In this context, institutional relations play a key role in building alliances and anticipating challenges, having an active voice in the dialogue for the formulation of public policies, thus strengthening corporate reputation.
If the area of Institutional Relations was previously understood as part of the broader field of public relations, or as a complement to legal or regulatory action, today it is recognised as an essential strategic front. As Riera Creus (2024) emphasises:
‘Institutional relations activities form part of the strategic plan of many companies, institutions and organisations of all kinds. Because, in addition to reinforcing their legitimate interests and increasing the fluidity of their relationships with their stakeholders, they enable them to improve their knowledge, public image and reputation and legitimise their institutional policies.’
Institutional relations are not just a department within the company, but a structural axis of corporate governance and its strategy. Companies that invest in this area strengthen their resilience, improve their risk management and reputation capacity, and proactively ensure the evolution of the legal and regulatory environment.
The link between companies and society
Institutional relations are the strategic interface of companies with governments, regulatory bodies, civil society and other institutions. Their objective is to represent business interests, guarantee legitimacy in the market and build a sustainable business environment.
Companies face a scenario of growing uncertainty due to new economic dynamics, regulatory changes, the impact of climate change and disruptive technological advances. Those that build strong institutional relationships manage these variables better, ensuring predictability in social transformations and mitigating risks.
Strengthening institutional relationships involves creating strategic connections with stakeholders, whether they are from the public sector or other ecosystems, including organisations, academia and opinion formers. To this end, transparency and effective communication are essential. Companies that maintain an open dialogue and are objectively accountable to society build credibility and consolidate their position in the market.
In addition to strengthening corporate reputation, effective institutional articulation allows the company to have an active voice in debates on structural public policies and regulations that directly impact its sector. This action contributes to generating a more secure environment for investment and innovation. In times of crisis, the response capacity also becomes more agile. Well-established relationships with the public sector facilitate the execution of emergency actions, minimising operational impacts and preserving market confidence.
Likewise, collaboration with universities and research centres drives innovation and competitiveness, being a key axis for integrating the company into local and global innovation chains. Similarly, companies that align their institutional relations with concrete initiatives of environmental sustainability, social responsibility and corporate governance reinforce their positioning as agents of transformation, generating value for both the business and society.
Commitment to civil society also strengthens corporate reputation. Alliances with NGOs, associations and communities reinforce the company’s social and environmental commitment, broadening its positive impact.
Vivo’s institutional performance
In the telecommunications sector, Telefónica demonstrates how institutional relations are essential to the strategy of a global company. The company maintains an active dialogue with governments, regulators and other stakeholders, guaranteeing a sustainable business environment and adapting to the regulations of each country. This commitment allows Telefónica to participate actively in debates on connectivity, innovation and digital inclusion, consolidating itself as a benchmark in topics such as artificial intelligence, data economy and technological transformation. In this context, the balance between global priorities and local regulations becomes a key factor for the sustainability of the sector.
This work is based on the vision that digitalisation should have an increasingly profound impact on the country, on the government, on the productive sectors and on society. This transformation should be elevated to the level of a State priority, as an essential tool to accelerate economic development and social inclusion through digitalisation. This is a strategic debate that goes beyond sectoral policies: it is the effective construction of a Digital Agenda, key to positioning the country at the forefront of new economies, technological innovations and social transformations.
The work of the area is also essential in times of crisis. In 2024, in Spain, Movistar responded quickly to the heavy rains in Valencia, restoring the telecommunications infrastructure in record time [1]. In Brazil, Vivo acted immediately after the floods in Rio Grande do Sul, guaranteeing emergency connectivity in critical areas, offering free access to mobile networks for those affected, restoring services in collaboration with other market players and supporting the state government in the reconstruction of schools affected by the tragedy.
These examples demonstrate how a well-structured institutional strategy not only preserves operational continuity, but also reinforces the company’s commitment to the country.
Conclusions
Institutional relations are a strategic differential for companies seeking competitiveness and sustainability. They strengthen risk management capacity, broaden the debate on public policy and create predictability in the business environment, being a fundamental part of corporate communication, strategy and governance.
As it moves ever closer to the strategic corporate sphere, it guarantees resilience, innovation and a positive impact on society. Companies that adopt this approach, broadly integrating institutional relations into their business, not only stand out in the market, but also contribute to a more sustainable environment for all.
