Doing what is morally right pays off

Berlin Those who show a moral stance in political conflicts often pay a high price. It is all the more surprising that internationally active companies are now making the opposite experience after their withdrawal from Russia: Showing a clear edge to the Russian President and warmonger Vladimir Putin is not only morally right, it is also financially worthwhile.

Jeffrey Sonnenfeld, an expert in corporate governance at the American elite university Yale, said in an interview with the Handelsblatt: “Shareholders in companies that leave Russia have an advantage.” It pays to send a signal to Putin.

Sonnenfeld relies on a study of around 600 listed companies. It has been shown that the market value of those companies that have resolutely and consistently turned their backs on Russia after the invasion of Ukraine has not only increased noticeably. “The gain is also far greater than the loss in value due to depreciation and lost sales,” says the professor of management.