover, investors are prone to invest in companies that follow ESG goals as being able to survive a crisis. By finding them more sustainable, investors are more willing to support them financially. Nowadays, ESG factors influence 60% of hedge fund investors’ decisions.
Mostly focused on providing finance by the banks, Infidia is expanding to other lenders, too.
Andrew Carnegie is one of the most famous philanthropists, known as “The Patron Saint of Libraries.” Even though the profit wasn’t the idea behind his support, knowledge is the most significant investment for any country. Today, 3500 public libraries he built are probably empty or practicing social distancing.
Filtered during the BlockStart sessions, Infidia chooses to support progressive, ethical, and sustainable companies. By identifying these and enabling financing for them, Infidia is doing good for the world.