Democracy Is a Business Asset. CEOs Are Letting It Erode.

As the Trump administration attempts to upend the foundations of American democracy that have long underpinned U.S. prosperity, business leaders are standing passively on the sidelines. Many corporate leaders I have spoken to see these threats but are reluctant to speak out, fearing retribution. That caution is understandable, but shortsighted. America’s largest corporations are doing extraordinarily well, in no small part because of our country’s democratic structures. But with those foundations now under strain, these same companies have much to lose.

They also have the power to act: by making sure their employees can vote, by speaking up for democratic institutions, and by pressing business associations that speak for them to lead.

This is a collective action problem. No one wants to be out front and take the heat. Many of the largest companies have lucrative government contracts, and most face government regulation of one sort or another. Many have also benefited in the short term from tax cuts and deregulation, through the One Big Beautiful Bill Act and a range of executive actions. Some have won government contracts in exchange for their vocal support of the president’s agenda. As a result, most are taking a wait-and-see approach, hoping the storm will pass.

Read the full Forbes article.
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Michael Posner is the Jerome Kohlberg Professor of Ethics and Finance, Professor of Business and Society and Director of the NYU Stern Center for Business and Human Rights.