(written in collaboration with the Financial Times)
SEC Newgate, in partnership with The Financial Times, convened a private, invitation-only roundtable in Davos to explore how corporate diplomacy is evolving as businesses navigate an increasingly fragmented geopolitical, regulatory and social landscape. Held under the Chatham House Rule, the discussion brought together senior leaders responsible for corporate affairs, government relations and global engagement across sectors including energy, finance, technology, infrastructure, consumer goods and philanthropy.
The discussion was framed around a shared challenge facing global organisations: how to build credibility, manage risk and sustain influence at a time when political decisions are reshaping markets at speed, regulatory regimes are diverging across regions, and expectations of corporate leadership are rising. Participants agreed that corporate diplomacy is no longer a peripheral function, but a core leadership capability that directly shapes business resilience and long-term legitimacy.
As one participant noted, “The debate is no longer whether reputation matters. It’s how leaders turn trust into something operational, across very different markets, without losing coherence.”
Trust as a Source of Resilience
A central theme throughout the conversation was the role of trust as the foundation of effective corporate diplomacy. Participants described trust not as an abstract reputational concept, but as a practical enabler of business continuity, investment and partnership particularly in sectors exposed to geopolitical disruption or regulatory scrutiny.
Trust, leaders agreed, is increasingly built through delivery and reliability at a local level, while remaining vulnerable to global narratives that can undermine credibility quickly. Several participants observed that organisations now need to assume that reputational risk travels faster than operational reality.
“Trust is earned through proximity,” one executive reflected, “but it can be tested globally, often without warning.”
This dynamic has sharpened the focus on preparedness. Rather than attempting to control narratives, leaders emphasised the importance of building trust through consistent behaviour, transparency and the ability to demonstrate resilience under pressure.
Operating in a Politicised Environment
Participants widely agreed that the politicisation of business has accelerated. Activities once viewed as technically neutral from renewable energy deployment and digital infrastructure to payments systems and public health are now routinely drawn into ideological and geopolitical debates.
This shift has expanded the scope of corporate diplomacy, drawing senior leaders into political and societal conversations they did not previously occupy. The challenge, several noted, is not to avoid these debates, but to engage with them in a way that preserves credibility and avoids reactive positioning.
“We are being pulled into political conversations by default,” one participant said. “The question is how to engage with judgement, rather than drift into advocacy or silence.”
The discussion suggested that organisations that treat corporate diplomacy as a strategic function rather than a communications response are better placed to navigate this complexity.
From Global Narratives to Local Engagement
A strong consensus emerged that uniform global narratives are becoming less effective. Diverging political priorities, regulatory expectations and social pressures mean that strategies designed for scale can struggle to resonate locally and in some cases, may increase risk.
In response, many organisations are adopting more decentralised engagement models, enabling local teams to shape relationships and messaging within a shared strategic framework.
“What works in one market can quickly become a liability in another,” one leader observed. “Local insight has become essential, not optional.”
At the same time, participants stressed that localisation must be approached with discipline. Effective decentralisation requires investment in capability, clarity around decision rights, and strong coordination to avoid fragmentation.
Values, Consistency and Credibility
While engagement approaches may vary by market, participants agreed that credibility depends on maintaining a clear and durable set of values. Attempts to recalibrate principles in response to short-term political shifts were seen as undermining trust over time.
“You can adapt how you engage,” one executive noted, “but if your values move with every election cycle, people stop believing in them.”
Leaders highlighted the importance of setting clear global principles, while allowing local teams the flexibility to interpret and apply them in culturally and politically appropriate ways. This balance between consistency and adaptability was seen as a defining leadership challenge for 2026.
The Internal Dimension of Corporate Diplomacy
The discussion also highlighted the growing internal dimension of reputation and influence. Employees are increasingly vocal stakeholders, with strong expectations around corporate positioning on geopolitical and social issues.
Participants described the need for open internal dialogue, clear decision-making frameworks and leadership transparency to manage these expectations, while preserving the organisation’s ability to operate pragmatically across markets.
“Our workforce expects clarity,” one participant said. “Even when they don’t agree with every decision, they want to understand how and why choices are being made.”
Building Capability, Not Just Messaging
Across sectors, participants emphasised that effective corporate diplomacy in 2026 will be defined less by messaging and more by organisational capability. This includes deep local knowledge, sophisticated understanding of stakeholder networks, and the ability to operate across fragmented regulatory regimes.
Several leaders stressed the value of being seen as a constructive partner to policymakers contributing evidence, analysis and practical insight rather than reacting defensively to regulatory change.
“Reputation follows usefulness,” one executive remarked. “If you help decision-makers navigate complexity, trust tends to build.”
Navigating 2026 with Confidence
As the discussion concluded, participants converged on a more constructive assessment of the road ahead. While the environment remains volatile, leaders argued that organisations that invest in capability, clarity and long-term credibility are well positioned to navigate fragmentation.
Corporate diplomacy, they agreed, is becoming a discipline defined by judgement rather than certainty requiring leaders to balance local responsiveness with global coherence, and speed with credibility.
The roundtable underscored that success in 2026 and beyond will depend not on restoring a single global consensus, but on building resilient organisations capable of earning trust repeatedly, across markets and political cycles. For senior leaders, the task is to approach reputation and influence not as risks to be managed defensively, but as strategic assets that can strengthen resilience in an uncertain world.