How brands are supporting Ukraine at these difficult moments
How it all started…
Following Russia’s takeover of Crimea in early 2014, armed warfare began in eastern Ukraine. The previous year’s protests over Ukrainian President Viktor Yanukovych’s decision to reject an agreement for deeper economic integration with the European Union (EU) in Kyiv were met with a violent crackdown by state security forces. President Yanukovych departed the nation in February 2014 after the protests grew more prominent, worsening the crisis.
Russian military took control of Ukraine’s Crimea area a month later, in March 2014. The need to preserve the rights of Russian people and Russian speakers in Crimea and southeast Ukraine was underlined by Russian President Vladimir Putin. After a controversial local referendum, Crimeans decided to join the Russian Federation, Russia legally annexed the peninsula. The crisis exacerbated ethnic tensions, and pro-Russian separatists in eastern Ukraine’s Donetsk and Luhansk regions conducted a referendum two months later to declare independence from Ukraine.
How it is going…
There was a substantial Russian military build-up around Ukraine’s borders in 2021 and early 2022. NATO has accused Russia of plotting an invasion, which the Russian government has rejected. Russian President Vladimir Putin has described NATO’s expansion as a threat to his country and urged Ukraine to be prohibited from joining the military alliance. He also advocated Russian irredentist views, questioned Ukraine’s right to exist, and claimed that Soviet Russia had unlawfully established Ukraine. Russia recognized the two self-proclaimed separatist governments in the Donbas on February 21, 2022, and openly sent soldiers into the region. Russia attacked Ukraine three days later. Russia has been widely denounced for its actions in post-revolutionary Ukraine, with many accusing it of breaking international law and infringing on Ukrainian sovereignty. Several countries and multinational corporations imposed economic penalties on Russia, Russian persons, or Russian companies, particularly after the invasion of 2022.
Should brands react to social and political issues?
Consumers, the public, and stakeholders can learn a lot about a company’s objectives and values based on how and when they respond to a crisis. The invasion of Ukraine by Russia last month is a perfect illustration.
Many companies, including Apple, Nike, and IKEA, have halted or terminated their activities and affiliations with Russia. The list is still growing. Some businesses, such as McDonald’s, Starbucks, and KFC, which have tens of thousands of locations in Russia, have yet to respond.
Ukraine Corporate Index
“The Ukraine Corporate Index aims to inform investors, customers, and citizens about whether and how their firms and brands are positioning themselves in the continuing war,” according to the website. Their goal is to “inspire these stakeholders to reconsider their investment and purchase decisions by applauding responsible firms while punishing irresponsible ones.”
Some real examples
Nike’s website currently says that it cannot guarantee product delivery to Russia, and therefore online and app purchases are temporarily unavailable in the region. It advises shoppers to visit their nearest Nike store.
Apple suspended all product sales to the country, saying it is “deeply concerned” about the invasion, and has paused transactions. Ukraine’s Vice Prime Minister Mykhailo Fedorov urged Apple CEO Tim Cook to “finish the job” and block Apple Store access in Russia.
The H&M Group has temporarily halted all sales in Russia. According to a business statement, stores in Ukraine have already been temporarily closed. The business said, “H&M Group cares for all coworkers and joins those worldwide who are asking for peace.”
Asos and Boohoo, both located in the United Kingdom, have halted sales in Russia.
Ikea is closing its stores in Russia, ceasing production, and suspending all imports and exports to the country. As a result of these decisions, Ikea has “guaranteed the job and income security for the immediate future” and will provide support to workers and their families in the region, according to the firm.
Under Armour has notified that all shipments to its Russian distribution channels have been halted. “We are proud to stand with Ukraine in Russia’s onslaught on their democracy. As a global company, we will do everything to support equality,” the company stated.
Should brands raise their voice more?
Brands that can empower their employees and consumers to support their missions (when their viewpoints coincide) will expand their reach tenfold and ensure that more people are aware of their impact.
Organizational stakeholders can work to establish better brands and promote change around issues that matter to their customer communities using techniques. In today’s divided socio-political atmosphere, brands that deliberately stake their footing on social media and use their influence to make a constructive impact will be most suited to succeed.
And as the famous Alexander Hamilton quote applies nicely here: “If you don’t stand for something, you will fall for anything.”
Consider this an invitation to figure out what your brand stands for!
Thank you so much.
