Productivity beyond the pandemic
Advances in technology, the organisation of production and accumulation of capital mean a worker today produces in two weeks what a worker of the past would have produced in a year.
In the UK, this great engine of growth appears to have slowed, if not stalled altogether. From 1971 to 2007, output per hour worked grew reliably, averaging an annual rate of around 2.3%. Since productivity began to recover after the global financial crisis in 2009 up until 2019, output per hour worked has grown at only 0.5% a year.
What marks the Covid-19 crisis out from those of the last 80 years is that Western governments appear fiscally unconstrained – they can borrow at negligible cost on a vast scale. The economic and political difficulties of raising taxes or cutting public expenditure suggests that, bond markets permitting, governments are likely to run sizeable deficits well into the recovery. The question is how this activism can be harnessed to raise productivity and long-term growth.
Develop leadership with corporate consciousness
Originally developed for an American audience, these five key takeaways on how to make your organisation really act on its social commitments can also translate well to a British context. What can businesses do to develop corporate conscience and lead the pack?
1. Take a Stand
More than half of most people across a broad spectrum of ages want organisations to take a stand on causes of importance. It's not only important socially but critical for the corporate bottom line.
2. Decide what your organisation cares about
As an organisation, you should have a values aligned approach in defining which issues to be vocal about and others that are not relevant to your mission.
3. Develop a sound social impact strategy
Keep it simple at first, and don't try to boil the ocean as to what issues your company will champion. Ultimately, the most important elements to get right are being authentic, consistent and committed
4. Be consistent, active and accountable
Share progress inwardly and outwardly so all parties can see developments, setbacks and/or triumphs. This creates accountability and demonstrates commitment.
5. Engage customers and employees
A more fulsome strategy includes involving others in causes the organisation is committed to by enlisting the philanthropic sensibilities of their customer and employee base.
Financial reporting in the aftermath of Covid-19
Covid-19 continues to significantly impact the global economy. As local markets start back up and businesses resume their activities, the challenge emerges of assessing, quantifying and disclosing the pandemic’s actual impact on financial statements.
This article presents considerations for both interim and year-end financial statements, looking at the key areas to focus on, and the actions that need to be taken.