Research Insight | How Should Companies Communicate with Stakeholders When Operating in War Zones?
In times of war, some companies pull out of politically unstable regions; others continue to operate in these environments for various reasons. Either way, firms must communicate their decisions to stakeholders and the public. This study of corporate messages gauged the effectiveness of possible communication strategies. U.S. firms continuing to operate in Russia generally reported only operational risks in one-way communications, whereas companies that exited the Russian market actively interacted with multiple stakeholder groups about their stance on the war and their relief initiatives.
While financial priorities may be the most immediate pragmatic concern, firms also need to consider their moral approach in order to sustain corporate legitimacy. To do so, they can create an interactive, two-way dialogue with stakeholders through active communication strategies. Relying on unidirectional reporting of operational risks may contribute only to shareholder support, while engaging in two-way communications can be beneficial for legitimizing corporate activities, and, by extension, for socially responsible marketing.
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What You Need to Know
- Firms that disregard public concern about operations in ethically charged environments may quickly lose legitimacy if problematic activity is exposed in the media.
- Two-way communications can help promote and sustain moral legitimacy, which is key for socially responsible marketing.
- Businesses that choose one-way communications may eventually be outrun by competitors that regularly interact with the public about their socially responsible initiatives.
Abstract
Following the February 2022 invasion of Ukraine by Russia, hundreds of U.S. companies exited the Russian market. Others continue to conduct business there despite most Americans’ opposition to the invasion of Ukraine. Hence, justifying continuing business in Russia has become difficult. This study examines whether continuing operations in Russia affected the legitimation strategies of American companies, compared with those that completely withdrew from the Russian market. Content analysis of corporate communications revealed that most U.S. firms continuing operations in Russia reported only operational risks, while companies that exited the Russian market actively interacted with multiple groups of stakeholders about their stance on the war and their relief initiatives. The findings also suggest that reliance on a unidirectional reporting of operational risks may contribute only to shareholder support, while using two-way communications can be beneficial for legitimizing corporate activities and, by extension, for socially responsible marketing. Discovering what and how organizations communicate in unsettled sociopolitical environments provides new insights into the strategies used for shaping stakeholders’ perception of organizational actions.
Andriy Kovalenko (2025), “Seeking Corporate Legitimacy in Times of War,” Journal of Public Policy & Marketing, 44 (1), 81–99. doi:10.1177/07439156241246729.