Leading through crisis: How leaders respond to social unrest and conflict

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My great grandparents Petro and Anna walked into the forest outside their small village in what was then Galicia in Eastern Europe. They took with them my two uncles – Wasyl was only 6 months old – and what little else they could carry, setting off on a journey across two continents. As peasant farmers they didn’t have much, but their hearts were heavy as they left the land that was so important to their way of life. They brought our culture to their new home in Alberta, not far from where my family still lives today.

I don’t think you need to have a personal connection to Ukraine to feel deeply for what is happening as the humanitarian crisis unfolds as a result of the recent invasion. Our news feeds provide an inescapable window to the reality of conflict and the opportunity to doom scroll our way to feeling helpless.

The way business leaders around the world have stood up for Ukraine has proved critical to the awareness of the grave impact of this war. I’ve been curious about which companies have chosen to act, and what they have been saying. What has struck me is the swiftness of the response. I believe this is in part a result of the last two years of uncertainty we’ve all been living through. Within this time we’ve also experienced the unrest of Black Lives Matter, the most critical social justice movement of the decade, which asked business leaders to consider what they were willing to do for racial equity in their business and community, with a challenge to publicly express their support and demonstrate change.

And like BLM, it's impossible to ignore what is happening in Ukraine right now, and the impact it is having on our emotional state. The humanitarian crisis has left many feeling helpless, with no ability to support in any meaningful way. Others are fearful of what might happen next should the war continue to escalate. I’ve gone from wanting to crawl into bed in despair to considering how I can get to the border to help. We take these feelings into the workplace. And we now understand that what happens outside the job impacts what happens at work too.

It makes sense, then, that in what feels like an increasingly uncertain and volatile world, leaders will continue to be called to not only speak out, but to act on social issues. The pandemic has shown us that we are all connected, and that a whisper in one part of the world can cause a storm thousands of miles away. Conflict in Ukraine is creating instability for travel, supply chains, financial markets, commodity prices – all of which will directly affect business operations.

Here are three steps leaders can respond to the crisis in Ukraine and future situations involving social and political unrest.

Step 1: Listen

We share Slack channels with many of our clients, and “what should I say to the team about Ukraine” was the most asked question from CEOs and execs the week of the invasion. If I’d scrolled back to June 2020 I would have recalled a similar request: “what do I say about Black Lives Matter to my team?”

We have a tendency as leaders to want to solve problems, make things okay, and ensure our people feel safe. I’ve often wondered if we do that for our people, or because it makes us feel more comfortable. In the case of social or political unrest, rather than rushing to say something, our role is to listen – to check in with our teams to see how they are feeling.

During the Black Lives Matter protests there was a stark contrast in managers who took the time to reach out to their teams and those who rushed to make an external statement, or who just didn’t engage at all. Creating the space to hear how people are and what they need shows compassion for individuals who may be emotionally affected. It demonstrates understanding for the level at which people can show up and deliver.

Listening first can be the foundation of any action you choose to take as a business together.

As a leader, how do you listen in your business?

How do you listen first without having to solve or take action?

Step 2: Show Support

My social media feed is showing that people #standwithukraine. San Francisco City Hall has changed its colors. Even the top of Salesforce Tower shines bright with waves of blue and yellow. We were taught in my Ukrainian history classes that the blue was for the sky, and the yellow for golden fields of wheat representing a nation that is the breadbasket of Europe. In truth, these colors have been symbols of resistance and freedom for centuries. They were banned in the Soviet era as an act of oppression – those who displayed them were prosecuted for stirring up anti-Soviet sentiment.

Now the flag is a symbol of support for Ukrainian sovereignty – against the war and for peace. Businesses are choosing how to demonstrate solidarity. Slack has integrated blue and yellow into its current logo. The creative agency (and our pals) Nice & Serious have launched a shop to sell artwork designed by their team, while Balenciaga used Paris Fashion Week to highlight climate change and the war. Many more are giving donations to relief efforts.

Others have simply released a carefully crafted statement saying they, too, stand with Ukraine. In many ways this can feel like virtue signaling, just as it did around Black Lives Matter – empty words without action.

People rallying together is critical for a movement to catch fire and spread. The visibility and volume of support keeps awareness of what is happening front of mind, raises critical funds, and can even compel politicians to act.

Each business will choose to show support in their own way.

How do you want to show support – internally and externally?

What stops your business from showing support for social causes?

