VA Communications, VA Government, & VA Purpose is the largest full-service communications and public affairs group in Latvia, with strong expertise in corporate reputation management, strategic, creative, and marketing communications, as well as government relations and public affairs.

We work with our clients addressing their corporate communications, marketing, 360 degree integrated communications, media and influencer relations, crisis and problem situation resolving, and digital presence needs.

Latvian experts, European impact

Ralfs Vilands

Vladlens Kovaļevs

Elīna Egle

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For more information about our services, team, and expertise, visit our office website. Learn how we can help you navigate the Latvian political landscape and support your corporate communications needs.

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**Ralfs Vilands** [ralfs@vilands.lv](mailto:ralfs@vilands.lv)
**Vladlens Kovalevs**  [vladlens.kovalevs@vagovernment.lv](mailto:vladlens.kovalevs@vagovernment.lv)

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[Corporate activism](https://www.cambridge.org/core/journals/journal-of-management-and-organization/article/deconstructing-corporate-activism-a-consumer-approach/EB666C77A972D7B5AABFF22658A95906) or the willingness of companies to take a proactive stand on social, political, economic, and environmental issues, in many cases controversial, is a dynamic phenomenon globally. We have seen many examples of corporate and brand activism related to gender equality, LGBTQI rights, race, immigration, climate change, income inequality and other issues. Corporate activism is a relatively new phenomenon in Latvia, with increased demand due to Russia’s war in Ukraine. We can see this as part of the research "[Business and Public Expectations - USG 2023](https://www.vilands.lv/wp-content/uploads/2023/02/USG-2023-ENG.pdf)", conducted by VA Communications, VA Government and VA Purpose Rud Pedersen Group for the third time.

We don't have to look far when it comes to global examples of corporate activism. Patagonia's support in the fight against climate change is well-known and ongoing ([Start Small, Go Big, Give Back](https://eu.patagonia.com/lv/en/activism/)). This was reinforced by the [founder's announcement](https://www.nytimes.com/2022/09/14/climate/patagonia-climate-philanthropy-chouinard.html) to give away his company and ensure its profits are used to combat climate change and protect undeveloped land around the globe. Oatly, a Swedish company, has grown from a small start-up to a multinational company with a capitalisation of over €1 billion by creating plant (oat) milk in direct opposition to the dairy industry. A successful and fast-growing business was created when corporate activism was the foundation of the brand.

Corporate activism is also about rejecting collaboration if it becomes toxic, even though it creates considerable short-term financial loss. When the musician Kanye West made explicit anti-Semitic statements in 2022, Adidas terminated its contract with him for the Yeezy collaborative product line. As a result, Adidas said it would most likely lose €1.2 billion in revenue this year. If Adidas were to find a reason to continue the cooperation, the loss is difficult to calculate, even hypothetically.

There are some positive examples in Latvia as well like Printful who was one of the first companies in our country to stand up for an inclusive society, articulating this during Pride. But often the loudest ones are those that seem to be against positive change. Take farmers’ organisations, for their part, who should reflect on the zeitgeist in attitudes and consumption before attacking the Riga City Council’s participation in the “Don’t Eat the Globe” friendly eating challenge as detrimental to the industry. Is tackling pro-climate initiatives really the most beneficial modus operandi for these sectors and will it bring growth in the long-term? Hardly. The same applies to companies that see Latvia only as an exporter of natural raw materials with low added value. These are just a few cases worth looking at.

WHAT DOES LATVIAN SOCIETY EXPECT FROM COMPANIES?

Although Latvian companies are lagging in addressing controversial issues, public demand for companies to engage and take a stand on important social, economic, and political issues is growing year by year. And is a trend that is becoming more persistent. Around four out of five or 78% of Latvians today expect companies to think not only about profits, but also about issues important to society. This is a 15% increase since 2020, when only 63% of respondents considered so. In addition, 59% expect companies to take a stand on issues that matter to society.

The measurement on businesses and public expectations also shows that people are encouraging companies to address energy and energy resources related issues. This is the primary issue on the agenda for over a half, or 59%, of respondents. 43% highlight it as the primary area where they expect companies to take more action and expect them to support with their profits.

