Corporate Responses to Hurricane Katrina

On August 29, Hurricane Katrina made landfall on the Gulf Coast, destroying numerous homes and even entire communities in Louisiana, Mississippi, and Alabama.  The subsequent breach of levees in New Orleans left 80 percent of the city covered with water that was 20 feet deep in spots.  The approximately 100,000 residents who had been unable or unwilling to leave the city became part of a lengthy evacuation process.  One million Americans are now displaced, their homes damaged or destroyed, and an estimated 400,000 jobs have been lost as well.  This is the largest migration of Americans in 150 years.

Corporate response has been swift and compassionate, providing supplies and support where governmental failures left a gap.  Whether in the form of straight cash donations to the Red Cross, aid in the search for survivors, donations of necessities, donations of time from employees, or attempts to find, house, and re-employ displaced workers, many companies reacted immediately. 

Many companies with operations in the affected area have been trying to locate and aid their employees who might have been displaced.  For example, PETsMART (PETM) has been working around the clock to contact and assist nearly 200 employees in the affected area.  As of September 9, only about half of these workers were accounted for, and many of those who were found have seriously damaged or destroyed homes.  The company is helping these individuals in a number of ways, and has offered them employment in other PETsMART stores.  At the same time, PETsMART has been active in providing animal rescuers with supplies ranging from crates to food bowls, in addition to transporting and housing stranded pets.

Home Depot (HD) had staff from other regions ready to help if local employees could not.  After assessing three years of hurricane-related sales data, the company sent hundreds of trucks into the area with generators, tarps, water, cleaning supplies, flashlights, and insect repellent - items determined to be most important in the first few days.  Financial contributions included $400,000 for disaster relief organizations, $600,000 for long-term rebuilding efforts, and $500,000 to nonprofit organizations that build and repair affordable housing.  Company employees are expected to donate about 10,000 volunteer hours to hurricane-related projects, and Home Depot continues to offer hurricane-preparedness workshops for homeowners in vulnerable areas.

Health is a major concern for many of the hurricane victims.  As many of these people are poor, they must deal with diseases and conditions that are often associated with the medically underserved, such as diabetes, hypertension, and asthma.  Drug company Pfizer (PFE) has responded by donating $1 million for rebuilding hospital and healthcare centers, $1 million for relief organizations, and $1.3 million in human health medicines.   In addition, the company is working with area pharmacists to facilitate access to prescription drugs by displaced persons, and has supported animal rescue efforts with donations of flea treatments and veterinary medicines, while also paying for temporary licenses for displaced veterinarians who wish to practice in other states.