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In a globalized world where emerging markets are more important than ever, there is an increasing pressure on international businesses and governments to work together. The set of facilities known as commercial diplomacy combines the interests of both by highlighting new markets and investment opportunities.

In this chapter, we present a literature review based on 56 relevant publications to assess what we currently know of this important activity.

The results indicate that research on commercial diplomacy consists of many subtopics, resulting in a patchy understanding of the topic as a whole.

We discuss why integrative research focusing on the business–government relationship and the organization and the value of commercial diplomacy are needed from an international business perspective.

International business theory leans heavily on neoclassical economics, ignoring its unrealistic assumptions and the many changes in the environment. The chapter calls for a revision of the theory to a contingency theory. The major contingent elements analysed are the political system, business–government and NGOs relations, industries, regimes, ownership patterns, the degree of reliance on ethical behaviour, the institutional environment and social norms.

In an ongoing process of globalization and technology improvements and due to an increase in worldwide actors in the economic sector, commercial diplomacy is an important tool for countries to support their business community during the internationalization process and afterwards. Nevertheless, commercial diplomacy literature is still in its infancy. Therefore, this chapter reviews existing research on the topic and develops a framework, which integrates the topics examined so far and provides the reader with a more complete picture of the topic at hand.

By means of a literature review, this chapter shows that the body of literature involving research of both disciplines, International Relations and International Management, is still rather limited. As a consequence, we determine a future research agenda and call for more empirical studies, especially in the field of (political) economy.

This chapter applies the business diplomacy concept to Brazil, a leading emerging economy and a member of the BRICS group. Brazil’s emergence as a new economic power has facilitated the emergence of several large national champions whose international behavior is understudied.

The chapter presents an extensive review of secondary sources and selective use of previous survey data compiled by the author.

This chapter adds to the literature on business diplomacy and contributes empirical research on a leading emerging power. Brazil’s ambitious diplomatic agenda is matched by the country’s growing number of internationalized companies. Brazilian corporate managers need to increase their business diplomacy competency to effectively leverage their presence and legitimacy abroad.

Additional case studies will foster a more robust theory regarding business diplomacy of emerging economies.

A growing number of cases of business diplomacy in Brazil will benefit both business and diplomacy communities and facilitate greater research collaboration.

How Brazilian business diplomats navigate between the boundaries of international business, diplomacy, and foreign policy are important questions for a country concerned with its international role and its goal of becoming a key actor in the international arena. A better understanding of how business diplomacy works in Brazil together with more case studies will benefit a new generation of business leaders.

The behavior of Brazilian business elites in international affairs remains largely unexplored. This work’s original contribution is precisely in the form of its focus on Brazilian business diplomats and how business diplomacy is exercised by Brazilian companies.

In their well-known contribution to the “varieties of capitalism” debate, Peter Hall and David Soskice (2001, Ch. 1) highlight the distinction between a “coordinated market economy” as exemplified by Germany and a “liberal market economy” as exemplified by the United States. Under the heading, “Liberal Market Economies: The American Case”, Hall and Soskice (2001, p. 27), argue:Liberal market economies can secure levels of overall economic performance as high as those of coordinated market economies, but they do so quite differently. In LMEs, firms rely more heavily on market relations to resolve the coordination problems that firms in CMEs address more often via forms of non-market coordination that entail collaboration and strategic interaction. In each of the major spheres of firm endeavor, competitive markets are more robust and there is less institutional support for non-market forms of coordination.

Public sector absorbs a sizeable part of each country’s GDP. Therefore, public organisations are not performing very well at the economic level of responsibility. Consequently, we argue that in order to build better and more responsible public organisations we need to improve their economic responsibility. This chapter presents a prospective action of social media for business to intervene in public administration reform. We envision a possible course of action that may introduce CSR in the public sector thanks to social media collective action.

The framework of this study will make a reference to the theory of socio-technological media de Kerckhove and Pierre Lévy, and on a survey of the literature of citizen activism through social media to answer the question: new media, new message?

It is a new perspective action of social media for business-government relations. We identify a possible theory that leverages the ‘koinè’ of multinational brands to address government effectiveness. The names of multinational companies are the same all over the world, like the ‘Koine’ Greek, and are now a common element in all languages of the world. Citizens and consumers pay a great deal of attention to brands. Multinationals spend millions of dollars every year in public relations (PR) and marketing precisely in order to manage their reputations and images and respond to the requests that consumers have of big corporations. The greatest threat to the reputation of a company or a multinational brand comes, in fact, via the Internet, which has become the most powerful weapon in the hands of interest groups. The object of this research is to explore whether stakeholders can join forces with corporations and use global media to monitor governments in the same way.

The citizens of governments and the customers of global corporations – in different countries in the world – seem to be isolated islands: all endure their own battle without the possibility of drawing attention from other parts of the world through social media.

The citizens can exercise pressure on the governments and public administrations the same way as what happens against the brands. It behoves us to ensure responsible behaviour from all. We propose an extension of the use of social media to monitor behaviour of governments as effectively as they are used to monitor behaviour of the corporations.

The stakeholder approach to CSR action and reporting implies that the relevant stakeholders of the organisation be listened to, and this listening be accounted for in the CSR report. These groups are also called the ‘publics’ of the organisation. We contend that the stakeholder approach might be misused and end up in collusion with sections of the publics involved.

The stakeholder approach leads an organisation to try to engage with the wrong counterparts. This is an over-rating of stakeholders.

