Seeking Corporate Legitimacy in Times of War

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.