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"Managers of multinational organizations are struggling to win the strategic competition for the hearts and minds of external stakeholders. These stakeholders differ fundamentally in their worldview, their understanding of the market economy and their aspirations and fears for the future. Their collective opinions of managers and corporations will shape the competitive landscape of the global economy and have serious consequences for businesses that fail to meet their expectations. This book argues that the strategic management of relationships with external stakeholders i.e. Corporate Diplomacy, is not just canny PR, but creates real and lasting business value. Using a mix of examples, practically relevant tools and considered perspectives, the book hones in on a fundamental challenge that managers of multinational corporations face as they strive to compete in the 21st century. As falling communication costs shrink the distance between external stakeholders, shareholder value is increasingly created and protected through a strategic integration of the external-stakeholder-facing functions. These include government affairs, stakeholder relations, sustainability, enterprise risk management, community relations and corporate communications. Through such integration, the place where business, politics and society intersect need not be a source of nasty surprises or unexpected expenses. Most of the firms profiled in the book are now at the frontier of corporate diplomacy but they did not start there. Initially, they experienced delays or disruptions to their operations, higher costs, angry customers, or thwarted attempts at expansion. Eventually, the managers of these companies developed smarter strategies for stakeholder engagement. They became corporate diplomats. This book draws on their experiences to take the reader to the forefront of stakeholder engagement and to highlight the six elements of Corporate Diplomacy."

"ABSTRAKGlobalisasi telah menciptakan dunia yang semakin terbuka dan adanya saling ketergantungan (dependensi) antarnegara yang cukup besar. Indonesia misalnya adalah salah satu negara yang memiliki ketergantungan besar terhadap negara lain terutama untuk membantu mengolah sumber daya alamnya. Ketergantungan ini terlihat dari banyaknya perusahaan transnasional (TNC) yang beroperasi di Indonesia. Banyaknya TNC sebenarnya adalah hal yang bagus karena berarti pemerintah berhasil membangun suasana ekonomi yang kondusif bagi negara lain untuk berinvestasi. Teori yang dapat digunakan untuk mengkaji beroperasinya TNC disebuah negara adalah teori diplomasi perusahaan. Pada diplomasi perusahaan setiap TNC harus mempertimbangkan keinginan-keinginan negara tuan rumah dan bertindak secara etis menggunakan keempat elemen kebiasaan diplomasi perusahaan. Keempat elemen itu adalah personal, learning, openness,and mindset. PT Freeport Indonesia adalah perusahaan pertambangan yang paling lama beroperasi di Indonesia. Ternyata banyak praktik-praktik bisnis PTFI yang melanggar empat elemen tersebut. Pelanggaran terhadap keempat elemen kebiasaan diplomasi perusahaan tersebut juga berdampak pada citra PTFI di mata masyarakat.

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ABSTRACT

Globalization has made the world more open and dependency between countries are even greater. Indonesia for example, is one country that has a large dependence on other countries. Especially in processing it?s natural resources. This dependence is evident from the many transnational corporations (TNCs) operating in Indonesia. The number of TNC is actually a good thing because it means the government managed to build an conducive economy atmosphere for other countries to invest. One of the theory that can be used to assess the operation of the TNC in a country is the theory of corporate diplomacy. In corporate diplomacy TNC should consider the wishes of the host country and act ethically using four behavioral elements of corporate diplomacy. The fourth elements are personal, learning, openness, and mindset. PT Freeport Indonesia is the longest operating mining corporation in Indonesia. Apparently there are a lot of PTFI?s business practices that violates those four elements. Violations of the four elements of corporate diplomacy also have an impact on the PTFI's image in the public?s eyes."