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1 – 10 of over 1000A number of scholars including Benno Signitzer and Jacquie L'Etang have proposed public diplomacy as an alternative model to describe and/or inform the practices of public…
Abstract
Purpose
A number of scholars including Benno Signitzer and Jacquie L'Etang have proposed public diplomacy as an alternative model to describe and/or inform the practices of public relations. However, international relations and political science scholars claim major differences between public diplomacy and PR, and few studies have sought to reconcile these claims and counter‐claims. The purpose of this paper is to report a comparative analysis of key concepts and principles of public diplomacy.
Design/methodology/approach
This article reports a comparative analysis of key concepts and principles of public diplomacy and the “new diplomacy” as described by Shaun Riordan and public relations (PR) as defined in Excellence theory and other contemporary models of PR to identify commonalties as well as divergences, and discusses how these can inform PR theory and practice.
Findings
This analysis shows similarities between these fields of practice, as well as six unique concepts and principles of public diplomacy and “new diplomacy” that inform corporate diplomacy and organisational diplomacy as an alternative paradigm to “public relations”.
Practical implications
Reconceptualising PR as corporate and organisational diplomacy involves much more than a name change. It recasts PR within alternative theoretical frameworks that are significantly different to those of dominant paradigms of PR and informs new and refined approaches to practice.
Social implications
Adopting the concepts and principles of public diplomacy and “new diplomacy” also would provide a more ethical and societally‐orientated approach to PR.
Originality/value
Most studies comparing public diplomacy and PR have focussed on commonalities with a view to expanding PR's territorial claim or gaining validation of PR. This analysis takes the opposite approach, identifying concepts and principles of public diplomacy and “new diplomacy” that contribute to an alternative paradigm of PR that is more effective, more societally‐orientated, more ethical, and ultimately more publicly accepted.
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Ali Taleb, Catalin Ratiu and Rick Molz
In this study, we explored the behaviour of two Canadian multinational companies operating in the context of Arab Spring events in Egypt in 2011.
Abstract
Purpose
In this study, we explored the behaviour of two Canadian multinational companies operating in the context of Arab Spring events in Egypt in 2011.
Design/methodology/approach
We conducted a fine-grained analysis of 171 documents of various secondary sources to understand the behaviour of the two firms in Egypt between 25 January 2011 and 30 June 2012.
Findings
We suggest that corporate diplomacy should be viewed as portfolios of interdependent actions rather than reactions to discrete events. We also underline the importance for organisations to have a proactive, holistic and inclusive corporate diplomacy strategy, with the objective to secure and balance both explicit political/legal licence and implicit social licence.
Research limitations/implications
We intentionally focused our empirical analysis on two Canadian firms operating in the same host country and belonging to the same industry. It would be useful to carry similar research in different organisational and institutional contexts.
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This chapter examines the ethics and business diplomacy of legal tax avoidance by multinational enterprises (MNEs).
Abstract
Purpose
This chapter examines the ethics and business diplomacy of legal tax avoidance by multinational enterprises (MNEs).
Design/methodology/approach
The methodology assembles the relevant literature and examines alternative interpretations of corporate tax strategy. Key topics include business ethics and responsibility, business sustainability, economic patriotism and corporate inversions, tax havens, and possible solutions.
Findings
The debate concerns whether legal tax avoidance is unethical and/or poor business diplomacy. There are three possible strategies for MNEs. One strategy is intentional tax avoidance. Another strategy is business–government negotiation concerning tax liability. Another strategy is business diplomacy aimed at maximizing the social legitimacy of the firm across multiple national tax jurisdictions.
Social implications
The chapter assesses four possible solutions for corporate tax avoidance. One solution is voluntary tax payments beyond legal obligations whether out of a sense of ethics or a strategy of business diplomacy. A second solution is international tax cooperation and tax harmonization in ways that minimize opportunities for tax avoidance. A third solution is increased stakeholder pressure emphasizing business diplomacy and tax cooperation and harmonization. The fourth solution is negotiated tax liabilities between each business and each jurisdiction.
Originality/value
The chapter provides an original systematic survey of the key aspects of corporate international tax avoidance in an approach in which business ethics and business diplomacy are better integrated. The value of the chapter is that it provides information and assembles relevant literature concerning corporate international tax avoidance, and addresses possible solutions for this problem.
