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Avon Faces Criticism for Maintaining Business Operations in Russia Amid Ukraine Conflict

Business 360 by Business 360
January 29, 2024
in News, World
0
Avon Faces Criticism for Maintaining Business Operations in Russia Amid Ukraine Conflict

Avon, the renowned beauty giant, is facing backlash for sustaining business activities in Russia despite the ongoing conflict in Ukraine. The BBC has reported that the company is actively recruiting new sales agents in Russia and continues production in a significant plant located in the Moscow region.

Despite the war in Ukraine, Avon, headquartered in the UK, has maintained its presence in Russia, where it began operations 30 years ago. The company, known for its door-to-door sales representatives demonstrating cosmetics, perfumes, and creams, has evolved in recent years with an increased focus on physical stores and social media sales.

When the conflict erupted, Avon announced a cessation of investment and the suspension of beauty item exports from Russia to other markets, including Ukraine. Avon’s parent company, Brazilian firm Natura & Co, justified maintaining local operations by claiming to provide crucial support to sales agents whose livelihoods depend on their business, especially women and children in Russia.

However, the BBC investigation revealed that Avon is still actively recruiting new sales agents in Russia, offering prizes, cash bonuses, and holidays as incentives for achieving targets. The company’s website allows Russian citizens over the age of 18 to register as sales agents, promoting access to “iconic, high-quality products” and the potential for additional income as beauty experts.

Avon’s actions have sparked criticism, with concerns raised about the company’s commitment to ethical business practices amid geopolitical tensions. Critics argue that maintaining business operations in Russia contradicts the widespread international sanctions imposed on the country.

In response to the scrutiny, an Avon spokesperson stated that Avon Russia provides critical support to women in the country through locally funded activities that help sustain their social selling businesses. The company sees this support as vital for women whose livelihoods are tied to their Avon business.

Avon’s decisions in the face of geopolitical challenges underscore the complex relationship global companies navigate when operating in regions embroiled in conflict. The beauty giant now faces increased scrutiny and pressure to reassess its operations in Russia amid the ongoing war in Ukraine.

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