Socio-political Engagement in Business: Building Resilience and Driving Change

Abstract

The socio-political contexts within which firms operate have become increasingly complex. This paper reviews the growing literature on business-socio-political stakeholder relations with a focus on CPA and CSR. The dynamic interrelatedness of socio-political issues and the diversification and higher demands of stakeholders have altered these settings. This increasing complexity is where our concept of Corporate Socio-Political Engagement comes in. And also beyond more common non-market approaches, CSPE offers a comprehensive framework to study the complex relations that enterprises have with actors from the socio-political environment. Using a two-dimensional model, we identify the interaction to which each study pertains (by socio-political actor or problem — political, social, or hybrid) relative to study with respect to interaction. Such an approach sheds light on the symbiotic partnership between business strategy and stakeholder expectations. Lastly, we had recommended CSPE continue to explore the strategic implications of having flexible companies that can adapt to rapidly changing socio-political climates.