IKEA’s stand in Russia-Ukraine War: Brand’s power to Influence

“Every action has an equal opposite reaction.” — Sir Isaac Newton.

The consequences of a decision we make are a crossroad every one of us must face at least once in our lifetime. The decision between the choices have varied impacts, we all need to make a choice while being aware and asking the right questions, giving clear justified reasons as to why we choose the path that we did.

A business is also an entity, an individual of its own. Decisions have to be taken, that would reflect not just upon itself but the entire society that is watching and listening. Not reacting, is also a choice. Businesses have the chance to express themselves and influence individualist thinking more powerfully and firmly.

The Russia-Ukraine war is one such unique situation for businesses to express their values, character, belief to the world in recent times. The war has caused much damage. People without their beds and homes live under the subway. Nearly 50% of the businesses have been shut down in Ukraine and people are facing losses.

Would you as a leader still provide comfortable homes to the country that causes this destruction? Is it right to do so?

IKEA’S reaction — Questions behind them

IKEA has been a game-changer in the furniture industry. Hence there is no surprise that it has been the first among all furniture industries to pause all shipments in Russia as of last week Thursday. The brand has decided to pause all sourcing from Russia and Belarus and shut down its stores in Russia.

IKEA has over 17 stores in Russia and IKEA is the 10th biggest market in retail sales. To translate, it makes up 4% of its trade which is 1.98 billion. It was the decision is huge and I believe so is its impact.

Their statement read the following — “The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia.”

As great as it sounded in the beginning, did they pause their business trade for creating impact and taking a stand for people suffering, or was it for their convenience and convenience alone? And if it is the latter, do they have to be held responsible?

Questioning the reasons behind the reaction

A stand has been made, but I find the statement to be confusing and a little too convenient. To read between the lines, I find that IKEA hides between vague and generalized words such as “disruptions in the supply chain” and “temporarily”.

While I do understand that a business having as much weightage in its profits taken away from a more permanent decision it may take. I also believe that a business as huge as IKEA can afford to take the bite of the loss and be the leader to act more than the bare minimum.

The statement of IKEA makes me wonder where they stand. They seem to support Ukraine during this crisis while stating this decision was taken more so by the supply chain issue they are facing, and it is ONLY temporary.

Nobody should be able to get away with making mistakes without facing consequences. It is important to make it your business to stop wrongs if you have the power to influence.

Power of Influence to fight the world

While many would appreciate IKEA for taking charge and being a leader not just in its industry but for others as well. It is just that, I hold more expectations from the brand.

To influence one person is a big deal. A brand as huge as IKEA speaks for millions. The power IKEA has is tremendous. I hate people’s suffrage and maybe Russian commoners are not at fault in this crisis, but it must be overlooked in my opinion, to support the greater good, to do damage control in the bigger picture.

My blog probably has a reach for a hundred people today if lucky. The ratio of power in influence should be taken with privilege, honor, and respect. I see it is essential that such power is not wasted. When such power is used to support the righteous side, it shows unified strength that adds to the consequences and fear on the other side.

I hope I leave you questioning, to read between the lines in the future, and to use the power of influence wisely.

Until next time,

Supraja.