Abstract

Running a business has become less private, more open, less managerial, more political, less a right, more a privilege dependent on the will of stakeholders. It has also become more external: people outside management who are affected by management's decisions increasingly have a voice in, if not a veto over, these decisions, and have access to the technology that enables them to have that voice heard globally. Historically, companies have tried to deal with their external environment by adding specific staff functions to respond to particular 'threats' as they emerged. The authors argue that a more proactive approach is needed to adapt to the new reality of business in a global world. After analysing several cases that laid out important historical antecedents spanning the last 30 years, the authors suggest a new paradigm-based on open systems theory for conceptualizing and organizing the corporate external affairs activities.