when is the first companies multinational companies announced closing their businesses in response in Russia Military occupation of Ukraine Launched by Vladimir Putin Jeffrey Sonnenfeld was a little surprised. “I’m surprised that there are a few among these top dozen companies. technological, oil companies and their signature professional servicesyes These are never the first to get wet for social justice or human rights. Rather, they have reputation issues and tend to follow the lead of others,” she says. Yale University Institute for Executive LeadershipIt is located in New Haven, Connecticut.
Sonnenfeld knows what he’s talking about. He has spent nearly half a century trying to persuade the executives of the world’s largest companies of the benefits of the world’s largest companies. Corporate Social ResponsibilityA kind of governance model with a human face and ethical foundations that contributes to the common good of society. A concept that breaks and goes away forever neoliberal orthodoxy announced on his day Milton Friedman“Companies’ social responsibility consists of maximizing their profits,” he said.
He chose to contact Sonnenfeld. business boycott pioneers. I wanted to learn about their goals and strategies. leaving the Russian economy it also began to create a list of the locations of each of the multinational companies operating in Russia. “I realized that their main concern was to give equal credit to companies and start-ups willing to give up billions of dollars of business in the media. smoke screens with short descriptions without concrete measures” he assures. Among former companies, for example shell anyone BPRussia’s largest foreign investor, which announced plans to divest its 20% stake in the Russian state giant Rosneft It cost $25 billion.
Notes for multinational companies
With the help of a large team of Yale researchers, Sonnenfeld decided to refine the list of big companies that would score points. “Extraordinary” for companies completely withdrawn from Russia; “Important” for those who have temporarily suspended their activities; “good” for partial withdrawals, such as PepsiCo’s, which maintains its dairy business in the country; “Sufficient” for the most modest announcements, such as discontinuation of future investments; and “Stress” for companies still in the country. Since Benetton a Giorgio Armanifrom the french Total chinese style Ali Dad or Spanish Acerinox or Talgo as listed.
This list began to circulate rapidly all over the world. business back roomfrom boards of directors to trading floors Wall Street. And the wheel soon reached gigantic proportions. When the list was announced on February 28, dozens of companies that reacted to the occupation by reducing their activities in Russia, More than 1100 six months later, the one which… 313 completely left the country. “There has never been anything like this in the history of the world economy. The closest is the exit door. apartheid south africaThe fact that some 200 companies participated in the boycott is a milestone that decisively contributed to the downfall of the regime,” says Sonnenfeld, who organizes a meeting forum for CEOs of major American industry every two years.
Awarded in Markets
Beyond group pressure or fear of being chosen as co-authors of the study Putin’s war machineThere is another factor that could help shape the business boycott. “Companies that do the right thing are rewarded,” Sonnenfeld says. “Since he announced he was leaving Russia, the value of his shares have increased, perhaps due to the operational, financial or reputational risk of his stay. The rest were penalized by the markets.” This appreciation of its shares, $59 billion According to The Wall Street Journal, multinational companies operating in the country lost due to depreciation of their assets or revenues from sales.
this Multinational companies with more than 200 workers in Russia They became minorities on both sides of the Urals, which continued to function normally. only 244 leftaccording to the list Chief Executive Officer Leadership Institute Sonnefeld is the most comprehensive in existence. Available from all continents, but by industry, these are middle east airlines The most stubborn to leave Russia. This liked companies emirates, egyptian weather anyone etihad They gained a comparative advantage over their Western rivals who could not fly over Russia, which meant that the duration of some of their flights was significantly increased.
Cost of business flight
for Russia, company closing cost internationally difficult. One thousand companies in the country cut their operations, according to estimates by Yales researchers. directly employed about 5.5 million workers, about 12% of Russia’s working population. “Putin is trying to persuade us. to escape Business It has had little effect and may even be useful, but it is wrong. Any economist knows that if 5.5 million direct jobs are lost, the indirect ones will be tripled”, explains Sonnenfeld. “The effect is devastating. Employment skyrocketed, so did inflation. They can no longer finance their deficits because nobody is buying Russian debt anymore because of the sanctions.”
this The real state of the Russian economy It’s getting harder and harder to solve. And the Kremlin stopped regularly making public and reporting to the International Monetary Fund.important statistics such as foreign trade data, monthly hydrocarbon production or capital inflows and outflows.