Business and Democracy
“Capitalism can’t work without well-functioning governments that design rules to enable innovation and markets, ensure competition, and address social problems.” — Anat Admati, Stanford Economist & Business School Professor
The research is clear: democracy is good for business. Democracy is not a particular set of policy positions—right or left—but rather a remarkably well-suited system of government within which businesses can thrive. Rather than having to worry about a mercurial autocrat playing favorites and picking winners, in a democracy businesses can focus on innovation and competition in the marketplace.
Business has a vested interest in ensuring the stability of our system of government, and in keeping a broad array of consumers engaged. The case studies below offer a roadmap for doing just that.
Pillars of Support
Pillars of Support are the groups and institutions that maintain a social or political system. They are the avenues through which power flows up from the people to political leaders. We are all embedded in various pillars of support, from the businesses where we work to the faith communities where we worship. And that embeddedness gives every one of us influence over our larger political system.
Businesses—and their executive leaders, board members, investors, and employees—have a key role to play in determining whether America’s system of government remains tied to traditions of rule of law and freedom. The cases below offer both historic and international examples of businesses working in tandem with other “pillars of support” to uphold democracy.
External Resources
Recognizing and Countering Authoritarian Threats to Democracy: What Role for Business? By Elizabeth Doty and Professor Daniel Kinderman
Alison Taylor ‘How business can do the right thing in a turbulent world’ podcast episode by The New Abnormal
The Importance of Corporate Political Responsibility by Andrew Winston, Elizabeth Doty, and Thomas Lyon
How Can Business Solve America’s Democracy Crisis? Podcast episode by Leadership Now Project
Case Studies
Small Businesses Fuel the Fight for Freedom in Ukraine
*By Claire Trilling
A central part of Ukraine’s successful “Orange Revolution” was the sustained nonviolent occupation of Independence Square in Kyiv, which drew millions of participants. Small and medium-sized businesses provided much of the funding and the food and clothing which sustained the protest through the freezing temperatures of the Ukrainian winter. This support was organized through a student-led group named “Pora” who had built specific sections for fundraising and financial management into their organizational structure to facilitate the flow of donations from domestic partners. Outside of Kyiv, small- and medium-sized businesses participated in local strikes. Larger business organizations also provided critical support by throwing their weight behind opposition candidates and publicly supporting the movement. The example of Ukraine’s business community demonstrates that businesses and activist groups should work to build relationships ahead of time so, when a major mobilization comes, the streams of funding are already in place to support it.
Venezuelan Businesses Fight a Rising Dictator
*By Claire Trilling
In response to the rapid deterioration of democracy in Venezuela, initiated in part by overhauling the oil industry and land expropriation processes, the Venezuelan business community activated the fledgling opposition movement. Organizing alongside labor, church groups, and a wide spectrum of political parties, they initiated several nation-wide strikes and regular marches. The strikes initially raised morale and momentum for the opposition, but after a strike on the oil sector led to a change in government and subsequent coup, the final result was Chávez’s re-installment and heightened levels of polarization in the country.
Wisconsin Business Leaders Ensure Fair Elections
*By Louis Pascarella
In 2020, a bipartisan group of Wisconsin business leaders, concerned by unsubstantiated claims of voter fraud during the 2020 election, formed an association to protect voting rights and democratic institutions: the Wisconsin Business Leaders for Democracy. The association initially focused on encouraging civic engagement in the business sector and sending letters of support to Wisconsin election officials, legitimizing the electoral system and dismissing partisan attacks based on false claims of voter fraud. During the 2022 gubernatorial election and the 2023 WI Supreme Court election, the association publicized any candidate’s refusal to commit to democratic norms. With this public role, the association signaled the business community’s demands for a free and fair election that respected the choices of the people of Wisconsin. With their help, both elections proceeded with little issue.
German Businesses Defend Democracy and Fight Extremism
*By Louis Pascarella
Given Germany’s history of Nazism, business leaders there are particularly sensitive to the importance of speaking out against anti-democratic forces, recently the Alternative for Deutschland (AfD) party. German business leaders have engaged in several actions to strengthen democracy, including:
- The “Unity, Justice, and Liberty” campaign: an attempt to dissuade association employees and members of the public from voting for the AfD in the 2017 legislative elections.
- The Europeworks campaign: which highlighted the importance of European integration and the role of immigration in building a strong German economy.
- Welcome Saxony: opposing the autocratic right by providing association members educational employee training on several relevant topics, such as multiculturalism in the workplace, Neo-Nazism and the new right in Saxony, and fake news, conspiracy theories, and democracy.
Leaders in the German business community have also spoken out against rising authoritarianism and condemned xenophobia and hate associated with the far-right.
Check My Ads Illuminates Authoritarian Advertising
*By Louis Pascarella
Many advertisers are unwittingly funding groups tied to misinformation and hate. As there is no straightforward way to ensure that advertisements do not appear on controversial platforms, the Check My Ads Institute has been transforming the adtech industry through their educational newsletter, Branded, and social media work where they demand action and bring awareness to prominent issues in the adtech space. Through this multi pronged approach, Check My Ads has been able to defund and/or deplatform some of the biggest names in conspiracy theories and authoritarianism in the United States and publicly call out advertising hosts.
A Missouri Chamber of Commerce Speaks up For Their Community
*By Louis Pascarella
In 2020, after the murder of George Floyd and subsequent Black Lives Matter (BLM) demonstrations, members of the Joplin Area Chamber of Commerce (JACC) in Missouri chose to speak out. In a critical and candid op-ed, Chamber head Tobias Teeter condemned systemic racism, indicated support for the BLM movement, and pledged to address inequities in the Chamber of Commerce and its member businesses. When the Chamber refused to bow to the many threats which followed, the local community rallied behind them, demonstrating their support through a Unity Walk and raising funds to pay for chamber of commerce membership dues of Black businesses. As a result, the representation of Black owned businesses within the JACC sharply increased and Equity, diversity, and inclusion (EDI) projects were instituted. Infused with new members and forming new connections with the broader community, the JACC demonstrates how democracy building can benefit both business and local organizers.
Dive Deeper
For the full version of these cases and others, check out this document.