Because of the next Conference on Economic Diplomacy on February 21, we have interviewed Dr. Manuel Egea Medrano, Professor of Corporate Diplomacy at the UCAM.
If you want to know more about economic and corporate diplomacy, and its importance globally, read on!
What is corporate diplomacy?
Corporate diplomacy is a strategic management tool used mainly by multinational companies that, within the framework of a corporate foreign policy, need to manage their influence in the host society. For this, the company assumes political and social roles, not only economic ones, as we are already seeing in some cases in which CEOs meet with high-level foreign politicians -such as presidents or ministers- without having to intervene in the country of origin, or in others in which a great contribution is made to said community through CSR policies, an aspect that goes in benefit of the so-called “social license” to operate.
Why is this type of diplomacy becoming increasingly important?
If we look at the international panorama, we will see that there is growing geopolitical and regulatory uncertainty in certain markets. After the crisis, narratives of a nationalist and ‘strong state’ nature have proliferated, which, for example, are propitiating a return to commercial protectionism and the ‘recovery of power’ on the part of some nations; but there is also concern about cyber attacks and some alarm at the spread of false news that can destabilize markets and even the world’s vision towards countries or companies. This situation has generated the need to better filter personal information for decision making, to adapt and relate better with stakeholders, to react in real time and even anticipate opportunities and risks. And Corporate Diplomacy helps meet those needs.
There will come a time when all large companies have corporate diplomacy departments?
The functions of Corporate Diplomacy are already present in many companies, although separately and not in departments of ‘corporate diplomacy’; there are regulatory, corporate communication, public / government affairs, RRII, CSR, etc. I think that as this change in business mentality takes place and it is assumed that to operate abroad, we must position ourselves with a corporate foreign policy and assume social / political roles, eventually adopting a diplomatic know-how in international strategy.
In what sectors of the Spanish economy do you think corporate diplomacy can have a greater role?
I do not discover anything new if I think that Corporate Diplomacy is especially useful in key strategic sectors such as the supply of electricity or natural gas, oil, transport, telephony or infrastructure, but also in any other sector that operates in high-risk environments, political volatility or in those where information transparency shines due to its absence, among other factors.
If you want to know more, you still have time to sign up for the II Conference on Economic Diplomacy.
E-Secretaria
Campus Virtual (Másteres)
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