We interviewed Arnaud Dupuis-Castérès, president of Vae Solis Corporate and strategic partner of PROA Communication in France, to discuss how increasing geopolitical volatility, European regulatory integration and reputational pressure are transforming the role of strategic communication and public affairs in Europe.
In recent years, Europe has faced increasing geopolitical and economic uncertainty. How is this environment redefining the role of strategic communication and public affairs for organisations operating internationally?
It is common to say that geopolitical and economic risks are increasing. However, I believe that those of us with some experience have already seen how our societies have gone through multiple risks, changes and profound transformations. We need only think of the fall of the Berlin Wall, the war in Kuwait, the war in Yugoslavia (in the middle of Europe and between non-aligned European powers), the attacks of 11 September 2001 in New York, the war in Iraq in 2003... Not to mention the various financial and economic crises.
Nevertheless, companies have continued to develop, grow, innovate and expand. What has really changed is the speed. Today everything moves and evolves much faster.
Companies must therefore be extremely attentive to the evolution of public opinion, to the decisions of the authorities and to regulatory changes in the countries in which they invest. Anticipation and listening remain the keys to success. And that is precisely why strategic communication has become absolutely essential - even more so when it comes to investing in foreign markets.
You often refer to reputation as a strategic asset. In a context of high volatility and increasing social scrutiny, how should organisations rethink the management of their “reputational capital”?
The volatility of which you speak is now part of our daily reality and, in this context, a solid reputation acts as a shield and an essential protection. It is therefore essential to clearly assess the organisation's reputational capital, invest in strengthening it and monitor the environment for early warning signs.
Investing in reputation is a long-term effort, focused on strengthening relationships with stakeholders: identifying them more precisely, understanding them better, knowing their expectations and building meaningful relationships with them. This means going beyond customers, employees or the financial community, and extending the dialogue to public authorities, the media, NGOs, academia and influential opinion leaders.
It also requires a proactive and coordinated approach within the organisation, as different stakeholders often report to different executives. Indeed, it is surprising that many companies do not have a specific person in charge of dialogue with NGOs or associations. In many cases, such a function would allow a better understanding of this stakeholder group and, consequently, a more effective and constructive engagement with them.
What key trends are redefining the field of strategic advice and public affairs in Europe, especially in relation to regulation, technological disruption and stakeholder expectations?
Although these are three distinct areas, there is a common thread: the need for a holistic approach. It is no longer possible to address a public affairs issue solely from a lobbying perspective. Public opinion and the full range of stakeholders must be integrated into the overall strategy - or at least their interactions taken into account - and, where possible, actively incorporated as part of the approach.
In regulatory matters, Europe is becoming more and more... European. EU rules, as well as decisions taken by the European Commission or the European Parliament, are now part of our everyday environment. These issues must therefore be dealt with at European level. In the major regulatory debates, the lack of coordination between the economic actors in the different Member States is striking.
Similarly, the dimension of communication and influence directed at the general public is often surprisingly absent. An illustrative example is the European decision to end internal combustion engines. At the time, car manufacturers lobbied, but with little coordination among themselves and, above all, without really involving the public in the debate. The result is visible: a weakened European car industry, reinforced Chinese competition and a public opinion that is moving much more slowly than the European “norms” towards the adoption of electric vehicles.
As regulatory and reputational challenges increasingly transcend national borders, how important has cross-border advice become for companies operating in Europe?
Today it is difficult to operate in several European countries without having a clear view of what is happening in the various markets in which one is present. Strategic advice implies precisely the ability to centralise active monitoring, to ensure coordination and to be able to react quickly when necessary.
It is clear that many communication initiatives need to be local and tailored to specific contexts. However, to anticipate a problem - be it a reputational crisis or a regulatory change - the best strategy is to identify potential risks as early as possible and to rely on strong coordination capabilities.
Firms need advisors who can work collaboratively rather than in competition with each other. In this respect, multi-local firms - i.e. those with in-depth knowledge of their respective spheres of influence - are often more effective than large integrated groups, whose national teams are often in competition with each other.
France and Spain share strong economic, cultural and political ties. In your opinion, what opportunities exist today to further strengthen cooperation between the two countries, especially in strategic sectors?
I am struck by the fact that our two countries, which are not only neighbours but in many respects like brothers, do not make their relationship more dynamic. Economic ties are obviously strong, but they could be even stronger in many areas: aerospace, automotive, banking and finance, as well as in new technologies and, in particular, artificial intelligence.
We have work to do together. Our companies must grow in each other's markets. France also has its share of responsibility in this situation, and that must change.
How does the strategic alliance between Vae Solis and PROA Comunicación respond to the new needs of clients in the French and Spanish markets?
To the extent of our modest resources, we can contribute to this necessary evolution. First, by strengthening the ties that bind us together to better understand the economic environments in both countries; by accompanying our clients in their investments in our respective markets; and by helping them to gain a deeper knowledge and understanding of the economic and political ecosystems in which they operate.
The consulting industry is largely a supply-driven business. If our value proposition is compelling, there will be a market for it.
More broadly, what role do you see independent European strategic advisory firms and alliances between them playing in shaping the future of reputation and influence on the continent?
Recent geopolitical developments reinforce our conviction that the European market is large and powerful. It is stable - at least in comparative terms - and its economic integration will be even greater in the years to come. There will be a real capital market, because it has become a necessity. We can also aspire to a reinforcement of European defence; it is essential. And we must make progress in new technologies, particularly in artificial intelligence.
The combined offer of several consulting firms in an alliance of skills and knowledge is, in our opinion, the solution for large economic players, even more so than traditional international networks. Who today can seriously entrust their strategic communication, public affairs or crisis management to an American communication network? Is it really reasonable? I don't think so. There are numerous examples where conflicts of interest end up being too significant.
Europe's future lies in strengthening economic cooperation, increasing cross-border operations and, consequently, in the emergence of strong alliances of consulting firms such as ours, capable of accompanying our clients in their reputational, communication and public affairs challenges.