Commentary: Are companies pulling out of Russia as a publicity stunt?

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There is an alternative explanation for McDonald’s, Starbucks and other businesses closing their outlets in Russia, says this professor.

, they respond to sustainable development goals set by the United Nations, and they invest in and report on their environmental and social responsibilities.

Businesses of all sizes and in all sectors – coffee sales, metal manufacture, house building and public relations – are raising the value of their businesses while making a positive social impact at the same time.Decisions about doing business in Russia show how this works at a global level, where many corporations are as large as countries. Indeed, comparing the value of the largest companies to countries , 150 out of the 200 richest global entities are businesses.

Defending UNIQLO's decision to stay open in Russia, Fast Retailing President Tadashi Yanai said the Ukraine conflict "shouldn't deprive people in Russia of their basic need for clothing". This is why I’m inclined to see corporate actions against Russia as more than just good public relations. Business leaders are not immune to society’s concerns and neither do many of them want to be.

 

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