Summary

Private-sector organizations play a significant role in disaster management. Small businesses and larger corporations employ a sizable population in our communities, provide essential goods and services, and are often an integral component of community development. Within the disaster management arena, private-sector organizations in coordination with government agencies provide valuable services in the aftermath of disasters. They make valuable contributions to relief and response through donations and volunteering. They also aid the recovery process through continued employment that provides economic stability to the surrounding community and provision of essential services like food, rebuilding and reconstruction services, and housing for displaced populations. Certain businesses may also significantly contribute to long-term disaster management functions like community disaster risk reduction. While small businesses often actively participate in community resilience planning and implementation, larger corporations also contribute toward sustainable development through corporate social responsibility policies.

However, to be effective partners in disaster management, businesses need to be first prepared to maintain continuity of operations in the aftermath of disasters. Having a continuity of operations plan and taking financial preparedness measures have been found to be effective for survival of businesses. Businesses may face other challenges when participating in disaster management actions—specifically, lack of resources and knowledge, as well as collective action risks associated with public–private partnerships. Additionally, not all private-sector agencies may be motivated to contribute toward disaster risk reduction practices. In fact, disasters can often create short-term positive economic impacts due to flow of external aid and increased demand for certain services like construction and housing—thus motivating businesses to choose short-term economic profits over long-term investments in disaster risk reduction. In summary, while the role of the private sector in disaster management is crucial, their involvement is complex and faces numerous challenges. The connection between businesses and community resilience is also less studied. It is therefore of value to examine the role of businesses as significant stakeholders in community disaster management, identify factors that motivate or hinder their participation, and discuss ways in which businesses can improve their own preparedness so as to minimize disruption in the aftermath of disasters.