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Public affairs management is gaining increasing relevance in business practice as a means to secure licenses to operate and achieve social legitimacy. Organizations, as social actors, must understand and manage global public issues and the key trends affecting the societies in which they operate to gain the support and endorsement of various stakeholder groups.

In this way, social intelligence, developed through active listening and trend identification, becomes one of the most valuable corporate tools for adaptation in today’s VUCA (Volatile, Uncertain, Complex, Ambiguous) environment.

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Frequently Asked Questions

What are Public Affairs?

Public Affairs, commonly associated with lobbying and the influence organizations exert within the political and regulatory landscape, encompass much more. Beyond political issues, they include social, economic, environmental, and other matters that affect the company and its environment. The aim of public affairs is to balance society's concerns, administrative needs, and organizational interests. Public Affairs thus refer to the relationships companies maintain with their environment—locally, regionally, or globally—including their interactions with various stakeholders, such as clients, suppliers, media, employees, civil society, and government bodies.

Why are Public Affairs important?

Effective management of public affairs is essential for ensuring a company’s long-term success and sustainability, as it helps maintain a positive reputation and relationship with its environment, always grounded in transparency and professional ethics. It is crucial for companies to understand the relevance of public affairs to their operations and to implement effective public affairs management strategies to address them.

What are the elements of Public Affairs?

Public affairs affect any organization simply by operating in a public environment, regardless of its business sector. Managing public affairs can involve participating in collaborative initiatives with other key players, adopting sustainability and corporate social responsibility practices, implementing risk management policies, and maintaining effective communication with relevant stakeholders.

Examples of Public Affairs – Practical Cases

LEGO’s case illustrates how building relationships with various stakeholders, such as customers and employees, and therefore managing public affairs effectively, has been key to navigating crises, innovating, reinventing, and co-creating with them.

Explore these cases and many more in our Practices in Action.