The Trial Lawyer Fall 2024 | Page 87

The incident demonstrates how multinational corporations with global footprints and decentralized operations can rapidly find themselves fueling opposing sides of conflicts . While McDonald ’ s top executives did not plan to show support for either Israel or Palestine , profit incentives have occasionally driven companies to support multiple sides in conflicts , often in more meaningful ways .
The Iran-Iraq War from 1980 to 1988 saw Western weapons manufacturers directly and indirectly supply both sides with arms , capitalizing on the shifting Western government support for Iraq and Iran throughout the conflict .
However , as multinational companies have expanded their international operations amid increasing globalization and strains on the US-led global order , they are now challenged with maintaining business dealings with both the US and countries hostile to American interests .
Additionally , these companies are becoming more entangled in fueling opposing sides of civil conflicts within other countries , directly and indirectly , in ways that can prolong or escalate violence .
The war in Ukraine has exposed how multinational corporations have become less willing to fully comply with the directives of any single government , including the US , when it conflicts with their financial interests .
Despite Russia ’ s annexation of Crimea and instigation of a proxy war in Ukraine ’ s Donbas region in 2014 , numerous Western companies continued operating in both countries , providing the Russian government with tax revenue , technological expertise , products , and employee knowledge , easing the Russian government ’ s efforts to support its war efforts .
However , after Russia ’ s full-scale invasion of Ukraine in 2022 , many Western companies faced the dilemma of complying with sanctions by exiting Russia or retaining access to lucrative government contracts and a 145-million-person consumer market .
Yet while most departed Russia due to public pressure and sanctions , other companies remained in the country , citing expensive exit costs . Others who officially left Russia or declared their intention to do so continue to operate in Russia and have proven essential to the Kremlin ’ s ability to reduce the impact of sanctions .
Meanwhile , even China , Russia ’ s most important partner , had its largest commercial drone company , DJI , emerge as the largest drone provider for both Russia and Ukraine , showing the powerful allure of profits and how international markets allow the flow of products to war zones regardless of geopolitical alliances .
As tensions between the West and China have also intensified over recent years , Western companies have faced mounting pressure to sever ties . US tech giants like Google , IBM , and Cisco have come under fire for aiding the development of China ’ s security capabilities , albeit ostensibly for domestic use .
In 2019 , comments by NBA officials over China ’ s response to prodemocracy protests in Hong Kong drew severe financial repercussions for the NBA ’ s operations in China , and drew a response from the White House criticizing companies that had “ kowtowed to the lure of China ’ s money and markets .”
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