When the Pentagon labeled AI company Anthropic a "supply chain risk" — simply for refusing to build mass surveillance or autonomous weapons tools — it signaled something alarming about the state of American business: crony capitalism is spreading.
Writing in Fast Company, Daniella Ballou-Aares (CEO of Leadership Now Project) and Marc Metzner (Leadership Now Project Member) argue that the Trump administration is systematically rewarding political loyalty and punishing independence — through chaotic tariffs, sweetheart regulatory deals, compelled business "contributions," and public attacks on companies that push back. They warn this mirrors the crony capitalism that has crippled economies in Hungary, Turkey, and Russia.
So what should business leaders do? The authors say stop waiting it out alone — and start using industry associations. Their prescription: associations should issue clear public statements opposing anti-competitive government behavior, rally member companies to speak up collectively, and affirm election legitimacy ahead of the midterms. As the authors put it, "fair rules and honest referees make industries function well for all stakeholders."
With 93% of executives believing companies should push back against damaging government actions — but most too afraid to do so publicly — the case for collective action has never been stronger.