Business activism amid war: 4 shifts emerging from Ukraine

The war in Ukraine and its global impact have forced corporate executives worldwide to face new challenges and navigate increased levels of uncertainty. The conflict has amplified the sense of urgency placed upon business leaders to engage in political and societal dialogue. Business leadership beyond the marketplace is no longer a trend; it’s expected.?

In the latest CEO Study of the United Nations Global Compact and 埃森哲 , 87 per cent of surveyed CEOs report feeling that current levels of geopolitical instability limit the world’s ability to achieve the Sustainable Development Goals (SDGs). And last year, the Edelman Trust Barometer Special Report: The Geopolitical Business confirmed that societal leadership has become a core expectation of business.

Against this backdrop, the United Nations Global Compact and 汤森路透 convened 50 senior business leaders to discuss converging crises, new expectations for businesses, and the opportunities and dilemmas they present. Based on this discussion and in light of the one-year mark of the Russian invasion of Ukraine, we have compiled four key shifts emerging amidst the conflict:

1. A new role for business leaders

The war in Ukraine accelerated a shift in how business leaders perceive their role in society. Whether simply communicating a public position or shifting investments and business strategy, business leaders have demonstrated acceptance of a role outside of the normal confines of the private sector. For example, in the CEO Study of the United Nations Global Compact and 埃森哲 , 91 per cent of CEOs say they believe their role is to protect local communities in the regions they operate.

2. Unprecedented action from the private sector?

We are all familiar with the unparalleled and almost immediate exit of many companies from Russia in response to the invasion of Ukraine. What may be less visible is the consideration and variety in the private sector's response. For example, a financial services company noted they shifted investment strategies to include investing in businesses that support Ukrainian refugees. Meanwhile, participants that provide unique and essential services in Russia, like medicine, stressed that it was necessary to weigh the human rights impact of an exit on Russian consumers and employees. Other participants noted that they exited Russia but found ways to ease the transition for employees there – for example, by offering job transfers to other countries.?

3. Employees: a new mobilizing force

Employees have emerged as a significant mobilizing force, helping shape the expression of company values and responses to the war and playing a critical role in pushing for direct action. This marks a stark departure from the norm: the CEO Study of the United Nations Global Compact and 埃森哲 indicates that investors and consumers have historically been more influential than employees in corporate decision-making.

4. A turning point?

Going forward, multinational companies may need to consider if and how support for international institutions, laws and systems should be a component of their role as responsible businesses. Some participants expressed that the war in Ukraine has shifted their corporate approach and orientation toward future possibilities and scenarios. Similarly, other participants noted the perception by employees that their company had set a policy precedent in their response to Ukraine and that, accordingly, employees were exerting pressure for similar action on other social or political topics. Overall, participants highlighted that values embedded in the Ten Principles of the United Nations Global Compact – on human rights, labour, environment and anti-corruption – were often at the heart of conversations and actions on voluntary corporate responses.

The detrimental impact of the war in Ukraine is directly correlated to slowing the achievement of the Sustainable Development Goals. In all its dimensions, the conflict has produced alarming cascading effects across a world already battered by COVID-19 and climate change. The risks of generations lost and SDGs derailed, as well as waves of food insecurity, energy shortages, unfolding debt crises and social unrest, are real.

Still, the private sector remains optimistic. The CEO Study of the United Nations Global Compact and 埃森哲 reports that 92 per cent of CEOs believe the SDGs can still be achieved by 2030. And a whopping 98 per cent agree that it is their role to make business more sustainable – a 15 percentage point jump in the last decade.?

This is a reason for optimism among us all.

For a recap of insights from this discussion organized by the United Nations Global Compact , click here .?

Join our webinar on “Navigating Crises in a Complex World: Lessons for Business Leadership ” on 7 March and follow our workstream on Transformational Governance .

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