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The stories that matter about money and politics in the race for the White House
The writer is an associate fellow at Chatham House and former senior vice president of Calvert Investments.
The Business Roundtable, the top panel of U.S. corporate CEOs, recently released the statement: Voting is the basis of our democracy. He rightly urges Americans to “respect the processes established in federal and state law for election determinations and an orderly transition.” The risk of Donald Trump refusing to accept the election results, threats of violence in the center and Republican preemptive legal challenges are all alarming.
Statements from business organizations can be powerful. Before and after In the 2020 US election, calls for the peaceful transfer of power were prescient given the Capitol riots on January 6, 2021. But this new statement is anemic. American constitutional democracy and leadership in the international community are the foundation of American business and the global economy. Those foundations now face a serious threat.
Business minds should focus not only on the conduct of the elections but also on their outcome. A second Trump term could have catastrophic implications for American businesses across intertwined political, economic, and geopolitical realms.
Some former CEOs have been forthright about these risks. In July, former Merck CEO Kenneth Frazier warned about Trump’s strategy. threat to the rule of law, the American economy and democracy. In August, former American Express CEO Ken Chenault endorsed Democratic candidate Kamala Harris, emphasizing that “Business requires stability”. This contrasts with the chaotic unpredictability of another Trump term. Eighteen other former CEOs have also Harris endorsed.
However, most other business leaders are afraid to speak out amid concerns about political retaliation or the demonization of individual companies.
Current CEOs of major public companies are understandably hesitant to endorse a presidential candidate. But that doesn’t mean they can’t talk about the risks of a second Trump presidency.
They are ominous: from threats to impose 60 percent tariffs on Chinese imports to the potential negative impact on European security when Trump claims he can resolve the war between Russia and Ukraine in “24 hours.” His recent references to political opponents as the “enemy within” and January 6 as a “day of love” should also persuade corporate America that the outcome of this election is far more important than party, ideology or politics.
The BRT, along with the National Association of Manufacturers and the U.S. Chamber of Commerce, should directly address what is at stake for the U.S. and global economy in this election before Tuesday. These include the sanctity of the rule of law, the vitality of American constitutional democracy, the consistency of American leadership in the international community, and the credibility of commitments to NATO and Asia-Pacific allies.
Upholding these pillars of stability and prosperity is the corporate responsibility test of the century for American companies. The risks of inaction outweigh the risks of action.
In Europe, lessons have been drawn from the complacency and complicity of German companies in the 1930s. Top German business leaders have taken up their responsibility to address the risks posed to democracy and the economy by the far-right AfD. In January, the CEO of the German bank He warned that the rise of Alternative for Germany endangers “the democratic values and structures” essential for investment.
In September, the CEO of the chemical company Evonik underlined the threat in Germany “to liberalism, tolerance, democracy, the rule of law and freedom of opinion” that “endangers everything from human rights to foreign investment.”
His example deserves reflection and action from American business leaders for whom discretion – not conviction – has seemed the better part of courage. The country’s fateful elections are almost here: it is your responsibility to overcome fear and tell the truth.