Outlet: Stellenbosch Business School

As the geopolitical landscape fractures and trust in public institutions erodes, the private sector finds itself in an unfamiliar role: that of a diplomatic actor.

Increasingly, global corporates are no longer simply economic entities; they are expected to broker trust across cultures, mediate between civil and political tensions, and account for their social and environmental impact far beyond the balance sheet. At a recent Leader’s Angle hosted by Prof Brian Ganson from Stellenbosch Business School’s Centre on Conflict and Collaboration, Prof Witold Henisz, Vice Dean and Faculty Director of the ESG Initiative at Wharton, offered a compelling framework for this evolving mandate – a form of corporate diplomacy fit for uncertain times.

Political and social instability is no longer a backdrop to business. It is a direct risk vector. The lines between the political and the commercial are fading fast, with supply chains rattled by regional conflicts and reputational fallout from poor stakeholder engagement.

Henisz argues that traditional risk models fail to capture this complexity. “We’ve built all these risk management systems that assume stability and control. But that world no longer exists. We need models that reflect the messiness of politics, social pressure, and community dynamics. Stakeholders aren’t noise – they’re data. If we ignore them, we’re ignoring risk.”

Photo credit: Stellenbosch Business School