Stakeholders Over Scorched Earth—How Did Companies React in the Aftermath of the 2017 Portuguese Forest Fires?

The 2017 wildfires had devastating environmental, social, demographic, and economic impact in Portuguese rural areas. This paper sheds light on how companies acted in the aftermath of this environmental disaster, from a stakeholder perspective. Through twenty-six semi-structured interviews to managers and decision makers from local companies, results show that companies were affected in different ways and responses varied according to the degree of suffered damage. Companies had active roles in managing stakeholders’ relationships and expectations, by providing alternatives and quick answers to the crises that ensued the disaster. The response was effective, so workers could have a sense of normality and feel their jobs and income secure; clients would receive their orders; and suppliers their payments. State support was pivotal in the return to normality and triggered the acquisition and adoption of modern and resource efficient equipment. Companies made small long-term changes, but substantial mitigation procedures and preparedness remain to be adopted by companies, for managers believe that is a State obligation. We conclude that companies recovered faster from the disaster due to strong, positive connections with close and interdependent stakeholders.