Editor’s note

Citation

(2006), "Editor’s note", Journal of Business Strategy, Vol. 27 No. 3. https://doi.org/10.1108/jbs.2006.28827caa.001

Editor’s note

Michael Goodman, who edited this special issue on the role of business in public diplomacy, has assembled an outstanding roster of experts in the field. A close reading of the articles reveals that they do not always agree on the role of business or even on the definition of public diplomacy. Is it propaganda, public relations, public affairs, a combination of these, or yet something different? The contributors come from academia, business, and non-profit entities, both in the US and Europe and perhaps their views of the proper role of business are shaped by their affiliations. Although most of the papers in this issue concern American business, their lessons apply equally to business in any country. Americans do not have a monopoly on scandal and mistrust. Any global business, no matter where headquarters are, is a kind of ambassador for its home country. Every Japanese carmaker, for example, has a role in public diplomacy in every country where their cars are sold.

Business executives, government officials, academics, and practically every other sector has an opinion about the proper role of business in the world today. While few would dare to say the only role of business is to make a profit for shareholders and investors, there is no consensus on what else business should do. But the authors in this special issue seem to agree that, one way or another, business has a role in public diplomacy, whether by default or intention. The media, non-governmental organizations, government, and other groups are scrutinizing what American business does abroad as never before. Business has become more sophisticated about understanding that it is under the microscope, but there is much room for greater knowledge and improved relations with all stakeholders.

Goodman addressed his concerns about restoring trust in America and the role of public diplomacy in this effort in a 2005 article he wrote for the Journal of Business Strategy. He noted that the Public Relations Coalition, an association of more than 20 organizations dedicated to public relations, public affairs, and corporate communication issued a white paper in 2003 that was distributed to the CEOs of the Fortune 500 (www.corporatecomm.org/pdf/PRCoalitionPaper911Final.pdf). The coalition’s recommendations are worth repeating, to encourage and promote ethical behavior:

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  Boards of Directors must accept responsibility for monitoring a corporation’s performance in serving all of its key stakeholders – customers, employees, the community and investors …

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  CEOs and senior management should make their corporate values explicit to all of their fellow employees and be willing to be held accountable if not adhering to them …

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  Companies need to de-emphasize short-term earnings objectives in favor of metrics that enable investors to better understand the drivers of long-term value creation …

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  To encourage and promote ethical behavior in the company and its operating environment, there needs to be a shared responsibility involving all key constituencies.

Perhaps better than most articles, Rushworth Kidder’s highlights the perils of encouraging business to become more involved in efforts that include peace-building.

Kidder, president of the Institute for Global Ethics, takes us behind the scenes of an unusual meeting at Windsor Castle in England, although one that has nothing to do with the Queen or royalty. This meeting brought together 26 representatives from Palestine and Israel, business leaders and professionals from Europe, the US, and Canada; and staff from the Institute for Global Ethics, an independent, nonpartisan, nonprofit organization founded in 1990 and dedicated to promoting ethical action in a global context. The Windsor Castle meeting launched an effort to promote economic development in the Middle East based on a corporate social responsibility model.

Meeting participants from the business world cautioned that “this is not about charity but about successful business models.” Another noted that, “in spite of high ideals, we must appeal to a corporation’s self-interest as well as to its sense of corporate social responsibility” if we expect them to engage in peace-building.

Kidder wrote the article just before the Hamas victory, which he now admits “clouds everything. I can’t imagine the participants at Windsor Castle saying, ‘Good, let’s now move forward and activate this initiative.’ Our thinking was predicated on the premise that Israel would be a willing partner in large-scale, internationally supported business initiatives that helped improve the Palestinian economy. If Hamas doesn’t want its partner to exist, that pretty much squelches the opportunities for cross-border cooperation – which is an essential part of our plans, since goods and services aren’t going to be free to flow in and out of the West Bank and Gaza without Israel’s permission. The hope is that Hamas, having been given responsibility, will either rise to the occasion and become a partner with whom Israel can deal, or will so bungle its opportunity that it will self-destruct and be voted out of power. Either of these could take a long time.”

“But time may not be the important thing. The point is that whenever the situation begins to thaw, these ideas stand ready for implementation. A further point, obvious but still needing emphasis: it was the corruption of Arafat and Fatah that handed Hamas its victory. Chalk up one more example of the way in which corruption becomes the single most devastating force against economic development, and why it is the most regressive and punitive tax that has ever beset the world’s poor.”

In this special issue

This issue offers concrete analysis of the issues and presents actions that businesses can take.

Dick Martin’s “Rebuilding brand America: corporate America’s role” offers and analysis of how America as a brand has come under attack.

In “Public diplomacy practitioners: changing cast of characters,” Crocker Snow presents an historic overview of the practice of public diplomacy and suggests that it has evolved to include several credible actors, including NGOs business, and government.

From her unique perspective Alison Holmes’ “The shifting subtleties of ‘special’: differences in US and UK approaches to public diplomacy in business,” recognizes that while business and government have different, often conflicting role, there is a compelling need for government and business to work together.

Rushworth Kidder and Dale Lawton offer a model for building peace through economic actions in their “Businesses for Middle East peace-building: a framework for engagement.”

Keith Reinhard suggests in “The aware business traveler: serving country and company” some very practical actions that business executives can make as global citizens. He outlines Business for Diplomatic Action, an organization he founded that is dedicated to business solutions.

Jay Wang presents the broad conceptual context for the practice of public diplomacy in his “Public diplomacy and global business.”

And finally Peter Hirsch and Peter Horowitz give us a view into the practical application of public diplomacy by a global business in their discussion of the PriceWaterhouseCoopers Ulysses Program and specific examples of its implementation.