Why Business Leaders Need to Champion Democracy

Democracy is in decline across the world. More countries are experiencing erosion of political rights and civil liberties than gains, according to Freedom House. As of 2025, 92 countries, representing 74% of the world’s population, were classified as autocracies by the V-Dem Institute.

Democratic backsliding is a primary concern for business leaders, who largely agree on the importance of strong democratic institutions. In a 2022 survey by Morning Consult and the Business and Democracy Initiative, 96% of executives said a well-functioning democracy is important to a strong economy, and 75% said it mostly helps their business. Consumer attitudes point in the same direction: In a 2024 survey by Morning Consult and the Public Private Strategies Institute, 76% of consumers said they believe that businesses should help ensure safe and fair elections, and 72% supported businesses speaking out against threats to democracy.

Despite this widely shared view of the importance of democracy, many leaders we’ve spoken with in both the U.S. and around the world have said that they’re unsure what they can do to counter the global rise of authoritarianism. Some fear backlash or would prefer to avoid what is often framed as a partisan issue. Others see democracy as the domain of politicians and doubt that the voices of business leaders can make a difference.

We believe instead that business leaders are uniquely positioned to help contain democratic backsliding. Building on our research on power, democracy, and change in organizations and society, we argue that business leaders can play an essential role in the protection and strengthening of democracy. Supporting democracy is not only a civic obligation; it is also a strategic business imperative.

The Business Case for Democracy

Democracy provides businesses with two essential ingredients for success: clear rules and freedom.

Democracy establishes clear rules through legal frameworks, transparent regulatory processes, and consistent enforcement mechanisms. It helps ensure stable property rights, reliable contract enforcement, and anti-corruption safeguards that enable long-term investment and planning. These systems provide the kind of predictability that markets need in order to function efficiently. This does not mean that rules are always followed or enforced, but they are generally known and shape behavior in predictable ways.

Democracy also protects freedom.