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A Working Theory of Cross-National Conflict Shifting as an International Public Relations Dynamic
Unformatted Document Text:  Cross-National Conflict Shifting 19 Proposition 7: Transnational corporations headquartered in developed nations that produce or are part of a national conflict outside their home country, will attract great attention from global NGOs, international regulatory bodies, national governments, organized citizen groups, and international news agencies and global media outlets. What are the types of corporate consequences and responses of organizations facing a cross- national conflict shifting? Direct or indirect involvement of a transnational corporation with a national conflict will appear to be related to the types of corporate consequences suffered and responses given. In terms of consequences, direct involvement produces more law suits, such as the case of Bayer and McDonald’s. Direct involvement seems to be related to a greater need for compromise; that was the ChevronTexaco case. There will be diverse organizational responses and strategies in dealing in preventing or dealing with a cross-national conflict shift. Timid, calculated responses appear to be the case in organizations that have an indirect involvement with the conflict, such as Ethan Allen and Starbucks. The strength and the lifespan of a conflict can be determined by several aspects, which as a consequence may influence organizational responses to a cross-national conflict shift. Another factor that might determine the salience of a conflict would be the significance or importance of international shareholders of the organization(s) involved, i.e., impact on market values of a company’s stock, such as the case introduced by Molleda and Connolly- Ahern (2002) and the McDonald’s case. Shareholders of any large publicly traded company in the United States, Europe or Asia will closely scrutinize and demand information about major cross-national conflicts that could impact the value of their investment. In such cases, greater investor relations strategies should be in place.

Authors: Molleda, Juan. and Quinn, Candace.
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Cross-National Conflict Shifting
19
Proposition 7: Transnational corporations headquartered in developed nations that
produce or are part of a national conflict outside their home country, will attract great attention
from global NGOs, international regulatory bodies, national governments, organized citizen
groups, and international news agencies and global media outlets.
What are the types of corporate consequences and responses of organizations facing a cross-
national conflict shifting?
Direct or indirect involvement of a transnational corporation with a national conflict will
appear to be related to the types of corporate consequences suffered and responses given. In
terms of consequences, direct involvement produces more law suits, such as the case of Bayer
and McDonald’s. Direct involvement seems to be related to a greater need for compromise; that
was the ChevronTexaco case.
There will be diverse organizational responses and strategies in dealing in preventing or
dealing with a cross-national conflict shift. Timid, calculated responses appear to be the case in
organizations that have an indirect involvement with the conflict, such as Ethan Allen and
Starbucks. The strength and the lifespan of a conflict can be determined by several aspects,
which as a consequence may influence organizational responses to a cross-national conflict shift.
Another factor that might determine the salience of a conflict would be the significance
or importance of international shareholders of the organization(s) involved, i.e., impact on
market values of a company’s stock, such as the case introduced by Molleda and Connolly-
Ahern (2002) and the McDonald’s case. Shareholders of any large publicly traded company in
the United States, Europe or Asia will closely scrutinize and demand information about major
cross-national conflicts that could impact the value of their investment. In such cases, greater
investor relations strategies should be in place.


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