Unilever’s chief executive plans to re-evaluate the company’s Russian operations amid external pressure.
- Following a personal plea from a Ukrainian soldier, Unilever’s CEO promises to reconsider the decision.
- Despite other brands exiting Russia, Unilever remains and continues selling essential products.
- The company argues that keeping the Russian business prevents state control.
- Unilever faces criticism for potentially conscripting workers and maintaining tax payments.
Amid mounting pressure, Unilever’s new chief executive, Hein Schumacher, has stated his intention to reassess the company’s decision to continue operating in Russia. This promise follows a personal appeal from a Ukrainian soldier, urging the company to cease operations in response to the ongoing conflict. Unilever, unlike other major brands such as Coca-Cola and Arla Foods, has maintained its business in Russia, justifying this decision by stating that their products are ‘everyday essential foods.’
The company has remained firm in its belief that its continued presence in the region helps mitigate the risk of the business falling under direct or indirect control of the Russian state. Unilever has committed to keeping its operations ‘under close review’ as it evaluates the potential implications of its business practices in Russia.
Despite these assurances, Unilever’s stance has attracted significant criticism. Valeriia Voshchevska from the Ukraine Solidarity Project acknowledged the CEO’s promise to take a fresh look but emphasized the substantial damage being done to both Unilever’s reputation and the Ukrainian people. Voshchevska highlighted that the company’s operations in Russia may inadvertently contribute to funding conflict activities, impacting both its stakeholders and global image.
In a contentious disclosure, it was revealed that Unilever is ready to allow its workforce of 3,000 Russian employees to be conscripted into military service. This comes as over 7,000 employees from another global brand, Nestlé, face similar risks. The Ukrainian government has labeled Unilever as a ‘sponsor of war,’ owing to its continued tax contributions within the country. This label further complicates the moral and ethical dimensions of Unilever’s corporate strategy in the region.
Unilever’s commitment to revisiting its Russian operations reflects the complex interplay of ethics and business strategy in geopolitically sensitive regions.
