How are businesses responding to the Israel Hamas war?

As the death toll from Israel’s offensive in Gaza rises, corporate communications are in crisis mode.

ADVERTISEMENT

On 7 October, the armed Palestinian group Hamas – designated by the EU as a terrorist organisation – launched an assault on Israel from the Gaza Strip.

Blazing houses and shooting civilians, Hamas murdered around 1,400 Israelis, and claimed that their actions were a retaliation against Israel’s deep-rooted oppression of Palestine.

After news of the attack broke, a number of companies released statements of condemnation.

The Walt Disney Company donated $2 million (€1.9 million) to humanitarian organisations in the region and expressed outrage over the “horrific terrorist attacks”.

Amazon’s CEO Andy Jassy told Twitter that the violence against civilians was “shocking and painful to watch”, and Pfizer CEO Albert Bourla wrote on LinkedIn that he was “heartbroken by the atrocities”.

Whilst to many, these expressions of condolence were a natural response, some Palestinian supporters weren’t so sure.

They complained that whilst companies poured out sympathies for Hamas’ victims, there was an erasure of Palestinian suffering in the narrative – a suffering that had gone relatively unnoticed compared to the atrocities of 7 October.

Soon to be embroiled in the corporate controversy were Starbucks and McDonald’s.

When Israel began retaliatory strikes on Gaza, the fast-food chain announced that it was giving thousands of free meals to Israel Defense Forces (IDF) personnel.

Whilst Israel says their troops are doing essential work to “dismantle” Hamas in Gaza, pro-Palestine groups claimed that by giving out free meals, McDonald’s was complicit in supporting the ethnic cleansing of Palestinians.

As for Starbucks, they entered the fray when their worker’s union shared a message on X, reading: “Solidarity with Palestine!”

Following the post, there was a swift backlash from several Jewish groups, but when Starbucks then decided to sue the union, the company unleashed a wave of pro-Palestinian anger.

Speak out or stay silent?

In the days before social media, brands weren’t as likely to get involved in public moralising.

‘Corporate social responsibility’ is a term that’s existed since the 1950s, but the idea had more to do with philanthropy and giving back to one’s community, rather than releasing statements on wider cultural issues.

Many businesses previously believed it wasn’t necessary (or particularly wise) for them to air their opinions on social matters – whether this be abortion, race, or LGBTQ+ rights.

Yet as social media took off in the noughties, it brought with it a huge cultural shift.

As it’s now easier to debate and share opinions, corporations are under more pressure to stand up and speak out on perceived injustices, even ones that don’t directly involve them.

In some cases, this can be more of a win than a burden for companies, as was evident following Russia’s invasion of Ukraine in 2022.

ADVERTISEMENT

Because the western world holds a general consensus on the oppressor here, brands can show their ethical stance without too much reputational risk.

Consumers watched Ukrainian flags pop up across commercial sites and stores, and a number of businesses launched solidarity campaigns, such as rental platform Airbnb, that began offering free housing for Ukrainian refugees.

That said, when public opinion is more divided, corporate activism can become a little more complicated.

An-Sofie Claeys, assistant professor in Corporate Communication at Ghent University in Belgium, teaches her students how to manage company PR in crisis situations.

Speaking of the Israel Hamas war, she told Euronews: “I don’t think there’s a clear cut solution here to advise companies.”

ADVERTISEMENT

“One thing that they should take into account is to be consistent,” she added.

“If you’ve never spoken out on social issues before, and if your company is a B2B company, […] then I think you’ll likely keep silent,” Claeys said. “But if you produce goods for consumers, if you’re a brand that has taken a stance before on societal matters […] then it can come across as quite hypocritical not to take a stance now.”

The power and the people

Trying to determine how much support the Israeli offensive has amongst ordinary citizens is no easy task.

According to a poll published on 27 October in the Israeli newspaper Maariv, almost half of Israelis want to hold off on any invasion of Gaza, although opinions are constantly changing.

Over in the UK, an IPSOS poll from 27 October shows that the British public are more likely to want the UK government to be a neutral mediator in the conflict (37%) or to not be involved at all (16%), than to either support Israel (13%) or the Palestinians (12%).

ADVERTISEMENT

Compared to a study conducted with US respondents on 15 October, IPSOS noted that Brits are less likely to support Israel’s offensive, although the organisation recognised that the polls had some variations.

As the death toll in Gaza continues to rise, the dates when the results were collected may also affect IPSOS’ conclusions.

