The Role of Private Companies in Disaster Recovery

A recent study has shown that, when governments themselves cannot finance the recovery costs after an unexpected high-magnitude disaster, businesses can, and have, stepped in to fill the financial gap. Companies have been able to serve as a critical and effective stopgap in the aftermath of unexpected disasters in nations whose vulnerability is often underestimated, namely, countries that are normally seen as advanced and able to fend for themselves.
The study found that in large-scale unexpected disasters it is not uncommon for companies to give more aid than foreign governments, multilateral agencies, non-governmental organisations, and private individuals combined. However, a key drawback here is the fact that companies most often contribute to wealthier nations, where, it can be argued, companies have strong interests or operations. Other studies have shown a positive correlation between the share of a firm’s income from a given market and its willingness to foster social welfare in that market. This disparity raises the question of whether corporate disaster relief is truly satisfying a global social need.
Read more about the study