Populism pressure, public policies, and firm strategic choices: The case of Brazil

Abstract

Populist leadership has gained global traction in recent years, often emerging as a voice for the people against established institutions and elites while championing traditional values. However, the repercussions for the business environment remain elusive. This study examines the impact of populist policies on businesses, with a specific focus on the responses of large companies. We analyze two decades of the Brazilian political landscape to identify controversies surrounding populism's rhetoric and its real‐world effects on people's lives and business practices. Through this case study, we introduce a framework that explores the interplay between populism's influence and public policies, shaping market dynamics. In response, companies strategically adapt to maintain their competitiveness. This study, set in the Brazilian context, provides valuable insights and lessons for international businesses operating in politically diverse and dynamic economies.