New research highlights pros and cons for firms taking political stands

A new study from King’s Business School and the University of Edinburgh has found that aligning corporate identity with political ideology can help businesses resonate with certain stakeholders—but may also restrict strategic flexibility and create internal tensions.

It traces how the Chinese technology company used concepts from Chinese Communist Party ideology to shape its organizational identity across different stages of its growth.

Published in Strategic Organization, the paper outlines how the corporation Huawei drew directly on Chinese Communist Party ideology in its early years, using concepts like Fen Dou (“struggle”) to frame itself as a “national industry revitalizer.” The company described its mission as “serving the country through industry” and “carrying the flag of the national industry.”

This rhetoric helped build internal commitment and legitimacy in its home market. As Huawei expanded internationally, it had to neutralize this ideological language to present itself as an “international corporate citizen,” but traces of its original ideological stance remained and were later revived as geopolitical tensions increased.

The study shows that this long-term alignment with political ideology helped Huawei mobilize staff and gain support. However, it also created challenges when external pressures, such as global scrutiny and geopolitical tensions, increased. The authors argue that this example highlights a broader issue for multinational businesses navigating values-based branding in a volatile world.

The research also contributes to ongoing debates about how organizations manage their identity in complex institutional environments and arrives at a moment when many global firms are quietly rolling back climate and Equality, Diversity and Inclusivity (EDI) initiatives in response to growing political polarization. With political uncertainty globally and mounting investor scrutiny, the tension between value-driven ideology and business pragmatism is sharper than ever.

“Huawei’s case illustrates the double-edged nature of political ideology in business. It can unify and motivate but also constrain how a company responds to change. This is relevant for companies that have adopted strong positions on issues such as climate change or equity.

“Taking a stand can build legitimacy with some stakeholders, but it also locks companies into a particular narrative. When external pressures shift and a company needs to change direction, employees may feel confused or even betrayed, especially if the company fails to deliver on its stated values,” says Dr. Johann Fortwengel, Reader in International Management at King’s Business School.