**Business is essential to upholding and renewing our democracy**

American democracy is at risk. Businesses’ political influence and trust make it essential to uphold democracy.

U.S. Businesses Play a Critical Role in Our Democracy

Businesses can play a strong role in protecting, advancing, and participating in our democracy. It’s not only the right thing to do. It’s critical.

This 2024 U.S. political risk presentation consolidates findings from objective academic and business sources, detailing the critical threats to U.S. democratic institutions and their impact on business.

With 68% of U.S. business executives apprehensive about political backlash and many Americans questioning the integrity of the 2024 election, the presentation emphasizes the necessity for business leaders to proactively mitigate these risks, offering actionable strategies to support the stabilization of U.S. democracy.

Download Our 2024 U.S. political risk presentation

Political Stability is Good for Business

Connection between successful capitalism & Stable Government

There is a strong connection between thriving business landscape and stable government.

A successful, stable business environment depends on respect for civic freedoms and the rule of law. The erosion of accountable governance can cause risks to the quality and continuity of your business operations and investment opportunities. Your company may suffer in a variety of ways, including the security of your offices and buildings; your social license to operate with local communities; and your reputation with international society, responsible investors and other stakeholders.

Democracies Enable Strong Business Environments

90% of the largest market cap companies founded in democracies

At Leadership Now, we performed analysis of the 2020 EIU Democracy Index and World Bank’s Doing Business Survey, looking at the top five countries (New Zealand, Singapore, Hong Kong, Denmark, South Korea) bottom five countries (Libya, Yemen, Venezuela, Eretria, Somalia). It’s clear business in democracies outperform authoritarian regimes. In fact, 45 out of 50 of the largest market cap companies were founded in democracies.

**Performance on World Bank’s Doing Business Survey (2020)**

America’s Democracy is at Risk

The U.S. is experiencing democratic backsliding and government dysfunction, posing significant risks to the business environment, and affecting trade, investment, operations, and reputation.

Former U.S. Secretary of Defense, Robert M. Gates, underscores the gravity of the situation: "... at the very moment that [global] events demand a strong and coherent response from the United States, the country cannot provide one...."

Adding to the concern, Fitch Ratings has downgraded the U.S. credit rating, from AAA to AA+, while Moody's has downgraded its outlook due to "continued political polarization." These developments indicate an increasingly precarious environment for businesses, underscoring the interconnection between political stability and economic health.

Democracy in the United States

How Did We Get Here?

At the Leadership Now Project, we are using the lessons from the 2020 election to understand and minimize future media, political and legal challenges to democracy. To help in the future, we must first understand the past.

Looking back, businesses used their influence to help ensure faith in our elections and a peaceful transfer of power.