Is Brand USA Becoming a Liability for Business? – The Aspen Institute
A new era for American business has arrived faster and more forcefully than many anticipated. In response to US policy changes, business leaders are girding for massive disruptions to production and consumption across the globe. Proud, iconic American brands are worried about sales in once-friendly markets as a global “Boycott USA” movement has emerged.
To be sure, some companies and their leaders will find new opportunity amid widespread uncertainty. Capitalism is supremely adaptable, after all. But many business leaders are deeply concerned about their business prospects in this less predictable, more contentious global economic order.
We reached out to a selection of senior leaders from our networks for their insights. Our question: What is your advice to executives who are concerned about the weakening of Brand USA and growing anti-American sentiment? Their thoughts are below.
At the Wharton School, leadership is about doing good and doing right. Executives concerned that the U.S. government is adopting stances that don’t advance their personal and corporate interests should influence the political process by activating their networks and using data to guide their and others’ decisions.
Politicians and governments are seen as the power brokers of world affairs, but leaders in every walk of life can have tremendous influence over the direction of international relations.
When we focus on what we can control and refuse to sit on the sidelines, we stand the best chance to effect positive change.
Urgently identify and wrestle through the uncertainties: cascading supply chain risks (supply, pricing, labor shortages), postponed capital investment, regulatory gyrations, price competitiveness in overseas markets, eroding consumer confidence and demand, and extended inflationary pressures.
How? Build “live scenarios” for all major markets, run the math on potential impacts, identify no-regret moves to mitigate supply chain risks, rebalance capacity, tune government relations and lobbying, and boost brand messaging and product marketing. It’s particularly critical to elevate the brand and product value beyond the headquarters’ geography and its politics. Global brands must carry a durable, trusted promise in every market. Remind customers of that promise, and the company’s commitment to value now and into the next decade.
In times like this, it is crucial to focus on your company and your brand reputation. Don’t focus on Brand USA which is becoming tarnished; focus on your brand and how you are making an impact in your communities and markets around the world. Be clear about what you stand for and your values. Ensure you are communicating authentically to your customers and employees about how you are making a positive difference in their lives.
Winning in business is like winning in politics – you win through addition not subtraction. CEOs and managers can’t ignore Trump’s rolling grievance campaign but they have to work around it. With the US at less than five percent of the world’s population and with more than twenty-four percent of the world’s productive capacity, American business needs to embrace economic friends and allies, not abandon them. Without directly confronting MAGA partisans American business needs to work around them like water running down a hill – and as Sun Tzu wrote, “Water never fights, but it can erode even the hardest rock.”
First, plan for the long term and endure the short term: Things are highly chaotic and uncertain, but no damage is permanent, despite what some pundits argue, and the reality in 1 or 4 years (even 1 month) will be far different than today. Second, in the short term, try not to be submissive: Applying the adage – never waste a good crisis – seek ways to use the present uncertainty as an opportunity for positive change. Third, if you assert your interests in the changing political environment, find strength in numbers: Do not make yourself a solitary and vulnerable target.
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