Corporate Diplomacy and Exit Strategies

Mike W. Peng, Jing Li and Daniel Shapiro

Chapter 16 in Business and Policy Challenges of Global Uncertainty:European Perspectives, 2025, pp 397-408 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Corporate diplomacy refers to the use of non-market (political and social) strategies by firms to both respond to and potentially shape country diplomacy. Like country diplomacy, corporate diplomacy demands a constant and delicate balancing act. This chapter highlights the importance of corporate diplomacy in the exit strategies of multinational enterprises (MNEs), especially during periods of diplomatic tensions between the MNEs’ home and host countries. We introduce a framework supported by four case examples that illuminate how MNEs can manage stakeholder pressures from different countries by improving their corporate diplomacy endeavors. In a world marked by escalating geopolitical tensions among major economies, establishing best practices in corporate diplomacy becomes indispensable for MNEs as they navigate the complexities of exiting from or sustaining their presence in a given country.

Keywords: Business Ecosystems; China; Corporate Diplomacy; Deglobalization; Data Regulation; Economic Sanctions; EU Chips Act; India; Money Laundering; Microchips; Multinational Enterprise; Public Responses; The European Automotive Industry; The Global Chip Industry; The Global Shipping Industry; Transnational Management; Uncertainty (search for similar items in EconPapers)
JEL-codes: F2 F23 F5 (search for similar items in EconPapers)
Date: 2025
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