Election Risk and The Need For Action
Businesses depend on a functioning democracy in order to thrive, and face dramatic risk if the political system erodes. Supporting a strong democracy is also a positive agenda for business and citizens to reinvigorate our social fabric, protect access to the franchise, counter polarization and build institutions that secure our economy into the future.
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The health and stability of American democracy are in the midst of serious threats
- America was downgraded from a “full” to a “flawed” democracy by the Economist Intelligence Unit in 2016.
- 32% of voters believe incorrectly that the 2020 election was stolen, and politicians seeking to capitalize on this belief have introduced over 600 bills in 49 states targeting voting rights since 2020.
- Multi-pronged threats are creating the risk that we could face serious political instability in upcoming elections.
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Political instability and the deterioration of our democracy put the business environment at risk
- Political instability can increase the cost of capital, stifle innovation, impact supply chains.
- Declines in the rule of law undermines the preconditions for successful capitalism.
- 45 of the world's 50 largest companies by market capitalization were founded in democracies.
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Business is essential to upholding and renewing our democracy
- 96% of corporate leaders agree that a well-functioning democracy is “important” to a strong economy.
- 50%+ of business leaders say their companies are more likely than they were five years ago to take a public stance in favor of democracy, or to encourage employees to speak out themselves.
- 80%+ of business leaders agree that companies should act to ensure safe and fair elections and protect democratic institutions.
Source: Morning Consult Poll of Business Leaders, April 2022
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This commitment to democratic engagement is evident across the business community.
- In the wake of the January 6 insurrection, over 120 of the nation's largest companies halted political contributions to politicians who voted against certifying the 2020 election.
- Those members of Congress have lost 59% of their funding from corporate PACs (in 2021 vs. 2019) as a result. And over 450 American companies have withdrawn or suspended key operations in Russia following the invasion of Ukraine.
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Business leaders can establish pro-democracy policies
- Give employees time off to vote or work the polls.
- Ensuring PAC contributions only go to recipients who demonstrate commitment to the democratic process.
- Advocate for federal and state democracy legislation, such as opposing measures that would make it harder for any eligible voter to cast their ballot.
- Expand corporate donation programs
to include donations and in-kind resources for nonpartisan state elections infrastructure, from stress tests to tech upgrades and training.
That’s why our three organizations have launched the Business & Democracy Initiative.
The Business & Democracy Initiative empowers business leaders to collectively stand up for American democracy, rebuild trust in democratic institutions, and secure the next generation of stable and inclusive American prosperity.
