Back to hard power: the end of partnerships in business?

Back to hard power: the end of partnerships in business?

Until recently, the business model was based on values such as collaboration, inclusivity and sustainability. However, geopolitical and economic changes point to a return to hard realities, where efficiency and strategic advantage are paramount. In such a world, will companies continue to invest in building partnerships or will they opt for hard bargaining focused solely on profit?

DEI and ESG under pressure from tough policy

Over the years, corporates have been keen to engage in DEI and ESG initiatives, but more and more companies are now expressing doubts about their viability. In a challenging business environment, companies are signalling that stringent ESG standards can be difficult to maintain without compromising competitiveness. This is also evident at a global level, with many countries that not long ago promoted energy transition now intensifying oil and coal extraction. This is a clear sign that economic pragmatism is beginning to outweigh previous environmental commitments, emphasising the importance of real control over strategic resources. It is a sign that in a world where strategic advantage matters, real control over resources is more valuable than idealistic assumptions. 

Politics and business: from long-term partnership to pragmatic calculation

History shows that in times of geopolitical tensions and rivalries, pragmatism and power prevail. If international relations start to be based on pressure and hard bargaining, business can also shift to a more transactional model of cooperation. Does this mean the end of relationships based on trust and long-term value?  

Ozempic and diet policy - a lesson for the business world?

A seemingly unrelated topic - approaches to health and nutrition - also provides an interesting conclusion. JFK Kennedy criticised the popularity of Ozempic, calling it a „shortcut” for people who should be focusing on lifestyle changes. He added that it is more economical for the average American to buy a gym pass and healthy food than one dose of the drug. Will he crack down on pharmaceutical companies without undue sentimentality? Isn't this analogous to the situation in business? Investing in relationships and long-term collaborations is costly, but can yield lasting results. In contrast, short-term strategies and aggressive negotiations may provide quick results, but do they not lead to long-term costs in terms of lost trust and reputation? 

What's next? Business development directions

Does the return to the politics of hard power really herald the end of the era of partnership negotiations? It is possible that we are facing a new era of transactional relationships, in which short-term advantage will become a key decision-making factor. This may mean less emphasis on soft skills and long-term investment in relationships and more emphasis on negotiation efficiency and flexibility. However, this does not mean that business relationships will lose their importance altogether. Companies that find a way to combine pragmatic efficiency with long-term value can come out of this transformation stronger than ever. What are your views? Does the return to hard power in politics really mean the end of business partnerships? I invite you to discuss!