DOI: https://doi.org/10.62204/2336-498X-2025-2-2

BUSINESS RESILIENCE AND INTERNATIONAL ECONOMIC RELATIONS:
AMWAY’S RESPONSE TO WAR IN UKRAINE

Lesya Leshchii,
Candidate of Economic Sciences (Ph.D.), Associate Professor, Ukrainian-American Concordia University, Kyiv, Ukraine,
lesya.leshchiy@uacu.edu.ua; ORCID: 0000-0003-2520-0589

Anna Horbenko
Bachelor’s student,Ukrainian-American Concordia University, Kyiv, Ukraine,
anna.horbenko@uacu.edu.ua; ORSID: 0009-0008-6360-1256

Annotation. This article examines the concept of business resilience within the context of international economic relations during armed conflict, using Amway’s operations in Ukraine amid the 2022 Russian invasion as a case study. The research focuses on identifying specific strat- egies Amway employs to maintain financial stability, customer trust, and operational continuity under extreme conditions. The study reveals a multi-layered resilience framework adopted by the company by analysing supply chain adjustments, direct selling model eficiency and internal employee support. Results demonstrate that Amway’s ability to adapt to logistics disruptions, currency devaluation, and labour market instability was rooted in decentralised infrastructure, health-focused product demand, and local empowerment strategies. The findings contribute to a broader understanding of how multinational corporations can support macroeconomic stability and public well-being during crises. This analysis may serve as a model for future business re- sponses in conflict-affected regions.

Keywords: international business, business resilience, Ukraine war, multinational corpora- tions, economic disruption, direct selling, Amway.

Introduction. Business resilience and the strength of international economic re- lations are critically tested during periods of hostilities. Wars create hard and challenging times for businesses, both local and global. Some visible challenges include disrupted supply chains, limited market access, and fluctuations in currency values. Others, such as the mental health of workers, displacement, and military conscription, are less imme- diately apparent but equally disruptive. This paper uses Ukraine as a case study to exam- ine the risks to business financial stability during wartime and the broader implications for an international economic system.

Currency instability was another significant risk factor. The depreciation of the Ukrainian hryvnia introduced additional financial strain, impacting both operational costs and pricing. In July 2022, the National Bank of Ukraine adjusted the official exchange rate of the hryvnia against the U.S. dollar by 25%, setting it at UAH/USD 36.5686. The situation with the currency was always an issue in Ukraine, especially since 2014, as the war started, and it continued to be an obstacle to progress even more after the Russian invasion. The currency rate is a thing that is hard to regulate and predict, as we can see on the Fig 1. The value of the dollar changed many times during these unstable times.

Fig. 1. Chart based on WTO exchange rate trends, showing the depreciation of UAH/USD during 2022–2024.

Source: https://charts.finance.ua/ua/currency/oficial/-/1/usd

Although there is no publicly disclosed information about Amway Ukraine’s in- ternal financial risk management during the war, it is reasonable to assume—based on common international corporate practice— that the company may have adopted flexible pricing strategies to account for the 25% currency devaluation implemented by the Na- tional Bank of Ukraine in July 2022. In comparable cases, multinational corporations operating in volatile economic environments typically rely on a mix of price adjust- ments and financial hedging instruments to mitigate exchange rate risks and preserve revenue stability. Such practices, if applied, would support not only financial resilience but also customer trust and price consistency in crisis conditions.

Literature review. Many scientific works are devoted to the issue of business resilience in the conditions of economic turbulence, political changes and instability of international economic relations. In particular, the topic as a whole is studied in the works of Gupta, S., Gupta, A., & Kumar, J. [8] Also, individual aspects – for example, the business resilience of companies under the influence of digital transformations and the Covid 19 pandemic – are studied in the works of Hokmabadi, H., Rezvani, S. M., & de Matos, C. A. [9] We will also pay attention to the research of domestic scientists, Prygara, O., & Yarosh-Dmytrenko, L. [12], who studied the impact of the military situation on business resilience. Special attention deserves Moşteanu, N. R. [11], whose work explains the possibility of adapting to the unpredictable – Building resilience for business continuity in an ever-changing landscape.

However, the practical aspect of our article deserves special attention – many sources related to the Amway company are used [1-7]. The information was taken from both official websites and articles that explore the activities of this company. A lot of general statistical information was also processed, in particular, Market research of supplements and vitamins in Ukraine [10], as well as information from the World Bank [16].

Research objectives. In the process of writing the article, we set the goal of analyz- ing the activities of a large international corporation in wartime and proving that busi- ness sustainability can be achieved under the conditions of business ethics and compe- tent financial and marketing management. Another important goal of writing the article is to provide recommendations for increasing business sustainability in wartime or other critical crises.