To a certain extent, fractured public responses can equally be seen amongst political bodies in the West.

US President Joe Biden and European Commission President Ursula von der Leyen have notably branded Israel’s invasion of Gaza as an act of self-defence, but a number of leaders, such as UN Secretary-General António Guterres, have been critical of Israel’s attack.

Considering the divergence in these opinions, it’s easy to see why company communications can become difficult at a time like this.

ADVERTISEMENT

By choosing to speak on the Israel Hamas war, brands are naturally exposing themselves to criticism from both sides of the debate.

Anti-Semitism and the legality of boycotting

When preparing this article, Euronews reached out to both pro-Israel and pro-Palestinian groups who are shunning businesses because of the conflict.

By the time of publication, pro-Israel groups were yet to comment, but the Palestinian-led movement Boycott, Divestment and Sanctions (BDS) responded to our queries.

The group, active since 2005, focuses boycotts on a small number of companies that it believes are complicit in violations of Palestinian rights.

These include tech companies HP and Siemens, retailer Carrefour, insurance firm AXA, and sportswear company Puma.

ADVERTISEMENT

“All peaceful popular efforts, including boycott and divestment, to hold these complicit companies accountable for their support of Israel’s crimes against Palestinians are justified and called for,” BDS told Euronews.

The group stressed that “boycotts are effective”, outlining that their actions “have already led major multinational companies such as Veolia, Orange, and General Mills to withdraw from activities in illegal Israeli settlements”.

Yet whilst BDS’s actions might be working, the group has nonetheless attracted its fair share of controversy over the years.

The group has notably ignited debate about the legality of boycotting, as well as the right to free speech.

In 2019, the German parliament decided that BDS used anti-Semitic methods to achieve its goals, and similar sentiments have been echoed in countries like France and the UK.

ADVERTISEMENT

In the US, several states have passed bills to discourage anti-Israel boycotts, but many of these initiatives have been legally challenged on the basis of free speech, with boycotters arguing that they should be allowed to criticise the Israeli state.

Ultimately, the debate over BDS shines a light on the difficulty of discussing the Israel Hamas war, as by condemning the actions of Netanyahu’s offensive, companies are making themselves vulnerable to accusations of anti-Semitism.

Due to mounting tensions over the conflict, it’s clear that verbal and physical attacks against Jewish citizens have been rising at alarming rates since 7 October.

In Muslim-majority Dagestan, hundreds of men stormed an airport looking for Israeli passengers on Monday, and on 20 October, London noted a 1,353% increase in anti-Semitic offences in October, compared to the same period last year.

Whilst fears surrounding anti-Semitism are therefore wholly legitimate, there’s a clear problem with individuals conflating criticism of the Israeli state and condemnation of Jewish people.

ADVERTISEMENT

In some circles, those hoping to silence Palestinian voices have also blurred the lines between support for Hamas and support for the Palestine cause, branding those who oppose Israel’s offensive as terrorist sympathisers.

So with language charged to a breaking point, it’s hard to see how companies can react to the war in a way that won’t dent their popularity with consumers.

Professor Claeys nonetheless told Euronews: “I think there’s a difference between what you should do morally and what you should do in terms of strategy and reputation.”

She explained that companies must “really consider their values – and act and communicate in line with that.”



Source link

#businesses #responding #Israel #Hamas #war

U.S. Businesses Look To De-Risk, Not Decouple, Their China Ties

What a difference two months makes. Hopes were high in January that U.S. Secretary of State Anthony Blinken’s scheduled travel to China, the first such visit by America’s top diplomat in years, would give a boost to strained ties between the two countries. China’s economy had started to rev up from the end of its ‘zero-Covid’ policies, giving a lift to its stocks and fortunes.

Then, the appearance of a suspected sky balloon over the U.S. heartland, deepening speculation about possible Beijing arms sales to Russia, and the start of high-profile Congressional hearings this month critical of China have changed the tone. “In the United States, you have a very deep fear about China,” Albright Stonebridge Group Senior Advisor Ken Jarrett said in an interview. “It’s still a relationship defined by rivalry, mistrust, and suspicion,” said the former president American Chamber of Commerce in Shanghai, U.S. Consul General in Shanghai, and U.S. Deputy Consul General in Hong Kong. His government roles in Washington, D.C. include director of Asian Affairs at the White House National Security Council.

