GARY RYNHART: Firms must be sustainable and resilient to thrive in today’s global markets

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GARY RYNHART: Firms must be sustainable and resilient to thrive in today’s global markets
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The Covid-19 pandemic showed the value of building back better

About 15 years ago the International Labour Organisation developed a policy framework to support governments in promoting and developing “sustainable enterprises”. This framework sought to put in place enabling environments for enterprises to grow and create jobs by integrating the three components of sustainable development — social, economic and environmental. Rereading it now, I find the framework is probably more relevant today than in 2007 when it was developed.

Additionally, market disruption trends driven by technology innovation or globalisation directly disrupt economic sectors and businesses, especially the smaller, less adaptive ones. Efforts and responsibility at company level are key, but firms need to be supported by governments. The ILO has been working with McKinsey to develop a framework to help policymakers manage crisis-related shocks and build resilience. The measures are shaped around two pillars. First, crisis management — to mitigate and relieve small firms of stress brought on by sudden shocks and accelerate their recovery.

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