Caution | P&G Stops Marketing in Russia
P&G stops marketing in Russia as pressure on consumer brands intensifies.
Procter & Gamble, P&G, is trying to take a measured approach in response to Russia’s invasion of Ukraine, a crisis that has thrown global brands that operate in the region into a bind. P&G will suspend all media, advertising, and promotional activity in Russia in response to its invasion of Ukraine. Although it is freezing all marketing and promotional activity and culling its products, it’s still providing basic goods for Russian consumers, differing from a comprehensive freeze-out.
In a note to employees that was later published online, CEO Jon Moeller expressed his sympathy for the Russian people. “Our many Russian colleagues, and the people of Russia, face challenges and uncertainty for their futures that are also significant,” the CEO wrote. “P&G will continue to support them, but the situation necessitates important changes immediately and over time.”
The consumer packaged goods giant is also stopping new capital investments in the country, including a significant reduction of P&G’s product portfolio in Russia. Some brands like Tide, Charmin, and Gillette, these marketers will narrow their focus to health, hygiene, and personal care items people may need for a daily living now.
As one of the largest and most influential marketers in the world, P&G last week proactively suspended operations in Ukraine and enacted relief initiatives like evacuation assistance and providing food, shelter, and goods people may need daily for impacted employees and their families. P&G has already given a multimillion-dollar relief package consisting of cash and products like diapers to the International Federation of Red Cross, Crescent Societies, and other organizations aiding refugees in Europe.
Consumer brands these days are all feeling pressure to cut ties with Russia as the public expresses dismay over the Ukraine crisis. Hashtags like #BoycottCocaCola and #BoycottMcDonalds have trended on social media in recent days as those companies have remained in the region, per The Guardian.
P&G facing tough questions about how to move forward in Russia follows previous commitments to operating in the region. I think this is a really hard question to have a correct answer. Pulling out is rarely a black-and-white decision for all marketers. Shutting down plants, offices and the supply chain is complicated. The action of these companies can make Russia starve the regime of its resources. However, I think business is not the role that decides how global trade world, but the government. Government should be the one who sets policy and businesses follow that rule.
As one of the precedents who pulled out of Russia, this may test P&G corporate policies about where to draw the line for doing business in places facing geopolitical or human rights concerns. Or we can say that it will become harder for boardrooms to see things in the shade of gray.
