{"id":6764,"date":"2025-11-05T09:41:50","date_gmt":"2025-11-05T08:41:50","guid":{"rendered":"https:\/\/brigittekaps.com\/?p=6764"},"modified":"2025-11-05T09:41:50","modified_gmt":"2025-11-05T08:41:50","slug":"successful-ceos-make-public-affairs-a-top-priority","status":"publish","type":"post","link":"https:\/\/brigittekaps.com\/en\/blog\/successful-ceos-make-public-affairs-a-top-priority\/","title":{"rendered":"Successful CEOs make public affairs a top priority."},"content":{"rendered":"

Public affairs not only protects the value of a company, but it also creates it. It builds trust and strengthens social legitimacy.<\/strong><\/h3>\n

How much time do you spend on Public Affairs? Is it part of your C-suite agenda, or do you ignore it because you have no time?\u00a0 Ignoring or “no time” – this is not a good idea.<\/strong><\/p>\n

Technological acceleration, geopolitical volatility, and societal activism have blurred the line between public and private spheres. Social media amplifies distrust in institutions, while concerns about sustainability and social justice have led to corporate conduct becoming a matter of public scrutiny.<\/p>\n

At the same time, governments are reasserting influence<\/strong>. Regulation is tightening. State intervention is rising.<\/strong> And the expectation that companies align with national and social priorities has never been higher.<\/p>\n

Public affairs has shifted from tactical to existential<\/strong><\/h3>\n

In this context, public affairs has become the strategic nerve center connecting a company\u2019s internal priorities with its external reality. It enables CEOs to anticipate policy shifts, interpret social signals, and maintain a company\u2019s \u201clicense to operate\u201d in an increasingly politicized marketplace.<\/p>\n

From Reactive to Strategic: A CEO Imperative<\/strong><\/h3>\n

Too many CEOs still see government as \u201cbackground noise\u201d\u2014an unavoidable but peripheral factor to real business.<\/strong> They are aware of their top customers and market vulnerabilities, but not of their local representatives or key contacts in regulatory institutions.. They delegate policy engagement to lobbyists and move on.\u00a0This mindset is no longer sustainable. Government policy can now alter shareholder value as quickly as a competitor\u2019s innovation.<\/strong> Price controls, tax regimes, trade restrictions, data localization rules, and sustainability mandates can redefine an industry overnight.<\/p>\n

It\u2019s about corporate survival, legitimacy, and leadership.<\/strong><\/h3>\n

A well-timed, well-informed conversation between a CEO and a policymaker can clarify how regulations translate into real-world impact, including jobs created, taxes paid, and communities supported.<\/strong> Not all elected officials have first-hand experience with running a business; thoughtful engagement and discussions with industry representatives can profoundly influence their understanding and decision-making.<\/p>\n

Public Affairs – Yesterday and Today.<\/strong><\/h3>\n

Let\u2019s take a step back: two decades ago, corporate affairs functions primarily monitored legislation, issued alerts, and sought to protect company interests. That defensive posture is obsolete. Future-oriented organizations must embed public affairs into strategy\u2014anticipating developments, shaping outcomes, and identifying opportunities to create value.<\/p>\n

The recent McKinsey research<\/strong><\/a> highlights three powerful trends<\/strong> reshaping the corporate-affairs landscape:<\/p>\n

    \n
  1. Geoeconomics as a Business Variable<\/strong>
    \nGovernments now wield tariffs, sanctions, industrial policy, and export controls as strategic tools. These interventions, aimed at bolstering national security or protecting domestic industries, can either hinder or enable corporate growth. Public-affairs leaders must help CEOs assess and respond to these shifts\u2014by influencing policy, developing compliance programs, or spotting emerging opportunities in reshaped markets.<\/li>\n
  2. The Expanding Scope and Pace of Regulation<\/strong>
    \nThe velocity of policy change has become staggering. Compliance and legal costs have tripled in some sectors since 2009. Governments are increasingly announcing policies through unconventional channels, including social media, leaving companies scrambling to react. A proactive public affairs function enables foresight\u2014tracking signals before they become established rules.<\/li>\n
  3. Rising Expectations of Corporate Patriotism<\/strong>
    \nGlobalization\u2019s golden age is over. Companies are expected to demonstrate loyalty to their home economies by creating domestic jobs, investing in local industries, and aligning with national strategic goals. CEOs are being drawn into a new form of \u201ccommercial diplomacy,\u201d balancing global operations with expectations from their home countries. In some cases, governments are even acquiring stakes in strategic firms, blurring the lines between public and private interest.<\/li>\n<\/ol>\n