The importance of ESG (Environmental, Social, and Governance) topics also continue to grow when choosing products and services. It is important for most respondents that companies are as honest and transparent as possible. In contrast to previous years, already 78% highlight it. Similarly, 76% of respondents (+15% since 2020) want companies to have an ethical attitude towards employees. Environmental issues should also be high on the agenda of companies – it is important to 70% of the public. Environmental protection and climate change are also the third most important issue for companies to support with their profits, after energy and unemployment.

SHOULD BUSINESSES IN LATVIA BE CORPORATE CITIZENS?

It is important to note in this context that 51% of the public increasingly value the ability of Latvian companies to address issues of public concern. Perhaps, Russia’s invasion of Ukraine has increased this assessment and expectations. A very large part of the society, both in their corporate and private lives, have been active in the last year in opposing the war and providing various forms of support to Ukraine. In addition, unlike previous years, a company or brand's stance on issues of public importance has also had a significant impact on the public's purchasing habits. People are more active in boycotting companies and brands or, on the contrary, in supporting their actions.

26% of people indicated that they had refused to buy a brand's products or services in 2022 because of the company's stance. This is a significant change since 2019, when only 3% of respondents mentioned this. Similarly, 16% (+11% since 2019) said they have started buying a brand's products because its point of view matched with their own.

While analysing the data, we see that the increase in activism has been driven by the war in Ukraine that Russia has started. For example, the public has boycotted companies that did not leave the Russian market in time and has started to buy more locally-produced goods. Of course, Russia's invasion of Ukraine is a very strong, reaction-provoking event, and the question remains: when the war is over, will any issue be able to compete with it? It is therefore difficult to say now whether this is a one-off precedent or whether it will have a lasting impact on other social, political and economic issues.

At the same time, it is a significant step forward since 2019 and means that people keep a close eye on the actions of brands and companies. Therefore, a smart response to public expectations would be corporate activism as part of a business strategy.  But this cannot be achieved in a few weeks. So, if we want to make a visible difference a year from now, we need to act now. Ignoring the signals sent by public opinion can have a negative effect at an unexpected moment in the near future, as companies' attitudes are already starting to influence purchasing habits. Public activism will increase, and this will require an increasingly active citizenship from businesses too - it pays not to remain in the last rows!

[Read the full report in English here](https://www.vilands.lv/wp-content/uploads/2023/02/USG-2023-ENG.pdf).

Increased public activism and expectations from brands

Rud Pedersen Group, one of Europe’s fastest-growing public affairs and strategic communications agencies partners up with Vilands Associates(comprised of twin companies VA Communications and VA Government), the leading communications and public affairs agency in Latvia. With Vilands Associates joining the Rud Pedersen Group, the Group will become a market leader in the Baltic Region and will now be present in 11 countries throughout Europe.

Twin companies VA Communications and VA Government, who are both leaders in the Latvian market, have joined the Rud Pedersen Group. The two companies have 25 employees in Riga offering advice and consultancy to clients within strategic communications, marketing, crisis communications and public affairs. Rud Pedersen Group CEO and President Morten Rud Pedersen says: “With our strong Nordic heritage, the expansion to the Baltic was logical and we are now happy to be in all three Baltic countries. Our clients are looking for integrated solutions, and I am very pleased that we can now provide the best offering in the region. VA Communications and VA Government are companies built by entrepreneurs who wanted to challenge the market, just like we do in the Rud Pedersen Group.”Earlier this year, the Rud Pedersen Group announced its new office in Warsaw, an important hub related to the Baltic countries. "We immediately found common ground with the Rud Pedersen Group. We share a similar internal culture and vision of the future growth of the company –based on knowledge development. The role of players on the regional level is growing rapidly, increasing the need for companies like the Rud Pedersen Group in the international professional services market. Therefore, we have chosen to go further together and build a powerful alliance that brings even more added value to our team and our clients," says Ralfs Vīlands, Partner at VA Communications and VA Government. VA Communications and VA Government have already worked with Rud Pedersen Group on shared projects. With the partnership, Rud Pedersen Group becomes minority owner of VA Communications and VA Government and the companies will officially and publicly be part of the Rud Pedersen Group.

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Increased public activism and expectations from brands

Rud Pedersen Group Opens Up in Latvia Through VA

Increased public activism and expectations from brands

Rud Pedersen Group Opens Up in Latvia Through VA