On July 5, 2024, the first CPR Forum took place at the European Academy Berlin. It was titled: "Daring to take a stand: Why democracy needs businesses – and vice versa". This reciprocal relationship was discussed by around 50 representatives from business, academia, and civil society.
Dr. Johannes Bohnen introduced the topic of CPR, reminding the audience that, in view of the democratic backlash, companies can no longer rely on political stability as a prerequisite for economic success. They should expand their concept of investment to include the public sphere, its institutions, and public goods. What does that entail for their self-image and activities?
In his keynote speech, co-host Prof. Dr. Ludger Heidbrink from the University of Kiel ascribed a "systemic responsibility" to companies. In terms of risk prevention, they should contribute to the provision of public services (health, education, security), support international norm-setting procedures (UN SDGs, ESG criteria), and participate in public deliberation processes (democracy campaigns). Afterward, three panel discussions were held to sketch out how such theoretical considerations could be reflected in everday practice.
The first panel dealt with the opportunities and limits of Corporate Political Responsibility. References were made to the relation between democracy and the social market economy. Both are open-ended "practices of responsible freedom". But does this mean that there is also a business case when companies assume systemic responsibility? After all, democratic stability can only be promoted in the long term and also benefits free riders. However, this argument is too simplistic as there are also short-term benefits to be gained for individual companies. They entail brand sharpening, easier talent recruitment, and improved stakeholder relations. Apparent lack of legitimacy also does not appear to be a convincing argument for political abstention. Economic activity has always consisted in cultivating the (ecological but also public) environment and is therefore inherently normative. Finally, the fear of unbridled criticism, especially in social media, was countered by pointing out that political work does not necessarily have to take place “in the open” but also quietly "behind the scenes". Overall, the plea remained that companies should fulfill their role as "agencies of value creation" not only economically, but also politically.
The second panel dealt with dedicated CPR strategies. Speakers emphasized the internal dimension of Corporate Political Responsibility from democratic decision-making channels to hierarchy structures and diversity. Only those who focus on diversity within the company can convincingly address diversity in society. In addition to such procedural issues, semantics also play a major role. For instance, companies could contribute by offering trainings to strengthen the internal debating culture and by discussing the meaning of culture-relative terms such as liberal or conservative. Now, that the “untroubled times” have passed, it is fundamental to ‘exercize the democracy muscle’. Trade associations can also play a pivotal role in this endeavor.
At the same time, the political drift to the right raises various dilemmas: what actions shall be taken if the business case ceases to exist, for example if it becomes beneficial to make deals with right-wing authoritarian forces? Do we need ultimate normative justifications for such a scenario? And will it not be unavoidable to have at least limited contact with right-wing extremist parties as soon as they come into positions of power? Instead of focusing on convictions, we should have a political strategy – which requires actors to "know their facts".
The third panel was dedicated to the implementation of specific CPR measures. One example was the Business Council for Democracy (BC4D) of the non-profit Hertie Foundation, which has already brought together over 200 companies and supports them through trainings in the fight against disinformation, hate speech, and conspiracy myths. JoinPolitics helps young talents find their way into party politics, thereby strengthening representative democracy at its core. Finally, ProjectTogether builds cross-sector alliances to solve societal problems. This idea could be taken pars pro toto: Democracy thrives on the engagement of all areas of society - which in turn have a manifest interest in the continued existence of the liberal order.
Last but not least, Andrés González, founder and president of the educational institution POLITIKUM and co-organizer of the CPR Forum, broadened the view beyond Germany and Europe. In his home country Ecuador, plagued by organized crime, political murders, and threatened political stability, CPR can be a real democratic promise.
We would like to thank our host, the European Academy Berlin, all panelists and participants as well as our sponsor Evonik.
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