Skip to content
Search

Latest Stories

Follow Us:
Top Stories

Good companies & bad places: Making sense of national association

Good companies & bad places: Making sense of national association
Eugene Mymrin/Getty Images

C.Anne Long is a senior strategic communications consultant with public, private, and not-for-profit experience. She holds a doctorate in Political Science and a Master of Public Health.

Deniz Gungen is a director at APCO Worldwide, a global advisory and advocacy communications consultancy, where he works with global positioning strategies and multifaceted international reputational challenges. He holds a doctorate in Political Science.


The concept of good corporate citizenship was originally based on a tradeoff: companies could pursue profit so long as they did so in a way that conformed with social perceptions of “good” behavior, even if that behavior cut into their bottom line. That tradeoff has since evolved into a profit-societal win-win incentive captured by the data-backed axiom “ doing well by doing good.” Unmentioned in both the tradeoff and incentive is the very real reputational effect of companies’ literal citizenship: their country of origin and countries of operation. Can companies – specifically multinationals – have a reputation for “doing good” even if they come from, or operate in, “bad” places?

This question is usually handled on a case-specific basis, in a theoretical manner, or with consumers’ implicit gut reactions helped along by media commentary as well as domestic politics and corporate communication. For good corporate citizenship to serve as a systematic standard for multinationals, this question must be directly answered in a way that enables national association to be transparently, meaningfully, and consistently incorporated into those standards.

The implicit and haphazard inclusion of national associations in multinationals’ reputation is related in part to the deemphasis on nationalism in the heady days of globalization’s post-Cold War phase, when good corporate citizenship was pushing its way into the increasingly conscientious consumer consciousness. The idea that the international political-economic system was coalescing into an interdependent democratic market systems – “ the end of history ” – informed assessments such as Robert Reich ’s that multinationals were detaching from their national origins, resulting in supra-national identities and operations tailored to each market.

Exemplified by sinking perceptions of China, the last decade demonstrated that history has not necessarily ended and multinationals’ nationality associations still matter. Headquarters strengthened control over international operations and representation in senior positions. Advocates, armed with increasing information access, tracked and attacked multinationals’ cross-border behavior including profit-oriented offshoring, inversion, low-pay sourcing, sweatshops use, and pollution exportation. Governments, not-for-profits, and even indices began compelling good global corporate citizenship as they weighed-up contributors to global warming and broadened culpability for human rights, labor, and governance abuses exemplified by Royal Dutch Shell’ s reputational hit as the first multinational to have a judicial finding for complicity in a foreign state’s domestic violence (the Nigerian government’s violence in the Niger Delta and hanging of the Ogani 9). By the end of the 1990s, even multinationals accepted their need to dedicate greater attention to the national contexts they chose to enter by signing into the UN Global Compact.

The explicit reputational effect of national association that these trends introduced to the new millennium emphasized western multinationals’ clearly “bad” behavior in foreign countries, away from their home consumers. But a broad array of multinationals – recently exemplified by the Chinese civilian drone company DJI ’s suspension of Russian operations – experienced implicit reputational harm from national association with places perceived as “bad” even when they conformed to expectations of “good” behavior in those places.

National association is not an easy thing to systematically incorporate into good global corporate citizenship standards. First, a multinational’s national associations may not be clear given complicated incorporation contexts, convoluted global supply chain networks, and layers of ownership exchanges. Second, most places fall along a spectrum between “good” and “bad,” with their place varying according to what characteristics are considered. Third, the specific association between the “bad” characteristic of the place and the given company must be identified and weighed. Additional wildcards include why companies chose to incorporate where they did, the extent to which a company can disassociate with the “bad’ characteristics of a place, and broadening expectations for companies to have the “right” associations (often including very public action) with “good” places.

Good corporate citizenship expectations incentivize multinationals to avoid association with countries believed to have “bad” political and governmental leadership – or at least association with that leadership’s “bad” decisions and actions. Because national affiliation can often be a matter of choice, should it have more influence on good corporate citizenship and social responsibility than national origin? The short answer is that it depends on the contexts and nature – including degree – of affiliation. The affiliation may have begun preceding the place being considered “bad.” It may have taken place in the past, with the multinational attempting atonement or claiming disassociation from the involved leadership’s decisions. It may not be direct, coming in the form of supply chain partners, or may not be optional, as is the case for tech companies’ limited sourcing options for rare earths.

The incentive to avoid affiliation with “bad” places or “bad” leadership in those places is not as strong for less visible companies, especially those sitting quietly at the back of global supply chains. It does even less for national origin because an incorporated company cannot rewrite its place of origin. Given this inability, should good corporate citizenship take origin into consideration? The answer is, again, one of context and degree.

