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Enhancing the concept of corporate diplomacy encompassing political corporate social responsibility, international relations, and peace through commerce Westermann-Behaylo, M.K.; Rehbein, K.; Fort, T. Published in:The Academy of Management Perspectives DOI:10. 5465/amp.2013.0133 Link to publication Citation for published version (APA): Westermann-Behaylo, M. K., Rehbein, K., & Fort, T. (2015). Enhancing the concept of corporate diplomacy: encompassing political corporate social responsibility, international relations, and peace through commerce. The Academy of Management Perspectives, 29(4), 387-404. https://doi.org/10.5465/amp.2013.0133 General rightsIt is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). Disclaimer/Complaints regulationsIf you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library: https://uba.uva.nl/en/contact, or a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible. Corporate diplomacy is an emerging concept within the management literature. It describes corporate conduct in the international arena, particularly in challenging political and social environments. Management scholarship and practitioner literature have focused on the communication processes and instrumental benefits associated with corporate diplomacy, exploring and explaining how managers negotiate stakeholder relationships to achieve a firm's profit-oriented goals. We enrich the current understanding of corporate diplomacy by viewing it as an umbrella concept that encompasses scholarship from political corporate social responsibility, international relations, diplomacy, and peace studies. We also suggest that corporate diplomacy includes the political role that multinational enterprises play in addressing social issues and governance gaps affecting less developed and potentially conflict-prone host countries where they operate. Based on this approach, the concept of corporate diplomacy builds on the premise that multinationals have an expanded role and responsibilities in terms of global governance and that the practice of corporate diplomacy can play a role in resolving social or political conflicts, leading to wider societal benefits beyond corporate profits. To illustrate our concept of corporate diplomacy, we focus on the governance gaps addressed in the literature on peace through commerce, discussing instances where firms implement corporate diplomacy through peacemaking or peacebuilding to accomplish both private and public goals in conflict-prone regions. We conclude...

Our goals in this article are to summarize the existing literature on the role business can play in creating sustainable peace and to discuss important avenues for extending this research. As part of our discussion, we review the ethical arguments and related research made to date, including the rationale and motivation for businesses to engage in conflict resolution and peace building, and discuss how scholars are extending research in this area. We also focus on specific ways companies can actively engage in conflict reduction including promoting economic development, the rule of law, and principles of external valuation, contributing to a sense of community, and engaging in track-two diplomacy and conflict sensitive practices. We conclude by developing a set of future research questions and considerations.

Promoting dignity is at the heart of the human capability approach to development. We introduce the concept of stakeholder capability enhancement, beginning with a discussion of the capability approach to development proposed by Sen ( 1985 ) and further advanced by Nussbaum ( 1990 ) to incorporate notions of dignity. Thereafter follows a review of the literature on value creation stakeholder management and convergent stakeholder theory (Freeman, 1984 ; Freeman, Harrison, Wicks, Palmer, & DeColle, 2010 ;Harrison & Wicks, 2013 ;Jones & Wicks, 1999 ), as the foundation for our concept of stakeholder capability enhancement. The remainder of this article develops a model that integrates stakeholder management with the human capability approach to detail the cooperative advantage that accrues to business and its stakeholders, as well as the gains in social wellbeing and dignity, when stakeholder capability enhancement becomes a common enterprise strategy. The model also explores the risks and boundary conditions fi rms face when seeking to profi t from stakeholder capability tradeoffs. In explaining the model, we explore normative responsibilities and consequences with regard to human capabilities and dignity. We conclude with implications for future research.

Focusing on corporate responsibility (CR) toward employees, this article discusses how multilayered institutional logics affect the relationship between the firm and its employee stakeholders. It considers what constitutes CR toward employees and explores the institutional logics that can shape whether employers treat their employees as merely means to a strategic end or as ends in themselves. Specifically, the article examines market-, state-, professional-, and firm-based institutional logics that influence how employers treat their employees. The conclusion suggests that external institutional logics both enable and constrain firms to adopt a more instrumental relationship with their employees. However, some forms of organizational identity may generate firm-based institutional logics that enable firms to resist these pressures. Suggestions for future research focusing on the institutional and organizational drivers behind understanding CR toward employees are offered.