A compassion-centric behavioral agency perspective for organizations in times of crisis

Abstract

In times of crisis, organizations face a dilemma: How should they balance between minimizing losses and surviving financially, and acting for the benefit of all stakeholders and of society at large? In theory, managers should balance between multiple demands, forgoing short-term profits to address human needs when necessary. But in practice, managers may face challenges in balancing demands during a crisis. Combining the stakeholder-agency and compassion perspectives in the context of crisis management, we present the compassion-centric behavioral agency in crisis (CCBAC) framework to address this theory-practice gap. We suggest three levers for organizations and policymakers to encourage this behavior from organizations: developing and using technological and innovation capabilities, paradoxical leadership behaviors, and employee well-being and generosity programs. Organizations benefit from the CCBAC framework because they become better positioned to maintain their long-term competitive advantage and positive organizational identity while contributing to the needs of society. Policymakers benefit from incentivizing such organizations because they serve as an intermediary to achieve outcomes for society at large. Throughout this article, we use the COVID-19 pandemic, responses to mass shootings, and other example crises to highlight the tension and opportunity within our “both/and” approach. We conclude that organizations can be compassionate even as they pursue profit and efficiency in the long run.