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Home›Business ethics›‘They didn’t play:’ CCM Hockey’s debacle over its Russian players shows there’s no hiding from politics

‘They didn’t play:’ CCM Hockey’s debacle over its Russian players shows there’s no hiding from politics

By Paul Gonzalez
March 4, 2022
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CCM’s decision to drop all Russian players has raised questions about how business ethics and strategy

Washington Capitals captain Alexander Ovechkin practices at the Scotiabank Saddledome on October 26, 2018. Photo by Dean Pilling/Postmedia Files

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Patrick Cartlidge has been a fan of Montreal-based Canada Cycle & Motor Co. Ltd., known today as CCM Hockey, for three decades. When he’s not working as a high school English teacher, he collects and customizes vintage CCM jerseys.

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A rare gem from his collection is a 1996 LA Kings 3rd “Burger King” jersey, in purple, gray and white, with a fierce purple beard Kings logo across the heart. Another is a professional version of the 1995 New York Islanders jersey with the blue, orange and white logo on both shoulders.

Missing from his collection is anything bearing the name of one of the CCM’s biggest stars: Alexander Ovechkin. Cartilage had no problem with the company’s decision this week to remove the Washington Capitals captain and other Russian hockey players from its global ad campaigns in response to President Vladimir’s invasion of Ukraine. Putin.

“Ovechkin has aligned himself politically with Putin and the Russian state, so it’s fair in his case,” Cartlidge said. “As for the other players, it’s hard to say.”

TSN was the first to report that CCM was distancing itself from its Russian athletes, quoting General Manager Marrouane Nabhih. The company confirmed the report, but declined to name any other Russian players on its promotional roster besides Ovechkin.

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CCM Hockey General Manager Marrouane Nabih: “While Mr. Ovechkin is not responsible for the actions of the Russian government, we have made the decision not to use him (or any Russian player) in any CCM global communications to this stage. https://t.co/ZF4rctB8Fu

—Rick Westhead (@rwesthead) March 1, 2022

“CCM Hockey feels very sad for the people of Ukraine and hopes for a peaceful resolution as soon as possible,” the company, owned by Toronto-based Birch Hill Equity Partners, said in a statement. “In the meantime, we are suspending the use of any Russian player[s] of our global marketing [and] The advertisement.”

Russian-born players with CCM ties include Pittsburgh Penguins forward Evgeni Malkin of the Pittsburgh Penguins, former MVP and three-time Stanley Cup winner; Dmitry Orlov, who played internationally for Russia and is a teammate of Ovechkin in the Capitals; and Artemi Panarin of the New York Rangers, among the NHL’s leading scorers and highest-paid players.

The CCM’s decision was part of a broader backlash by the hockey establishment against Russia — and Russians — following Vladimir Putin’s decision to invade Ukraine last week. The NHL, Hockey Canada, USA Hockey and the International Ice Hockey Foundation (IIHF) have all taken action to condemn Russia’s invasion of Ukraine. The IIHF, for example, has suspended Belarusian and Russian national teams and club teams until further notice.

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Although understandable on the face of it, CCM’s decision to drop all Russian players, not just Ovechkin, raised questions about business ethics and strategy. One problem was discrimination. CCM didn’t have to go as far as it did. Its main rival, Bauer Hockey LLC, whose roster includes Russian star Kirill Kaprizov of the Minnesota Wild, condemned the invasion, but stuck by its players.

“We support the decisions made by the NHL, IIHF, Hockey Canada and USA Hockey regarding international team competitions,” a Bauer spokesperson said. “When it comes to athletes at all levels – including NHL players – we believe that no individual should be judged indiscriminately on their nationality, race or sexual orientation.”

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Alison Kemper, a business ethics expert at Ryerson University’s Ted Rogers School of Management, said any response indiscriminately targeting all Russian actors was concerning.

“I don’t know how you can tell the difference between a Putin supporter and a non-Putin supporter,” Kemper said, adding that Russian athletes are unlikely to openly express their distaste for the regime because it would put them and their families at risk. .

At the same time, companies like CCM are learning the hard way that there is no escaping politics anymore, not even at the rink. Companies, which are typically risk averse, must try to “outsmart” geopolitical crises like the war in Ukraine in advance, by trying to predict them in advance, Kemper said.

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“Most marketing departments probably aren’t as geopolitically savvy or sophisticated,” she said. When the social tide turns, “you pay a lot of money to have your reputation tarnished,” she said.

Russian President Vladimir Putin holds a certificate with Russian national ice hockey team member Alexander Ovechkin at the Novo-Ogarevo residence outside Moscow May 29, 2012.
Russian President Vladimir Putin holds a certificate with Russian national ice hockey team member Alexander Ovechkin at the Novo-Ogarevo residence outside Moscow May 29, 2012. Photo by SERGEI KARPUKHIN/RIA NOVOSTI/AFP via Getty Images Files

The CCM may have missed key warning signs with Ovechkin, who has always been close to Putin; in a 2011 interview, he mentioned that he had the president’s home phone number. Putin phoned Ovechkin to congratulate him and his wife on the marriage and even sent them a wedding gift. In November 2017, just weeks after signing the endorsement deal with the CCM, Ovechkin posted an Instagram post launching a social movement called “PutinTeam”, calling it a “privilege” to be associated with the initiative.

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At a press conference on February 25, Ovechkin’s demeanor was much less cheerful. He appeared tired when reporters asked him about his views on Putin and the war.

“I’m Russian, aren’t I? It’s something I can’t control. It’s not in my hands,” he said. “[Like] I said I hope [the war is] will soon end, and there will be peace in both countries.

When asked if he still supports Putin, he replied, “Well, he’s my president. Corn [like] I said, I’m not into politics, I’m an athlete…it’s a tough situation now, for both parties.

CCM fan Cartlidge said that wasn’t enough. “I appreciate the difficulty of his position, but I feel he needs to make a stronger statement; he is the face of Russian hockey,” he said.

Cartlidge strives to avoid companies that support unethical practices, and he’s not alone. It reflects the general trend of conscious consumerism among Canadians. Today’s consumers not only like to see their favorite brands get involved in social issues, but they expect it.

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Consulting firm PwC noted in its 2021 Consumer Insights report that consumers, governments and shareholders now view environmental, social and governance initiatives as a “must-have, rather than a nice-to-have”.

CCM’s decision is part of a broader global trend of social responsibility, as companies take a stand on issues such as Black Lives Matter and, more recently, the Russian-Ukrainian war. It may be inauthentic, but Kemper said it didn’t matter.

“The modern notion of a society is not about authenticity,” Kemper said. Businesses don’t think, feel entities, but a “bond of contracts,” she said.

And when you pull back the curtain, the CCM debacle isn’t about social responsibility at all, it’s about strategy. The company made a crucial miscalculation in signing the endorsement deals with Ovechkin and the other Russian players, Kemper said.

“They didn’t play it.”

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