The Fort Worth Press - Pressure mounts on US companies in Russia

USD -
AED 3.672498
AFN 66.278316
ALL 82.286767
AMD 381.405623
ANG 1.790403
AOA 917.00002
ARS 1450.564198
AUD 1.514417
AWG 1.8
AZN 1.697242
BAM 1.668053
BBD 2.013416
BDT 122.25212
BGN 1.66944
BHD 0.37697
BIF 2955.517555
BMD 1
BND 1.290672
BOB 6.907492
BRL 5.527305
BSD 0.999672
BTN 90.191513
BWP 13.210404
BYN 2.933001
BYR 19600
BZD 2.010516
CAD 1.379755
CDF 2263.999888
CHF 0.795601
CLF 0.023236
CLP 911.550398
CNY 7.04125
CNH 7.036685
COP 3863.71
CRC 498.08952
CUC 1
CUP 26.5
CVE 94.043045
CZK 20.766403
DJF 178.015071
DKK 6.37969
DOP 62.81557
DZD 129.63396
EGP 47.590799
ERN 15
ETB 155.468002
EUR 0.8539
FJD 2.283699
FKP 0.746974
GBP 0.747803
GEL 2.68995
GGP 0.746974
GHS 11.495998
GIP 0.746974
GMD 73.501218
GNF 8739.594705
GTQ 7.656257
GYD 209.143749
HKD 7.780745
HNL 26.330401
HRK 6.432501
HTG 130.92649
HUF 330.323966
IDR 16735.5
ILS 3.210505
IMP 0.746974
INR 89.672804
IQD 1309.515179
IRR 42125.000006
ISK 126.029813
JEP 0.746974
JMD 159.951556
JOD 0.708992
JPY 157.294501
KES 128.901985
KGS 87.449865
KHR 4003.445658
KMF 420.999696
KPW 899.985447
KRW 1478.840165
KWD 0.30732
KYD 0.83301
KZT 515.774122
LAK 21648.038141
LBP 89518.671881
LKR 309.300332
LRD 176.937412
LSL 16.761238
LTL 2.95274
LVL 0.60489
LYD 5.418406
MAD 9.162342
MDL 16.859064
MGA 4495.599072
MKD 52.551585
MMK 2099.831872
MNT 3551.409668
MOP 8.012145
MRU 39.906011
MUR 46.149573
MVR 15.459728
MWK 1733.41976
MXN 18.031765
MYR 4.077032
MZN 63.910399
NAD 16.761166
NGN 1457.903065
NIO 36.785119
NOK 10.18185
NPR 144.308882
NZD 1.74121
OMR 0.384499
PAB 0.999663
PEN 3.365814
PGK 4.308816
PHP 58.725048
PKR 280.102006
PLN 3.59715
PYG 6673.859367
QAR 3.645474
RON 4.3458
RSD 100.228971
RUB 80.525675
RWF 1455.461927
SAR 3.75079
SBD 8.140117
SCR 13.762717
SDG 601.497808
SEK 9.316225
SGD 1.292755
SHP 0.750259
SLE 24.096097
SLL 20969.503664
SOS 570.329558
SRD 38.67796
STD 20697.981008
STN 20.895879
SVC 8.747159
SYP 11057.107339
SZL 16.766099
THB 31.460123
TJS 9.231602
TMT 3.51
TND 2.921974
TOP 2.40776
TRY 42.80983
TTD 6.783
TWD 31.5475
TZS 2494.99991
UAH 42.222895
UGX 3571.01736
UYU 39.172541
UZS 12055.48851
VES 279.213402
VND 26312.5
VUV 121.400054
WST 2.789362
XAF 559.461142
XAG 0.015229
XAU 0.000231
XCD 2.70255
XCG 1.801636
XDR 0.695787
XOF 559.458756
XPF 101.714719
YER 238.450186
ZAR 16.77835
ZMK 9001.204375
ZMW 22.742295
ZWL 321.999592
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    0.0000

