Global Business Diplomacy: Raising the Bar

Meeting The New Expectations From Global Businesses

by Margery Kraus, President and CEO, APCO Worldwide

As featured in Foreign Policy Magazine
January/February 2007

We live in an era of constant upheaval. Climate change, energy security, political transitions and coups: all present critical challenges for governments, associations, nongovernmental organizations (NGOs) and anyone operating on the world stage. This global labyrinth is particularly daunting to businesses navigating diverse economic, cultural and regulatory environments. Corporations have no choice but to carefully evaluate how the world around them impacts business. Smart leaders are those who begin by evaluating how their business impacts the world.

In a world where big multinationals out-muscle and out-spend many governments, businesses cannot afford to neglect matters of global significance. Smart businesses employ the “tools of diplomacy” to open the right doors, say the right thing, earn the trust of diverse stakeholders and accomplish their goals around the world.

The need for business diplomacy has never been greater. A recent survey conducted by APCO Worldwide reveals a broad consensus that success brings with it an increased responsibility to address global challenges, including fighting poverty and AIDS, protecting the environment and promoting democracy around the world. Individuals demand a consistent demonstration that companies work hard to be citizens of value and good neighbors in the foreign markets – and communities – hosting their operations. And yet, though expectations are high, the public is alarmingly skeptical of corporations’ ability to stimulate progress. Ultimately, “making a difference” is not enough: investing in proactive, intelligent communication is the only way to ensure corporate responsibility measures earn a Return on Reputation (ROR).

Public opinion and expectations can make or break the fate of business deals – as recently demonstrated by several prominent, and unsuccessful, acquisition attempts in Europe and the United States. It is also clear that cross-border transactions will only increase, both in size and scope. Russia, India and China will be joined by Mexico, Brazil, United Arab Emirates, South Korea and others in acquiring, divesting, opening and closing plants both in developing and developed countries.

Critical to the growth and stability of these new corporate superpowers is strategic business diplomacy, including credible corporate responsibility programs. Consumers demand that businesses do the right thing. And, more often then not, corporations are assumed guilty until effective communication of sound policies and procedures proves their commitment to global progress. Change cannot be stopped. But smart businesses invest to anticipate and manage the challenges of a constantly evolving global environment. Ultimately, the true leaders will be those who work with vision and determination to help change our world for the better.

APCO Worldwide, a pioneer in the field of corporate responsibility, has over 20 years of experience in developing cutting-edge programs that support and engage various NGO and nonprofit stakeholders in all the right ways. APCO can help forge innovative partnerships with governments to accomplish joint goals, promoting and communicating sustainable business agendas. APCO’s team operates at the nexus of business, government and the media, providing strategic advice on market entry, corporate positioning, economic policy, energy, corporate responsibility and government relations. APCO assists clients in designing proactive strategies that help pre-position them to withstand and thrive amidst the changing influences of an unpredictable world.

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