Question

Germany has given Zambia a K370 million rapid response package to mitigate the effects of COVID – 19 (Coronavirus), especially on the vulnerable. The support is focusing on expanding social protection measures through social cash transfers and supporting health systems in combating the pandemic by procuring medical supplies like protective equipment, essential medicines, and enhancing testing and laboratory capacity (Tuesday, May 12, 2020: Zambia Daily Mail.)
In April, 2020, Trade Kings made a contribution of K155, 000.00 to the fight against the spread of COVID – 19 (Coronavirus) in Zambia. What justification do you think the company management should give or will give to the owners of the business for taking such a commendable action? Is there any Economic benefit in taking such an action? .
(Be constructive and Analytical in your justification)

Answer 1

The support is focusing on expanding social protection measures through social cash transfers and supporting health systems in combating the pandemic by procuring medical supplies like protective equipment, essential medicines, and enhancing testing and laboratory capacity by the German government support.

Trade kings support of k155 helps by providing money for poors in cashes providing fast moving consumer goods like package meal for migrant labor ,poor section etc. As lock down affect their source of income and they most dependent on daily wages. Trade kings support is helpful in distribution of mask ,sanitizer snd other things which helping in social protection or distancing measure.

Intially trade king company may be in loss as production activities are hampers and low demand in world economy in short run, but this type support of trade kings boosts consumer confidence in their social responsibility work and thus they have make good image among consumers and thus may be beneficial in long run as consumer attracted toward to its products more.This company also helping people through cash distribution and creating demand in the economy, which is helpful for FMCG COMPANY (trade kings) and other as a whole.They also competing their corporate social responsibility work and this also give benifit to the company in different dimension.