Corporate diplomacy as global management

Abstract

Corporate diplomacy is defined as diplomatic activities of transnational corporations to practice and influence foreign policy. With the rise in social power of transnational corporations they face constantly changing expectations of their role in society as the ultimate stakeholder (societal turn). This practitioner's policy paper for diplomatic management will - for the first time - concentrate on the perspective of diplomatic practice. The concept of corporate diplomacy has turned into a necessity: for the corporate world as the 'next bright idea' to adapt management to globalisation and for the future transformation and extension of diplomacy and its 'civilising mission' in transnational relations. The relationship between diplomacy and corporate diplomacy is one of functional symbiosis between diplomatic tools, procedures and mind-set and best practices of international management. The practice of corporate diplomacy leads to mutually beneficial cross-fertilisation between the two systems, adding value and creating shared values according to private and public societal needs.