Chapter 1: Understanding the Reaction

I was overwhelmed by the responses to my recent letter (you can read it here if you missed it). I frequently receive feedback, which is precisely my intention—I genuinely want to hear your thoughts on my writings. Thanks to generous shares, I found myself flooded with messages from numerous individuals suggesting that I had articulated sentiments they were grappling with or had brought them clarity.

Every comment, message, or reply is genuinely appreciated.

Instead of delving into the horrific events currently unfolding—events that warrant our collective outrage—I wish to focus on how businesses navigate such challenging circumstances.

Recognizing that I am neither an expert in international politics (my podcast features two amateurs discussing various topics) nor an authority on business strategies, I find it fascinating to observe how the desire to avert a broader Russia/NATO conflict has led to an economic confrontation of sorts.

For years, we have been warned that the next global conflict would be cyber warfare, yet it seems we are currently experiencing an economic battle instead. I came across an insightful article featuring a conversation with US-Russian expert Fiona Hill that argues we are already in a global war. This prompted me to contemplate some of the recent non-military developments.

Online, especially on platforms like Twitter, many individuals have been investigating which companies continue to operate in Russia and Belarus, with a particular focus on multinational corporations such as Coca-Cola and McDonald's. The pressure from consumers appears to be mounting as firms sever ties, make public statements, and grapple with the aftermath—perhaps an unfortunate choice of words given the current situation.

I have long admired the social media team at Innocent Drinks for their remarkable engagement with their audience. Many are surprised to discover that Innocent is a subsidiary of Coca-Cola, and the reactions to that revelation have understandably been harsh.

How did Innocent respond? With silence.

A wise approach. They stand to gain nothing by engaging while their parent company remains operational in Russia. Recent reports suggest that Coca-Cola intends to shut down its Russian operations (I can't vouch for the accuracy of this information). It won't be long before Innocent resumes communication. What will be intriguing is the duration of their silence—my advice? Take their time!

In today's world, social media occupies a pivotal role. President Zelenskyy is seen as effectively utilizing it to keep the public informed and motivated to resist the invasion. There are accounts of individuals leaving reviews of Russian restaurants, sharing images of the ongoing conflict to bypass the Russian government's news block.

People are vocal about their opinions on the war, as I discussed last week. The idea of boycotting businesses made me ponder: how far would a small business go to uphold its principles?

My business is fairly representative of a small enterprise. We have the flexibility to pivot, and we do not have extensive supplier contracts, allowing us to change suppliers with relative ease. But what would be the ramifications of doing so? Do we even know the locations of all our suppliers? What is their stance on the conflict? Are they still conducting business in Russia? Do I care?

As I reviewed my supplier list, I realized I lacked knowledge about where every supplier is based, let alone their trading activities and policies.

What if I discovered that Microsoft was still conducting business in Russia? We rely on Microsoft for our productivity systems. Would I shift everything to Google? Upon investigation, I found that while they are not initiating new business in Russia, they continue to support existing clients. This scenario feels quite different from a company like IKEA halting operations entirely.

Currently, social media is largely banned in Russia, so I can excuse companies like Meta and Twitter—they could be facilitating the spread of both truth and misinformation. But what about TikTok? Is there a connection to the Chinese government? Are users abandoning TikTok? Not at all.

I learned that Stripe has ceased any new business in Russia, Belarus, and Ukraine. Should I stop using Stripe for payments based on that information?

How far are businesses willing to go in their support of this economic conflict? There could be a double standard if a company is vocal about its stance yet fails to take concrete actions, such as changing suppliers or terminating contracts, thereby inflicting pain on itself out of principle.

This brings me back to some points I raised in my previous letter. It's crucial not to jump on any bandwagon without fully understanding the issue and considering all its implications. If you’re fully committed, that’s commendable—then go ahead and advocate for your position. But if your commitment only extends to a point where you incur no personal cost, I question your moral authority to voice your opinion on the matter.

I am eager to hear if you have evaluated your suppliers and customers and whether you have altered any aspects of your business or communication strategies in response. I valued the feedback I received last time and would love to hear your thoughts again.

With warm regards,

Paul

Chapter 2: The Role of Social Media in Crisis

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