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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 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.

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).

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.

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).

Commercial diplomacy within the EU is currently a matter for the individual EU member states (MS). This results in different policies and practices. But to what extent do they really differ? This chapter presents the results of a comparative study on EU MS commercial diplomacy policies and practices. The policy goals and practices of all 27 MS were assessed via document analysis and interviews with commercial diplomats. The findings show considerable differences in terms of the responsible ministry, the policy focus, the network of foreign posts and the work performed at the foreign post. However, countries that entered the EU first seem to have similar commercial diplomacy policy and practices characteristics, as do the countries that entered the EU after 2003. Furthermore, the results of statistical tests show that countries that entered first are similar in size, wealth, share of EU trade, number of embassies inside the EU, number of employees at the foreign post and the activism of the foreign post. These similarities apply as well for the countries that entered the EU after 2003. Overall, this study concludes that home country characteristics (size, culture, government), host country characteristics (institutions, culture, regime) and the relationship between a home country and a host country affect the commercial diplomacy policies and practices.

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.

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.

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.).

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.

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.

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.

Using the theoretical frameworks of public diplomacy and public relations, we mapped how the Chinese government has used panda imagery to build its national brand on Twitter and how this ‘panda diplomacy’ has facilitated its para-diplomatic actions. Our findings uncover new attempts by the Chinese government to engage in digital diplomacy. Mobilizing panda imagery on Twitter enhanced friendly relations with foreign political leaders and people and established a friendly and peaceful image of China on Twitter.

Stakeholder relations has been largely based upon a two-way public relations model. Along with this change, business diplomacy emerged as a proposal to renew stakeholder management. It is still uncertain if this proposal adds value to stakeholder management, which this study seeks to clarify.

Corporate representatives in charge of stakeholder management were invited to participate in an online survey measuring both public relations and business diplomacy activities. With a sample of 104 companies, factorial analyses were conducted on public relations and business diplomacy activities comparing model quality.

This study finds that public relations and business diplomacy activities share identity but not to the point of being fused and are thus different in nature. The best model showed three overarching functions (communication, influence and intelligence) implying that stakeholder management needs both public relations and business diplomacy.

Findings suggest both public relations and business diplomacy research should be included in advanced stakeholder management studies.

By acknowledging the role that business diplomacy plays in stakeholder management, companies may place influence at the core of the renewed stakeholder management strategy to better deal with the increasingly complex business environment.

This study adds clarity to the role of public relations and business diplomacy in stakeholder management based on actual activities developed in organizations and reveals the underlying dimensions of communication, influence and intelligence.

The aim of this chapter is to describe and discuss the growing intersection of roles and functions between states and multinationals in the field of diplomacy and how diplomatic skills are needed to support transnational companies in their search for markets in emerging countries.

Given the rapidly changing international business environment, we can observe the emergence of business diplomacy.

Transnational enterprises face multi-stakeholder engagements in the BRICs and increasingly employ techniques and strategies similar to the repertoire of tools used by diplomats and foreign affairs departments.

This chapter provides a detailed analysis of these new developments and seeks to explore the relations between multinational corporations and states, between multinationals and other stakeholders (local authorities, traditional leaders, NGOs etc.) and between multinationals.

The global economic power shift towards the East has caused the governments of developed economies to support national businesses which are involved in the process of internationalizing and expanding across borders. Commercial diplomacy provides a means for governments to increase their international trade and to stimulate their national economies. Foreign posts play a crucial role in offering effective diplomatic support for international business. But what are the factors that can explain commercial diplomacy effectiveness at the foreign post level? This chapter presents the results of a survey that was conducted among commercial diplomats stationed at foreign posts. It appears that the amount of experience that commercial diplomats acquired at these foreign posts, combined with their established business network, form two of the most important factors which have a positive impact on the quality of commercial diplomacy. This extends further to include the importance of the client (business) preparedness in terms of knowledge and skills as well. Furthermore, the results indicate that the less favourable a cognitive institutional environment in a host country is, for instance in terms of information availability, the more relevance commercial diplomacy will have. The results of this study promote the understanding of how commercial diplomacy works and show how the debate on the future of commercial diplomacy can be taken a step further. This study should also be seen as a starting point for a holistic framework of commercial diplomacy effectiveness.

One of the reasons the science and art of business diplomacy is interesting, is because it puts the role of the nation in another, somewhat reduced, perspective. Instead of the nation, it puts a company at the focal point of an exchange of interests with NGOs and other national and international players. This is a reflection of a world that becomes ever more complicated: a truly multiactor world, implicating great global challenges for international companies.

However, changing the perspective from the nation state to that of business is not enough, no matter how multinational or big the enterprise is. To have a true perspective on the challenges diplomacy faces, it is better to add another perspective. A perspective in which the business and the multiactor aspect merge: in associations.

Here the international and diplomatic dimensions of associations are defined, a model for change is presented, and cases are discussed. Each case is discussed in terms of business diplomacy, using recent literature and definitions. Certainly not all actions by associations can be called diplomatic, but some can and these are significant.

Combining this insight and the possible impact of associations with available literature on the definition and nature of business (economic, corporate, commercial) diplomacy, a different light will be shed on the concept of business diplomacy. Perhaps it is better to speak about “multiactor diplomacy,” in which traditional, business, and other forms of diplomacy all have their place. The chapter ends with conclusions and specific recommendations.