The Costs and Benefits of Calculating the Net Present Value of Corporate Diplomacy

Abstract

This article aims to demonstrate how social, political and environmental risk management can be integrated into a financial framework. To do so, corporate diplomats must use the same tools and performance indicators that their counterparts in operations, marketing or finance use. The financial valuation, both in terms of avoided cost and net value added by acceptability strategies appears to be a necessary condition to have them leave their siloes and gain acceptance across an organization.

Keywords

• Stakeholder engagement
• Corporate diplomacy
• Costs and benefits
• Financial returns
• Net Present Value