The war in Iraq and worldwide protests against it forced US executives who depend on global business into roles as amateur diplomats. Carol Hymowitz, of CareerJournalEurope.com, reports.

Business has never been better for Bill Kahl, executive vice president at Henkel Consumer Adhesives, a unit of Henkel Germany. His company's ‘Duck’ brand duct tape is in such steep demand by consumers hoping to protect their homes from terrorist attacks that the Avon, Ohio, factory where it is made is operating around the clock, seven days a week.

But when Kahl travelled to Henkel's Dusseldorf headquarters two weeks ago, he faced a barrage of criticism from German colleagues — not about business, but over US policy in Iraq. "They didn't hesitate to say we shouldn't be there, and they wanted to know whether Americans supported President Bush," he says. "I told them I support our soldiers there. It is somewhat of a stigma being an American overseas these days."

The war in Iraq and worldwide protests against forced US executives who depend on global business into roles as amateur diplomats. Those who work for, or closely with, European companies in particular find themselves fielding questions and dodging criticism about the White House's strategy. To maintain ties with overseas customers and employees, they must be receptive to a variety of political views, as well as balance their personal feelings against the goals of their companies.

"The markets and operations of so many companies are so global today that companies can't identify themselves anymore with the destiny of just one country," says Manuel Escudero, a professor at Instituto de Empresa business school in Madrid.

At a time when US political leaders are being called arrogant aggressors by many Europeans, he says, " US executives are going to have to be very sensitive about being flexible and unilateral when they negotiate strategic alliances overseas — or else they, too, will be labelled arrogant."

Kahl's company, originally called Manco, was founded by his family and sold to Henkel in 1998. "We wanted to grow globally," he says. Since the company's acquisition, international sales of its duct tape and other adhesives have jumped to almost 15 percent of revenue.

He believes the relationships he has built with his German colleagues won't fracture because of the war. "These are our co-workers, and I'm still the person I was and the person they know," he says.

Other executives say they are learning not to shy away from political discussions and to listen to the views of their European colleagues. When Lynn Morgen, group vice president, corporate development at STMicroelectronics, a Geneva-based semiconductor company, was in company offices in Paris last month, she says could feel the tension and anger from some of her French colleagues.

Morgen had lunch with two colleagues who told her they opposed the war and resented Americans who were calling french fries "freedom fries" and boycotting French wine. She told them that "the US isn't one entity and there are Americans for the war, against it and in the middle," she recalls.

"Ignoring the political tensions and saying 'Let's not talk about this' isn't really a long-term solution," she says. "If you have a conversation and hear each other's views, you are at least clearing the air."

This is easier for US and European employees working for the same company. At STMicroelectronics, formed by the merger of a French and an Italian company and traded in Milan, Paris and New York, "when you tap someone on the shoulder, they might be from London or New Delhi or Sicily, and no one country is dominant," says Morgen.

US executives who seek new relationships with overseas companies, however, may have to work harder to clinch deals. "I can't help but think that the French may more likely choose a German over an American supplier, all other things like price and quality being equal," says Ken Seigel, president of Impact Group, a Beverley Hills, California, consulting firm that does about 30 percent of its business with European companies.

On a trip to Germany last week, many of his clients condemned US action in Iraq. "Fundamentally we are emotional creatures and nationalistic pressures are bound to have an impact on who is considered or selected to do business with," he says.

Jacqueline Woods, vice president of global pricing and licensing strategy for Oracle Corp.'s Global Business Practices, says it's just good business "to respect the unique cultures and environments of global customers."

She finds overseas clients mostly want fair treatment, regardless of politics. Three years ago, Oracle, of Redwood Shores, California, began standardizing prices and licensing practices for its software in an effort to be more efficient and transparent. "Now, we don't have some customers questioning why their price is higher than the one offered in, say, Hungary, or another country."

At the start of the war, Oracle limited overseas travel to essential trips, a restriction Woods hopes won't last long. "We can stay in touch with email and other technology, but it is essential to have human interaction. Nothing can replace a handshake," she says.

Carol Hymowitz is a staff reporter at The Wall Street Journal .

April 2003