Strengthening democracy: What role can companies play?

There is a growing perception that democracy is useless unless it delivers social justice. This view has led to democratic discontent and greater acceptance of authoritarianism globally. Fiona Zerbst explores how companies can promote greater faith in the democratic process and ensure it serves all citizens. 

In 2024, 60 countries held national elections, making this the biggest election year in over a century – but although this appears to be a victory for democracy, it is not quite the case, according to Sweden’s Varieties of Democracy (V-Dem) Institute. This longstanding project on democracy reveals the world is now almost evenly divided between 91 democracies and 88 autocracies, with the level of democracy enjoyed by the average person in the world down to 1985 levels. 

According to V-Dem’s comprehensive report Democracy winning and losing at the ballot, 71% of the world’s population now lives in autocracies – an increase from 48% just 10 years ago. Only 29% of the global population – 2.3 billion people – live in liberal and electoral democracies.  

These are alarming statistics since well-run democracies tend to deliver stronger economies and more opportunities for their citizens. Democracy generally boosts growth through economic reforms, foreign direct investment and enabling more stable sociopolitical environments. The Brookings Institute notes that “democracies thrive because they are better at ensuring the provision of public goods, including education, public health and infrastructure; manage markets more effectively; and channel contestation into political compromise rather than political violence”. 

The global erosion of democracy is worrying, but it is worth noting that electoral democracies still outnumber electoral autocracies. Over the past two years, there has been a slight decline in countries trending towards autocracy. This may mean the wave of autocracy has crested – but it remains to be seen whether the trend will continue. 

The state of democracy in Africa

In Africa, democracy is at risk. Since 2020, there have been nine successful coups on the continent – two occurring in Gabon and Niger during 2023. There have also been military takeovers in five countries since 2020: Burkina Faso, Guinea, Mali, Sudan, and Chad.

Regional organisations have been trying to enforce democratic processes. For example, the Economic Community of West African States (2001) Protocol on Democracy and Good Governance provides that any constitutional or election-law reforms carried out within six months of an election require consensus by all parties. However, politicians frequently bypass this provision, according to the pan-African research network Afrobarometer. Additionally, the African Charter on Democracy, Elections and Governance (ACDEG) provides for sanctions against governments that come to power through unconstitutional means. However, enforcement has been inconsistent and influenced by political considerations.

African leaders may not have much time for democracy, but citizens do. Afrobarometer’s research, conducted in 39 African countries, shows that 75% of Africans favour fair, open, and honest elections to choose their leaders. More than six in 10 citizens support elections in all surveyed countries except Lesotho, where a majority (54%) favour other methods for choosing leaders. However, support for the electoral process has weakened over the past decade, and fewer than half of survey respondents said voting ensures representative, accountable governance.

In South Africa – which held free and fair elections in May 2024 – only 36% of the population believe democracy has been successful, and only 33% believe their vote will count. This is according to Professor Narnia Bohler-Muller, Divisional Executive of the Developmental, Capable, and Ethical State research programme at the Human Sciences Research Council (HSRC), who shared insights into democracy in South Africa at the 2024 Trialogue Business in Society Conference (read Bohler-Muller’s article on how businesses can help to build a capable state on page 74).

Worryingly, 30 years after the transition to democracy, almost half of South Africans (47%) said they felt unqualified to participate in politics, according to the South African Reconciliation Barometer 2023, while 51% said they lacked a good understanding of the issues affecting the country.

This was one of the factors that led to a low voter turnout: only 16.2 million of 27.7 million registered voters made their mark at the polls in June – a 58% turnout, the lowest for a general election in our democratic history.

Of course, it can be difficult to strengthen democratic processes where citizens do not see direct benefits or cannot imagine their vote will improve their living conditions. There is a growing perception that democracy is not useful unless it delivers social justice – a view that has led to democratic discontent and a greater exploitation of authoritarianism globally.

Should companies get involved with political issues?  

How can companies promote greater faith in the democratic process and ensure it serves all citizens?  

Getting involved in political matters can be a challenge for businesses, which often perform better in liberal democracies but are reluctant to get directly involved in politics. Most want to avoid divisiveness or accusations of cronyism – and they generally do not factor political action into their sustainability strategy, says the Network for Business Sustainability (NBS), a Canada-based NPO set up to advance sustainable development globally. 

However, the NBS points out that companies are obligated to engage in politics responsibly. This means considering their own broader interests and their obligation to society, including: 

• Ensuring they have a legitimate basis for any engagement 
• Making sure their political activities align with their commitments to employees, customers, investors and other stakeholders 
• Ensuring their activities are transparent 
• Using their political influence to protect and support the systems we depend on, namely our economic system, civic institutions and the natural environment.  

