KBRA Releases Research – Stakeholder Pressure Amid International Conflict: Corporations Restrict Services in Russia

NEW YORK--(BUSINESS WIRE)--KBRA releases research highlighting the importance of stakeholder preferences in light of the Russia-Ukraine conflict.

As Russia’s invasion of Ukraine intensifies, companies in the U.S., EU, and other regions are facing increasing stakeholder pressure to restrict services and product sales in Russia. In response, a growing number of corporations have taken measures to halt business there. Global corporate action on the Russia-Ukraine conflict underscores the growing role consumers are playing in international policy. KBRA has long recognized that every issuer, regardless of industry or sector, may face pressures from its stakeholders’ environmental, social, and governance (ESG) preferences. The core of our ESG analysis of social issues focuses on stakeholder preferences and the associated reputational risk. Public opinion and consumer sentiment on ESG issues is evolving rapidly and can affect issuers’ revenue, costs, and growth strategies. The current environment highlights the challenges corporations face in balancing stakeholder preferences—including consumer backlash, the associated reputational risk, and possible expansions in economic sanctions—with the potential revenue losses resulting from exiting an economy with over 140 million people.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.