https://drurymirror.org/2023/10/19/tg6v0wrsb4h In response to Russia’s invasion of Ukraine, many nations have come together in an unprecedented way to impose harsh financial and trading sanctions in a bid to cripple Russia’s economy. Along with the hope the economic pain will bring a swift end to an unnecessary war, there is a moral feeling of standing against the wrongdoings of Russia, which has led to an increasing number of businesses withdrawing or restricting operations in Russia. The operations are stopping, both in count and severity, as the Russians now must face the social impact of these cuts in business ties.
Many businesses are going over and above what the letter-of-the-law of the sanctions require. The reasons given by brands for ceasing or pausing operations in Russia are many. There is a complex set of factors at play, from taking a moral, political, and human position to support Ukraine to more practical, business-driven considerations, such as logistical, supply chain and manufacturing difficulties, financial constraints, rising costs, and trading conditions.
https://www.tuscaroracountryclub.net/iufs20gqf2 Another overarching – if less discussed – aspect is reputation: the reputational risk of continuing business as usual in a country that is a war aggressor is considerable.
Yale management and leadership professor Jeffrey Sonnenfeld wrote in Fortune:
Zolpidem Online Australia “Despite the cost of abandoning major investments and the loss of business, there is a strong reputational incentive to withdraw. Companies that fail to withdraw face a wave of public resentment far greater than what they face on climate change, voting rights, gun safety, immigration reform, or border security. A new Morning Consult survey reveals that over 75% of Americans demand corporations cut business ties with Russia after the invasion of Ukraine. These results show rare and equal support across parties and among independents.”
https://www.fesn.org/?gyt=pvyppudef Consumer Retail
Ikea did the same, but it will continue to operate its Mega shopping centers to ensure Russian customers have access to essentials.
PepsiCo said it would stop selling soda in Russia but would continue to produce dairy and baby food products there, calling it a “humanitarian” effort.
Ferrari on March 8 said it would suspend the production of vehicles for the Russian market until further notice.
https://nicomuhly.com/news/2023/qf8ufuwc06n Ford also suspended operations in Russia and said it would donate money for Ukrainian refugees. The company’s business in Russia is quite limited, with Ford having a minority stake in a joint venture with PJSC Sollers, which focuses on commercial van manufacturing.
https://drurymirror.org/2023/10/19/2csux4tbj Renault, one of the most prominent players in Russia’s auto market, temporarily idled operations at its Moscow plant in early March due to supply and logistical issues. It’s among companies with more entrenched Russian operations that might find it harder to navigate the crisis.
Toyota is halting production at its St. Petersburg plant that makes RAV4 and Camry models starting March 4 because of supply-chain disruptions, saying it was watching events with great concern for the safety of the people of Ukraine.
Volkswagen, whose auto brands include Audi, Ducati, Skoda, and Porsche, on March 3, said it would stop production at two factories in Russia and halt exports to the country immediately.
https://lavoixplus.com/index.php/2023/10/19/g08yninwu Google suspended advertising, including on its search and YouTube products.
https://www.mmjreporter.com/t8mped6hggn-43749 Sony, which makes the PlayStation video game console, said it had “suspended all software and hardware shipments” to Russia and the operation of the PlayStation Store in the country.
http://www.docstrangelove.com/2023/10/19/8wtyl13n American Express, Mastercard, and Visa cards issued by Russian banks will not work in other countries, and cards issued elsewhere will not work for purchases in Russia.
The Big Four accounting firms — Deloitte, EY, KPMG, and PwC — are pulling out of the country.
The consulting firm Bain said it would not work with any Russian business or the Russian government at any level — central, state, or departmental. McKinsey & Company said it would not take on any new work in Russia and stop work for state-owned entities and any government entity in Russia. Boston Consulting Group will not take on any new clients in Russia and has “started to wind down work where possible, it said.
Buy Brand Ambien Online Energy
Shell will exit its joint ventures with Gazprom, the Russian natural gas giant.
https://lewishamcyclists.org.uk/d9c419da59 Travel and logistics
https://fcstruga.com/uncategorized/fkios0e00 Airbus and Boeing have suspended the supply of parts, maintenance, and technical support services to Russian airlines. Boeing also said it had stopped buying titanium from Russia, a vital metal source for the aerospace industry.
https://haveaircustoms.com/hxs8ovi2hat American Airlines, Delta Air Lines, and United Airlines cut ticket sales partnerships with Russian airlines. All three airlines also stopped flying over Russia.
https://www.fesn.org/?gyt=igb8oamgyj7 Amadeus and Sabre, which provide ticket sales technology to airlines, cut ties with Aeroflot, the national flag carrier and the largest airline in Russia.
As communications leaders know all too well, in a world where emotions increasingly trump facts and nuance is dead, sentiment towards even much-loved global brands can shift quickly.
The team at Social360 has deep experience managing reputation issues for clients, acting as communications practitioners, and more than a decade of monitoring know-how. If you need help or have questions, please contact Alex Baker or Giles Brown or visit our website – www.s360group.com – for more information.