Seite - 235 - in VULNERABLE - The Law, Policy and Ethics of COVID-19

235Balancing Risk and Reward in the Time of COVID-19 remedied by damages? What if the costs of poor risk management decisions are not necessarily borne—at least not completely—by the corporation and its stakeholders? This mismatch between risk and reward points to the practical inadequacy of a reliance on conventional accountability mechanisms that apply ex  post when these are a poor substitute for ex  ante preven- tion. In this chapter, I draw on two contrasting stories of pandemic response by corporations to make the argument that the time is ripe for a bold response to this accountability gap—thus reframing the duty of corporate managers to act in the “best interests of the corpo- ration” to reflect the critical role that corporations play in protecting broader interests like public health. Setting the Stage: When Doing the Right Thing Is Imperative The emergence of a highly infectious virus to which no one is immune has thrust Canada, and the world, into an unprecedented situation. Government responses must be coordinated to contain the spread of infection until an effective vaccine is developed, but decisions are being made in the face of significant uncertainty about the virus and the efficacy of containment strategies. Moreover, the successful imple- mentation of these public health measures depends entirely on the willingness of individuals and organizations to abide by significant restrictions and to take proactive measures to promote safe behav- iours. In liberal democracies like Canada’s, encouraging voluntary compliance is vital;1 reliance on extensive recourse to coercion is both impractical and lacks legitimacy. Just like individuals, business organizations are being called upon to do the “right” thing. There is an unexpressed expectation that risk assessment decisions should extend beyond the usual frame of reference used by those who exercise corporate management duties. And just like individuals, how businesses are expected to “do their part” varies based on what they do. Some businesses have been asked to continue their operations because they are too important to close or provide essential goods and services. Others have been forced to suspend operations because they are not deemed essential and cannot 1. For a fascinating study of the critical role that social motivations play in support- ing voluntary cooperation, especially where this cooperation may be at odds with an individual’s personal interest, see Tom R Tyler, Why  People  Cooperate:  The  Role of Social Motivations (Princeton: Princeton University Press, 2011).