Companies are facing increasing pressure to decouple from politically fraught regions, creating a dilemma for executives who must balance public opinion, employee morale, and long-term business strategy. This article examines six key lessons learned from companies that exited Russia after the 2022 invasion of Ukraine.
Increasingly, companies are being pressured to decouple from regions that customers, employees, politicians, advocacy groups, and even leaders deem politically fraught. This can pose a dilemma for executives, as research both shows that fast decision-making is vital, but some circumstances require deliberation and care.
Rising tensions between the U.S. and China, escalating turmoil in the Middle East, scrutiny over the climate-friendliness of the supply chain, and other similar issues are forcing companies into a new dilemma: how to manage business decisions that are driven not by profits nor a company’s own strategic planning but are based on moral and societal values. Pressures for decoupling from dangerous, politically fraught regions will make these situations more common.
Corporate Social Responsibility Geopolitics Business Ethics Supply Chain Management Crisis Management
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