CoronaVirus: How big corporations are reacting to it?

As the death toll due to the deadly coronavirus reached over 800, the World Health Organisation declared it a Public Health Emergency of International Concern. Coronavirus has shut forced the Chinese economy on its knees with many analysts failing to predict the growth of the nation after this pandemic. 

In an attempt to help out the Chinese government in containing the situation and saving as many lives as possible, big corporations have started showing their charitable side. Although corporate donations by financial companies are not uncommon during times of calamity, such as the recent Australian bushfires, considering the ongoing trade war between the US and China, these donations from the western companies show a mark of humanity. 

Many are calling these donations as a part of their Corporate Social Responsibility. This development also comes at a time when there is a rise in the influence of ESG investing, in which environmental, social and governance-related issues are considered alongside the more traditional measures of company performance such as profit or loss. A few corporations are extending their support just to score brownie points with the Beijing government, as they plan to take controlling shares in their local joint venture. 

While the first thing most of the corporations like Starbucks or IKEA did was to close their operations in China to prevent the virus from further spreading at crowded places, many even have pledged to donate cash and also make their services available for free of cost. The Red Cross Organisation is currently operating at the forefront combating this epidemic. Here is a list of corporations who came forward to help China in this test of time. 

Bill Gates and his wife’s Bill and Melinda Gates Foundation recently announced that it would commit $100 million to aid global detection, isolation, and treatment of the virus. This is a large jump from its earlier pledge of $10 million in January. In a statement, Gates Foundation CEO Mark Suzman said, “Multilateral organizations, national governments, the private sector, and philanthropies must work together to slow the pace of the outbreak, help countries protect their most vulnerable citizens and accelerate the development of the tools to bring this epidemic under control,” He further added “Our hope is that these resources will help catalyze a rapid and effective international response,”

Jack Ma, the second richest man in China and the Founder of Alibaba has pledged $14mn (approx. 100mn yuan) to efforts to develop a coronavirus vaccine through his Jack Ma Foundation. His company Alibaba had earlier also announced that it would establish a $144mn (approx. 1bn yuan) fund to help hospitals buy sorely needed medical supplies in Wuhan, the central Chinese city where the epidemic first emerged.

Chinese tech giants Baidu, Tencent, Huawei, and ByteDance, run by billionaires Robin Li, Ma Huateng, Ren Zhengfei, and Zhang Yiming, respectively have also pitched in to combat the coronavirus, according to Chinese press reports. Baidu, Tencent, and ByteDance, the company behind TikTok, together pledged $115 million (800 million yuan) to research new treatments and help authorities in the most affected areas, while Huawei contributed to the construction of Huoshenshan Hospital, a new emergency facility that’s being built in Wuhan.

Through an official press release, Delta Airlines have also announced that it would be contributing $250,000 to the Red Cross Society of China for immediate health and safety services related to the coronavirus outbreak. “Supporting the Red Cross Society of China allows Delta and our employees to help those who are affected by the coronavirus in China,” said Wong Hong, Vice President – Greater China. “As a global airline, we are committed to investing in local communities where Delta people and customers live, work and serve, lending a helping hand when it’s needed the most, and partnering with organizations who are hands-on with disaster relief around the world.”

Bigger corporations from Europe and the US like Microsoft, Dell, L’Oreal and Cargill have collectively donated roughly $1.4 million (10 million yuan) to the Chinese Red Cross and authorities in Hubei province battling the epidemic.

Apple CEO Tim Cook took to Twitter to announce that the iPhone maker would also contribute to efforts on the ground.“As people in China and around the world celebrate the Lunar New Year, we send our love and support to the many impacted by the Coronavirus,” Cook wrote. “Apple will be donating to groups on the ground helping support all of those affected.”

UBS has recently also said that its China business would donate US$1 million to “frontline responders” in China to help fight the spread of the deadly virus. David Chin, head of UBS’s Asia-Pacific investment banking operations and its China country head in a statement said, “This is a challenging time for many of our employees and customers, their families and the local community.” He further added that “It is a critical time for us to give back to the community and help authorities in the most affected areas.”

*Note: The story is based on data cited by Forbes in their various reports on the subject.