The stampede of companies out of Russia marks a major change in global capitalism that may not be for the better.
The day after the U.S. lifted its trade embargo on Burma in 2012, I spoke to an executive at Coca-Cola Co.. He proudly announced that his company already had people on a plane headed to the country. It is Coca-Cola's policy, he explained, to sell its beverages anywhere it's allowed to do so. Coke was sold in Russia during the last part of the Cold War, and even during the 1980 Moscow Olympic Games boycotted by the U.S.
Yet two weeks ago, Coke caved to public pressure and announced it was pulling out of Russia because of President Vladimir Putin’s invasion and brutal assault in Ukraine, even though government sanctions didn't require its withdrawal.
The stampede of businesses out of Russia — from Dunkin’ Donuts Inc. to Exxon Mobil Corp. — marks a major change in global capitalism that may not be for the better. If nothing else, it introduces a new risk to operating overseas.
There is a good case for not doing business in Russia right now. Earning a profit from selling products or services that enable a government doing terrible things feels wrong. But it also reveals that the role of business in our society has changed.
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
This piece originally appeared in Bloomberg Opinion