Metodology. The article uses general scientific methods of analysis and synthesis, examines a wide range of statistical data, summarizes the results. Methods of compari- son and graphic visualization were also applied.

Results and visualizations. Amway positions itself globally as a company dedi- cated to health and wellbeing, which forms the core of its brand identity and corporate values, which are presented in Fig. 2.

Fig. 2. Amway’s Health + Wellbeing program

Source: [5] 

Although sourced from Fig. 2 is from the Thai market, the corporate program is globally standardised and thus relevant to Ukraine. This holistic philosophy includes not only physical health but also emotional well-being, personal growth, community connection, and financial stability. In conflict-affected economies like Ukraine, such po- sitioning becomes increasingly relevant. Despite the economic and humanitarian disrup- tions caused by the war, the health and nutrition industry in Ukraine has shown remark- able growth. Consumers have increasingly prioritised preventative care and wellness, even amidst conflict. By continuing to supply essential wellness and nutrition products in wartime Ukraine, Amway not only preserved its market presence but also contributed to social resilience and public health. This dual role—as both an economic and a wellbeing actor—demonstrates the growing importance of multinational corporations in sustain- ing basic societal functions amid conflict. The health and nutrition industry has shown remarkable resilience during the war. In the first half of 2023, dietary supplements ac- counted for 10% of all pharmacy sales in Ukraine, up from 7.8% in 2022. According to DSN Group forecasts, presented in Fig.3, the vitamin and supplement market is expect- ed to reach $155 million by 2028.

Fig. 3. Projected Market Size of Dietary Supplements and Vitamins in Ukraine (2024–2028)

Source: Adapted from DSN. [10] by the author

From Figure 3, it is visible a huge potential for the Amway philosophy of high-qual- ity health products in Ukraine. Furthermore, in Figure 4, we can observe that the retail pharmacies represent over half of the market. It shows that people want to buy proven products, and Amway`s nutrition company, NUTRILE, responds to all the health stan-dards in the world. Such an argument as this exact bottle of vitamins has been checked in more than 100 countries supports consumer trust in product safety and regulatory compliance [4].

Fig. 4. Distribution Channel of Supplements and Vitamins in Ukraine

Source: Adapted from DSN. [10] by the author

As it was posted on the 17^th of March 2025 on the Amway official website [2], the company was recognised as the number one direct selling company in Ukraine in 2024, and found itself in a strategically advantageous position. Such recognition reinforced Amway’s legitimacy and customer trust, especially during a period of high competi- tion in the wellness market. Its focus on health and wellbeing aligned with rising con- sumer demand, while its direct selling model allowed for adaptability when traditional retail channels were under strain. By offering essential supplements and wellness goods through distribution networks. Amway`s powerful side is a health niche with high-quality products that respond to the needs of the population.

In the context of international economic relations, Amway’s success illustrates how multinational corporations can leverage local empowerment and networks to build resil- ience in conflict zones. Cross-border supply chains, compliance with global standards, and digital coordination tools enabled the company to bridge the gap between interna- tional support systems and local economic recovery efforts. As such, Amway’s wartime performance in Ukraine serves as a model for how private-sector actors can contribute to macroeconomic stability and community wellbeing while navigating the complexities of international business in high-risk environments.

Despite these achievements, Amway’s approach to public communication during the war sparked debate. In addition to visible risks, hidden and often overlooked factors that Amway overcame were the psychological toll of the war on employees. Aligned with its mission, Amway has taken steps to care not only for its customers but also for its internal teams. With the constant threat of violence, employees ex- perienced heightened levels of stress and anxiety, which influenced workplace morale, productivity, and absenteeism. The company provided psychological support and coun- selling services to employees affected by war-related trauma (Forbes, 2024). These mea- sures helped reduce absenteeism, preserve morale, and reinforce the connection between corporate well-being values and practical support mechanisms in extreme environments. Another element of internal employee support was training. Amway recognises the challenges of employees’ learning of the essential things about the company and the importance of integrating them. The company organised training for new hires. Am- way University was established in 2016 to support skills development across more than 100 countries. It enabled fast and consistent onboarding, upskilling, and cross-function- al training. As a result, the employees in Ukraine had all the necessary skills to adapt during the Russian invasion in Ukraine [14]

Additionally, Amway Ukraine sustained the employment of its official staff during the war and continued operating its logistics and customer service infrastructure. According to a 2024 Forbes Ukraine article, the company maintained salary payments for its employees and provided direct financial assistance to those remaining in active service within Ukraine. Additionally, Amway relocated some of its Ukrainian employees to Kraków, Poland, where it provided housing, essential goods, and employment continuity [1]. These actions ensured income stability for staff and maintained product availability in the Ukrainian market de- spite wartime disruptions.

