The Growing Threat of Government Retaliation Against Businesses

Dear All,

Recently, we’ve witnessed an unsettling trend in the United States — political retribution against companies for exercising free speech, especially when that speech involves disagreement with political leaders. The ongoing conflict between the state of Florida and the Walt Disney Co. serves as a visible and disturbing example. That’s why Leadership Now Project, working with our pro bono counsel Covington & Burling, on August 2nd filed an amicus brief in Walt Disney Parks v. DeSantis.?

In August, I discussed this threat in depth with Triple Pundit Managing Editor Mary Mazzoni. The result is an article that uses the Leadership Now brief to lay out the business ramifications of political retribution — including a reminder that it impacts not just the targeted entity but casts a wider shadow, instigating what historian Timothy Snyder calls "anticipatory obedience." Businesses, fearing similar retaliatory action, may self-censor, thereby reining in their own rights to manage their businesses, including when to speak out or not.

Leadership Now’s amicus brief offers the court our perspective on the dangers such punitive actions pose to businesses, the economy, and ultimately democracy.

Read the full article, Beyond Disney: Government Overreach Threatens Free Speech and Good Business, Executives Say, and share it with your networks.

— Daniella Ballou-Aares, CEO, Leadership Now Project

Leadership Now’s amicus brief argues that the actions of Florida and Gov. DeSantis at issue in the Disney v. DeSantis case:

• Threaten basic tenets of the American marketplace. Government retaliation hampers economic growth and deters investment by undermining the fundamentals of business, such as predictability, trust, and responsiveness.??
• Jeopardize economic growth and deter investment by interfering with contracts. This case is particularly egregious because it involves government interference with contracts.
• Hinder businesses’ ability to determine how to respond to customer, employee, and shareholder interests. To continue to contribute to America's free market, businesses must be responsive to the evolving needs and interests of their customers, employees, and shareholders. Government retaliation limits this responsiveness, which can impact a company's competitiveness and overall financial performance.
• Compound political risk for businesses, leading to capital flight and impeding growth. The recent increase of government retaliation against businesses for their constitutionally protected speech creates a chilling effect on business and related speech throughout the market. The increased political risk and instability can lead to capital flight, with significant economic consequences.

Read these recent pieces featuring Leadership Now, our members, and advisors.?

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About the Leadership Now Project

The Leadership Now Project is a membership organization of business and thought leaders committed to protecting and renewing American democracy. Through our members’ influence, expertise, and investment, we achieve change in the short term while working to innovate for a thriving democracy in the long term.

Founded in 2017 by a group of Harvard Business School alumni, today Leadership Now Project has chapters in seven states, members across the country, and collaborates with faculty at more than a dozen colleges and universities.

Learn more at?www.leadershipnowproject.org.?You can also follow us on?LinkedIn.