CEOs risk expanding their companies into global markets for the obvious rewards, including greater profits, expanded market share, and increased competitiveness. But a successful expansion into countries with different customs and customers requires more than the business acumen that won you access to the C-suite. It also takes diplomatic skills that allow you to stand on the often-volatile international stage and not fall off it.
Not surprisingly, the challenges of going multinational are numerous. You and your teams must deal with local governments (and any associated political risks) and volatile global trade environments. You also need to establish good relations with local communities, including workers and trade unions. Perhaps most importantly, you have to not embarrass yourself – and, in turn, your company – either in boardrooms or publicly. Want the world to trust your business? Then the world needs to trust you. But how? Here is a primer on how to become a business diplomat and global CEO.
Navigating an Uncertain World
To say that global markets have become unstable recently is a massive understatement. And, yes, much of that economic uncertainty stems from the global political situation, including tariffs levied by Washington.
That’s why CEOs must act as a stabilizing factor within the global marketplace. That includes negotiating with the governments you work with to help shape the policies that impact them. The key is to be perceived as a helpful force, one that has its own interests at heart, but which will ultimately benefit local economies and communities.
A recent example of the influence CEOs can have on shaping government policy was a meeting in China that took place in March 2025, just two months after Donald Trump retook the White House. In it, Chinese president Xi Jinping asked gathered CEOs to work with China to protect supply chains and global industry from instability. Participant Frank Bournois, VP and dean of Shanghai’s China Europe International Business School, described the meeting as “a big illustration of business diplomacy.”
Building Cultural Understanding
Understanding the local social and business culture in which your multinational will operate, both in 1:1 transactions and government dealings, will benefit your corporation immensely.
As CEO, it is incumbent upon you to study the local culture. Not just its economy and how your business fits within in, but to truly understand it.
That might mean hiring local experts to teach your team what practices do (and don’t) work within the market in question. For instance, Japanese business etiquette requires you to offer your business card with both hands, writing towards your colleague. And any card you receive must be given a place of esteem, not simply stowed in your wallet where you might sit on it.
On a more macro level, it is important to understand local laws, purchasing behaviours, and industry trends. That level of detailed knowledge helps build trust within the local workforce and consumers alike. It also protects your company’s reputation in a new market, which, if damaged there, can be damaged globally.
Be Socially Responsible
As your company’s leader, you are the ultimate ‘good citizen’ when it comes to operating around the world. Foreign firms are often accused by local groups of tax avoidance, environmental neglect, and labour rights abuses – all issues that can tar your reputation abroad. That’s why you need to make sure your company is righteous enough to withstand these legitimacy challenges.
That will require you to listen to the concerns of many stakeholders, including local community leaders, NGOs, and governments. While this may be a challenge, embracing ‘global diplomacy’ becomes easier when your company has a set of values and sticks to them. That integrity makes it easier to be embraced not just within these new markets, but upon the world stage.
Operating globally doesn’t mean simply exporting your company’s ways of doing business domestically. Being successful overseas can mean tackling trade issues, navigating political tensions, and taking on the social responsibility associated with operating in a foreign land. Doing all that while successfully protecting your company’s reputation and values requires a new level of diplomacy. But if you have the tact, you can build trust on the world stage that will benefit you, your board, and the world.
Sean Plummer | Contributing Writer
