Diplomatic engagement with transnational corporations: a path to sustainable governance

Abstract

Recent empirical studies show that the concept of corporate diplomacy is encountering reluctance from the business side for economic, political and educational reasons and from government side due to economic, political and educational objections to participative leadership in foreign affairs. This diplomatic practitioner's policy paper takes up the challenges to analyse the causes for reluctance and objections to diplomatic engagement with transnational corporations and points out ways to overcome them through inducements and change of mindset of CEOs as well as government representatives. The challenges of globalisation (such as geopolitical shocks, terrorism, and politically motivated trade restrictions) provide incentives for collaborative relationships and processes of common crisis management. The author indicates practical steps and missions to follow in the government/business collaboration process to deliver sustainable solutions to joint problems. With the partnered practice of corporate diplomacy transnational corporations become involved in sustainable, whole-of-society governance.