Public Relations – that is, the relationship between companies and governments (national and local) and public institutions – faces a difficult situation.
Why? The term ‘lobbying’ has a poor reputation. It's sometimes associated with corruption, and political donations are rightly scrutinized. But there's no reason for shame. On the contrary: Engagement in political work is essential for companies. Public Relations is a critical success factor. And this engagement must not be limited to the large and rich companies. More efforts are needed to encourage medium-sized companies and even small companies via chambers of commerce or industry representations to get their interests and their contributions to the economy made known.
This trend has intensified noticeably: companies must navigate highly diverse government interventions depending on the region. The U.S., for instance, translates social policy values into strict anti-ESG (environmental, social, and governance) regulations. The EU first tightens CO? rules for the automotive industry – then loosens them again. And the Philippines needs that dialogue, given the political and regulatory changes.
The political toolkit ranges from promoting specific technologies and economic sectors to increasingly interventionist investment control and sanctions laws.
This leads to more effort being required in opportunity and risk analysis, compliance, strategy development, and investment decisions. Regulation must be integrated into business strategies.
Those who want to enhance company value and minimize risks should form trusted partnerships with relevant stakeholders. Traditionally, this includes investor relations and dialogue with business partners and employees. But interaction with public institutions and political interest groups is becoming just as important.
Public relations and governance interaction are thus key to business success.
Regulation has unfortunately become one of the most important drivers of entrepreneurial opportunity and risk development – including requirements for product quality, data commercialization, and artificial intelligence.
Global legal harmonization is quickly losing supporters; under the banner of national sovereignty, governments are opting for special solutions.
Public relations is closely linked with other areas such as business development, compliance, financial planning, legal affairs, and communications. Company leadership must ensure this interconnection – and should also create direct reporting lines to the top.
Public relations doesn't just analyze current and future regulations – it also develops influence strategies, direct contact with government representatives, association work, or political donations.
It is also important to prepare for political crises. These could involve ‘naming & shaming’ by political circles or parliamentary hearings, as well as politically motivated calls for boycotts or lawsuits.
Lobbying has become a strengthened legal obligation. But caution is advised: It is difficult not to cross the sometimes-narrow line between necessary lobbying and prohibited corruption – for two reasons:
1. The core element of corruption – an unlawful agreement – is highly dependent on the facts and, above all, on values.
2. Political donations can also constitute corruption.
In conclusion: executives must undergo a mindset shift: Public relations and lobbying are critical success factors for business in an age of global economic interventionism. But they require further professionalization – with regional expertise and the appropriate resources.
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