As Russia’s attack on Ukraine continues to escalate, the global business community has stepped up, donating millions of dollars to organisations supporting relief efforts on the ground. On Wednesday, Bestseller, the Danish company behind fashion brands such as Jack & Jones and Vero Moda, said it would donate DKK 100 million (A$20.5 million) to UNICEF, UNHCR, and the Red Cross, via its parent company Heartland. British fashion brand Burberry said it would donate to the British Red Cro
ed Cross Ukraine Crisis Appeal, but did not specify the amount. It also said it would match any employee donations to charities supporting humanitarian efforts in Ukraine with an equivalent donation to the appeal.
Last week, H&M’s charity arm, H&M Foundation, said it would donate US$100,000 (A$137,000) to Save the Children to support the children affected by the crisis, and on Tuesday, it committed another US$100,000 (A$137,000) to UNHCR to support those fleeing Ukraine.
Meanwhile, Hiroshi Mikitani, chairman and CEO of Japanese e-commerce giant Rakuten, said he would send 1 billion yen (A$11.9 million) to the Ukrainian government for humanitarian assistance.
Airbnb said it would offer free, temporary housing for up to 100,000 refugees from Ukraine.
With the crisis worsening by the hour, businesses are being urged to make donations with no strings attached, to ensure they reach the people who need it as quickly as possible.
“My advice to brands is to go with simplicity, and be generous,” Abas Mirzaei, a senior lecturer in marketing at Macquarie Business School, told Inside Retail.
“Simple and fast process, and generous support. Avoid those usual T&Cs and eligibility criteria as much as you can.”
Unofficial sanctions
More than 800,000 civilians have fled Ukraine since Russia’s military invaded the country last week, according to the UN, while those remaining in major cities, such as Kyiv and Kharkiv, have been forced into bomb shelters under the constant bombardment of missiles.
With no opportunity to receive deliveries and replenish stock in stores, food and other supplies in Ukraine are running low. Many of the businesses sending money and supplies have focused their statements on the rapidly emerging humanitarian crisis.
“It is in every way horrible and unbearable what the people of Ukraine are going through. And while our contribution is merely a humble attempt to help and support where we can, we hope the overall donation will make a difference over time,” Anders Holch Povlsen, owner of Heartland, said in a statement.
“What is happening in Ukraine these days, including the result of it, is affecting the entire world and we all have a lot to fight for. Our solidarity and our unity have never been more important, and our values oblige us to act and help.”
But some businesses have gone further than showing their support for Ukraine by either halting services in Russia or boycotting Russian exports as their own form of ‘sanctions’.
H&M Group has temporarily paused all sales in Russia. In a statement, the company said that it is “deeply concerned about the tragic developments in Ukraine and stand[s] with all the people who are suffering”.
Nike has also temporarily stopped selling its products online in Russia, though the brand said this was because it could not guarantee delivery. UPS and FedEx have stopped all inbound shipments to Russia and Ukraine.
There are multiple reports of bars and liquor stores around the world removing Russian vodka from their shelves, and US-based entertainment companies including Disney, Warner Bros and Sony have said they will pause upcoming theatrical releases in Russia.
However, Mirzaei believes these efforts could backfire.
“I personally always have a mixed feeling towards sanctioning the public and boycotting exported products. This is exactly what is called cancel culture, and there is a risk that such moves may defeat the purpose,” he said.
“A brand like Disney pausing the release of Turning Red in Russia directly targeting children and young generations is not going to be effective, and is counterproductive. Instead, Disney could produce content that would increase the awareness of the general public in Russia about the war in Ukraine.”