The future of democracy is on the ballot in 2024. With a pivotal U.S. presidential contest in November and 2 billion people voting in various elections around the world this year, democratic institutions will be tested like never before. So why are so many business leaders hoping they can sit this one out?
After years of CEO activism, where business leaders weighed in on all sorts of social and political issues, many executives are increasingly wary of attracting boycotts and backlash. Attacks on so-called woke capitalism; costly controversies involving companies such as Anheuser-Busch, Target, and Disney; and the defenestration of college presidents over antisemitism have convinced CEOs to avoid wading into anything that could be seen as remotely political.
They’re already talking less about diversity, sustainability, and environmentally and socially responsible investing (ESG). Against this backdrop, the 2024 election is the last thing risk-averse executives want to get involved in.
But sitting this one out is not an option.
Corporate leaders should expect—and prepare for—crises to erupt before and after the election this fall that will prompt hard questions from employees and customers about their values and commitment to democracy. It doesn’t take a crystal ball to see what’s coming. In 2017, when Donald Trump said there were “very fine people on both sides” of the neo-Nazi march in Charlottesville, Virginia, prominent CEOs like Merck’s Kenneth Frazier and Intel’s Brian Krzanich resigned from a White House council on manufacturing.
After insurrectionists stormed the U.S. Capitol on January 6, 2021, many Fortune 500 companies pledged to halt donations to any politician who refused to certify the 2020 election results. And when Georgia imposed new restrictions on voting rights in 2021, top executives at companies like Delta Air Lines and Coca-Cola condemned the law. Major League Baseball even moved the All-Star Game.
For CEOs and their communications teams, not being prepared is business malpractice. Successful business strategies require scenario planning, an exercise to develop and analyze a list of likely events and then positioning your organization to prepare and respond accordingly.
But this is not what’s happening in most C-suites when it comes to the 2024 election. Many companies have no plan or criteria in place to determine when or how they should respond to issues, according to new research from the the Darla Moore School of Business at the University of South Carolina. This lack of preparation will lead to unforced errors, the kinds that can damage company reputations and even cost a CEO their job.
This is not to say that business leaders should get partisan. Nobody wants their boss to tell them how to vote. But CEOs can undertake thoughtful actions to protect democracy, which should not be a partisan issue. According to a recent survey from Weber Shandwick, the vast majority of American consumers and workers say businesses should “encourage a free and fair election,” including voting rights and a peaceful transfer of power.
While the risks of getting caught up in the latest culture war are real, when it comes to core values that matter to employees, customers, and other stakeholders, staying on the sidelines carries its own risks. Delta Air Lines found this out in 2021 during the controversy over new legislation in Georgia restricting voting rights that critics said unfairly targeted people of color. When Delta, a major employer in the state with a diverse workforce, stayed silent about the bill, the company was bombarded by protests and complaints from activists, prominent Black business leaders, and their own employees.
CEO Ed Bastian finally came out against the new restrictions. He later explained that while companies want to stay out of the headlines and avoid politics, “there are times when the values of what you stand for, particularly for your own employees, matter. And you need to be their voice.”
A strong and vibrant democracy is ultimately good for business. Chaos and disruption are not. That means that protecting voting rights, civil rights, and the peaceful transfer of power is both the right thing to do and smart strategy.
So how should companies prepare for the difficult months ahead?
First, CEOs and their teams need to run an internal process to clarify their values and their red lines. Companies do not need to weigh in on every issue—and they certainly don’t need to endorse or criticize specific candidates or parties—but they should decide now when and how they will use their voice when it comes to core questions about democracy.
Make a plan for how to move quickly during a crisis and how external communications, internal communications, HR, and political affairs will need to work together to achieve the company’s goals. Leaders should develop and disseminate clear guidance for when to involve their board of directors and when to rely on trade associations or business coalitions.
Second, take proactive steps today to support democracy in nonpartisan ways to put down markers and build up credibility. Being reactive only gets you so far. In recent years, many large companies have joined an effort called Time to Vote, committing to give their employees the flexibility they need to make it to the polls. Others have supported voter registration drives or encouraged employees to volunteer as poll workers. In 2021, hundreds of companies signed statements opposing “any discriminatory legislation” that would make it more difficult for Americans to vote.
The 2024 election will present new challenges to CEOs and their communications strategies. CEOs who are prepared to speak clearly and confidently will differentiate themselves and their companies. By contrast, executives who don’t have a plan are more likely to be caught flat-footed and stumble. If more CEOs speak out in unequivocal support for free and fair elections, it will send a powerful nonpartisan message that corporate America understands the importance of democracy. If they don’t, it will send the opposite message and invite more chaos and crises.
Either way, this is a challenge no one can avoid.
