Legitimacy in corporate public diplomacy (original) (raw)
Related papers
From Public Diplomacy to Corporate Diplomacy: Increasing Corporation’s Legitimacy and Influence
American Behavioral Scientist, 2009
Public diplomacy is an increasing popular preoccupation of governments worldwide, especially aimed at achieving acceptance of their foreign policies abroad, in which corporations have traditionally played a secondary role. However, as it happens with governments, corporations have understood long ago the challenges of being accepted abroad. In this paper the authors suggest that 'corporate diplomacy' is also a process by which corporations intend to be recognized as representatives of something that might be a concept or a country or its related values. In this case, it is essential to create a sincere adaptation of the corporate values to the societal values if a corporation wishes to have a symbiotic relationship with key stakeholders. 'Corporate diplomacy' thus becomes a complex process of commitment towards society, and in particular with its public institutions, whose main added value to the corporation is a greater degree of legitimacy or "license-to-operate," which in turn improves its power within a given social system. By proposing a certain notion of 'corporate diplomacy' the authors intend to evocate an important role that modern corporations are increasingly playing through their public relations practice and which might be shaping the definition of corporations as institutions within society.
Diplomatic engagement with transnational corporations: a path to sustainable governance
International Journal of Diplomacy and Economy, 2019
Recent empirical studies show that the concept of corporate diplomacy is encountering reluctance from the business side for economic, political and educational reasons and from government side due to economic, political and educational objections to participative leadership in foreign affairs. This diplomatic practitioner's policy paper takes up the challenges to analyse the causes for reluctance and objections to diplomatic engagement with transnational corporations and points out ways to overcome them through inducements and change of mindset of CEOs as well as government representatives. The challenges of globalisation (such as geopolitical shocks, terrorism, and politically motivated trade restrictions) provide incentives for collaborative relationships and processes of common crisis management. The author indicates practical steps and missions to follow in the government/business collaboration process to deliver sustainable solutions to joint problems. With the partnered practice of corporate diplomacy transnational corporations become involved in sustainable, whole-of-society governance.
2019
Corporate public diplomacy is a business approach to collaborate, solve problems, and build longterm relationships with people living in foreign communities where transnational corporations invest. It is a supplement to other forms of corporate diplomacy, such as those with governments, international organizations, NGOs, and other businesses. Corporate diplomacy is an umbrella concept that draws on literature from many fields, including political CSR and international relations. The thesis takes seriously the current anger expressed by people who do not belong to the welleducated elite and insist on being taken seriously. States invented diplomacy, partly to avoid costly wars, and in a global world, where the largest transnational corporations are as powerful in terms of economic resources and as influential as most states, this thesis argues that corporations can learn from state diplomacy when they strive to create reliable working environments and avoid costly (violent) conflicts with local host communities. The idea is discussed in the light of two cases: Exxon-Mobile in Aceh and China Power Investment Corporation in Kachin. Corporate public diplomacy is an alternative approach to firms dealing with local host communities. The more traditional methods are to use hard power and the legal system to enforce corporate rights and/or to apply pity-based CSR. The thesis contributes to current research with the idea of corporate public diplomacy and how it differs from state public diplomacy. Using an international relations framework as an organizing tool, it points to two approaches to state public diplomacy and three approaches to corporate public diplomacy. There are many legitimacy issues related to corporate diplomacy, and some of them are discussed in one of the five published articles included. Three other articles relate to trust research. The thesis contributes with a suggestion as to how state public diplomacy can be linked to international trust; how trust relates to norms and crisis; how forms of trust develop over time during a conflict, and how some people – including leaders – may seek advice from an inner knowing that I have termed spiritual trust. Finally, for the scholars wanting to engage in corporate public diplomacy research, a list of ideas is included as inspiration.
Academy of Management Perspectives, 2015
Corporate diplomacy is an emerging concept within the management literature. It describes corporate conduct in the international arena, particularly in challenging political and social environments. Management scholarship and practitioner literature have focused on the communication processes and instrumental benefits associated with corporate diplomacy, exploring and explaining how managers negotiate stakeholder relationships to achieve a firm's profit-oriented goals. We enrich the current understanding of corporate diplomacy by viewing it as an umbrella concept that encompasses scholarship from political corporate social responsibility, international relations, diplomacy, and peace studies. We also suggest that corporate diplomacy includes the political role that multinational enterprises play in addressing social issues and governance gaps affecting less developed and potentially conflict-prone host countries where they operate. Based on this approach, the concept of corporate diplomacy builds on the premise that multinationals have an expanded role and responsibilities in terms of global governance and that the practice of corporate diplomacy can play a role in resolving social or political conflicts, leading to wider societal benefits beyond corporate profits. To illustrate our concept of corporate diplomacy, we focus on the governance gaps addressed in the literature on peace through commerce, discussing instances where firms implement corporate diplomacy through peacemaking or peacebuilding to accomplish both private and public goals in conflict-prone regions. We conclude with the practical implications of corporate diplomacy as well as suggestions for research to further develop a richer understanding of corporate diplomacy.
