Don’t pass the buck — Support the Supply Chain, NOT just a relief fund! (Part 2/3)

In the last article I spoke about how the Corona Virus has taken the whole business landscape by storm, the rising supply chain panic effect and how enterprises and large organisations can help combat the virus. Everyone needs to do their bit. This is not the time to sit still, we need to act now, more than ever!

A few weeks ago, our Prime Minister launched the PM CARES Relief Fund to combat Covid-19. Many corporations and top business leaders, have donated large sums of money to the Covid-19 Relief Fund. While it seems a great philanthropic gesture at first glance, are they really helping?

I understand this is a sensitive, controversial and touchy topic but is it better to donate ₹100 Cr to the Covid-19 Relief fund or channel some down the supply chain to improve the socio-economic condition?

For one, investing this money into the supply chain will ensure that you see exactly where this money is going and how it is being spent! There are hundreds of crores of rupees that have already been contributed to the fund, but the returns are not visible just yet. Infrastructure cannot be set up immediately, and while of course our nation needs to step up in terms of the facilities provided, that will take time. Contributing towards maintaining the supply chain and business as usual practices might look at a short term solution, but I assure you, it is something that will keep us all going in the longer run, especially small and medium sized companies!

I am not getting into the un-ethical business practices of some corporations to defer or waive payments of vendors under the guise of Covid-19 economic impact. Not only do some corporations claim tax benefits from donations to the Relief fund but also strangle the supply chain by holding onto their cash and stopping downstream payouts.

Let’s consider for a moment only the corporations who genuinely want to help the cause by donating money to the relief fund. Though this money will be used to feed the hungry and homeless due to Covid-19, could this situation be avoided entirely by fueling the economy instead? How about using some amount of the entire donation in keeping vendors, employees and internal teams afloat, rather than contributing the whole of it to the fund?

They say that you instead of giving someone a fish to eat, teach the person to fish and you’ve given them a livelihood. If these funds are channeled down the supply chain, we are ensuring the livelihood of downstream vendors and employees and ensuring a better and safer life for those who would have become the hungry and homeless!

Food for thought, pun intended!

Read part III of the series here: https://medium.com/@gautamrege/passing-the-buck-creative-ways-to-pivot-your-business-3-3-4b2a8f96b233