Although for the first time in more than two years concerns regarding the COVID-19 pandemic seem to wane, another new crisis has already emerged. On 24 February, Russian President Vladimir Putin announced that his country feels threatened by neighboring Ukraine, prompting a Russian invasion that sparked worries for most Western leaders. The military attack continued with bombardments in multiple Ukrainian cities, including the capital, Kyiv, and soon prompted a mass exodus of Ukrainian refugees. While President Joe Biden announced American forces will not directly engage in the conflict, he also clarified that the US and many other countries around the world will impose considerable sanctions on Russia.
“Together with our Allies, we’re providing support to the Ukrainians in their fight for freedom: military assistance, economic assistance, humanitarian assistance,” the President said. His decision, along with numerous other similar statements from Western leaders and Allies everywhere, also prompted numerous companies — including many of the world’s best-known brands — to exit the Russian market. While it comes as no surprise that the US and “other freedom-loving nations in Europe and the Americas” have decided to deal with the Russian aggression, decision-makers, managers, and shareholders are now wondering what actions should their companies take against Russia’s invasion, if any.
What do US consumers want?
While it is a known fact that most people living in the US and other Western countries condemn Russia’s actions against Ukraine, especially considering the humanitarian disaster, companies experienced some difficulties in deciding what are the best ways of openly opposing Russia. Many corporations have already pulled out of Russia completely after the invasion, causing the country to plunge into an economic abyss. Brands like Estée Lauder, IKEA, Spotify, H&M, Disney, Warner Bros., Canada Goose, Expedia, Adidas, ExxonMobil, Harley-Davidson, General Motors, Volvo, Apple, and many others have already suspended their businesses in Russia.
According to a new Gartner study, this is one of the best decisions to make in order to please their customers and protest against Russia’s invasion. The research proves that as many as 60% of the Americans questioned don’t want companies doing business in Russia. Moreover, it seems that US consumers hope their favorite brands will take concrete measures against Russia’s recent decision, like ensuring the safety of their workers living in regions directly impacted by the war, solving issues that could affect product supply and pricing, and making emergency plans in case the US is more directly impacted by the conflict.
Living up to the challenge
American consumers seem to have become more aware of the fact that companies around the world can choose to support or boycott governments. Although the influence these corporations actually wield over other global players, especially tyrants like Vladimir Putin, may be questionable, it is also considered appropriate to use. According to the Gartner study, only 16% of those questioned said they don’t believe brands should take action regarding the conflict in Ukraine. Likewise, only 31% of Americans think donating aid to help refugees is enough, while just 13% believe in making a public statement. Interrupting marketing activity, another traditional strategy is supported by just 11% of respondents.
The conflict in Ukraine may not only have immediate consequences for the people living in this country but also multiple ramifications throughout the world. First and most importantly, this invasion affects people’s lives, spreading terror and pain for those living or working in Ukraine. Because modern companies are now seen as game changers around the world, they are also expected to ensure the safety and well-being of their employees. But their responsibilities don’t end here. According to American consumers, they should also pull back from Russia, a country now using its funds to finance war and terror.
Building a safer future
“Putin has unleashed violence and chaos. But while he may make gains on the battlefield, he will pay a continuing high price over the long run,” President Biden said. The opposite is probably true for the companies that exited the Russian market, therefore opposing Putin’s invasion of Ukraine. Although this decision is difficult, and it will probably come with important costs, it will also prove to American consumers that their favorite brands stay true to their core values, even during hard times.
