How to Develop a Corporate Foreign Policy for Multinational Companies

12manage is hiring Management/MBA Students!

Glocalization > Forum Log in

How to Develop a Corporate Foreign Policy for Multinational Companies
Chloe Xu, Premium Member
Geopolitics is back. Avoiding politics used to be a preferred approach for international companies to protect their interests or gain reputation. However, the reality of the 21st century is that such companies cannot escape politics, nor can they continuously pretend to be politically neutral.

In this context, any company operating in or trading with different countries and regions needs to develop a corporate foreign policy that
  1. Ensures its business success through careful geopolitical due diligence.
  2. Improves its ability to operate in unfamiliar environments through effective corporate diplomacy.
  • Assess transnational risk
  • Keep an eye on regional political trends
  • Assess local in-country risk
  • Keep aware of home and near-abroad risk
  • Develop the company’s own proposition on foreign affairs
  • Develop a transnational public image
  • Diversify the company’s political relationships
Note: Before actually developing a corporate foreign policy, a company should define its interests, collect and analyse external information, identify regional and local allies, and develop an environment that is in favor of its business success. In doing so, a company must be aware of any cultural differences and adapt its style in accordance, while staying true to its moral principles.

Source: Chipman, J. (2016). Why Your Company Needs a Foreign Policy. Harvard Business Review, 94 (September), pp.36-43 .



  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on Glocalization
Best Practices

Expert Tips


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V14.1 - Last updated: 22-6-2018. All names ™ of their owners.