Today's corporations face many demands from a plethora of different stakeholders, which are often incongruous. While shareholders demand a decent return on their investment, employees demand safe and well-paid jobs, communities stress upon their tax revenues and public pressure groups call for more social and environmental responsibility. Corporations thus require a great deal of corporate diplomacy to prioritise and – where necessary and possible – reconcile these different demands. This paper describes a framework for managerial/corporate attitudes and external pressure levels. Four case studies illustrate varying attitudes towards corporate diplomacy determine the outcome of controversies over genetically modified food products.
Get full access to this article
View all access options for this article.
References
1.
CarrithersM. (1992), Why humans have cultures: explaining anthropology and social diversity, Oxford: Oxford University Press.
2.
ChaseH. W. (1977), ‘Public issues management: the new science’, Public Relations Journal, Vol. 33, pp. 25–26.
3.
CostanzaR.DalyH. and BartholomewJ. (1992), ‘Goals, agenda and policy recommendations for ecological economics’, in: CostanzaR., Ecological Economics: The Science and Management of Sustainability, New York: Columbia University Press, pp. 7–20.
4.
CookeR. and SzumalJ. (2000), ‘Using the organisational culture inventory to understand the operating cultures of organisations’, in: AshkanasyN., WilderomC. and PetersonM., Handbook of organisational culture and climate, Thousand Oaks: Sage, pp. 147–161.
5.
CorsonW. (1994), ‘Global environmental issues and sustainable resource management’, in: KolluruR. (ed.), Environmental Strategies Handbook, New York: McGraw-Hill, pp. 923–970.
6.
DemirdjianZ. (2007), ‘Global corporate diplomacy: The strategy for survival’, Journal of American Academy of Business, Vol. 11, No. 2, pp. 1–2.
7.
DyllickT. and HockertsK. (2002), ‘Beyond the business case for corporate sustainability’, Business Strategy and the Environment, Vol. 11, No. 2, pp. 130–141.
8.
DuttonJ. and JacksonS. (1987), ‘Categorising strategic issues: links to organisational action’, Academy of Management Review, Vol. 12, pp. 76–90.
9.
EisenhardtK. (1989), ‘Building Theories from Case Study Research’, Academy of Management Review, Vol. 14, No. 4, pp. 532–550.
10.
ElkingtonJ. (1997), Cannibals with Forks: the Triple Bottom Line of 21st Century Business, Oxford: Capstone Publishing.
HeugensP. (2002), ‘Strategic issues management: implications for corporate performance’, Business and Society, Vol. 41, No. 4, pp. 456–468.
13.
JohnsonJ. (1983), ‘Issues Management – What are the Issues?’, Business Quarterly, Vol. 48, Autumn,p. 22.
14.
PedersenW. (2006), ‘Why ‘corporate PR’ when ‘corporate diplomacy’ flows more trippingly on the tongue – and is much more accurate?’, Public Relations Quarterly, Vol. 51, No. 3, pp. 10–11.
15.
SchalteggerS.HerzigC.KleiberO. and MüllerJ. (2002), Sustainability Management in Business Enterprises, Bonn: BMU.
16.
ScheinE. (1985), Organisational Culture and Leadership: A Dynamic View, San Francisco: Jossey Bass.
17.
StarikM. and RandsG. (1995), ‘Weaving an integrated web: multilevel and multisystem perspectives of ecologically sustainable organisations’, The Academy of Management Review, Vol. 20, No. 4, pp. 908–935.
18.
StegerU. (1998), Managing outside pressure: Strategies for preventing corporate disasters, Chichester: John Wiley and Sons.
19.
StegerU. (1998), ‘A mental map of managers: An empirical investigation into managers’ perceptions of stakeholder issues’, Business & the Contemporary World, Vol. 10, No. 4, pp. 579–609.
20.
StegerU. (2003a), Corporate diplomacy – The strategy for a volatile, fragmented business environment, Chichester: John Wiley and Sons.
21.
StegerU. (2003b), ‘Where Industry Failed: Lessons of Monsanto’, in: Corporate Diplomacy, Chichester: John Wiley and Sons, pp. 73–83.
22.
StegerU.RamusC.HumC. and OgunsulireM. (2003), ‘Monsanto's Genetically Modified Organisms: The Battle for the Hearts and Shopping Aisles’, IMD case study, IMD- 2–0086, version from March 3, Lausanne: IMD.
23.
StegerU. and GlickB. (2003), ‘To Eat or Not To Eat: Mampf Foods and The Biotechnology Question (A),’IMD case study, IMD- 2–0074, version from April 4, IMD: Lausanne.
24.
StegerU. (ed.), (2004), The business of sustainability – building industry cases for corporate sustainability, London: Palgrave MacMillan.
25.
StegerU. (ed.), (2006), Inside the minds of stakeholders, London: Palgrave MacMillan.
26.
WinterM. and StegerU. (1998), Managing outside pressure: Strategies for preventing corporate disasters, Chichester: John Wiley and Sons.
27.
WoodD. (1991), ‘Social issues in management: Theory and research in corporate social performance’, Journal of Management, Vol. 17, pp. 383–406.
28.
YazijiM. (2004), ‘Turning gadflies into allies’, Harvard Business Review, Vol. 82, No. 2, pp. 110–115.
