Last week in class we started to discuss definitions of various forms of diplomacy and where to draw the line. Traditional diplomacy is government to government communication, public diplomacy is government to public. Someone raised the question if corporations should be included somewhere in the mix. Yes!
Public diplomacy is traditionally thought of in terms of how governments communicate their image to other countries and peoples in order to inform and influence foreign audiences. Public diplomacy impacts a country’s image as well as national interests, such as foreign policy, national security, trade, and tourism. A government may sponsor educational exchange programs, international broadcasts, art exhibits, and various cultural programs, to promote their country’s interests abroad. Governments still play these roles, but it is becoming increasingly clear that perceptions of a country are built upon a much broader range of actions and actors. Increasingly, these include the impact of private activities - from sports to fashion to food to science to popular culture.
Due to economic globalization, there is a tremendous increase in the flow of goods and services, especially commercial and cultural products, between countries. As a result, countries are increasingly known world-wide for their products. When Orson Welles joked in The Third Man that all Switzerland ever did for the world was to give it the cuckoo clock, he hit this concept on the nose. Coca Cola and McDonald’s are inextricably tied with the United States. The same is true of Ikea and Sweden, Sony and Japan, and Nokia and Finland. The actions of businesses, which operate independently from government, are now affecting how a country is seen abroad. The traditional axiom states that how a government is perceived abroad affects the selling of its corporations’ products. But now we must also consider how a corporation’s products affect how a country is perceived, as, for example, Beaujolais Nouveau wine evokes the French art de vivre and BMWs bring to mind German efficiency.
Corporations and governments alike must recognize their mutual interdependence. Positive brand identification can elevate a country’s profile in the eyes of foreign publics. Conversely, poor national images abroad are bad for business. For example, a 2004 survey documents the negative effect of anti-American sentiments on American businesses operating abroad, specifically McDonalds and Coca Cola. Similarly, the Danish cartoon controversy negatively impacted Danish exports in the Middle East. Globalization, by blurring the lines between public and private actors, has permanently linked the two worlds.
Commercial brands are performing the role of transmitting national culture and affecting a country’s image abroad. Increasingly, brands are the means by which consumers form opinions about a country. In some ways, Microsoft and McDonald's are among the most visible U.S. diplomats, just as IKEA is Sweden’s envoy to the world and Nokia is an ambassador for Finland. As brands become leading channels of communication for a nation’s image, it is important for governments to recognize the role commercial products play in public diplomacy.