Across the world, companies sometimes face unexpected political disturbances such as political coups, military rebellions and anti-government protests. How can multinational enterprises (MNEs) insulate themselves from such profound shocks?

By looking at the performance of global construction firms operating in countries affected by the Arab Spring, TL Hill and his colleagues show that companies that had a history of investing in socially beneficial projects recovered more quickly from these shocks. These types of projects increase social legitimacy among the public, which is key in surviving unexpected political disturbances.