War and international business from political science’s view

The 2022 Russian invasion of Ukraine not only sent shockwaves through the global economy but also raised questions about the role of businesses in conflict zones.

Some multinational corporations, like McDonald’s and Lufthansa, chose to exit the Russian market, while others, such as Subway and Emirates, continued their operations. However, these decisions appeared more driven by consumer activism and stakeholder pressure than by strategic considerations.

In this context, businesses are facing increased scrutiny, operational risks, and potential economic opportunities. Their choices are influenced by a combination of stakeholder pressure, operational risks, and personal convictions. Firms are increasingly interested in curbing violence that could adversely affect their operations. Research indicates that companies can play a role in peacebuilding, especially when a minimum level of peace and rule of law exists.

Unfortunately, many business decisions are made without a deep understanding of the root causes of conflicts. As a result, well-intentioned actions by companies, such as exiting conflict zones or voicing dissent, can inadvertently escalate violence.