My HBR Article: Fixing U.S. Politics

Many Americans believe that our political system is so irrational and dysfunctional that it’s beyond repair. But it doesn’t have to be this way. 

My new article with Katherine Gehl in the July-August issue of Harvard Business Review analyzes politics as an industry, identifying the rules and incentives that drive our unhealthy competition that is not delivering the results we so badly need. It also reveals that powerful solutions – ones you may not be familiar with – exist and can be implemented in years, not decades. In fact, momentum for key reforms is already building in states across the country. 

In “Fixing U.S. Politics”, we describe the role business plays in perpetuating our political dysfunction. Current rules and customs empower companies to participate heavily in politics with six common practices: lobbying, hiring former government officials, heavy spending on elections, influencing direct democracy, involving employees in political activities, and a lack of transparency and governance. This political engagement is not only making the political system worse, but is also hurting business.

To explore the current thinking of business leaders on political involvement, we conducted a survey in 2019 of 5,000 Harvard Business School alumni, many of whom are now in leadership roles. More than half said that business was degrading the political system by reinforcing partisanship and favoring special interest. When asked whether business’s engagement in politics improves public trust in business, 69% said it did not. In addition, business leaders must come to understand that this harmful political involvement is having negative long-term effects by eroding the business environment, distorting markets and undermining open competition, and failing to advance critical social performance that business depends on, such as a healthy and educated workforce.

We also found reason to be hopeful. In a movement that has been building for some time, and has accelerated since the COVID-19 crisis, company leadership is beginning to adopt a corporate purpose that goes beyond maximizing shareholder value to benefit all stakeholders. In our survey of HBS alumni, we found strong support for rewriting the business playbook for engaging in politics.

Our government is failing to advance policies that are real solutions to our crucial national challenges, from health care, to quality public education for all, to discrimination and lack of opportunity. There is no greater threat to American economic competitiveness and social progress today than passive acceptance of a failed political system. It is time for business leaders, alongside other citizens, to take steps that challenge the typical business playbook in politics that is making our system worse.