What every CEO needs to know about nonmarket strategy / David Bach, David Bruce Allen.

Nonmarket strategy recognizes that businesses are social and political beings, not just economic agents. Because companies create and distribute value, a plethora of actors seek to influence them - formally, through laws and regulation, and informally, through social pressure, activism and efforts to shape the public perception of business. Companies can't escape this. Smart executives, therefore, engage with their social and political environment, helping shape the rules of the game and reducing the risk of being hemmed in by external actors. Yet, few companies are prepared to do the hard work and commit long term to developing an effective nonmarket strategy. Fewer still understand how to integrate market and nonmarket strategies to sustain competitive advantage. Defending intellectual property rights and demonstrating good corporate citizenship are just two of the many nonmarket issues facing CEOs.