The collective commercial assets of governments constitute the largest pool of wealth in the world. While governments have traditionally played regulatory and procurement roles, their ability–and willingness–to set standards that regulate economic activities has positioned them as increasingly important market forces. Now, more than ever, business leaders must understand how to build long-term relationships with governments that help all stakeholders—especially local communities.
On September 17, CGE Vice President for Global Learning Initiatives, Ira Sager, moderated a discussion with David W. Beier, a venture capitalist and former senior White House official, and Dean Krehmeyer, Executive Director of the Darden School’s Institute for Business in Society at the University of Virginia, on building government trust. Individuals from 95 different countries have already viewed this seventh episode of the Global Scholars Expert Connect series.
Ira Sager moderates the discussion.
Beier and Krehmeyer point out that a key factor in building trust with government is integrity and a commitment to ethical behavior. This underscores the need for CEOs and senior management to establish guidelines that encourage ethical behavior throughout their company. In the short-term, adhering to corporate values in markets where the rule of law is weak might mean bypassing some revenue opportunities. In the long term, however, companies will benefit by minimizing their reputational risk and demonstrating to employees that the organization is committed to the values it espouses.
Beier and Krehmeyer point out that a key factor in building trust with government is integrity and a commitment to ethical behavior. This underscores the need for CEOs and senior management to establish guidelines that encourage ethical behavior throughout their company. In the short-term, adhering to corporate values in markets where the rule of law is weak might mean bypassing some revenue opportunities. In the long term, however, companies will benefit by minimizing their reputational risk and demonstrating to employees that the organization is committed to the values it espouses.
Gaining trust starts with respect, and in developing an understanding of the local market and of the aspirations of its people. For companies, this means understanding how your product or service is going to contribute value for the community. No matter the reach of a company’s operations, each country or region deserves its own unique approach. It is equally important to keep in mind the need to focus on relationships, not transactions. Government relations require a long-term vision and if approached with sincerity, global enterprises could gain a huge market opportunity and competitive advantage.
For emerging companies with disruptive business models such as Uber and Airbnb, Beier and Krehmeyer note that they will have to figure out how to expand their services in multiple markets, simultaneously. Navigating this landscape successfully will require strong company values, a breadth of government stakeholder knowledge, and even a different management style. As the need to remain innovative and agile continues to sweep through the business community, it brings with it a new set of challenges to engage governments around the world.
To learn more about best practices for establishing trust with public officials, watch or listen to the full discussion below:
Global Scholars Expert Connect is a live multimedia series featuring experienced business, academic, and community leaders sharing their insights and answering questions from viewers around the world.
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