2.2.6 Volunteers and Donations
Companies support disaster response and recovery activities in a number of other ways (Bin and Edwards 2009; Fernando 2007). Businesses send volunteers and donations to those in need. This may include cooks and waiters from restaurants to distribute food. It may include construction personnel to tarp damaged roofs and make temporary repairs. Heavy equipment operators may likewise be dispatched to assist with debris removal. Companies also give supplies to communities and individuals in need. For example, some beverage businesses deliver bottled water to hard hit areas. The private sector may also give or loan cell phones, flashlights, work boots, hard hats, gloves, generators, computers, vehicles, or anything else that is needed to help first responders and emergency management officials fulfill their responsibilities. For these reasons, the private sector is often a useful partner in disasters. They have impressive resources and unique logistical capabilities. As an example, Walmart was a major participant in the response to Hurricane Katrina. It could mobilize resources that the federal government did not possess or, in some cases, do so in a more time‐sensitive manner. Emergency managers should keep the private sector in mind if they require volunteers and donations in the aftermath of disasters (see Chapter 7).
2.2.7 Insurance Provision and Claim Settlement
Because disasters result in the loss of life and property, insurance companies will ensure teams of adjusters are present in the affected areas to settle claims (Kunreuther and Roth 1998) (Figure 2‐6). Local insurance personnel will begin the claims process immediately. And, in the days and weeks that follow, other personnel will work remotely or arrive to support the particular disaster operation in question. The services of insurance agencies are needed for several reasons. People are injured and they may accumulate large medical bills. The breadwinner in a family may have died, and future income for the spouse and children may be jeopardized. Cars and homes are often destroyed, and other forms of personal property may be lost or rendered unusable. For this reason, State Farm, Allstate and other insurance providers reimburse expenses, replace losses in order to help disaster victims get back on their feet. While there have been and remain concerns about the future financial viability of insurance companies in light of increased disasters (Benali and Feki 2017; Born and Viscusi 2006), these corporations are necessary to mitigate losses and facilitate recovery.
Figure 2‐6 Insurance companies will send numerous employees to disaster‐affected areas to begin processing claims. Micheal Rieger/FEMA.
2.2.8 Utility Restoration and Community Reconstruction
Businesses are overwhelmingly responsible for the infrastructure that is impacted by disasters or terrorist attacks (Hayes and Ebinger, 2011). Major windstorms, earthquakes and other hazards such as bombings damage and destroy utilities, homes and other buildings. Phone and electrical poles may be downed in a disaster. Water and gas lines can be severed. Hundreds and even millions of people may be left with limited or no services as we saw after the 2021 ice storm in Texas. Utility companies will therefore put their own employees to work or contract with others ‐ even competitors or those far from the affected area ‐ to get lines restored quickly. For example, Duke Power (based in North Carolina) sent workers to help Entergy (a New Orleans’ utility provider) restore service in the affected areas after Hurricane Katrina. In many cases, these employees will work long hours and around the clock in various shifts to reestablish utilities. Without their assistance, it would be impossible to respond successfully, speed up recovery or resume routine activities quickly. Electricity, for example, is required for emergency lighting, shelter operations and the sharing of public information. Power is also essential if homes, businesses and government facilities are to be rebuilt. The help of concrete companies, framers, plumbers and many others are likewise needed to rebuild communities after disasters. In addition, the private sector also rebuilds roads, bridges and other critical infrastructure. As can be seen, utility and construction companies play a vital role in rebuilding and economic development following a disaster. Coordination with these organizations is a must for emergency managers and other public officials.
For Example
The Role of Businesses after 9/11
Corporations were integral in the response to 9/11. After two planes were intentionally flown into the World Trade Center, businesses expedited the evacuation of the Twin Towers. They donated office supplies for the make‐shift emergency operations center on pier 92 after building number seven was gutted by fire. Companies provided software to help emergency managers track personnel and resources. The private sector helped control the perimeter around ground zero with fences. Medical care was performed by private hospitals. The local and national media informed the public of the events and how to seek assistance. As recovery proceeded, many companies worked to restore phone, electric and gas utilities. Others helped to clean up dust in buildings, remove debris, relocate those who had lost office space and submit payments for life insurance policies. Response and recovery operations could have taken place as quickly as they did in New York City without the substantial involvement of the private sector.
2.2.9 Vending of Goods and Services
Some companies will make a great deal of money when disasters occur. Sandbags, personal protective equipment, fences, portable sanitation units and heavy equipment are all needed during response and recovery operations. If available, businesses are willing to assist with these resources—especially when a fee can be charged. Corporations also seek profits in other ways in relation to emergency management. There are companies that sell computer programs and provide Internet services to communities so others can manage disasters effectively. Some sell software that is utilized to manage first responders and other resources (see Chapter 11). Engineering firms also play a role after a disaster as they inspect damages to buildings to determine if they are safe for future use and habitation. Other companies remove debris after disasters because there are lucrative contracts that result from federally declare disasters. When water or fire affects a building and its contents, companies like BMS Cat, Inc. send employees to the site to pump out unhealthy air, remove mold and soot, and restore vital documents and waterlogged computer equipment. As has been illustrated, businesses are vital partners in many fundamental disaster response and recovery functions.
Self‐Check
Why are businesses involved in disaster response and recovery?
How can the private sector help with emergency medical care?
Who can help you manage public relations?
Could insurance companies provide statistics on homes damaged in disasters and property loss?
Why would it be necessary to work with utility companies involved in recovery?
What else can corporations do to help you promote resilience after disasters?
2.3 The Nonprofit Sector
Nonprofit organizations are charitable agencies that are prohibited by law from gaining financially for their humanitarian services to individuals