Business and Markets

Democracy is Good for Business, and CEOs Shouldn’t be Afraid to Say It

July 3, 2024  • Judy Samuelson

It’s election season. And the heat is rising.

If employees had left their politics at the door up until now, the chaotic first presidential debate has put an end to that. The unpredictability, drama, and potential consequences of this election seem to seep into every aspect of our lives. It’s increasingly unrealistic to expect workers to spend 40 hours a week pretending that politics doesn’t exist.

For executives wondering how or whether to weigh in on the elections, doing nothing is not a viable option. Should they encourage healthy exchange in the workplace or attempt a crackdown on politics in the office? Advice to leaders just trying to sell products and services seems to be all over the map.

And what is expected of business leaders if things boil over, as they did in 2021?

The temptation to stand back from the fray is understandable in this fractious moment, but it ignores two essential truths.

First, executives understand the importance of confidence in our elections and a functioning government to business stability and a healthy economy. This confidence is intertwined with the rule of law on which commercial contracts depend. While there may be good reasons not to discuss candidates, speaking up on trust in the institutions of democracy is not controversial, it is essential.

Second, if things go south, employees will expect their chief executive to address what’s happening in the public square—and on the streets.

Business leaders have come through on these matters before. In April 2021, amid efforts in several states to restrict voting rights, more than 700 leaders of many of our largest employers and private sector and public-spirited institutions signed the We Stand for Democracy statement, taking a “nonpartisan stand for this most basic and fundamental right of all Americans.” This was a standout moment, demonstrating why so many Americans put trust in business ahead of trust in government.

But given the massive changes in the operating environment since that moment, including pushback from politicians against brands perceived as taking up “progressive” ideas about civil rights, human welfare and environmental sustainability, there’s a risk executives will take a more cautious approach to avoid the limelight.

What might temper the instinct to pull back? The will of employees.

When push comes to shove, why does the CEO stand up? As the Edelman Trust in the Workplace data reminds us, because their employees want them to.

Employee expectations are the primary motivation for CEOs to connect the dots between the health of the business and the health of society on which the enterprise depends. Employees identify with their employer and show up for work to be part of something that matters in their family life, community, or their children’s future. If important gains in civil and human rights, equal opportunity, or progress on environmental sustainability are at risk or undermined, they expect the CEO to speak out on their collective behalf. If these things mattered to the executive before, they matter even more now.

What’s the playbook for executives looking to find their footing in offering support to our democracy?

A thoughtful response demonstrates belief in, and commitment to, the fundamentals extolled in the 2021 statement: “For American democracy to work for any of us, we must ensure the right to vote for all of us.” Unlike issues that cause disagreements among employees, voting rights are a universal cause everyone can rally around.

There are many practical, nonpartisan, ways to put this commitment into practice. The most important is the easiest: to guarantee employees the time off to vote. Keeping election day meeting-free reduces the chance of not voting over a scheduling conflict. More than half of all U.S. states already require companies to offer release time, while early adopters like Old Navy, Levi Strauss and PayPal set an even higher standard.

Giving employees who volunteer at the polls an extra day off signals the importance of fair elections. (Power the Polls is an excellent resource for helping employees connect to volunteer opportunities.) Hundreds of companies have endorsed the Time to Vote pledge, promoting voting as a civic duty.

These are just the first steps. If you are a business leader, consider this: the CEO’s voice is powerful and builds trust that our elections are fair, safe, and secure. To speak out against efforts to undermine voting rights is critically important. Whether voting takes place in-person or through mail-in ballots, the facts and figures about fair elections are on your side. Sources like the Brennan Center for Justice confirm how rare voting fraud is, in fact. Democracy for President offers resources on how to talk about election integrity in a nonpartisan, non-polarizing way.

Finally, take a close look at your company’s political spending.

After January 6th, 2021, Dell and Microsoft adjusted PAC contributions to withdraw funds from politicians who refused to certify the election. In doing so, Dell elevated considerations like brand impact, attitudes of key constituencies and the sentiment of employees. Microsoft redirected spending away from election objectors and toward organizations that support campaign finance reform, political transparency, and voting rights. Employees are watching closely, so it pays to be transparent about how and where money is spent.

It’s not always a straight path. Short-term concerns get pitted against values and long-term considerations. The best allies for leaders are those on whom you depend the most: your own employees. Time and again they have proven themselves agents of positive change. There’s no margin in taking employees for granted. And when it comes to voting rights and the importance of standing up for democratic ideals in this moment, they have your back.