However, these business adaptations were not without cost. The same report high- lights that Amway Ukraine experienced significant challenges. As we can see in Table 1 in the corporation could manage the growth of the income.

Table 1

Financial Indicators of Limited Liability Company “Amway Ukraine”

Source: Created by authors based on [7]

Amway lost almost half of its profit in 2022, but in the next year, it almost reached the same level of income as before the Russian invasion of Ukraine. From the interna- tional economic relationship perspective, one of the aspects that helped them recover is their reputation. They managed to keep the customer’s loyalty.

In early 2022, many companies had to decide which way they had to react to the situation around the war. There were only three options: retreat, remain silent, or speak up. For Amway, it was a life-changing decision, because they have a huge network of Independent Business Owners and customers in both countries, Russia and Ukraine. In a month, the company eventually officially posted an announcement that first time in their 63-year history and 17 years of being present in Russia, it would leave the Russian market. [3]

According to analysis from the Grand Rapids Institute for Information Democracy (GRIID), Amway’s public communication around its decision was less a firm stance against aggression and more a carefully crafted exercise in brand self-preservation. The company’s official announcement, issued in March 2022, focused heavily on its internal values, its “family” of employees, and its ongoing commitment to entrepreneurship, while largely avoiding direct condemnation of Russia’s actions in Ukraine. The word «Ukraine» appeared just twice in the statement; “Russia,” only once. Meanwhile, the name “Amway” was mentioned six times—a telling detail in a moment that demanded moral clarity [13]

The company’s public statement, while affirming its values, noticeably avoided di- rect reference to the aggressor or victims. This imbalance reflects a broader trend among global corporations that operate in geopolitically sensitive environments. Rather than making bold ethical declarations, companies like Amway often opt for what might be described as “principled neutrality”—a strategy that preserves consumer goodwill in key markets while appearing outwardly humanitarian. For Amway, a company deeply invested in self-image and direct selling rooted in personal trust, maintaining the loy- alty of both distributors and consumers was paramount. But this approach comes with risks—chief among them the perception of moral evasion.

This criticism underscores the delicate balance Amway faces as a global brand. On the one hand, Amway must balance a complex web of business interests: a vast net- work of independent distributors (known as Amway Business Owners or ABOs), supply chains that span continents, and consumer bases in both democratic and authoritarian states. On the other hand, its silence—or selective language—can be read as complicity. In the age of social responsibility, where consumers increasingly expect brands to take positions on global issues, ambiguity is not always safe.

Beyond this individual case, Amway’s approach sheds light on a larger shift in international economic relations that are increasingly shaped by corporate diplomacy. In place of governments, it is often multinational companies that serve as the first re- sponders to geopolitical shifts. They wield influence not just through capital, but through messaging— what they say, how they say it, and when they choose to stay silent. In that context, the tone and content of Amway’s announcement offer a glimpse into how corporate power navigates crisis: carefully, self-referentially, and with an eye toward post-crisis re-entry.

One key element to understanding Amway’s response to the war in Ukraine lies in dissecting its public messaging strategy and how it compares with typical corporate cri- sis communication patterns. As noted in the GRIID article, the structure, tone, and con- tent of Amway’s announcement raise critical questions regarding the sincerity and intent behind their decisions [13]. Analysing the frequency and emphasis of specific terms within the announcement allows for deeper insight into where the company’s priorities truly lie. The distribution of keywords reflects not only Amway’s branding focus but also its cautious positioning about political responsibility.

Another crucial dimension to explore is Amway’s market positioning within Russia before the war and how the pause in operations potentially affected its revenue streams. To better understand this, Table 2 presents Amway’s estimated regional sales distribu- tion before the 2022 invasion, based on available data and industry reports.

Table 2

Estimated Sales Distribution by Region (Pre-2022 Conflict)

As Table 3 indicates, Russia represented a significant portion of Amway’s glob- al market, with approximately 12% of sales attributed to that region. In comparison, Ukraine accounted for only 3%, making it economically less impactful in terms of reve- nue. This disparity may help explain why the company’s message appeared neutral and strategically vague—Amway faced the risk of alienating a key market if it condemned Russian aggression outright.

The conflict in Ukraine, triggered by Russia’s attack in February 2022, has been one of the most conclusive case studies of our era of how global companies should react, adjust, and at times resist under intense pressure. This conflict, which disrupted supply chains, closed factories, sent tens of millions out of work, and burst international coalitions, has exerted significant pressure on companies reliant on multi-market integration, greatly reliant on multi-market integration, like companies like Amway. To learn in substance how resilience acts in practice, however, is to have to look beyond individ- ual case-by-case analysis to a broader view.

