What is the connection between business leaders and democracy?
A strong, healthy, and dynamic democratic political environment is key to economic resilience in the United States. American industry, corporate America, and small businesses all thrive in a stable, pro-democracy ecosystem. Conversely, rising authoritarianism creates significant political risk, undermining the foundation for stable business growth. While supporting political leaders who undermine democracy may yield short-term benefits, it also opens the door to punitive tax and regulatory policies. As authoritarian factions continue to use debates over the role of business in society, especially around issues of ESG and DEI, to further divide the country and undermine our institutions, the business community can be a critical voice in the fight to protect and promote democracy.
What can the business community do to meet authoritarian threats?
Businesses—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. Here are a few historically effective strategies for businesses to protect democracy:
- Refuse to cooperate with authoritarian practices by cutting off normal patterns of interaction with political leaders and organizations that undermine democracy.
- After the January 6th insurrection, nearly 150 companies ended their campaign contributions to the members of Congress who refused to certify the 2020 election.
- During the ICE raids in LA, the Dodgers refused to allow ICE officers into stadium grounds after unmarked vans showed up before a game.
- Negotiate for democracy in private, and, when appropriate, mediate between movements and government leaders.
- During the Greensboro, North Carolina lunch counter sit-ins (and as part of the broader Civil Rights movement), executives from the Burlington Fabrics company organized a committee of civic leaders to negotiate with lunch counter business owners. This helped give greater legitimacy to the Black student-led sit-ins that ultimately led to Greensboro’s desegregation.
- Provide material support, technical expertise, insider knowledge, and human capital to social movements and civil society organizations working directly to advance democracy.
- Small businesses in Ukraine provided clothing and food to help protesters occupying Independence square during the Orange Revolution stay warm during the middle of winter.
- Charitable donations are just one piece in a much larger tactical repertoire, and often not the most effective piece.
- Several American companies have provided their employees with paid time off to vote, protest, or dedicate time and resources to pro-democracy actions.
- Make the case for democracy by putting out statements that amplify the benefits of democracy, condemn anti-democratic practices, and defend the rule of law.
- The US Chamber of Commerce joint statement with the AFL-CIO on the day of the 2020 election sent a powerful signal that American society was united in its demand for a free and fair election.
- This statement by over 70 Black executives condemning a 2021 Georgia law restricting voting rights helped show corporate America’s support for democratic rights.
Other tactics can be found on Gene Sharp’s list of 198 Methods of Nonviolent Action here.
Additional Resources:
Go more in depth into specific case studies detailing the importance of the business community as a force for democracy:
- Small Businesses Fuel the Fight for Freedom in Ukraine
- Venezuelan Businesses Fight a Rising Dictator
- Wisconsin Business Leaders Ensure Fair Elections
- German Businesses Defend Democracy and Fight Extremism
- Check My Ads Illuminates Authoritarian Advertising
- Brazilian Business Leaders Push Back on an Illiberal President
Check out this article by Chief Network Weaver Julia Roig: Business for Democracy: A Call for Courage and Action.
Listen to a podcast by the Leadership Now Projecton about how businesses can solve America’s democracy crisis or hear Alison Taylor discuss how businesses can do the right thing in a turbulent world.
Read some more business case studies from the Civic Alliance and their corporate civic playbook.
*This article was written by former Director of Applied Research Jonathan Pinckney and updated by Research Assistant Sivahn Sapirstein.
