The Evolving Role of Public Affairs in Corporate Strategy

Public Affairs professionals are central in helping companies navigate a complex and turbulent global landscape.

FREMONT, CA: Public Affairs professionals have taken center stage in today's rapidly evolving global landscape, assuming a role of paramount significance for companies. These individuals and teams are tasked with navigating the complex and ever-changing landscape of public policy, politics, and regulatory matters. Despite their growing importance, Public Affairs teams often find themselves in a challenging position. They need help to effectively communicate their value within their organizations, face difficulties in measuring the impact of their work, encounter obstacles in gaining access to key decision-makers, and may encounter challenges when trying to collaborate with other functions within the company. This is due to a need for an understanding of their value to the overall organization and a lack of clear metrics to measure the impact of their work. Additionally, Public Affairs teams may not have the resources or access to key decision-makers, and they may be met with resistance when trying to collaborate with other functions.

These issues must be resolved to guarantee that Public Affairs teams may function optimally and successfully. To win the confidence and credibility of important stakeholders and decision-makers, Public Affairs teams need to establish relationships with them. They should also ensure they have enough resources to access the information and people they require. Finally, they must create a powerful communication plan to make sure their message is received and comprehended.

As companies grapple with these ESG requirements, they must also navigate the intricate web of priorities held by different customer and investor constituencies. While environmental degradation and social inequality are driving broader engagement with the ESG agenda, the concept of ESG as a motivating force for corporate action is becoming increasingly politicized. Influential voices within the financial sector and US state legislatures question the necessity and legitimacy of using ESG criteria to determine corporate investments and activities.

The role of a Public Affairs function within a company is to monitor, analyze, manage, and mitigate regulatory and political risk while also identifying strategic opportunities that align with the company's objectives. This function must understand and proactively influence regulatory trends in support of the business strategy and ensure that business leaders are informed of key external developments promptly. Given this essential mandate, it is critical for Public Affairs leaders to effectively balance the interests of the business, Public Affairs, and the broader organization.

In executing their internal role, Public Affairs teams must work closely with affiliated functions such as communications, marketing, investor relations, and sustainability to help shape and support the broader business strategy. Furthermore, they must position themselves as strategic information brokers and relationship builders for the wider organization. This involves providing other functions with timely and strategically relevant information on political and regulatory trends while facilitating valuable relationships that benefit the organization. They must also ensure that stakeholders within the organization are aware of any potential changes in the political and regulatory landscape and are prepared to adjust their operations accordingly. Additionally, they must build relationships with external stakeholders such as government officials, industry organizations, and third-party service providers to ensure the organization is well-positioned for the future.