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Jul 174 min read

A clear stance against anti-democratic tendencies - is that too much to ask?

Guest article by Dr. Katharina Reuter and Kathleen Klement (Bundesverband Nachhaltige Wirtschaft e.V.)



At a time when political and social tensions are increasing worldwide, companies should take a stand against anti-democratic attitudes. While some companies are resolutely taking this path, others seem to find it more difficult to take a clear stance. Why is this the case? What can and must be demanded of companies? This guest article addresses these questions.


Companies bear political responsibility


Traditionally, companies have been primarily seen as economic players whose main goal is profit maximization. However, this view has changed in recent decades. Companies have taken on an increasingly important role in society that reaches beyond purely economic activities[1]. They are employers, innovators, and influencers in their communities and beyond. Businesses can fulfill these roles in a democracy, which provides the legal framework and freedom that enables businesses to thrive. The logical consequence is that companies have a moral obligation to support these values and oppose movements that undermine these foundations[2].


Right-wing populist movements endanger democracy and sustainability


Europe has experienced a right-wing political movement for several years (including the increasing strength of the AfD in Germany and the post-fascist government in Italy). These developments cause companies of all sectors and sizes to worry about the economic achievements of the EU including its fundamental democratic principles, free trade, and common currency[3]. In the weeks leading up to the European elections, various initiatives have therefore called upon companies to speak out in favor of democracy and its values[4]. This includes the BNW and its public declaration "Wirtschaft wählt Vielfalt und Nachhaltigkeit: Für die Zukunft Europas” (“Business votes for diversity and sustainability: for the future of Europe")[5]. Contrary to other appeals, this declaration not only states that companies are in favor of democracy, but additionally promotes a clear stance against right-wing populist movements. While more than 700 companies have signed the appeal, some refused to join.


CPR not always easy in practice


The search for clues as to why some companies have not signed the public declaration revealed the following arguments:

  • It is not advisable to take a stance solely against right-wing populist movements; one should instead aim to oppose all extremes in one’s public statement.

  • Political positioning is only possible whilst ensuring a sufficient distance from elections.

  • One cannot support the demand for socio-ecological transformation, as this sounds too much like "less" (sufficiency).


Tendency towards political abstention?


When it comes to exercising corporate political responsibility (CPR; investing corporate resources in the public interest and through socio-political engagement[6]) with regard to the far-right Alternative for Germany (AfD), there is “no silver bullet and no certainty that the clear boundary will hold; but giving it up would not only  speak against the free democratic basic order, but also against the interests of the German economy"[7].

A healthy democracy needs open, respectful, and purposeful dialogues. Violence and disregard for environmental and human rights - regardless of which side is involved – cannot be tolerated. As part of a CPR strategy, companies should agree on fundamental values (e.g. Code of Conduct). Simultaneously, though, they should allow for reactions to current developments - companies must be able to speak out against current threats. At the moment, the most pertinent threat to the business location emanates from the election manifestos and plans of the AfD[8].


Do not withdraw in the face of upcoming elections


A fundamental democratic principle states that all citizens be responsible and competent to form their own opinions, inform themselves freely and make their own decisions. The executive management should not deny their employees and stakeholders this sovereignty. At the same time, they must ensure that the company remains an entity functioning on the basis of liberal democratic rights. To this end, it is paramount to not retreat into abstention during elections, but to maintain previously defined positions and point out the dangers of anti-democratic attitudes.


Integrating transformation into the CPR strategy


If a company wants to be successful in the long term, it should not solely look at the present. Rather, it is fruitful to look to the long-term future and understand the finite nature of resources and ecosystems (planetary boundaries). However, companies today operate in an economic system in which non-sustainable actions still pay off. As such, the "sustainability business case" is still hampered by unfair market conditions. This is where the CPR strategy can be integrated meaningfully into the transformation process. Good to know: The AfD denies man-made climate change and takes a stance against climate protection measures and other environmental policies.


Setting priorities for the future


Companies are successful if our society is doing well. The goal of democracy is equality. However, our current economic system is geared towards competition and causes inequality. Democracy is based on participation - companies, on the other hand, are (often still) based on hierarchy. It is therefore far from trivial how economics and democracy can increasingly come into harmony.

Democracy is the best system we know for a healthy, prosperous, and sustainable society. But it cannot be taken for granted. Companies bear a part of the responsibility for its preservation by standing up against anti-democratic attitudes and for a future-oriented,  sustainable society. Therefore, in our opinion, it is not too much to ask to take a clear stance against anti-democratic forces!

 

The member companies of the Bundesverband Nachhaltige Wirtschaft BNW e.V. are sustainability pioneers who are politically involved in various debates, for example when it comes to democracy and climate protection. The association's DNA is not only political, but also includes a holistic view of a constructive economic paradigm shift and a cross-industry understanding of transformation. CPR is therefore recommended as a strategic development of corporate responsibility concepts - an upgrade of the CSR strategy to include the political dimension and pave the way for corporate political responsibility.


 

[1] Cf. Reuter, K., 2024, Corporate Political Responsibility: Die Verantwortung von Unternehmen in der politischen Arena, https://www.haufe.de/sustainability/debatte/corporate-political-responsibility_575768_623736.html

[2] Cf. . Bohnen, J., 2020, Corporate Political Responsibility, Springer Verlag, https://doi.org/10.1007/978-3-662-62122-6, S. 26

[7] Bergmann, K. et al, 2024, S. 21

[8] Bergmann, K. et al, 2024, S. 2

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