Yale professor is keeping tabs on companies still operating in Russia despite Ukraine invasion — and many are now pulling out
A Yale professor and his research team are keeping tabs on companies that are still operating in Russia in the wake of its invasion of neighboring Ukraine — and many have responded by announcing plans to withdraw.
“‘In the days since we initially published our list, many of the “remain” companies have responded to public backlash and decided to withdraw, and we are continuously revising our list to reflect these decisions as they are made.’”
The situation remains fluid, but for now the list still includes Caterpillar Inc. CAT,
Non-U.S. companies on the Yale list, headed up by business-school professor Jeffrey Sonnenfeld, include Unilever UL,
By late Tuesday, a handful of household name companies had managed to get off the list.
McDonald’s Corp. MCD,
Coca-Cola Co. KO,
Food and beverage giant PepsiCo. PEP,
PepsiCo has “a responsibility to continue to offer our other products in Russia, including daily essentials such as milk and other dairy offerings, baby formula and baby food,” the company said.
The continuation of some operations also supports “the livelihoods of our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain as they face significant challenges and uncertainty ahead,” it said.
Kellogg Co. K,
Honeywell International Inc. HON,
“Given the current conditions in eastern Europe, we have suspended substantially all of our sales, distribution and service activities in Russia and Belarus. We continue to evaluate the situation,” the company told MarketWatch.
And early Wednesday, tobacco company Philip Morris International Inc. PM,
That was followed by Papa John’s International Inc. PZZA,
For the full list of companies: Visit the Yale School of Management website
Companies have a reputational incentive to withdraw, despite any loss of investment or business, Sonnenfeld wrote in Fortune on Monday.
“Companies that fail to withdraw face a wave of U.S. public resentment far greater than what they face on climate change, voting rights, gun safety, immigration reform, or border security,” he wrote.
He cited a Morning Consult survey that found more than 75% of Americans want companies to cut their business ties with Russia and are united on the subject across political lines in a way that has become quite rare.
Sonnenfeld also argued that those who fear that such corporate moves and government-imposed sanctions will punish ordinary Russians are missing the point that they would impose pain, but not the violence of war, which would be far more painful.
“Vladimir Putin, the most vicious autocrat of this century, rules through tyranny and fear. As he continues to fail, people will lose their fear and he will lose his power,” Sonnenfeld wrote.
Among the companies that are still in Russia,confectionery group Mars has more than $2 billion in investments, and Pirelli makes 10% of its tires there.
The list of companies that have withdrawn from Russia or curtailed their business there is longer, at more than 200, and includes big hitters Alphabet Inc. GOOGL,
MarketWatch has contacted all companies named in this story for comment.
The Yale list is being updated daily.
