*This article was written by Chief Network Weaver Julia Roig.
There is ample evidence that democracies around the world are being threatened by authoritarian populist forces, and that the best antidote to stemming this tide is broad-based, “big tent” organizing to stand up for democratic norms and freedoms. This multi-sectoral, cross-ideological approach is the basis for the Horizons Project Pillars of Support initiative; a framework to analyze and engage key institutions that uphold democracy, including businesses, faith organizations, professional associations, unions, and veterans’ groups.
In partnership with the SNF Agora Institute at Johns Hopkins University, Horizons has been focusing on the business pillar, amongst others, to highlight the incentives, strategies, and tactics that businesses have used around the world and in the US to join the fight for democracy. Creating opportunities to build relationships and collective action between different pillars is also an important component of pro-democracy organizing. In September, Horizons convened two business for democracy events: (1) in collaboration with Professor Daniel Kinderman, we held an international exchange over Zoom with pro-democracy business leaders from Europe; and (2) with support from many partners, we brought together a virtual salon with business leaders and democracy activists. The following is a summary of the insights and learnings from those two events.
Call for Courage. There are many organizations in the US making the case for why democracy is good for business and offering different frameworks and advice on the role that businesses can play to support democracy. And yet, many business leaders remain risk-averse in the US, not wanting to wade into what is seen as polarizing partisan politics. Colleagues from Europe clearly noted the importance of understanding the stakes, and the need for courageous leadership amongst the business community at this moment. The brave role for business is both to take public stands, but can also be quiet work behind the scenes, such as conversations with influential stakeholders and direct funding for pro-democracy efforts.
Collective Action Helps to Mitigate Risk. Many noted the opportunity to mitigate risks to any one company through participation in geographically based or industry-focused associations (such as Welcome Saxony in Germany, or the US National Association of Manufacturers). Although sometimes trade associations are hard to move, if one company takes a courageous stand it can influence their peers to also move. But it was noted that committed leaders within business associations should share their experiences widely, including the arguments they use for inviting business participation and the strategic actions and pro-democracy programming they prioritize. There is often more energy for these coalitional efforts at the sub-national level such as Wisconsin Business Leaders for Democracy, but connecting those state or region-level associations together for national-level action is also important.
Protecting Democracy Beyond Elections. Standing up to autocratic, extremist political parties and candidates during elections is very important, as business leaders clearly have done recently in countries like Poland, Brazil, and Germany, and continue to do throughout the US. It was noted that autocrats are often democratically elected, making common cause with centrist groups and then degrading democratic institutions and norms once in office, such as the case in Hungary. At the same time, focusing only on supporting get out the vote (GOTV) programs and giving employees time off to vote is insufficient to combat the nature of the populist, authoritarian threat. Even with close electoral pro-democracy wins, extremist factions remain a powerful force to contend with in each of these countries which requires sustained interventions and a long-term perspective to pro-democracy organizing.
Role of Employees. In some European cases, business leaders reported an overwhelmingly positive response from their employees when they took a firm stand for democracy and began participating actively in pro-democracy business coalitions. It was also noted the leverage that employees have to pressure companies to either stop providing financial support to undemocratic candidates/parties, or to get off the sidelines and participate more actively in upholding democratic norms, policies and institutions. Identifying employees in key businesses or industries who may come from civil society backgrounds can serve as potential allies for pro-democracy organizers and help with internal pressure to incentivize private sector action.
Importance of Supporting Institutions and Investment in Political Leadership. Panelists extolled the need to help re-establish trust in institutions and to speak with respect about and to public officials and civil servants. It was noted that businesses should be engaged with building nonpartisan democratic infrastructure and democratic innovations, such as alternative forms of voting and civic participation like citizen assemblies. Some private sector leaders in Europe are also mobilizing the sector to invest resources to establish a pipeline of new political leaders, such as the Multitudes Foundation and the Apolitical Foundation, working to train young people in civil society to run for office – currently operating in 50 countries, but not yet in the US.
Critical Need for Citizen Education and Resources for Pro-Democracy Organizing. Some of the business associations in Europe are involved with non-partisan civic education programs to ensure an educated citizenry. They also run trainings for their members on topics of combating hate and racism, engaging with stakeholders, and how businesses and employees can get more involved in civic initiatives in their communities. Additionally, some business leaders in Europe understand the need for a strong pro-democracy civil society and have created foundations specifically to provide resources to nonprofits to organize and mobilize, as well as to conduct other citizen engagement programs and media campaigns.