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Huub Ruël and Luisa Suren
Multinational corporations (MNCs) are experiencing a number of major challenges in the international business arena. Can business diplomacy help them to deal with these…
Abstract
Purpose
Multinational corporations (MNCs) are experiencing a number of major challenges in the international business arena. Can business diplomacy help them to deal with these challenges effectively? In this introductory chapter we conceptualize and identify the relationship between MNCs’ international business diplomatic activities and firm performance.
Design/methodology/approach
We conducted a literature review and interviews with five large MNCs that are operating in distinctive industries. Business diplomatic activities have been classified into three particular areas to support the analysis, namely: (1) MNC–Non-Governmental Organization (NGO) relations, (2) MNC–Host Government relations, and (3) MNC–Local Community relations.
Findings
The main findings suggest that international business diplomacy has a direct positive effect on firm performance with regard to so-called soft or nonfinancial indicators. These indicators include knowledge sharing, reputation, company image, and marketing possibilities. The effect can in turn lead to a better financial performance and market stance in the long run.
Originality/value
The results of this study are important for the future awareness and execution of business diplomacy in large MNCs.
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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…
Abstract
Purpose
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.
Design/methodology/approach
The chapter presents an extensive review of secondary sources and selective use of previous survey data compiled by the author.
Findings
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.
Research limitations/implications
Additional case studies will foster a more robust theory regarding business diplomacy of emerging economies.
Practical implications
A growing number of cases of business diplomacy in Brazil will benefit both business and diplomacy communities and facilitate greater research collaboration.
Social implications
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.
Originality/value
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.
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This chapter focuses on the role played by both companies and universities on the dissemination of services and courses related to Business Diplomacy (BD). Special…
Abstract
Purpose
This chapter focuses on the role played by both companies and universities on the dissemination of services and courses related to Business Diplomacy (BD). Special attention is given to the partnerships between companies and universities and to how BD is taught by universities around the world.
Design/methodology/approach
With an exploratory analysis technique, we have surveyed the websites of 22 companies and 20 universities and institutions, belonging to various countries, engaged in activities related to BD (i.e. services supply, courses at different stages of the academic curricula, workshops, seminars, training etc.).
Findings
The objective of the analysis was twofold: first, to give a better understanding of the concept of BD and of the various meanings associated with it; the results indicate that in both cases the practiced concept of BD is converging to the canonical set of diplomatic functions; second, to offer useful insights to practitioners in the field of BD by looking at the type of BD courses covered by the academic curricula of various universities and BD services offered by market companies.
Originality/value
This chapter presents a comprehensive analysis of the BD issue, going beyond its treatment as a mere auxiliary activity. It also offers a detailed overview of diplomacy’s main functions and adjuvant activities, with the purpose of advancing organisational charts’ structures inside companies, and academic syllabi offerings by universities.
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This research seeks to understand the drivers of outward foreign direct investments (FDIs) by state-owned emerging economy firms, the characteristics of their overseas FDI…
Abstract
Purpose
This research seeks to understand the drivers of outward foreign direct investments (FDIs) by state-owned emerging economy firms, the characteristics of their overseas FDI projects and investment locations, and the effects of home and host institutions on the market entry strategies, taking into account the legitimacy of state ownership.
Design/methodology/approach
The discussion is based on a comprehensive review of conceptual and empirical literature, as well as case studies available from recognized journals in the field.
Findings
State-owned emerging economy firms pursue outward FDIs to respond to policy incentives of the home government and to reduce its political influence over the firm. FDI projects are often large and risky and have low business values. They often enter countries where state ownership is perceived as more legitimate while engaging in legitimacy-building activities in these countries. When their home country has a high level of institutional restrictions, they are less likely to use acquisitions or hold high levels of equity control in foreign subsidiaries. To strengthen local legitimacy, they often use greenfield investments or share equity control with local firms in foreign subsidiaries, particularly when the host country is endowed with strategic assets or when it has a high level of institutional restrictions. However, when having high levels of state ownership or strong political connections, they often commit a high level of resources and hold a high level of equity control in foreign subsidiaries.
Originality/value
The literature mostly investigates the FDI of firms that are structurally separate from the institutions. When the institutions are endogenous as presented in this research, their strategic choices are substantially influenced by noncommercial political motives and perception on their political image.
