Actions for Companies in Asia

Just as Asia seemed to be getting back on its feet after being ravaged by COVID, the world has plunged into yet another global crisis with the war in Ukraine. Determining and communicating the potential impacts of the crisis on the company’s global supply chains and business transactions is obviously crucial. But so is communicating crisis-related impacts and support to employees and other key stakeholders. Communication must be clear, frequent, and, most importantly, empathetic. Below are four urgent actions that companies across the region must focus on:

1. Create a regional, core cross-functional “Ukraine” task force. The goal of the group is to monitor the situation as it unfolds and determine its potential impact on business and employees in the region. It must then cascade the communication to business, country, and functional leaders, who in turn update their own teams. The group must comprise senior leaders across core business functions i.e., sales, manufacturing, supply chain, marketing, communication, IT, finance, ESG, and human capital. Depending on the nature and specific needs of the business, the membership of the group may need to be expanded to include other functions.
2. Communicate the gravity of the crisis to local employees. Being relatively geographically distant, employees in your Asia organization may not fully appreciate the current or future impact of the crisis on the business. The Ukraine issue may also not have the same emotional resonance as it might have for employees in Europe or even the US, who are physically and politically closer to the situation. It is therefore critical to issue company-wide memos on a frequent basis to ensure evenness and consistency of communication and thus pre-empt speculation. The communication could include outlining the company’s position on the crisis as well as current or future critical areas of business impact. The tone of this communication will need to be re-assuring and yet realistic. Employees are already experiencing COVID fatigue, so it is important to avoid added stress and unnecessary alarm or panic.
3. Be aware of local/cultural sensitivities and their implications when articulating your company’s position on the crisis. Not all governments in Asia are aligned in their official responses to the crisis. Therefore, a US or Europe centric view will not resonate universally across the region. For example, in the UN Assembly, while 141 countries have supported the resolution “deploring the Russian aggression in the strongest terms”, India and China, along with nine other Asian nations, stood out because of their decision to abstain from the resolution.1 On the other hand, Singapore has just announced sanctions against four large Russian banks operating in the country. Many companies such as Mastercard, Visa, and Netflix, which have a significant footprint in Asia, have announced suspension of their businesses in Russia. It is important for Western companies operating in Asia to understand that their official positions on the Ukraine issue may not garner universal support/buy-in from all employees – many of whom are likely to be more influenced by social media and local news channels that tend to support their national government’s stance. This could result in heightened sensitivities and polarizing discussions in the workplace within a company’s broader Asia employee community. While most employees will officially “support” the company’s position, they may not fully internalize it and are likely to feel personally conflicted.
4. Connect with directly affected employees and provide support. While the number of Russians, and/or Ukrainian nationals is likely to be relatively low within most companies’ Asia operations, it will be important for HR and managers to identify and reach out to them and any other directly affected colleagues, to demonstrate care, empathy, and support. Ukraine is home to many excellent institutions especially in STEM and medicine that have attracted a large number of foreign students from Africa, Middle East, and Asia. It has been home to 18,000 students from India alone. Thousands of students are still trapped in Ukrainian cities and cannot be currently evacuated by their governments.2 Their families back home are understandably feeling helpless and distraught and actively pressuring their governments to take swift action. Counselling services and/or any other forms of help that HR can offer affected families will go a long way in emphasizing the company’s commitment to the well-being of its employees.