According to Gupta, Gupta, and Kumar, building resilience in international busi- ness, particularly in emerging economies, requires companies to responseat multiple levels: strategic, operational, and relational. According to these authors, in emerging and conflict zones, companies cannot rely on stability or institutional support. Instead, resilience must be baked into the firm’s DNA [8].

Diversification of value chains is among the most central strategic principles on which they are based. Before the war, most firms, including Western multinationals, had grown reliant on Russia and Ukraine for important logistics services. Ukraine, as an ex- ample, was a hub for industrial and agricultural exports; Russia provided large consumer markets as well as sources of energy. When these avenues were cut off, companies with no alternative distributors or patterns or suppliers. Firms that had diversified their sup- plies were far better placed to continue operations without much disruption.

Amway’s experience during this crisis demonstrates the necessity and challenge of such diversification. With extensive operations in both Russia and Ukraine, the company found itself overnight having to revisit the sustainability of its Eastern European logis- tics model. Distribution centres across vast regions needed to be relocated, and new alli- ances in safe regions needed to be rapidly arranged. This was not just moving containers or warehouses; it required rapid adjustments in the form of legal requirements, human adaptability, and marketing strategy.

One of the key helpers for the Ukrainian market in 2022 was the Amway Global Business Services Centre in Kraków. It played a critical role in relocating the Ukrainian employees, and also has an influence in the logistics sphere across all the Europe as this centre is a hub for Amway’s operations across Europe, India, Africa, and the Americas. So, whatever problems and crises arise in these regions, they report them to the centre in Kraków. So, we can predict that this Business Centre was an advantage of diversification and played a critical role in ensuring that Amway’s services remained uninterrupted in Ukraine.

While Amway took heat for the general statement it issued on halting operations in Russia, its long-term commitment to entrepreneurship and community health allowed it to continue basking in goodwill in many key markets. The company’s unrelenting focus on family values allowed it to continue supporting its legitimacy in Ukraine, where the company’s products are often retailed through women’s entrepreneur networks. While the corporate centre was also diplomatically sensitive, on-ground connections saw the maintenance of brand loyalty among sellers and consumers of Ukraine. It highlights the pillar of resilience known as «invisible infrastructure» [8], which is relational.

For Amway, the situation was complex due to its dual income model, one of direct sales and one of physical product retailing. Whereas this model provided flexibility, it also necessitated that regional network of distributors had to be nurtured and stabilized quickly, specifically in Ukraine, where they were cut or displaced from supply chains.

Conclusions. The results of this study provide an integrated picture of how Amway reacted to the war in Ukraine, and show Amway’s response was diversified, such as a combination of operational flexibility, strategic communication, localized decision-mak- ing, employee support systems, and attention to consumer demand around health.

First, the company’s supply chain realignment played a critical role in providing product availability and confidence among consumers. Amway reengineered its supply network so that deliveries could keep coming to Ukrainian consumers. This involved using alternative routes via bordering EU countries, especially Poland, where Amway relocated some of its distribution infrastructure. By decentralising its operations and strengthening its Central and Eastern European logistical partnerships with the centre in Krakow, the firm minimised the risks of stockouts and maintained a consistent flow of product even during extreme disruption.

Second, financial shock-absorption measures and price realignment facilitated Am- way in consolidating revenues in the presence of currency volatility. As has been pointed out earlier, the July 2022 devaluation of the Ukrainian hryvnia by 25% placed a sudden and colossal financial burden on every commodity-based venture. In response, Amway likely used adaptive price methods as per global best practices, which typically involve exchange rate-adjusted dynamic revision and indexed pricing.

Third, Amway’s product line enabled it to stay pertinent in a wartime environment where customers increasingly emphasized wellbeing. According to market statistics, wellness products and dietary supplements experienced robust growth in demand in Ukraine between 2022 and 2024, growing from 7.8% of total pharmacy sales to 10% in 2023. Amway capitalised on the trend not only by continuing to ship products but also by upping health and wellbeing communications.

Fourthly, the direct selling model of the firm further became extremely resistant during conflict periods. Unlike traditional retailing companies that are reliant on store- based operations, Amway’s decentralized model provided for business sustainability through networks of independent distributors.

Fifthly, the company’s human resources management also took into account the challenges of the time – people were provided with the necessary psychological and material assistance, in some cases – even employees were sent abroad. Work on training personnel to work in new realities also continued.

Sixth, the company has maintained its position in the international market by exiting Russia, thus avoiding reputational risks and other image troubles. Although the company’s position remains controversial, the company is one of the leaders in its industry and provides the necessary global level of product supply.

Such strategic appropriateness alignment of product suitability and public sentiment contributed significantly toward Amway’s ability to hold customer bases intact and sus- tain sales momentum during wartime. 

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