    Leading Through Public Affairs<\/strong><\/h3>\n

    The best corporate-affairs leaders don\u2019t merely respond\u2014they interpret, translate, and lead. For CEOs, this means integrating public affairs into the organization\u2019s strategic fabric with the following steps:<\/p>\n

      \n
    • Sharpen the Narrative:<\/strong> Craft a clear, authentic story about the company\u2019s role in society. Explain how your business contributes to economic resilience, innovation, and sustainability. Clarity builds trust.<\/li>\n
    • Lead with Insight, Not Requests:<\/strong> Governments respond better to partners than petitioners. Frame engagement as information-sharing\u2014help policymakers understand how markets and technologies work. Be a source of expertise, not just advocacy.<\/li>\n
    • Adapt the Language:<\/strong> Words carry cultural and political weight. In Europe, \u201cadvocacy\u201d may resonate better than \u201clobbying.\u201d In the U.S., \u201cenergy dominance\u201d has replaced \u201cenergy security.\u201d Tailor the message to the context.<\/li>\n
    • Control the Volume:<\/strong> When political winds shift, adjust how visible your positions are\u2014without abandoning principle. Strategic restraint can preserve influence; selective amplification can demonstrate leadership.<\/li>\n
    • Use the CEO Voice Wisely:<\/strong> Who delivers the message matters. Policymakers listen more attentively when a CEO speaks on behalf of thousands of employees and stakeholders. The modern CEO must be part diplomat, part strategist\u2014engaging constructively with officials at home and abroad.<\/li>\n<\/ul>\n

      From Lobbying to Legitimacy<\/strong><\/h3>\n

      The days when government affairs were a backstage function are over. The new corporate reality demands that public affairs sit at the strategy table alongside finance, operations, and innovation.<\/strong><\/p>\n

      As one senior corporate-affairs executive put it, \u201cIf you\u2019re a CEO who doesn\u2019t like engaging with government, get to like it.\u201d Today\u2019s leaders must navigate not just markets, but mindsets; not just shareholders, but societies.<\/strong><\/p>\n

      Public affairs, at its best, doesn\u2019t just protect value\u2014it creates it. It fosters trust, ensures alignment with the public interest, and empowers CEOs to lead responsibly in a world where business and society are increasingly intertwined.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

      Public affairs not only protects the value of a company, but it also creates it. It builds trust and strengthens social legitimacy. How much time do you spend on Public Affairs? Is it part of your C-suite agenda, or do you ignore it because you have no time?\u00a0 Ignoring or “no time” – this is…<\/p>\n","protected":false},"author":5,"featured_media":6759,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[88,132,464,69,462,469,100,466,468,467,99,465,407,463],"class_list":["post-6764","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ceo-communication","tag-ceo-en","tag-ceo-aktivism","tag-ceo-voice","tag-corporate-communications-en-2","tag-government","tag-legitimacy","tag-lobby-en","tag-networking","tag-politicians","tag-politics","tag-public-affairs-en","tag-storytelling","tag-sunstainability","tag-taxes"],"_links":{"self":[{"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/posts\/6764","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/comments?post=6764"}],"version-history":[{"count":1,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/posts\/6764\/revisions"}],"predecessor-version":[{"id":6765,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/posts\/6764\/revisions\/6765"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/media\/6759"}],"wp:attachment":[{"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/media?parent=6764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/categories?post=6764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brigittekaps.com\/en\/wp-json\/wp\/v2\/tags?post=6764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}