It may not be easy or even possible to identify the reason for a company’s place of incorporation, but the effort is needed to prevent unavoidable reputational harm for companies unable to be incorporated elsewhere. Should a tech start-up be reputationally penalized simply because it originated in China if the founder had no opportunity to incorporate elsewhere? And should this origin effect be the same as a company incorporated by a Turkish founder in the Netherlands given her domestic market’s instability or a company incorporated by an American founder in the Seychelles given its lenient tax code?

The question of origin becomes more complex with two more additional considerations. First is the composition of the founders and the original senior leadership. Second is the degree of immediate association with the political or governmental actors belonging to that place of origin. Going back to the Chinese example, should the company’s origin affect its reputation if individuals with a political background, government funding, or significant government incentives were a part of its founding? What if it isn’t clear how involved the government is in that company’s immediate or subsequent operations? Reputational assessment must be sensitive to the fact that a company’s place of incorporation may require its affiliation with specific political and governmental actors, especially in contexts where those actors play a strong hand in the private sector. Such contexts may not allow companies to remain isolated from such actors, much less adopt a public position against them. Considerations of origin must therefore take strategic silence into account, as well as the extent of distance companies are reasonably able to maintain between themselves and these actors.


Read More

A woman standing in the middle of a food pantry filled with canned and boxed goods and toiletries.

Martha Molina has worked at the Flowing Wells Family Resource Center for 27 years. As its coordinator, she says the center serves about 50 families a month and gives our 160 food boxes. The center is open 8 a.m. to 3 p.m. Monday - Friday. / Martha Molina ha trabajado en el Centro de Recursos Familiares de Flowing Wells durante 27 años. Como coordinadora, dice que el centro atiende a unas 50 familias al mes y entrega 160 cajas de alimentos. El centro está abierto de lunes a viernes, de 8 a.m. a 3 p.m.

Shannon Conner

“The Alarm Bell”: Arizona’s Drop in SNAP Participation Signals Potential Nationwide Impact of Trump Legislation

More than 400,000 Arizonans have lost their SNAP benefits since July — the largest decline in the nation by a wide margin — as an underfunded state agency administered changes called for in President Donald Trump’s so-called One Big Beautiful Bill Act.

The drop represents nearly 47% of the state’s participants in the program better known as food stamps and includes about 180,000 children, according to the Arizona Department of Economic Security, which administers the program.

Keep ReadingShow less
PG&E’s Poor Track Record Shows How California Leaders Failed Consumers
silhouette of electric post during sunset

PG&E’s Poor Track Record Shows How California Leaders Failed Consumers

“Hello, I would like to talk with someone at your company about the large increase in my electric bill.”

So started my surreal conversation with a Pacific Gas and Electric (PG&E) representative. I had noticed that the amount I was paying monthly for electricity had suddenly jumped up, once again, after PG&E launched a new method of “billing.”

Keep ReadingShow less
Curbelo Breaks Down Redistricting, Immigration, and Climate Challenges

Carlos Curbelo

https://x.com/carloslcurbelo

Curbelo Breaks Down Redistricting, Immigration, and Climate Challenges

The Unity Forum, a cross-partisan webinar and podcast series presented in partnership with the Bridge Alliance and produced by Alumni for Freedom and Democracy, is dedicated to fostering reasoned discourse and strengthening the foundations of an open society. Each program brings forward respected experts who challenge assumptions about current events, elevate civil dialogue, and deepen public understanding of today’s most pressing social, economic, and legal issues. In addition to attending Unity Forum events, readers are invited to join post-event discussions, volunteer as community dialogue facilitators, or help promote open society initiatives within their networks. Opportunities to stay engaged and make a difference are available for anyone who wants to support the mission of meaningful civil engagement.

On May 27, the Unity Forum welcomes former U.S. Representative Carlos Curbelo, who represented Florida’s 26th Congressional District from 2015 to 2019. During his time in Congress, Curbelo earned a national reputation as a principled, bipartisan voice, particularly on climate and energy policy, immigration reform, and efforts to restore constructive, bipartisan governance. His co‑founding of the House Climate Solutions Caucus remains a defining example of coalition‑building on one of the nation’s most polarized issues.

Keep ReadingShow less
Colbert’s Final Late Show Reveals What We’re Losing in Public Dialogue

Stephen Colbert attends the 51st Chaplin Award Gala honoring George Clooney at Alice Tully Hall, Lincoln Center on April 27, 2026 in New York City.

(Photo by Gilbert Carrasquillo/GC Images)

Colbert’s Final Late Show Reveals What We’re Losing in Public Dialogue

Stephen Colbert hosted The Late Show for the last time last week.

Tributes have been pouring in for Colbert’s nightly monologue and comedic genius. And rightly so. He has a unique and deeply humane way of making the unbearable bearable, giving us a little light and lift on our darkest days.

Keep ReadingShow less