Democracy at Risk: What Do We Want—or Need—From Our Chief Executives?

Our lives begin to end the day we become silent about things that matter. ?

— Martin Luther King, Jr.?

An avalanche of opinions and commentary at the intersection of business and politics has landed in the closing days of the election. Elon Musk is at home in the limelight; others, like Bill Gates and Jamie Dimon, earn headlines even as they aim to stay out of the fray.??

And then we have Jeff Bezos—who demonstrates what is at risk with a combustible cocktail of politics, commerce and media. His high-profile ownership of the Washington Post is likely to become a noteworthy case study in leadership—just as soon as we understand what lessons to draw from it.??

The public is decidedly mixed about business engagement in the election. On the one hand, polling suggests that citizens have tired of the stew of self-interest, brand marketing and politics . Yet depending on the issue, and who wants what, citizens still expect executives to weigh in on issues that divide the public, especially in domains where business has levers to pull—from climate to mental health to equity.??

What do we truly want from chief executives? Over the summer and fall, colleagues at the Aspen Business & Society Program engaged in a series of conversations and interviews with sitting executives and those who advise them. We aimed to better understand how business leaders are managing the role of “chief spokesperson” in this moment. ?

While business executives take for granted that democracy and capitalism - including rule of law and property rights - go hand-in-hand, we know from our research that speaking out to support democratic ideals is now tinged with partisanship . Amid the blowback on corporate activism, even once-innocuous statements about building an inclusive and diverse work force can feel risky.?

All this has led some executives to adopt “neutrality” and a bias toward inaction—keeping one’s head down.??

That said, the Business Roundtable, which made three public statements as events at the Capitol were unfolding on January 6th, 2021, released another statement while polls were opening around the country. It called for citizens to exercise their franchise, and expressed concern for an “orderly transition.”?

But to get press would have required the 200-strong CEO members to add their voices to the statement - maybe even do the road show version. Its the big names, both consumer brands and executives with big personalities or massive wealth, who command the headlines. Business is deeply engaged in politics. And when executives put their short-term commercial interests before the health of the system, everyone pays the price. Jeff Bezos claims otherwise , but his decision to pull the endorsement of Kamala Harris from the Post is about influence peddling.?

So, what do we expect of our business leaders now and in the years ahead??

It is clear from dozens of interviews that businesses remain underprepared for threats to democracy itself. It may not be clear from the c-suite exactly what a strong defense of democratic institutions and processes looks like, but standing up will be required. We are talking about risks to the stability of commerce, markets, and the general business environment—all very much “in the lane” of chief executives.?

And employees still want to hear from their CEO in times of crisis. It begins with making it easy for employees to vote, and to be confident in the outcome—defense of elections as safe.??

What's becoming clearer is that investing in democracy will require executives and governing boards to dig much deeper—to consider how business-as-usual contributes to, even helps create, the morass we are swimming in now, and how we can instead move forward.??

In 2020, mid-pandemic, Jamie Dimon of JP Morgan Chase talked about a willingness to put country before company .??

What does that look like now for business leaders who have both massive influence and a keen interest in preserving democracy, even for instrumental reasons? I believe it starts by asking these clarifying questions:??

1. Are we fully transparent in business dealings that support and engage government and elected officials? Political spending is corporate voice. The Center for Political Accountability now counts JP Morgan Chase in an elite cohort of businesses with high standards when it comes to disclosure of, and accountability for, political activity. The company scores 97.1 out of 100 in the recently released 2024 CPA-Zicklin Index, placing it at the top of their Trendsetter category.?
2. Are the protocols in place to ensure that the CEO can speak with authenticity, credibility, and conviction in real-time, if confidence in our democracy weakens further? For example, does the company understand the connection between workplace investment and healthy, stable host communities? How are the concerns of employees factored into decisions about when to speak up and what to say??
3. Do we actually understand our workforce—where livelihood and financial security intersect, and what makes it possible for employees to commit—and recommit—to the enterprise? The answer to this question at Boeing would have to be a resounding “no.” ?And finally,?
4. Who gets what? This question goes to the heart of the cynicism that people feel towards both democracy and capitalism—including rising generations who eschew capitalism altogether . Their antipathy towards capitalism is rooted in their experience and a lack of confidence in the future. Executives contribute to growing inequality and make a mockery of climate commitments, which require massive investment now, when the stock price is the key measure of success and rewards.??

Beth Kowitt at Bloomberg Opinion cites David Kelly, chief global strategist with JPMorgan Asset Management, who argues that growth in income inequality is a function of the larger economy—and business priorities: “The success of corporations in chipping away at the labor share of the pie has been a major factor in increasing their own slice.”?

A generation ago, per Kelly, after-tax corporate profits accounted for 5.5% of GDP; last year they reached nearly 10%. In the same period, worker compensation dropped from 55.8% to 52.1% of GDP. Employees and the citizenry feel the difference in their well-being and trust in the future.?New data from the 2024 Edelman Trust Barometer Special Report: Trust at Work reveals a 39-point chasm between executives and associates on whether they believe their family could be better off in five years' time.

When corporate profits grow and enrich elite shareholders at the expense of workers, one can easily connect the dots to the political divide, hatred of the “other” and mistrust in the “system” evident in this election. ?

Younger generations need to feel a sustained change to reorient their perceptions when it comes to fairness. Can businesses ensure that future generations can rewire and get on board???

Business leaders and major employers have the power to make a difference. This is about playing the long game on restoring faith in both democracy and capitalism. Prioritizing the future and executing on those intentions elevates more questions, but if the default rule remains maximizing shareholder value, it’s impossible to engage in this kind of critical self-reflection.??

What do executives see as their job when the board loads them up with stock? Can executives who bear the responsibility for the health of the enterprise lead in the rethink of compensation systems???

Climate change, a key priority for the electorate and younger citizens, requires courage, but also profound changes to the business model. The commitments that reward shareholders of the future require?a long-term view, today. What is required for CEOs and their directors to restore common sense to governance, investment priorities and a fair shake for the workforce???

Yes, the voice of the executive matters, but to secure both democracy and stability, the work ahead will require much more.?

Business executives have levers to pull. Will they have the courage, and support of their boards, to use them??

Judy Samuelson is executive director of the Aspen Institute’s Business and Society Program and author of “The Six New Rules of Business: Creating Real Value in a Changing World.”