Making the Business and the Economic Case Against Autocracy. Some noted that autocratic regimes are often good for certain industries or crony-insiders, and in the short-term promises of less taxes and less regulation can sound very good for businesses’ bottom line. In the long-term, however, the overall business operating environment suffers in a country with the presence of anti-democratic, extremist populism exactly because of the crony capitalism and diminished rule of law. Our colleagues in Europe made a strong case for connecting the different fields of economics, democracy, and politics, and to help make a clear economic case for why support for autocracy is not in the interest of the private sector. This may require businesses to get more involved in coalitions targeting direct advocacy efforts, for example on immigration policies, or stand together with other sectors to take a firm public stand against political actors that espouse hate or political violence, or who actively use executive power to punish political opponents. It will also take activists allowing for business to rely on arguments of economic self-interest as a way to engage them meaningfully in the pro-democracy agenda.
Understanding and Applying History. While historic contexts are different across regions, speakers reflected on the importance of situating the current rise of authoritarianism, and actions needed, within a country’s specific history. For one thing, populism is not a new thing; and autocratic or fascist leaders have come into power through valid elections over the last century with the support of private sector actors. A country like Germany has a special responsibility and commitment to fight against far-right fascists and extremism; and throughout Eastern Europe there remains a strong connection to the bravery of citizens who toppled communist dictatorship and fought for their democratic freedoms. In the US context, understanding that we only achieved true democracy with the passage of the Civil Rights Act of 1964 and the Voting Rights Act of 1965, putting an end to Jim Crow, helps to connect the resurgence of white nationalist movements and racist, xenophobic political rhetoric with the current threats to democracy.
Veneer of Business as Usual. During the Q&A with our international guests, many asked about how to incentivize more courage amongst US business leaders, and one compelling response was to make the case that extremist populism and autocracy is chaotic and unstable. From the European experience, many business leaders may have felt confident that they will be able to continue to operate normally and “do business” with an autocratic regime based on their negotiating prowess and relying on rational policy arguments; but dealing with autocrats is not the same as negotiating with business partners. In Hungary under Orban, the first years were good for business and the tax rate for business remains low. But more recently, he has been nationalizing industries, giving preferential business opportunities to friends and punishing enemies in the private sector who have no legal recourse with a captured judiciary. Even if autocrats can be good for some entrepreneurs, especially those closest to the autocrat, they are never good for business as a whole or capable of providing a path for long-term prosperity.
It will Take an Array of Approaches to Influence the Business Community. During the business-activist salon, participants highlighted that the climate movement leveraged both the activism, boycotts, and pressure campaigns organized by Greenpeace and boardroom conversations with senior executives to move the business community in a more pro-climate direction. A spectrum of approaches is needed to do the same for democracy. In 2020, there was a sense of inherent risk in not speaking out for democracy in the US. That has changed dramatically in the last four years, in large part because businesses that are taking public stands like Disney, Target, and Budweiser have been targeted. Businesses see staying silent as the less risky option. Because the boardroom risk analysis in 2024 is not in favor of speaking out for democracy, it will take activism to shift that risk calculus. Activists also need to build relationships with moderate conservatives and small business owners. Because business is not a monolith and each sector—and each corporation—is different, it is worth acknowledging the businesses that take positive steps related to democracy, adding a carrot to the activist toolkit, alongside the stick.
Additional Resources
For more on Pillars of Support:
– Overview of the concept
– Business-specific page
– Business-specific case studies
– All case studies of pillars of society standing up for democracy
Recognizing and Countering Authoritarian Threats to Democracy: The Role for Business by Elizabeth Doty and Daniel Kinderman
How does Business Fare Under Populism by Rachel Kleinfeld
Corporate Civic Playbook, Civic Alliance
Corporate Civic Action Plan, Leadership Now Project
On the Impact of Autocracy on Business Performance:
– Democratic erosion causes economic decline. Here are the 7 kinds of business at highest risk. The Brookings Institution
– 10 Reasons Why Trump is Bad for Business. (Slide deck) Third Way
– Goldman Sachs analysis on Harris vs. Trump victory
– The Employees Who Gave the Most to Trump and Biden (employee giving) in the 2020 election.
– As CEOs, we will not tolerate threats against Arizona election workers. Op-ed from Arizona CEOs launching Leadership Now Arizona.
– Live database from CREW tracking corporate giving to election deniers.
– Accountable.us tracker.
– The book “The Order of the Day” describes the relationship between business leaders and politics in Germany in the 1930s.