Step 3: Change Your Business

The lesson I took from 2020 was that most business leaders felt that “listening and learning” was sufficient to address the issue of systemic racism. Unfortunately all those copies of White Fragility that flew off the shelves haven’t resulted in a revolution for equity in the workplace. Addressing social change requires a change in business operations. With the war in Ukraine we have seen swift action by businesses for three reasons:

They are forced to change

The conflict has forced some businesses to pull out of Russia because they cannot operate under current conditions. CNN and BBC have stopped working from the region, along with Russia’s last independent broadcaster TV Rain, because of new censorship laws that prohibit the “distribution of false news”. To have teams in the region would put their people at risk of prosecution, and impact the integrity of their work.

Financial firms have also made the decision to withdraw from Russia. Visa and Mastercard quickly stopped operating there – each company makes about 4% of its net revenue from businesses linked to Russia. While they made statements condemning the invasion, economic sanctions imposed on Russia that limit financial transactions will no doubt have forced them to make a change.

Change often comes with legislative challenges to how we do business. From gender pay equity to board representation, leaders increasingly need to adapt their business operations to meet standards. In times of crisis, some businesses may be forced to change depending on their sector. In an increasingly shifting business environment, leaders will need to prepare now for anticipated challenges to come.

They think they should change

Brands can take advantage of being on the “good” side of social or political unrest. With a swell of global support for Ukrainian resistance, businesses that act gain a brand halo. The list of companies willing to cease trading in Russia grows by the day. While this demonstrates support, no doubt many have also weighed the operational cost of staying in a conflict zone.

Each of the big tech brands have made statements, donated to humanitarian causes, and in some way, stopped operating in Russia. Google and Meta are not taking advertising revenue from within the country, and have stopped running content from state media. Google says they blocked ads related to the war because they did not want people to take advantage of the conflict for financial gain.

They were also told by Russian regulators to stop showing ads displaying what they considered to be false information, continuing the propaganda campaign that has been running since the initial invasion of Ukraine in 2014. Google was pressured to show Crimea as part of Russia on Google Maps even though the annexation has not been recognized by the global community. They haven’t pulled out of Russia, which makes up about 1% of their total annual revenue; they are making an operational adaptation to appease the market.

The halo effect only lasts so long. Consumers and talent are looking for integrity from the brands they choose to align with. Staying true to who you are and what you stand for is not only more authentic, but will lead to a more resilient business.

They choose to change

McDonalds has been one of the most high profile brands to stop operations in Russia. I remember watching news of the first restaurant to open in Moscow in 1990. The Soviet Union collapsed a year later. And now, Muscovites can no longer enjoy a Big Mac.

We have operated with the belief that communities are made better when there’s a McDonald’s nearby. At the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine. Years ago, when confronted with his own difficult decision, Fred Turner explained his approach quite simply: “Do the right thing.” That philosophy is enshrined as one of our five guiding values, and there are countless examples over the years of McDonald’s Corporation living up to Fred’s simple ideal. Today, is also one of those days. - CEO Chris Kempczinski

This is a big change for the business, its 850 franchisees, and 62,000 employees – and will cost $50 million a month. But it’s an ethical decision, based on their values, which they will not have take lightly – McDonald’s restaurants in Russia and Ukraine contribute $2 billion in revenue per year.

Photo by Nana Lapushkina on Pexels

As leaders increasingly consider social responsibility, and investors begin to make decisions around ESG commitments, choosing to change will become more commonplace. A violent shock like the war in Ukraine often creates the need to quickly shift business operations. Even if your business is not in the region, there’s a lesson here for all leaders; not only do you have a choice of how you do business, but the way you do business can have a direct impact on driving societal change.

What would you be willing to change in your business to support social change?

How can you weigh the cost of that change against the benefit for others?

I see my great grandparents as pioneers who bravely made a change in pursuit of a better life. They left behind oppression that Ukrainians have been fighting against for generations. They did not turn their back on their culture, and instilled in our family the fight for freedom. We watch now as millions are forced from their land and their homes. They should not have to flee to have the freedom they seek. What is happening is unjust and must be stopped, but it’s not why I wrote this article (If you want to understand more about the reasons behind the war, I recommend this video with the journalist and academic Anne Applebaum.)

I firmly believe that business leaders have the power to make the world we live in more equitable, equal, and free. What fills me with hope is that all sectors of society, including business leaders, have stepped in to listen, show support and create change.

Let that be the way we do business in the 21st century.