Porcelanosa and the war in Ukraine (A): A public affairs and reputational dilemma

In 2022, a Spanish ceramics company finds itself embroiled in a media controversy when the president of Ukraine, invited to speak before the Spanish parliament, identifies it as one of several Spanish businesses operating in Russia. The allegation is serious and false: The company had stopped marketing its products in the Russian Federation months earlier, in compliance with the terms of the embargo imposed by the European Union. The accusations were heard live by millions of people, as the Ukrainian president's speech was broadcast live. The company weighs whether and how to respond, or whether to keep quiet and hope the matter will soon be forgotten. The fact that public sentiment is with the Ukrainian people and that the president is held in high regard and seen as a hero internationally makes the decision even more difficult.