Exploring the role of private-sector corporations in public diplomacy
This conceptual article explores the role of international corporations as non-state actors in the process of public diplomacy as the global environment for diplomacy becomes increasingly multi-directional and networked. It provides an operational definition of the concept of corporate diplomacy and depicts potential contributions of the private sector, particularly the role of corporate social responsibility, in public diplomacy outcomes. The private sector has vast resources to contribute to public diplomacy, but corporations may be more willing to support, rather than to directly engage in public diplomacy in order to protect their economic self-interest. Key issues for research about the role of the private sector in public diplomacy are motives and intentionality of corporate efforts and strategic coordination between business and governments.
The Social Diplomacy of Multinational Corporations
Books&Ideas, 2018
Just as an international treaty on the social responsibility of multinational corporations is being negotiated at the United Nations, Marieke Louis reveals how corporations are involved in the arenas of global governance, and highlights the ambivalent relationships between states and multinational corporations.
Corporate diplomacy as global management
International Journal of Diplomacy and Economy, 2018
Corporate diplomacy is defined as diplomatic activities of transnational corporations to practice and influence foreign policy. With the rise in social power of transnational corporations they face constantly changing expectations of their role in society as the ultimate stakeholder (societal turn). This practitioner's policy paper for diplomatic management will-for the first time-concentrate on the perspective of diplomatic practice. The concept of corporate diplomacy has turned into a necessity: for the corporate world as the 'next bright idea' to adapt management to globalisation and for the future transformation and extension of diplomacy and its 'civilising mission' in transnational relations. The relationship between diplomacy and corporate diplomacy is one of functional symbiosis between diplomatic tools, procedures and mind-set and best practices of international management. The practice of corporate diplomacy leads to mutually beneficial cross-fertilisation between the two systems, adding value and creating shared values according to private and public societal needs.
Multinational Companies and the Management of Corporate Diplomacy
Journal of business management, 2019
This article examines the influence of multinational (MNC) and transnational (TNC) activity over the corporate and business diplomacy practice, according to the industry type, the development extent of each corporation, and the degree of corporate power decentralization. The methodology used in the research papers analyzed included literature review, case studies and qualitative data collection based on interviews with managers from the international corporate environment. Research shows that in practice, there is a confusion in regard with significance of business and corporate diplomacy expressions and their activities extent. This view is also shared by literature, since the association of the terms diplomacy and corporate activities would have more meaning into a philanthropic context, compared to international business. By studying the different managerial actions of multinational and transnational corporations, results show that business diplomacy characterizes with a higher d...
Corporations as Diplomatic Actors: Conceptualizing International Communication Tools
Handbook of Research on Impacts of International Business and Political Affairs on the Global Economy
In this era of globalization, corporations have to use the communication tools most effectively, while conducting their businesses in order to reach their target audience. This chapter presents a conceptual framework that shows the role of international communication in ensuring the success of multinational corporations (MNCs). The arguments are presented in four sections. First, background information about MNCs is given. Second, three prominent communication tools are outlined. Third section introduces the framework that combines these different tools. It is suggested that there are three important communication tools for the business practices of MNCs. These are defined and exampled as lobbying, commercial diplomacy and nation brand respectively. The chapter is concluded by presenting its academic and practical contributions. In all of the sections, the fact that MNCs are becoming both objects and actors in diplomatic processes in the contemporary global economy is stressed.
The Logic of Transnational Action: The Good Corporation and the Global Compact
Political Studies, 2007
This article examines corporate participation in the UN Global Compact programme. Using data on the world's 2,000 largest companies, we address the question of why companies voluntarily assume the programme's responsibilities and promote the rights of 'global citizenship'. Our analytic approach is to view transnational corporate political behaviour as a result of firm-level decisions shaped by country-level variation in political audience effects. Drawing on earlier research on more conventional forms of corporate political activity, we expect factors influential in the standard model of firm political activity to determine participation in the Global Compact. In addition, we argue that this highly visible, less instrumental dimension of a firm's political behaviour is driven by efforts to build a good environmental and human rights reputation with its audience of external actors. The importance of environmental and human rights concerns depends on the substance of the firm's business activities, the availability of investment and 'exit' options, and the home audience's bias towards the UN and human and environmental rights. We find support for political factors as well as firm and industry-level characteristics influencing the decision to participate in the Global Compact.