Multinational corporations (MNCs) are no longer ‘innocent’ business actors but play an important role in international relations as well. Many MNCs revenues and market value are higher than the GDPs of countries. For many developing countries and conflict-related regions MNCs are attractive partners since they support economic growth. Entering markets and opening operations in developing countries or conflict-related regions is attractive for MNCs since the margins are high and the potential for growth extensive. However, operating in developing countries and especially conflict-related regions is also risky. Recent research already contributed to this topic for example by describing what kind of diplomatic actions were already accomplished by so called principled leaders in order to manage in conflict-related regions. But the topic needs far more research to better understand how MNCs act in conflict-related regions in order to survive. To fill the gap of research here, this study investigated on a more explorative basis the question: “How do principled leaders manage their company’s business successfully by conducting business diplomacy in developing countries and conflict-prone zones?”. Grounded theory was used in this study as a basis for the methodology. Interviews were conducted with nine principled leaders from different MNCs that operated in diverse sectors. The results showed that business diplomacy was conducted by every MNC but to different degrees to minimize business’ risks and maximize business’ opportunities. Based on the data analysis a conceptual framework Business Diplomacy Framework Matrix was developed laying a theoretical foundation for understanding how MNCs can act when launching a new venture in a conflict-related region.
