Companies must fully invest in their political & geopolitical roles
Strategic thinking on the geopolitical role of the company lies at the crossroads between the company’s international development strategy and its roadmap for sustainable development / CSR.
Companies have always approached geopolitics as a context, an environment in which they operate. They have given little thought to the impact they could have on global geopolitics and the type of footprint they could create by being present in a country (or the weight that they can give to the country from which they come from). Conversely, they have not always been able to fully understand the impact of ongoing and upcoming geopolitical changes on their activities.
The more companies are able to broaden the field of factors contributing to their strategic thinking, the more they are able to identify potential weak signals that can enhance future scenarios, or even breakdowns. The relevance of the evolution of their business model towards a more sustainable model depends on the quality of their analysis and forecasts. This paradigm shift aims to allow the companies to position themselves in a more conscious manner and in line with the direction they have set for themselves.
The elaboration of this “foreign policy” of the companies involves a new approach to risk mapping, an approach that combines materiality analysis (prioritization of the company’s priorities) and prospective analysis of future risks and opportunities.