To receive the Vogue Business newsletter, sign up here.
After Russia invaded Ukraine on 24 February, it took several days before LVMH, Kering, Marni and Diesel-owner OTB Group, Burberry and Ganni began voicing their support. Many others remain silent still.
Sources close to luxury brands have told Vogue Business that first on the agenda is always employees, especially those on the ground in Ukraine, rather than social media statements. Speaking to their people, and figuring out what to do meaningfully, then speaking to global teams for a collective response, is the norm. But, during this time, consumer indignation often grows louder. Should that matter?
“The internal audience is just as important, if not more, than the external audience,” says Shareen Pathak, co-founder of Toolkits, a consultancy firm that advises brands across multiple sectors, including fashion and beauty, on their content and publishing strategy. “Any crisis underlines this, and what’s happening in Ukraine right now is pushing companies to build awareness and engagement with employees, the way they have been trying to with consumers all these years.”
Companies including L'Oréal, Unilever and Burberry have openly stated their top priority is updating and offering resources to global teams as the situation unfolds. “Our number one priority is the safety and care of our colleagues and their families. At present, all of our colleagues in Ukraine are safe and accounted for. We remain in constant contact with them to help with their individual needs, including logistical and psychological support. We continue to monitor the situation closely and will adapt our actions as the situation develops,” a spokesperson for L'Oréal says.
On social media, the first response for brands is often to pull regularly scheduled social media posts and ads for fear of looking tone-deaf, says Edward East, founder and chief executive of Billion Dollar Boy, a global creative agency whose clients include P&G, L'Oréal, Shiseido and Kate Spade. He recommended brands to pull back on any kind of outward communications, including paid advertising and social media activities, that could spark a backlash.
Nuance is also key. Global luxury companies are reluctant to disengage Russian customers, a small albeit high-spending group equivalent to around 5 per cent of the global luxury market, per Bernstein, when anti-war sentiments concern the Russian government. The British Fashion Council specified in a statement Thursday that its campaign in support of Ukraine is “aimed at the Russian government, not the teams of our designer members and patrons in Russia, or indeed Russian colleagues and friends here, who may be fearful of facing discrimination for actions over which they have no influence at all”.
Advisors to brands say that companies are being encouraged to be more transparent, honest and communicative with staff, especially now, when employees based in Ukraine and Russia are personally affected.
While HR professionals have long been advocates for more thoughtful communication with employees, it’s become an even bigger priority for brands, who are expected to take a stand on societal and political issues, says Cydney Roach, global chair and US practice lead for employee experience at Edelman, a global public relations and marketing consultancy firm, whose clients include Kering, LVMH and Tapestry. As a result, brands need an internal communications strategy to support outward-facing sentiments.
A new responsibility
In the wake of cultural shifts such as 2020′s racial reckoning, increased climate change awareness and the Covid-19 pandemic, several businesses were accused of doing too little, too late. Employees expect more from their employers, and are more vocal than ever about issues in the workplace, with the view of making both their companies, and the world, better in the process.
Young employees in particular are more in tune with social justice issues, but Roach adds that people across genders and age share social and political concerns. “We are a global citizen universe right now. There is an activist movement within the ranks of employees who want companies to take a position on everything.”
How brands behave is as important to consumers as staff. In December 2019, hundreds of Nike employees walked out of its Beaverton site in Oregon having felt that the company hadn't done enough to support female employees and athletes. The protest was prompted by the reopening of a building named after track coach Alberto Salazar, who had been accused by athletes of physical and mental abuse. Pictures from the event show people holding signs with slogans such as “Do the right thing”, “Empower women” and “We believe Mary”. Nike did not respond to requests for comment. When brands spoke out in support of Black Lives Matter following George Floyd's killing, some employees publicly questioned whether they were being performative, undermining the brand’s external messaging.
An employer’s brand image doesn’t matter just to employees; it matters to investors, too. The most important stakeholder group that gives investors trust in a company are its employees, Edelman found. “The ability of a company to attract and retain talent is more important than a company’s ability to attract new customers or to achieve a high multiple in a transaction deal,” says Roach.
Evolving forms of communication
Employees are willing to listen. The most trusted source is communications from one’s employer, beating other channels of information including the government, media reports, advertising and social media, according to Edelman’s 2022 trust barometer report, which surveyed over 36,000 individuals from 28 countries.
People also expect companies to have an impact, whether it’s through donating or volunteering. Some brands have sent out emails that they would take a stand by matching donations for Ukraine from their employees. Brands, however, must approach internal communications with diversity, equity and inclusion in mind, Roach warns.
“Ukraine is at the top of the news cycle right now. Similar crises in Syria and Sudan haven’t gained as much attention. Some may argue that is due to people empathising with others who are of an ethnicity that is predominantly white,” she says. “We take great care to remind our clients that there are many crises going on in the world.”
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
More from this author:
Browns to launch beauty, names creative beauty editor in residence
LVMH pledges €5 million to Ukrainian relief, following Kering brands