For an economy driven by compassion (A good time for business to focus on social issues)

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 For an economy driven by compassion (A good time for business to focus on social issues)

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Read more on - Polity | Economy | Schemes | S&T | Environment

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• Fragility and scale of pyramid: The Indian economic pyramid's bottom is laid bare in the pandemic's aftermath. More than 90% workers in India are in unstable jobs, and work as contract workers, part timers, casual labourers, domestic workers, etc. Income security is non-existent.
• Lockdown: The lockdown has hit them directly, and hit them hard. Their incomes have stopped instantly. When things open up, they may be penniless to afford anything.
• Open supply chains soon: If India has to deliver essentials to its communities, supply chains have to open up quickly now. 

1. Money also has to be put into people's hands or their bank accounts directly
2. So, large scale direct cash transfer is now needed, as the most effective help (rather than leaky PDS) - the JAM trinity makes it technically possible.

• PM's appeal: He has appealed to companies to keep paying the workers, formal and contractual, as long as possible. Many firms are doing that as well, showing their humane face. Corporates are torn between donating to the government relief funds, and helping their workers directly.
• Edelman Trust Barometer: This barometer has revealed that corporates have lost people's faith for a long time now, globally. People suspect corporates work only for investors, not people. Even corporate philanthropy is viewed with suspicion. People ask questions about staff welfare while money was being made.
• Time to act: Corporate leaders must act urgently and send relief to all those who worked for them. COVID-19 is tearing down economies everywhere and planning is needed now. The new economy must have place for everyone.
• Bifurcation: The global economy is undergoing a bifurcation. System shape is changing while components remain the same. So can we now build a new economic architecture for the world? From top-down to bottom-up, a new model is needed. CSR needs to go mainstream.
• Laws, governments, businesses: If businesses expect help from the governments, they cannot expect business as usual. Labour laws will change, and the lack of organising power of labour will need to go. Ease of doing business can no longer be about lower ease of living for workers.
• Summary : The time for businesses to reconfigure for a new economy has arrived.

Read more on - Polity | Economy | Schemes | S&T | Environment

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