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McDonald’s and Coca-Cola boycott calls grow over Russia

Due to the invasion of Ukraine, there is growing pressure on Western food and drink giants to pull out of Russia.

McDonald’s and Coca-Cola have been criticized on social media for not commenting on the attacks and for continuing to operate in the country.

Well-known companies such as Netflix and Levi’s have already suspended sales or stopped providing services in Russia.

McDonald’s and Coca-Cola have not responded to the BBC’s request for comment.

#BoycottMcDonalds and #BoycottCocaCola were trending on Twitter Monday and the weekend respectively.

Dragon’s Den investor Deborah Meaden also took to social media to speak out against the carbonated beverage company, urging people to stop drinking Coca-Cola.

The criticism comes amid calls for other well-known Western companies such as KFC, Pepsi and Starbucks and Burger King to close their stores and stop selling in Russia.

However, most companies have remained silent on the issue, with KFC, Pepsi, Starbucks and Burger King also declining to respond to BBC requests for comment.

Many of the companies contacted by the BBC have a large number of businesses in the country.

Fast-food chain KFC hit a milestone of 1,000 restaurants in Russia last year. In 2021, around 100 restaurants are to be opened there every year.

In information recently published on its website, McDonald’s announced that it has 847 stores in Russia. The company also owns the majority of these outlets, while in the rest of the world most are typically franchised.

Both McDonald’s and Pepsi, which have had a presence in Russia for decades, were also singled out by the head of the New York State Pension Fund.

Thomas DiNapoli, comptroller for the New York State Joint Pension Fund, wrote letters to the companies, according to Reuters, urging them to review their operations in Russia as they face “significant and growing legal, legal, operational, human rights and human resources issues are confronted with. and reputational risks”.

Often, franchisees can decide whether or not to close chains, depending on the terms of the agreements they may have with major grocery chains like KFC or Starbucks.

Starbucks CEO Kevin Johnson described the attacks on Ukraine as “baseless” and “unfair” in a recent statement.

But most of its locations in Russia remain open, according to its website. Most of these franchises are operated by Kuwait-based Alshaya Group.

dr Ian Peters, director of the Institute for Business Ethics, told BBC News: “This is not the time to sit on the fence.

“The world is likely to judge companies by what they do in such circumstances, and ethical judgment will be just as important as compliance with all government-led regulations and sanctions.”

He said most companies have an “ethical compass” that they use to make big decisions.

“We would advise companies in such circumstances to always look at the bigger picture and try to do the right thing, putting the broader interest ahead of short-term profit,” he added.

He identified key ethical dilemmas that companies might face if they consider shutting down operations in Russia as well: What duty of care do these companies have towards local employees? Is it fair to deprive Russian citizens of basic goods?

Henley Business School professor of business ethics Kleio Akrivou points out that these types of decisions can be more difficult for food companies to make than, for example, consulting firms.

“When it comes to sanctions that deprive the Russian people of their basic goods and dignity, companies may need to approach the situation more thoughtfully and appeal to practical common sense.”

She said now is the time for fast-food giants to weigh how real people will be affected by such moves, alongside any reputational risk.

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