If the companies commit to pay the salaries and wages of their employees during the period of spread of the Covid 19 virus, despite the stoppage of production due to quarantine. Are these expenses considered operating expenses, losses or social costs?
For me, it is a net operational loss for the company, as nothing gets produced and sold to customers.
Yet, companies have social and ethical responsibilities towards their workers (especially long-term and loyal ones) that are neither legally exacted, nor stemming from a signed contract.
If some companies, however, chose to abide by these responsibilities and pay financial assistance to their work force during a crisis (instead of firing workers, as many financially unstable, or unwilling to pay companies do), a double loss is incurred - once, due to the reason stated above, and a second time - due to additional money being paid out to workers in spite of lack of productivity and sales.
Yet, in some industries (e.g. ones that can potentially solve issues related to the mitigation of the crisis), companies can temporarily restructure to maintain some productivity and alleviate the situation.
:)
