Politics in the Business Environment: Corporate Decision Making and Coping Strategies

Economics and Politics, University of London, Senate House, Malet St, London WC1E 7HU, United Kingdom

^* Corresponding author: sdai004@mymail.sim.edu.sg

Abstract

In today's global business environment, the mutual influence between enterprises and political factors has become increasingly significant. The uncertainty caused by partisan opposition and political fluctuation has become essential in corporate decision-making. This article explores the reason for political uncertainty and proposes countermeasures for influencing corporate decision-making. The study finds that political factors directly affect the investment plan, market future planning, and brand image of enterprises. Especially during partisan elections, companies have to pay close attention to political decisions and adapt their strategies to the new political environment. Companies actively participate in political activities and establish good relationships with governments, which will lead the enterprise to minimize risks and challenges at the political level. Finally, this article comparatively discusses the importance of corporate social responsibility, emphasizing the benefits of actively fulfilling social responsibilities to corporate social reputation and public trust. It provides strong support for enterprises' stable operation in the political environment.