Examples of companies following best practices include:  

• Outdoor clothing company Patagonia encourages voter participation and runs campaigns to encourage civic engagement. Since 2016 it has closed its stores on election day to give employees paid time off to vote 
• Levi Strauss & Co. promotes voter registration and turnout among its customers and employees and has advocated for voting rights legislation 
• Microsoft has enshrined its election protection commitments in principles to help safeguard voters, candidates, campaigns and election authorities globally. Microsoft is also in the process of setting up an Election Communications Hub to support democratic governments around the world to build secure, resilient election processes. 
• The NBS crafted the Erb Principles for Corporate Political Responsibility in 2023 – a template that companies can use to decide whether and how to engage in political influence. 

Damien du Preez, Research Coordinator at the Centre for Research on Democracy at Stellenbosch University and Co-chair of the Citizens’ Assembly Working Group, a collaborative project that explores the potential of citizens’ assemblies for South African and African democracy, says companies tend to be cautious as they do not want to be accused of political interference. 

“However, because government has been an unreliable partner in the past, business feels it has a responsibility to hold government to account in a way that regular institutions have failed to do,” he points out. 

CECP, a coalition of chief executive officers (CEOs) and executives from more than 200 large corporations that advises companies on their corporate purposes, recommends several measures to support democracy. These include offering civic engagement programmes; providing support for employees who want to get more involved in election processes; and sharing accurate, unbiased information to combat misinformation. 

Finally, strengthening civil society organisations is important, which involves helping them to become resilient, improve their management and governance practices, and trust them to use funds as efficiently and effectively as possible.  

Ultimately, democracy is not just about voting but about engaging in civic action every day to ensure our rights and freedoms remain intact. This means strengthening democratic systems and institutions, and becoming social justice advocates where appropriate (see Louise Jones’s Viewpoint on page 178).  

Steps companies can take to support democracy  

A recent survey by Morning Consult found that more than 80% of business leaders consider threats to democracy as threats to business, which underscores the business case for safeguarding democracy.  

There are several steps that corporates can take to support democratic initiatives.  

While companies may shy away from overtly supporting specific political parties as they feel it may alienate stakeholders, they do have the option to fund one or more parties directly. Whether they choose to provide proportional or outright support, they must be clear on their rationale and transparent about their support. 

One of the ‘grey areas’ for companies is political funding and Du Preez believes reform is needed as “it’s easy for powerful interests to use their significant resources to advance a political agenda or pervert the democratic process”. NPO My Vote Counts won in the Western Cape High Court when it challenged the Electoral Matters Amendment Act 14 of 2024 and asked the court to reinstate funding thresholds for political parties and independent candidates. This removes some secrecy from party funding, though My Vote Counts believes the annual donation cap should be reduced and all donations should be disclosed.  

If companies do not want to be directly involved with party politics, they can educate their staff about the democratic process, voting rights and practicalities, like how to register to vote.  

Many companies also have a large consumer constituency and they could play a meaningful role by raising constitutional awareness and promoting education beyond their staff members. This kind of education can continue in non-election years to ensure more robust civic engagement and an ongoing commitment to democratic accountability. Those companies investing in youth programmes can consider incorporating elements of participatory democracy into them.  

Another way to support democracy is to invest in a free and fair media. Not many South African companies do this, with much financial support provided by international funders. However, the media is a vital part of an informed society and it holds those in power to account. This includes both mainstream media and organisations such as the AmaBhungane Centre for Investigative Journalism and GroundUp. “Helping to keep the media alive and free reflects well on business without accusations of getting directly involved in politics, thus opening itself up to criticism,” says Du Preez. 

In recent years misinformation has proliferated online and this often intensifies during election years. It is important to be able to debunk falsehoods and provide a balanced counterpoint to some of the wild promises politicians make. Having a democracy in which people vote on misinformation defeats the purpose of voting.  

The vast majority of South African companies do not support elections in these ways – with 83% of company respondents in Trialogue’s 2024 research stating they do not support anything election-related. Fewer than 10% support awareness and education for employees, communities or the public. 

Another strategy is to consider funding and supporting NPOs that advance democracy, constitutional rights, civic freedom and social justice, such as Defend our Democracy, the Democracy Works Foundation, the Social Justice Coalition and others. Supporting organisations that work towards strengthening our democratic institutions is a better course of action than using their own voices to strengthen or weaken arguments, says Du Preez. “Instead of wading directly into political debates, they should ensure the democratic system functions correctly.” However, few companies currently support such organisations, with only 20% of companies surveyed by Trialogue in 2024 supporting social justice and advocacy (see social justice and advocacy section on page 176). 

