International Forum: Corporate Citizenship and the Reputation of U.S. Companies Overseas

October 28, 2004
U.S. Chamber of Commerce
Washington, D.C.

Keith Reinhard, chairman of DDB Worldwide and president of Business for Diplomatic Action; John Sullivan, Executive Director, Center for International Private Enterprise; and Alan Larson, Under Secretary for Economic, Business, and Agricultural Affairs, U.S. Department of State, participated in the roundtable discussion moderated by Stephen Jordan, executive director of the CCC.

Reinhard said that according to his research there were four drivers affecting international attitudes toward U.S. companies.  In addition to recent unpopular U.S. foreign policy actions, these included perceptions about U.S. arrogance, U.S. materialism and hyper-consumerism, and the sheer ubiquity of U.S. brands and images.  He said that negative perceptions and attitudes are beginning to affect U.S. companies and placing them at a competitive disadvantage vis-à-vis competitors from other countries.

The panelists said that corporate citizenship is a key strategy for addressing these issues for a variety of reasons.  They noted that companies gain credibility when their positive contributions are visible and make an impact in the local community.  They also touted the effects of corporate social investments on morale, infrastructure, and community improvement.

However, corporate citizenship cannot turn these negative perceptions around alone.  Companies need to engage in a "good globalization" campaign that operates at a variety of levels, not just operations.  Policy, communications, awareness, and education need to be coordinated, and need to include everything from promoting an international exchange program of business, political, and cultural leaders; to working with government programs like the State Department's Awards for Corporate Excellence and the Millennium Challenge Corporation.

CCC will continue to raise awareness about the need for a positive campaign to promote pro-U.S. business perceptions with key stakeholder groups in key markets around the world. In partnership with the U.S. Chamber of Commerce International Division, CCC will convene a follow-up forum in New York in March of 2005.