Explained: Why calls for boycotting Coca-Cola and McDonald’s over Russia-Ukraine conflict are growing

Russia’s financial troubles have constantly been mounting as several international companies have suspended or stopped their operations in the country.

Follow all live updates of the Russia-Ukraine conflict here

More than 10 days since Russia launched a “special military operation” in Ukraine, several countries have piled sanctions on it as well as companies, including Netflix, TikTok, Nissan, Apple, Microsoft, Intel, Dell, Boeing, Daimler, The Walt Disney, Warner Media and Sony Pictures have stopped operations in the country.

Also read: Russia-Ukraine conflict: From Apple to Amex, the exodus of Western brands from Moscow

At the same time there is a mounting social media pressure against food and beverage giants like McDonald’s and Coca-Cola. Let’s find out why is it happening and if there are other such companies to face people’s ire:

Why are people angry with McDonald’s and Coca-Cola

Multinational companies’ call to shut or suspend businesses in Russia has been seen as solidarity towards Ukraine in the ongoing armed conflict.

Music streaming giant Spotify also closed its office in Russia and removed Russian state-sponsored content from its service, while openly calling out the country’s "unprovoked attack against Ukraine".
"We have closed our office in Russia until further notice," said the Stockholm-based company.

The Walt Disney Company also said it was pausing the release of theatrical films in Russia in response to the “unprovoked invasion of Ukraine and the tragic humanitarian crisis”.

Daimler also said that it intended to sell 15 per cent of its stake in the Russian firm Kamaz.

“I am more than horrified that there can be a war of aggression in Europe,” said Daimler labour official and supervisory board member Michael Brecht. “We cannot simply go back to business as usual.”

According to a list prepared by Yale University professor Jeffrey Sonnenfeld, about 250 companies have pulled out of Russia. Sonnenfeld’s list names 32 companies including McDonald’s and Coca-Cola that have remained operational.

According to a BBC report, there are 847 McDonald’s restaurants in Russia.

Despite the mounting pressure on Russia from leading multinational companies, food and beverage giants McDonald’s and Coca-Cola so far have remained quiet on the subject, inviting outrage among the public.

Talking to BBC News, Dr Ian Peters, director of the Institute for Business Ethics, said, "This is not a time to sit on the fence”.

"The world is likely to judge companies by what they do in such circumstances, and ethical judgement will be as important as complying with any government-led regulations and sanctions."

"We would advise firms in such circumstances always to look at the bigger picture and seek to do the right thing, putting the wider interest above short-term profit," he added.

According to Daily Mail, Russia accounts for 4 per cent of Coca-Cola’s global revenue.

Coca-Cola's business in Russia is operated by Athens-based Coca-Cola Hellenic Bottling Company AG (Coca-Cola HBC), which runs 10 plants for the production of soft drinks and juices across Russia.

Coca-Cola HBC told Russian state-media TASS last week that 'all operational, production, and logistics facilities of Coca-Cola in Russia are working.'

“We are fully responsible to partners, society, and thousands of our employees in Russia. Our top priority is the safety of our employees,” the spokesperson reportedly said.

According to The Independent, the company released a statement on Thursday saying it was donating €1m to support the Red Cross movement in Ukraine as well as donations to Red Cross organizations in the neighboring nations of Romania, Hungary, Slovakia and Poland.

Other companies continuing operations in Russia

McDonald’s and Coca-Cola aren’t the only companies facing harsh criticism online for continuing operations in Russia. Other leading brands as Starbucks, KFC, Pepsi and Burger King are also getting a fair share of calls for boycott.

With a smaller Russian footprint of about 130 locations in the country, Starbucks had condemned Russia’s 'unprovoked, unjust and horrific attacks' on Ukraine.

According to Daily Mail,Starbucks CEO Kevin Johnson would donate any royalties it receives from its operations in Russia to humanitarian relief efforts in Ukraine.

Fast food chain KFC reached a milestone of 1,000 restaurants in Russia last year, according to BBC. It also aimed to open about 100 restaurants annually in the country.

Kellog, Nestle, Unilever, Caterpillar, Herbalife, Papa John’s and Mars are among the 32 companies still operating out of Russia.

With inputs from agencies

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