Estée Lauder Companies suspends all commercial activities in Russia
All image credit: ELC.08 Mar 2022 --- The Estée Lauder Companies (ELC) is halting all commercial and business activities in Russia. This follows other moves last week when the company said it was ceasing business investments and initiatives in Russia.
Furthermore, ELC decided to close all operational stores it owns, including brand sites and stop all shipments to retailers based in Russia.
The company shares that its priority is the safety of its employees located in Ukraine. Hence, it decided to continue all compensations and regularly communicate with the respected persons. ELC is also offering relocation assistance for those who require support.
“At the ELC, we are unwavering in our continued commitment to put people at the center of our business and live our shared values every day. Together, we will accelerate our progress toward a more equitable and beautiful future,” says Nancy Mahon, senior vice president, global corporate citizenship and sustainability at ELC.
The cessation of business with Russia comes when other food companies like Nestlé, Danone and Lactalis halt activities. As a result, WHO warns of a looming health crisis.
ELCCF donations
In addition, the Estée Lauder Companies Charitable Foundation (ELCCF) is offering financial relief by providing US$1 million to Ukraine. It will also donate ELC products to those in need or those displaced, says the company.
Moreover, the company’s charitable matching gifts program (ELC Good Works) will match suitable employee donations to “various disaster relief nonprofits year-round.” This also includes the organizations in Ukraine’s neighboring countries, confirms the company.
The ELC have affiliates in over 50 countries and territories worldwide, including offices in Moscow and Kyiv.
ELC says that it will continue to monitor the war and take action according to the company values.
The company’s actions reflect its values for ‘Social Investments’ and ‘Employee Safety,’ where it believes that it has a role in “meaningful engagement with social impact causes that matter to employees, customers and partners.”
Following up on inflation
The war is not just impacting some companies – it is also threatening Europe’s fragile plastic industry due to sanctions. This is because crude oil prices have shot up following Russia’s invasion of Ukraine on three fronts.
The war is also impacting oil prices due to the discussion on banning Russian crude imports. The prices are soaring to US$139 per barrel – the highest since the 2008 financial crisis.
Furthermore, the agri-food sector braces for export deficiencies from Russia and Ukraine with no options for replacements.
Edited by Venya Patel
