Sonnenfeld, who founded the nonprofit Institute of Executive Leaders, said he received calls from CEOs asking “why we didn’t put them on the right list and what they need to do to clarify or take a stronger stand.”
On top of skyrocketing inflation and a plummeting ruble, Russians are left with a dwindling market: Prada stores have closed, TikTok has suspended operations in their country, and car companies including Rolls-Royce, Toyota and Volkswagen have stopped delivering cars to Russia. Even WWE, the wrestling entertainment company, has said it will cease operations there.
The story continues under the ad
The gutting of the Russian economy has shattered the image created by President Vladimir Putin of portraying himself as an all-powerful leader in control, Sonnenfeld said in a telephone interview with The Washington Post on Monday.
And with Russian state media echoing Putin’s portrayal of the war as a “special military operation,” Sonnenfeld added, the corporate withdrawal sends a tangible message that the attack is “not just a small military operation.”
Even among those on the list of “companies that have curtailed Russian operations,” some take a stronger stance against the invasion than others, Sonnenfeld said. According to the list, German chemical company BASF SE said it would “suspend new relations with Russia,” while other companies, including Apple and Chanel, closed stores or cut supply chains. FedEx is suspending all shipments to Russia, and major oil companies including ExxonMobil have said they will cease operations in Russia, leaving billions of dollars on the table.
While some companies may argue that leaving Russia will harm their employees, who have been sidelined by Putin’s decision to invade Ukraine, Sonnenfeld said “the idea is not to minimize the pain.”
The story continues under the ad
He said executives and board members should abandon the idea that “somehow there is a win-win solution” and recognize that forcing economic collapse on the Russian people is part of preventing a more severe outcome for them.
“This is one step away from open war,” he said. “This is the last try. You help these workers without having [the West] drop bombs and shoot them.”
Among those on the list of companies continuing business as usual are big brands such as McDonald’s, Starbucks and Coca-Cola. Sonnenfeld said McDonald’s was “a screaming anomaly that baffles all of his colleagues” as he continued to operate in Russia despite controlling more than 85 percent of his restaurants there, unlike companies like Starbucks who are thwarted. franchise obligations.
The story continues under the ad
A McDonald’s spokesperson did not immediately respond to a request for comment on its activities in Russia.
Sonnenfeld said he had compiled other lists of companies involved in issues such as gun security or former President Donald Trump’s false claims about the 2020 election.
“We have a history of seeing the value of business leaders speaking the truth and taking a stand,” he said. “CEOs need peer approval,” he added, noting that they often try not to be alone on issues or policies.
Cosmetics company Estée Lauder was on the list of those who operate in Russia. On Monday, he announced that he would close all the shops he owns and stop deliveries of goods to the country.