How companies can make their voices heard  

The 2024 Edelman Trust Barometer South Africa (Barometer) has once again indicated that global citizens place more trust in businesses (63%) than in governments (51%), underscoring the huge responsibility companies have for providing ethical leadership.  

Last year’s Barometer indicated that business was the most trusted institution in society (62%), followed closely by NPOs (61%). The media had a 41% approval rating and the government a not unexpected 22% rating. This year the focus was on innovation, but South African businesses emerged as the most trusted when it comes to integrating innovation into society (65%), followed by NPOs (58%) – the government received a poor score of 36%. 

Companies are clearly trusted institutions and, as such, there are expectations that they will make their voices heard on pressing issues affecting their employees and customers. The issues South African company leaders most often speak about publicly are climate change, education, inequality and gender-based violence, although fewer than half of companies do so even on these issues.  

In the US a survey conducted by the Business & Democracy Initiative in 2022 found that 77% of business leaders believe it is important to speak out against threats against democracy and over half encourage their staff to champion democracy and work in elections. 

As corporate citizens entrenched within societies, companies are entitled to have opinions, shape norms and values, and speak up in the face of injustice. Microsoft established an Immigrant Rights Clinic that provides legal assistance to immigrant employees in the US, Apple has taken part in immigration reform advocacy in the US and Barclays in Britain has partnered with refugee organisations to provide support and resources to refugees. 

By making such efforts companies can not only increase public trust but can strengthen the foundations of democracy itself. Increasingly, this seems less a choice than a crucial imperative for a fair and just society.  

Companies can also find their voice by joining collective business initiatives, such as Business Unity South Africa (BUSA), Business Leadership South Africa or the National Business Institute, to comment on proposed policy and government action, collaborate on solving pressing problems as well as informing and empowering employees (read our article ‘How business associations foster collaboration’ on page 106).  

How NPOs can help to strengthen democracy  

NPOs play a crucial role in promoting civic participation, fostering civic education and holding power to account. They are therefore ideally placed to help strengthen democracy. In South Africa, there are a number of NPOs working to increase civil engagement.  

Futurelect is an organisation that has set out to incubate the next generation of leaders in Africa and its aims include reviving young people’s trust in politics and democracy. It works with corporate and supranational partners that include Anglo American, Investec, UNICEF and the World Economic Forum to roll out civil education and other programmes. It improves young people’s media literacy and educates them about electoral processes.  

The Democracy Works Foundation’s Cool Politics Cafés are monthly events held in Johannesburg that foster intergenerational dialogues to deepen democratic culture. The foundation has also partnered with the Kgalema Motlanthe Foundation, hosting leadership forums to stimulate dialogue, develop action plans and reach consensus about mapping democratic pathways for the future.  

Du Preez says an important role played by NPOs is to fight legal battles on behalf of community interests. If institutions – including companies – are violating community members’ rights, NPOs can seek funding and resources to challenge these institutions. “Our constitutional and lower courts still perform as they should, and this is one of the few recourses to keep government and other institutions in check,” he points out.  

Good examples include: 

• GroundUp has been instrumental in supporting legal challenges related to forced evictions, land expropriation and environmental degradation in marginalised communities 
• The African Centre for Environmental Justice and the Centre for Environmental Rights have successfully challenged mining projects posing environmental risks to communities, illegal mining activities and water pollution, and advocated for stricter environmental regulations. 

NPOs can function as legal foot soldiers who make sure the government meets its obligations. “For example, if the government is falling short when it comes to the public participation process that is mandatory before Bills are passed, NPOs can take the errant members of Parliament to court,” says Du Preez. 

NPOs are very good at mobilising citizens to take part in protest campaigns. The Rivonia Circle has played a key role in urging South Africa’s new administration to listen to communities and “do things differently”. Activist Tessa Dooms, a director at the Rivonia Circle, joined calls for the resignation of former Johannesburg mayor Kabelo Gwamanda under the banner of the Johannesburg Crisis Alliance, which is building a civic movement to arrest the decline of the city.  

However, Du Preez says not all NPOs are good at meeting people where they are and should be cautious about organising their own events and taking people along with them. He says NPOs “should amplify people’s voices and use their network to translate existing demands into policy-relevant recommendations”. 

The way forward  

Companies and NPOs possess unique networks, platforms and resources that can significantly contribute to strengthening democracy. There are multiple ways to support democracy, including advocating for democratic policies, investing in civic engagement, promoting transparency and accountability, supporting independent media, fostering dialogue and inclusion, and educating and empowering communities. By actively participating in the democratic process and supporting initiatives that foster a more just and inclusive society, the private and civil sectors can play a vital role in shaping a future in which everyone has a stake. 

Image: A featured artwork of Colours of Africa, a Design Indaba and Google Arts & Culture project.