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Florian Weber and Ulf Larsson-Olaison
Arising societal issues challenge corporate social responsibility. The purpose of this paper is to analyze how corporations account for arising issues under different…
Abstract
Purpose
Arising societal issues challenge corporate social responsibility. The purpose of this paper is to analyze how corporations account for arising issues under different institutional settings: the stakeholder oriented corporate governance model of Germany is hypothesized to produce a different response than the more state dominated Swedish welfare model.
Design/methodology/approach
This paper takes the reported CSR response of the largest corporations in Germany and Sweden, in relation to the 2015 European refugee crisis, as its case. In total, 157 annual reports are investigated by means of text analysis for statements in relation to the European refugee crisis.
Findings
Empirically, German corporations are more prone to communicate on this emerging issue, and deploying corporate resources to an emerging societal crisis. Based on that finding, this study concludes that the German model is more in line with international CSR-discourse than the Swedish.
Research limitations/implications
This study has implications for institutional theory perspectives on CSR accounting-related issues. By comparing two economies that would be characterized as “coordinated market economies” a somewhat different set of topics becomes apparent. Further considering country context could be useful when expanding the debate on CSR accounting.
Originality/value
This study is the first to empirically investigate corporate diplomacy with regard to the European refugee crisis. Besides others, corporations are important societal players. Therefore, corporations bear both, the obligation to deal with arising issues and the potential to participate in public opinion-forming with regard to those issues.
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In this chapter we approach the issue of Business Diplomacy (BD) from a historical perspective, showing how this activity has been performed since the ancient Greece. In…
Abstract
Purpose
In this chapter we approach the issue of Business Diplomacy (BD) from a historical perspective, showing how this activity has been performed since the ancient Greece. In particular, we give a brief overview of the main BD concepts used, starting with the proxenos, the “pioneers” in the BD field, until present days.
Design/methodology/approach
The analysis is grounded on a theoretical approach backed by a comprehensive overview of the representative literature in the field of BD. We identify and discuss the main challenges to be faced by BD in a globalized world, dominated by multinational corporations (MNCs).
Findings
We show that BD has been practiced for centuries and nowadays is still performed by honorary consuls and chambers of commerce. In a globalized world, BD is being assimilated by MNCs either as their main activity or as an auxiliary one becoming a key tool and mindset toward securing their market reputation, positioning, and legitimacy.
Originality/value
Apart from the historical overview of the beginnings and evolution of the main diplomatic actors and activities, the chapter proposes new concepts and legal frameworks for the actual BD field such as: consulariate instead of consulate (devoted to business) and chancellariate instead of embassy (devoted to political affairs).
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The aim of this chapter is to show how new players in an emerging market, through their multinationals, have strategized and operationalised their international interests…
Abstract
Purpose
The aim of this chapter is to show how new players in an emerging market, through their multinationals, have strategized and operationalised their international interests. This international context consists of various stakeholders: states, civil society organisations, multinationals, local communities and institutions which define and regulate the power relations. This study highlights how CNPCIC, a Chinese multinational owned by the state, designs and implements its proclaimed ‘win-win’ cooperation strategy with its host country and the local community for an oil extraction project – called the Rônier Project – in southern Chad.
Methodology/approach
The analysis is based on a case study approach, especially concerning the town of Koudalwa, the oil-producing area in southern Chad. The author conducted qualitative research to collect the data, using ethnographic strategies consisting of field research, interviews with stakeholders.
Findings
Negative externalities as consequences of practices from CNPCIC underlie environmental degradation, socio-economic conflicts and governance problems, despite the existence of an alleged regulatory framework, the role of which is to avert the ‘resource curse’.
Organisations of local and international civil society oscillate between the logic of cooperation, alliance and confrontation with their main stakeholders, CNPCIC and the government.
The ‘win-win’ cooperation advocated by China is implemented in the form of commercial cooperation with full mercantilism where CNPCIC benefits from oil, the Chadian state benefits from oil revenue in the form of royalties and other stakeholders, such as the local communities, only benefit from a fraction of the revenues. The chapter concludes that, within this oil project, CNPCIC developed a corporate diplomacy stance within which, according to the circumstances, predation, philanthropy and strategic alliance are valued at the expense of corporate responsibility despite civil society advocacy for a responsible extraction.
Research limitations
Some stakeholders of the project declined the invitation to participate in the research. This may have influenced its findings.
Originality/value
The value of this chapter resides in the use of various theories (corporate diplomacy, stakeholder theory, resource curse) to explain the practices and interests of stakeholders within an oil project at different scales, both local and international.
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