Therefore, everything that is not taken into account under the headline of the stakeholder approach we call ‘stewardship for the unknown stakeholder’. The theoretical bases of this value reside in the vast literature on non-maximising, non-efficient, non-effective behaviour by firms and by the employees especially.

Thus, the first task in drawing up a CSR or sustainability report is to identify the possible unknown stakeholders; that is, those who do have a stake but don’t know they do; those who have a stake too small to care about but who are numerous.

If we complain about Apple, many in the world will join in; if we complain about the companies that manage the ‘garis’ (as the Portuguese call a garbage collector of Rio de Janeiro) nobody outside Brazil thinks it matters. But in fact, this is not true!

To paraphrase Leo Tolstoy in Anna Karenina, ‘Happy families are all alike; every unhappy family is unhappy in its own way’. Each local public administration will have its own problems, but all in the same way contribute to the well-being or mismanagement of a territory and its citizens. All, to some extent, ill-treated the citizens through their ineffectively.

The CSR should be for everyone and a global movement of citizens asking for responsible governments around the world could be the solution for the well-being of the individual peoples. Let the people’s rights emerge vis-à-vis perceived needs and outrage about the ineffectiveness of public administration that too often lose the name of action.

In summary, the proposal is the extension of the use of social media to monitor behaviour of governments as effectively as they are used to monitor behaviour of the corporations.

We propose a covenant between consumers/taxpayers in order to extend the CSR to governments and public administration. The citizens can exercise pressure on the governments and public administrations the same way as what happens against the brands. It behoves us to ensure responsible behaviour from all. We propose an extension of the use of social media to monitor behaviour of governments as effectively as they are used to monitor behaviour of the corporations, with the help of the same corporations.

Companies would join consumers for two main reasons: because there are clear signs that their company’s reputation is being harmed by the conflict, and because their market performance dips, coinciding with pressure from stakeholders. Our proposal goes beyond this and proposes the concept of a novel social figure: the unknown stakeholder.

This chapter addresses the research question of whether multinational enterprise (MNE) lobbying can contribute to sustainable development.

It presents the results of two case studies, from different perspectives, whose results strengthen and complement each other. Both studies use interviews as their main source of data within triangulation, and both adopt iterative processes for their analyses: one uses data coding, the other takes a narrative approach.

The findings suggest that whilst companies see both costs and opportunities in environmental regulations, this is not perceived by their policy-making counterparts. Furthermore, company-internal communication suggests that lobbying and corporate social responsibility (CSR) are not joined up, which leads to mixed (external) messages sent from the company to policy-makers and the public.

The chapter focuses on one industry (automobiles) in one host country setting (EU).

Policy-makers, as well as companies that want to contribute to sustainability, could usefully adopt the concept of internalising external costs as a minimum proxy for sustainability. Companies that wish to promote sustainable development, or even wish to act in a consistent manner, might usefully examine their assumptions about the political process. This is particularly the case with MNEs as they operate in numerous jurisdictions.

The chapter integrates the MNE literature and the literature on international business (IB)–government interactions. The findings underline the importance of addressing both environmental issues and the relationships between policy-makers and MNEs, an area that can be further developed by extending the scope of the study to other industries in further research.

This paper explores firms’ strategic options when their investments are subject to the threat of government expropriation. I develop a simple hold-up model of political risk. In the model, a firm decides whether to invest and then the government decides whether to expropriate the firm’s investment or to simply collect normal taxes on its profits. The government is motivated by revenue and a wide range of nonpecuniary factors: its reputation, electoral pressures, patronage opportunities, and pressure from external actors. In the model, the likelihood of expropriation depends on several factors: the firm’s profits, the amount of taxes it pays, the government’s ability to operate the firm’s assets, and the government’s political incentives. Effective management of political risk requires an integrated strategy, consisting not only of public and government relations efforts, but also financial, value chain, and human resources strategies designed to reduce the government’s incentives for expropriation.

Government, business support organisations (BSOs), support services and client business firms constitute the key actors involved in the business–government interaction within commercial diplomacy. While businesses are interested in support in their international operations, commercial diplomats (CDs) work towards both objectives: supporting individual firms and promoting the home country's national economy in general. BSOs, public or private or mixed such as bilateral chambers of commerce, sector associations, investment promotion agencies and other self-help business organisations, complete the CD's offer, and are often referred to, and participate directly and indirectly in the home country's trade promotion effort.

The nature of the CD's service to beneficiaries is highly people based, and contains both a consistent amount of government instruction and CD's own personal judgment and initiative in promoting various sectors/sub-sectors and spotting business opportunities. The ‘intermediary’ function of the CD between the beneficiary business and its potential future business partner is important. The interaction may start on either side: the business firm may approach the CD or vice versa. To a large extent, export issues remain the most important enquiries from business to CD vs. other issues such as foreign direct investment, joint venture and debt issues.

From a business perspective the main advantages to use the CD's service are threefold. The CD appears to business firms as the central platform, the starting point to promote bilateral business. Second, CDs enjoy trust as an institution: they are considered credible and neutral (credibility and neutrality). Last but not the least, CDs are found useful in helping out firms in their first steps in foreign markets (not necessarily first exporters but for the firms to which the host country market only is new). The transaction between CD and beneficiary business firm has a material price: some services such as market research are for fee and are often subcontracted. Others being part of a ‘basic service’ of diplomats are free of charge.