    80.22

    0%

  • CMSC

    0.0300

    23.29

    +0.13%

  • BCC

    1.4100

    77.7

    +1.81%

  • CMSD

    0.0000

    23.28

    0%

  • AZN

    0.7500

    90.61

    +0.83%

  • NGG

    -0.7700

    76.39

    -1.01%

  • GSK

    -0.4200

    48.29

    -0.87%

  • BCE

    -0.3000

    22.85

    -1.31%

  • RYCEF

    0.5400

    15.4

    +3.51%

  • RIO

    0.4400

    77.63

    +0.57%

  • RELX

    0.0900

    40.65

    +0.22%

  • JRI

    0.0000

    13.43

    0%

  • VOD

    -0.0100

    12.8

    -0.08%

  • BTI

    -0.1300

    57.04

    -0.23%

  • BP

    -1.1600

    33.31

    -3.48%

Pressure mounts on US companies in Russia
Pressure mounts on US companies in Russia

Pressure mounts on US companies in Russia

As a growing list of US multinational businesses -- from Apple to Levi's -- suspend activities in Russia, some companies choose to stay in the country despite the risks to their reputation.

Text size:

But they face mounting pressure: calls for repercussions are appearing on social media under hashtags such as #BoycottMcDonalds and #BoycottPepsi -- two companies that received letters from New York state's pension fund chief.

These companies "need to consider whether doing business in Russia is worth the risk during this extraordinarily volatile time," Thomas DiNapoli said in a statement.

DiNapoli has also sent letters to snack manufacturer Mondelez; cosmetics groups Estee Lauder and Coty; and brokerage firm Bunge.

A team from Yale University that keeps a list of companies with a significant presence in Russia said about 250 have announced withdrawal from the country since it invaded Ukraine.

The group said the withdrawals call to mind "the large-scale corporate boycott of Apartheid South Africa in the 1980s."

Many US companies still in Russia remain silent. Brands including McDonald's, Bunge, Mondelez, Estee Lauder, Kimberly-Clark and Coty did not respond to an AFP request for comment.

- Legitimate reasons -

Starbucks said that its 130 coffee shops in Russia are owned by a Kuwaiti conglomerate. The coffee giant has pledged to donate any profit from its business in Russia to humanitarian efforts in Ukraine.

Yum Brands said its approximately 1,000 KFC and 50 Pizza Hut restaurants in Russia are nearly all operated by independent owners under license or franchise agreements.

It announced Monday that it "has suspended all investment and restaurant development in Russia."

Some businesses may have legitimate reasons to stay, several experts in ethics and communications strategy told AFP.

Companies may be hesitant to leave because they make essential products such as pharmaceutical ingredients, said Tim Fort, a professor of business ethics at Indiana University.

"This is a time when (you've) got to pick your side, and it doesn't strike me as this being very difficult to pick," he said.

"Any one company leaving the country isn't going to tip the balance... but there's a cumulative effect," Fort added.

- 'What's going on?' -

A company as well-known as McDonald's can have influence in Russia at a time when the general population has almost no access to sources of information other than the official messaging on the invasion.

"Russians (will) be able to survive without the Big Mac, but (ask) why is McDonald's closed? What's going on? It's a more powerful signal in that sense," Fort said.

Richard Painter, a professor at the University of Minnesota, warned of "serious risks for American and Western Europeans who are currently in Russia.

"These companies should do everything they can to bring their people home," he said.

Painter said companies "should think about the message that needs to be emphasized: that Russia cannot do this to Ukraine... while at the same time participating in the international economy."

The economic sanctions imposed on Russia with broad consensus by Western governments "is really the best way to deal with Russia, as opposed to a military confrontation," the former White House ethics lawyer said.

Some companies may be betting the criticism will rain down in the short term but ultimately subside, said Brian Berkey, who specializes in corporate ethics at the University of Pennsylvania.

Other crisis situations, such as the Israeli-Palestinian conflict, led to calls for boycotts against certain companies -- but without much effect.

Support for such initiatives is not always unanimous, but "mostly people in the United States and in Europe are unified in thinking that what Russia is doing is clearly unacceptable," he said.

Mark Hass, a communications specialist at Arizona State University, said the economic interest of companies that have chosen to stay in Russia "outweighs the reputational one."

McDonald's, for instance, gets nine percent of its revenue and three percent of its operating profits from Russia.

But "if social media starts identifying you as a company that's willing to do business with an autocratic aggressor, who's slaughtering thousands of people in the Ukraine, you're in big trouble," Hass said.

"And it will hurt business more broadly than just in Russia."

F.Carrillo--TFWP