Wednesday, March 09, 2022

15751: WPPulling A Fast One Out Of Russia.

 

Adweek reported that WPP is pulling out of its Russian operations following the invasion of Ukraine—a move that will affect nearly 1,400 employees in Russia. While the Adweek story didn’t provide any corporate rationale behind the withdrawal decision, an official statement from WPP presented a clear declaration:

 

“WPP stands with Ukraine and the international community in condemning the Russian invasion, which has created a humanitarian crisis in the heart of Europe. The Board of WPP has concluded that WPP’s ongoing presence in Russia would be inconsistent with our values as a company, and we are therefore discontinuing our operations in the country.” The statement goes on to praise and support WPP workers in both Russia and Ukraine.

 

Adweek also reported that McDonald’s is ceasing operations in Russia—but pledging to continue paying its affected employees. WPP does not appear to be offering a similar severance package to its soon-to-be ex-workers.

 

Although the scenario involving Russia and Ukraine is deadly serious and inspires activism and advocacy, what is WPP really communicating with its Russian withdrawal? Have clients like Bayer, Mazda and Nestlé—which are serviced by Russian agencies formerly operated by WPP—taken similar actions? If not, will WPP abandon the accounts for being inconsistent with their values?

 

WPP seems to be joining D&AD in making magnanimous—albeit meaningless—gestures for performative purposes. Russia has not cornered the market on human rights violations. And if DE&I failings indicate systemic racism and human rights issues, WPP is hardly in a position to condemn anyone.

 

Sorry, there is little dignity in decolonization.

 

WPP Will Cease Operations in Russia Following Invasion of Ukraine

 

The network runs agencies such as Wunderman Thompson and VMLY&R in the country

 

By Stephen Lepitak

 

WPP, the world’s largest agency network, said it will discontinue working in Russia following the invasion of Ukraine, affecting nearly 1,400 employees.

 

The company, which employs 200 people in Ukraine, has released a statement thanking its Russian staff while informing them of the withdrawal.

 

“We deeply regret the impact of this decision on our Russian colleagues. We will provide support to them and work closely with our clients and partners as we discontinue our activities in the country,” the statement added.

 

WPP agencies such as GroupM, Wunderman Thompson and VMLY&R have offices operating in Russia, which accounted for 0.6% of global net sales last year. Each based in Moscow, WPP’s agencies in Russia worked with clients such as Bayer, Mazda, Nestlé, Froneri and Home Credit Bank.

 

WPP added that the company has been in constant contact with its leadership in Ukraine, aiming to provide financial and practical assistance for them, and said it has partnered with UNHCR, the UN Refugee Agency, to help run an emergency fundraising appeal for those forced to flee their homes to neighboring countries. It will also match donations made by WPP employees, the statement said.

 

In 2014, WPP took a majority stake of 80% in the WVI Group of companies to create a joint venture to allow its GroupM agencies to operate in the country as well as Wunderman Thompson (then JWT), which opened in the country in 1994. It was then followed by Actis Wunderman three years later before the two agency brands merged globally in 2019.

 

The move comes within 24 hours of Accenture announcing that it too would pull out of Russia following the invasion. The company employs 2,300 staff members there, including within its marketing services arm, Accenture Interactive.

 

Writing on LinkedIn on Feb. 29 prior to the announcement, Accenture chair and chief executive Julie Sweet commented: “The images and voices from Ukraine are tragic. Accenture is committed to supporting humanitarian aid to address the crisis and we stand with all in the global community who are calling for peace.”

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