“Certainly in the United States, it feels like the American public doesn’t see much benefit of having a relationship with China. And in China, you have a sense of resentment toward the United States, because of the notion that the United States is trying to hold China back,” Jarrett said. In both countries, the tone is shaped in part by domestic politics, ideological differences and technology competition, he noted. “Nobody talks about the bridges that we should be building.”

And yet business ties between the two countries remain deep and, ironically, may be poised to grow faster this year. “The one thing that hasn’t changed (after the pandemic) is that the level of economic interdependence between the United States and China is still quite deep,” Jarrett said. “Now that China is exiting Covid, you’re going to see this year a real uptick of executive travel to China from headquarters of U.S. companies. This might lead to an increase in investment. Particularly for the larger U.S. multinationals, the view of the importance of the Chinese market hasn’t changed.”

Business interest will be heightened by China’s potential economic growth this year. After its GDP grew by a government-reported 3% in 2022, China is aiming for one of the world’s economic growth rates this year of “around 5%,” according to a report this month by then Premier Li Keqiang. That’s more than three times the growth rate of 1.4% for the American economy projected by the International Monetary Fund.

Just this past week back in the U.S., for instance, President Biden’s clean energy czar John Podesta said Chinese companies will be big players in future U.S. energy production, according to Fox News. At the Nasdaq, Xiao-I, a “leading cognitive artificial intelligence enterprise” backed by Chinese auto billionaire Li Shufu, began trading after amid expectations of a recovery in China listings in the U.S. this year. (See related post here.) Michigan this year has welcomed a hook-up on a $3.5 billion battery plant between Ford and China’s Contemporary Amperex Technology, or CATL, the world’s largest maker of EV batteries. Virginia earlier turned down the project and not everyone else is onboard: U.S. Senator Marco Rubio introduced legislation on Thursday that would block tax credits for EV batteries made with Chinese technology, Reuters reported. Rubio has also called for the Biden administration to review the Ford-CATL agreement, it said. Former U.S. ambassador to China Jon Huntsman is a member of Ford’s board of directors.

So what’s next for businesses? “Long term, much about China also hasn’t changed. For most, China is still among the top three investment destinations. Its ranking has fallen a bit, yet it is still ranked by multinational companies as an important investment destination,” Jarrett said. Rather than a decoupling, “there is a reappraisal that’s under way.”

More specifically, Jarrett said, there is “de-risking.” “U.S. companies are thinking of ways to rebalance their exposure in China. The one word that you hear a lot about from executives in China is a need to de-risk. This follows specifically from the Russian-Ukraine situation and a mindfulness of the experience of many U.S. companies in Russia” which abandoned the market after the start of Russia invasion of the Ukraine. “They don’t want to face the same kind of situation in China” vis-à-vis Taiwan, “which would be many multiples more painful for them.”

For some companies, Jarrett said, de-risking “is about how to protect yourself, and how to look more local, such as through (having) more partners or investing in Chinese companies,” he said. “Where do you list? Where do you register your intellectual property rights? Where are the vulnerabilities in your supply chain? Do you need backups? Do you need a more of a regional approach to your supply chain?”

“I would argue that we’re not going to have an across-the-board decoupling. There will be selective decoupling. We’ve been seeing that already in areas of sensitive technology, and some shifting around of supply chains that is inevitable.”

U.S. companies will force themselves to grapple with those complexities vis-a-vis China because large parts of its economy still hold business promise: healthcare, pharmaceuticals, the financial industry, food and the consumer, Jarrett noted. Among high-profile American businesses looking to grow, Starbucks in September said in aimed to increase its number of stores in the country from 6,000 to 9,000 by 2025, opening a new shop every nine hours.

Back at home, the U.S. itself won’t succeed vis-à-vis China only by criticizing it, and needs to find its own competitiveness. “We need to be mindful that it’s about the U.S. running faster, as opposed to just trying to trip-up China.” Jarrett said. Though the U.S. discussion of national security is important, there is also a question that needs to be asked: “What do you do to protect pure, legitimate business interests?”

“We continue to be in a very difficult place,” Jarrett said. “It’s hard to be too optimistic, but hopefully, sensible leadership on both sides will help to manage which way this moves.”

See related posts:

Asian IPOs Poised To Increase As Region’s Economics Recover, Nasdaq Vice Chairman Says

U.S. Tops New Asia Power Ranking “Due Largely To China’s Setbacks”

@rflannerychina

Source link

#Businesses #DeRisk #Decouple #China #Ties