Overcoming Adversity with the Collaborative Partnership

You may not know or care how the tiny Island nation of Barbados recovered from a devastating economic crisis in the early 1990’s – but their behavior and decisions are a lesson to anyone interested in corporate social responsibility

The recession twenty years ago, like the one we’ve been experiencing, stalled economies around the world. For a country like Barbados that relies heavily on one industry – tourism – it delivered much more than stalled growth, however. It created nearly 25% unemployment. More than that, it created a kind of uncertain and panicked mood, which, historically, has been responsible for unrest, riots, and even coups by the military or drug lords.

Desperately needing cash, Barbados did what a lot of countries do in a similar predicament. It turned to the International Monetary Fund (IMF). Unlike its other Caribbean counterparts, however, which ignored input from their industry and workers, simply accepting the aggressive terms of IMF loans, Barbados looked at the situation from all perspectives. Through a remarkable series of open-minded conversations and by intentionally empathetic exchanges, Barbados did the exact opposite of what was expected. They formed a Social Partnership between industry and its workers. Transparency, not defensiveness, prevailed. The practice of hard negotiations and blame-gaming were traded for collaborations toward a shared goal.

As a 2001 Geneva International Labor Office report states, “as a result of the evolving social partnership, negotiations began to focus on new forms” of payment terms, in which the country would be able to dramatically reverse the effects of the crisis. In just five years, the IMF loan was repaid and the country was on its feet again. Despite the fact that unemployment remained in the double digits, agreements were established within the social partnership, which mandated that layoffs would prevent entire families from getting wiped out. One “bread-winner” would be able to keep his/her job for each house hold.

Instead of getting destroyed by the economic crisis of the 1990’s, Barbados became stronger. Today, it is a thriving country with a strong GDP and top performing schools. A recent NPR report, which compared Barbados to Jamaica, showed that even years later, the Social Partnership was a very smart, socially-responsible business decision: “In Barbados,” Alex Blumberg recently said, “almost every sixth grader can read. In Jamaica, a quarter can’t. The kids are just as bright, the teachers as hardworking.” But, Barbados is the one with the growing economy, and jobs for its graduating students.

How transparent and collaborative is your company? How often do you invite customers and other key stakeholders to share their perspectives on how you can overcome obstacles and/or rise to new challenges? Is that a radical thought?