Don't Count Brand America Out
What can America do to improve its brand in the world?
It can start winning. Basically, that’s the only choice for any organization, be it a company or a country, that wants to repair a damaged reputation. For instance, imagine if U.S. policy and military action finally managed to install a peaceful democracy in Iraq. Such a victory would no doubt change a lot of minds about America’s “brand.” We would go from incompetent, arrogant bullies to brave, persevering heroes in about the time it took to report the news.
But before we go too far down this path, let’s get clear about the kind of trouble the American brand is really in. Yes, a boldly pro-American president, Nicolas Sarkozy, was recently elected in France, and the leaders of Britain and Germany are also U.S. supporters. And yes, the number of people trying to get into America has never been higher. But broadly speaking, America has undoubtedly lost respect on the world’s political stage. Leaders from countries like Venezuela and Iran, emboldened by the changing geopolitical balance of power, feel no compunction whatsoever denouncing America. Sarkozy’s opponent, Ségolène Royal, made anti-American sentiment a cornerstone of her campaign, and 47% of the populace apparently thought she picked the right villain. Even Russia, which held hands with America while it was in the process of returning to the global economy, has started treating the U.S. government with the impudence of a teenager toward his dumb, blundering dad.
But if America’s political reputation is faltering, its business reputation decidedly is not. Today, American companies and entrepreneurs operate around the world with unparalleled vitality and access. Europe is still the largest investor in the U.S., which is in turn the largest foreign investor in France. Indeed, in all of our travels over the past several years in literally dozens of countries, we have never heard of a single business deal, joint venture, or acquisition that has fallen through because one party said, “I just can’t. They’re American.”
Maybe the simple reason is that businesspeople are mercenary. They care more about profits than politics. Whatever the logic, the end result is that business has become part of the glue that keeps the world from blowing apart.
Most people agree, for instance, that India’s nuclear restraint against Pakistan in 2002 had as much to do with international economics as with international diplomacy.
Now, we’d never suggest that America’s strong business reputation will totally wipe away the country’s geopolitical tarnish. But we would assert that the American brand is multifaceted—and thanks to that, hardly ready to be junked.
This question and answer originally appeared in Business Week magazine on August 06, 2007.
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