Have you ever been on a trip to a Disney theme park? Well due to coronavirus those experiences are being put on hold for many individuals around the globe. The articles that I read are about The Walt Disney Company and its overall response to the coronavirus situation. I chose to read about this because my industry for the project is the tourism industry and Disney has a lot of amusement parks, attractions, hotels restaurants, and stores around the world that traditionally generate a lot of revenue for the Walt Disney Company as an entity.
Due to COVID-19 all of the Disney parks, resorts, and stores will be closed until further notice and that all employees would be working from home. Disney has made two announcements in relation to CoronaVirus in the last few weeks. The first announcement came out on March 14th when the Walt Disney Company first announced the closure of Disneyland and Disney World through the end of March which has since been extended. When the closure was first announced they noted that all of the food leftovers from Disneyland would be donated to nearby food banks. They also release some content early for their Disney+ streaming application because they knew that a lot of people would be sitting on their couches for an extended period of time. The second major announcement goes in to further details about the financial implications of closing their parks and closing off their tourism revenue streams. The Disney Parks make over 26 billion dollars for the company annually which makes up about 37% of The Walt Disney Company’s revenue each year which is certainly a significant loss if the parks remain closed for a long period of time. On March 27th, when the indefinite closure was announced for the Disney Parks the Disney stock prices dropped 8.5% all in that one day which is a huge loss.
This connects directly to the class discussion because we have often talked about the role of a business and society and how and if they act ethically and appropriately to be better citizens of the world. In this case, The Walt Disney Company is acting in the best interest of all of its stakeholders by limiting human contact as much as possible by closing parks and offices. They are also donating food to people in need and offering up movies like Frozen 2 ahead of its scheduled digital release. I personally think that Disney has set a great example of being a company that also satisfies the qualities being a global corporate citizen.