When the Russia-Ukraine War began with Putin’s actions in Russia in early 2022, many businesses worldwide faced ethical dilemmas. More than 1,000 well-known companies declared their intent to withdraw from the Russian market as a show of unity with Ukraine and opposition to Russia’s actions.
Regrettably, despite their early proclamations, some companies have failed to follow through on their promises (including Heineken, Philip Morris International and Unilever). “These companies are breaking their promises. They are functioning as wartime profiteers,” Yale professor Jeff Sonnenfeld told CNN in an interview. “It’s beyond disappointing. It’s shameful and unethical.”
This failure to act according to their stated principles can have severe ramifications for a company’s reputation—and can be worse than taking no action at all.
Reputational consequences include an erosion of public trust and believability. Additionally, it reduces staff and customer loyalty. This can lead to a drop in morale, affecting overall productivity and purchase motivation.
ReputationUS can play a crucial role in helping ensure you align your actions with your company’s stated values and principles. If you’ve reneged on a promise as a company, damage to your business reputation is not easy to repair. It requires careful planning and consistent efforts to rebuild trust among staff, customers and stakeholders. We can help you navigate the complexities of public perception, toward restoring your good image.
