P-POLITICAL FACTORS

“P” emphasizes the important role of politics in business. Considering that there is a correlation between regulated systems and free markets, and the fact that global economics supersedes domestic economies, the “P” in PESTEL requires organizations to weigh various threats and opportunities before expanding into new regions, product segments, or sales initiatives. Thus, political factors have direct impact on organizational decision-making process and may even help determine the location of corporate headquarters.[1]

The impact of COVID-19[2] on political systems is enormous; the pandemic has disrupted politics at domestic and international levels, having caused indefinite postponement of legislative activities, isolation or deaths of numerous politicians in many countries[3]. Elections were postponed due to fears of spreading the deadly virus, and this led to questions on the relative advantages of autocracy and democracy, particularly on state response to crises situations and the level of emergency preparedness[4].

The United States of America

COVID-19 is a ruthless killer[5]; the disease holds no political views, and its pathogens only aim to contaminate, spread and thrive in humans. On social policies (e.g. welfare policies), Americans are deeply divided by politics on matters relating to the handling of COVID-19[6]. According to an update from HealthDay/Harris Poll, Republicans are less likely to be worried than Democrats about the pandemic, thus, less likely to take steps to end the infection. Similarly, twice as many Republicans agree that America’s response to the COVID-19 pandemic is overblown – 52% versus 26% of Democrats, the survey from HealthDay/Harris Poll shows[7]. On the other hand, 8 out of 10 Democrats (i.e. 82%) said they “always” use facial masks when going out compared to 66% of Republicans. Twice as many Republicans also think there’s no need for restrictions on public gatherings (i.e. 55% versus 26% of Democrats)[8]. Thus, disregard for social distancing and COVID-19 guidelines was a major factor in the high number of deaths recorded across the United States[9].

The United Kingdom

COVID-19 timeline in the United Kingdom[10] shows successes and failures in governmental efforts to control and prevent the disease[11]. Political disruptions caused by COVID-19 raised serious concerns when Health minister Nadine Dorries and MP Kate Osborne tested positive to the virus. The surge in UK infection rate eventually led to the one-year postponement of local elections on 13 March 2020, a decision which remains Britain’s longest postponement of democratic elections. Fear of COVID-19 therefore led to the scaling of political activities in the UK[12], Welsh and Scottish parliaments, prior to Prime Minister, Boris Johnson’s announcement of the national lockdown on 23 March 2020. The PM and UK Secretary of State for Health and Social Care Matt Hancock, including Labour Party MP Angela Rayner (the Shadow Secretary of State for Education) and Chief Medical Officer Chris Whitty later tested positive to the virus during the lockdown[13].

In addition to the COVID-19 impact on stability of governments, a major policy issue in the UK started with different medical associations protesting corruption[14] and dangerously low levels of Personal Protective Equipment (PPE), which endangers patients’ health. UK ministers were blamed for failing to ensure availability of quality PPE, thereby exposing both patients and health workers to the scourging virus[15] — and the negative effect on employee morale, engagement, and productivity levels cannot be overemphasized. Britain has however surpassed other EU Member States in the number of people vaccinated against COVID-19, with a very high number of whistleblowing activities and employment litigations[16].

EU Member States

The Coronavirus pandemic exposed political disharmony among EU Member States. Spanish Prime Minister, Pedro Sánchez suggested a unanimous adoption of an effective response to COVID-19 in order to avoid the attendant political and economic crises[17]. The Italian Prime Minister Giuseppe Conte supported this idea with highlights on the consequence of negligence to the European project. Conte also stated that “the whole European project risks losing its raison d’être in the eyes of our own citizens”. But tax policies, trade regulations, and entry mode regulations are a major obstacle to the suggestions[18]. For example, Germany banned exportation of PPE and France restricted exports of medical equipment to other countries. Although the action from Germany and France attracted widespread criticisms, it underscores the ineffectiveness of EU as a political union[19].

Conclusion

The overall attitude of Americans towards COVID-19 containment and prevention is deeply swayed by their political leanings[20]. In the UK and many EU Member States, the issues hinge on poor governance and inadequate investment in the health sector. The emergence of COVID-19 has therefore raised political debates on (i) politicisation of beliefs about the novel coronavirus (ii) the effectiveness of existing whistleblower frameworks[21] and (iii) the availability of adequate mechanisms for international cooperation. In some cases, the pandemic has greatly undermined and destroyed the roots of democracy.

More here: https://academicscores.com/2022/07/26/a-pestel-analysis-of-covid-19/

dk58:


In some cases, the pandemic has greatly undermined and destroyed the roots of democracy.

There is a reason why since the pandemic ... communism is no longer mentioned by the champions of democracy. The very communist measures they have been condemning for years are the very measures they have been imposing on their citizens. Free speech ... the root of democracy... curtailed. Do not oppose the government views and directives on COVID-19 ... your right to free speech has been withdrawn....same as in communist countries.