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Why CPR
A path off the tightrope
Principled public affairs decision-making reduces risk, enables long-term value creation, and supports achieving business purpose and fiduciary duty.
Right now, making decisions about public affairs can feel like walking a tightrope.
The political environment is challenging.
78% of Government Relations Executives and Chief Legal Officers surveyed view the political environment for companies as very or extremely challenging, due to:
Source:
The Conference Board
Survey size: 100+ surveyed Government Relations Executives and Chief Legal Officers
Survey size: 100+ surveyed Government Relations Executives and Chief Legal Officers
The stakeholder environment is challenging.
Over 50% of those surveyed expect backlash over their public affairs activities, from the following groups:
Source:
The Conference Board
Survey size: 100+ surveyed Government Relations Executives and Chief Legal Officers
Survey size: 100+ surveyed Government Relations Executives and Chief Legal Officers
Employee polarization dampens productivity and creates new talent management expenses.
Investor interests are shifting and complicating proxy season.
A growing number of investors want companies to prioritize technology, capital strategy and political risk management,” based on a survey of institutional investors representing $55 trillion in AUM.
Companies are navigating once-in-a-lifetime operational and strategic challenges amid this unstable climate.
Directors’ Top Trends for 2025
Source:
NACD Governance Resources
74%
of CEOs
admit they’ll lose their job within 2 years if they don’t deliver AI business gains.
1 in 3
of CEOs
admit their AI projects have been cancelled due to regulatory uncertainty.
Source:
dataiku
The global business and investment communities continue to navigate extraordinary structural shifts. Artificial intelligence fundamentally alters productivity and the labor force, while geopolitical realignment reshapes capital flows, and the energy transition demands unprecedented resource reallocation.”
Source:
FCLT Global
The Result:Making decisions that advance your business purpose can feel like walking a tightrope.
For many companies, decisions about CapEx, hiring, R&D are being delayed even though global trends require companies to move forward in order to be competitive.
Source:
Chief Executive
All of this raises the game for public affairs.
How do you manage your public affairs amid the volatility and uncertainty?
- To advance your company’s strategy across issues and jurisdictions?
- At a time of revolutionary change in an increasingly politicized environment?
- While navigating existential risks and competing stakeholder expectations?
Public Affairs Functions
Governance and Oversight
- Governance and Oversight Policies and Processes
Issues Management
- Risk Assessment and Monitoring
- Issue Selection and Prioritization
- Issue Positions and Goals
Government Relations
- Lobbying and Policy Influence
- Political Spending and Contributions
- Third Party Memberships and Engagement
Corporate Communications
- General Communications
- Shareholder Engagement
- Employee Civic/Issue Engagement
- Reporting and Disclosures
- Metrics, Ratings and Scorecards
- Crisis Management
Corporate Citizenship
- External Stakeholder Engagement Strategies
- Public Advocacy, Coalitions and Statements
- Philanthropy and Research Funding
What are your options?
Corporate Political Responsibility (CPR) Governance is a set of best practices that strengthen public affairs decision-making and enable principled engagement.
CPR refers to the responsible use of a company’s influences in the public sphere. This includes carefully weighing when to engage, aligning political influences with other company commitments and obligations, communicating openly, and striving for a net positive impact on the economic, civic and natural systems on which free enterprise depends.
Principles provide a path.
A starting point for engagement without attacking or capitulating.
Published in 2022 by the Erb Institute, these principles provide an actionable, nonpartisan template for responsible corporate engagement in political affairs.
Legitimacy
Do we have a legitimate basis for our public affairs activities? Firms’ public affairs activities reflect legitimate use of resources and authority, and an authentic basis for engaging.
Responsibility
Do our public affairs activities support the systems on which the economy, society and life depend? Firms’ public affairs activities have a net positive effect on the economic, civic and natural systems on which free enterprise depends.
Accountability
Are our public affairs activities aligned with our values, purpose and commitments to all stakeholders? Firms are accountable for their public affairs activities, actively striving for alignment with their commitments to purpose, values, stated goals and stakeholders.
Transparency
Do we disclose our public affairs activities to relevant stakeholders and communicate our rationale with respect? Firms communicate openly and honestly about their public affairs activities to promote informed stakeholder decision-making and public trust.
CPR Governance offers a path off the tightrope because the idea of “responsible business” resonates broadly across political lines.
When asked whether they associate “responsible business” with a conservative political agenda, a progressive agenda, or no political agenda, U.S. Consumers responded:
Source: Potential Energy
In these polarized times, business has an incredibly important role to play in building public confidence in our constitutional democracy and its institutions. The key is not to take one side or the other, but the third side, the side of the whole country and its future. That is the aim of Third Side Strategies and the Erb Principles for Corporate Political Responsibility.”
William Ury
Co-founder, Harvard Program on Negotiation and Co-author, Getting to Yes
Co-founder, Harvard Program on Negotiation and Co-author, Getting to Yes
Implementing CPR Governance provides strategic, concrete benefits.
CPR Governance Best Practices
- Refine Purpose by taking broader lens on priorities and interests
- Adopt Principles-based decision frameworks
- Increase cross-functional engagement of People
- Strengthen Oversight Processes, including deeper review of third-party partners and more collaborative engagement strategies
Business Benefits
- Risk mitigation
- Long-term value creation
- Fulfillment of Business Purpose and Fiduciary Duty
- Stable, Healthy Systems
Four urgent questions to consider now.
1
Does your company have a complete picture of its public affairs engagements and exposures across business functions?
2
Does your company have a principled approach to making decisions, weighing tradeoffs and balancing stakeholder and strategic considerations?
3
Is there a process for embedding best practices into public affairs governance over time?
4
Does your company leadership have the tools to implement its principles without picking a fight?
Start here
The time to start is now. Yes, it can be complicated. The CPR Hub provides curated tools and insights to make that process simpler.
1
Try Out the CPR Governance Review Guide
Try out the CPR Governance Review Guide to help you identify strengths, areas of exposure and opportunities to improve your public affairs governance. Beta release planned for mid-June. Please let us know if you would like to receive a copy when available.
2
Receive Updates from the CPR Hub
Receive our monthly newsletter with original articles, case studies, and practical tools to help you identify risks and enable your long-term value strategy.
3
Tailor the CPR Decision Tool for Your Company
Review the CPR Decision Tool and Executive Conversation Guide and pressure-test your company’s framework for determining when to engage on an issue, how to engage responsibly, and what communication may be needed to sustain trust.
4
Develop a Third Side Engagement Strategy for Your Situation
Share a specific situation and let us collaborate to identify ways to implement the “third side” — applying your principles while minimizing antagonism.