The Business and Democracy Commission Interim Report Launch Webinar
The Business and Democracy Commission is an ambitious initiative led by Jericho, Ipsos and the Chartered Institute of Public Relations to help recast the relationship between business and democracy.
With the Commissions Interim Report set to launch this September, Jericho's Matthew Gwyther, was joined for a panel discussion led by the Commission's Chair, Sir Ian Cheshire and Commissioner Robin Hodess, Strategy Lead for the B Team. They discussed several questions addressed in the report including: What is the correct place for a business in a healthy democratic society? What say should business have in important political decisions? And What are the expectations of business leaders?
Thank you for joining us (if you did), and sorry you missed it (if you didn’t!). It was a great conversation. Below we’ve captured some of the best bits from the webinar and you can listen to the podcast here:
What is the correct place for a business in a healthy democratic society?
“I think there was a period of ‘eff’ business. There is so much complexity and grey areas in politics – they are elected and have a mandate and anyone who gets involved from the business world should try to respect that. We need bridges between business and government”.
- Sir Ian Cheshire
“I think there are many assumptions about how European businesses, governments and societies work. In the last 80 years, assumptions about the strong role of business in government policy making has created an exchange of views and a showing up for each other and more consensus building”.
- Robin Hodess
“Business needs liberal democracy and so much of this is about negotiating where the two come together. Politicians are tempted to turn to business to solve everything. We are at an inflection point where every business must think very hard about the political issues they do or do not get involved with. We’re in a stakeholder world where we have to be present – this is an exciting but difficult period”.
- Sir Ian Cheshire
What say should Business have in important political decisions?
“We need to reflect on the fact that business has been very influential in the shape of democracy and some would say has exercised undue influence. So much of what we need to talk about is the influence of money in politics – it’s considered free speech in the US and this needs to be brought into the discussion. How do we make sure that the dots are connected so that social and political outcomes address urgent needs in the public sector across societies? Business needs to be a part of that but with other actors”.
- Robin Hodess
“The interplay between business and the state is illustrated in China and Russia right now – total control. There is danger in the other way, US lobbying model and Oil and Gas specifically, there are perils here too”.
- Sir Ian Cheshire
What are the expectations of business leaders? And what about leaders in the tech sector?
“I think that companies are expected to be involved in debates about living wage, the mental health crisis etc. there is a calling now for leaders to not just go out there on shiny issues. There is an expectation on business leaders to have a voice and use their power – they’ve been trusted by boards and companies and come through the ranks – they are building societal institutions and the pressure is on”.
- Robin Hodess
“Leadership matters so much right now as business is being looked to for all kinds of solutions. On climate change we need tremendous investment from the private sector. Companies should stand up for responsible political engagement – saying how the board is involved, what money is donated to politics this is where companies can get ahead here and show good practice. There isn’t a dissonance between being a strong climate activist for example, and turning a profit and leadership should reflect this”.
- Robin Hodess
“There is a challenge for the regulatory environment as the tech world is reinventing the rules – AI will be the next phase of challenge for leadership to navigate. It’s interesting that some companies, Apple for example, are making adjustments in data policy in advance of regulation”.
- Sir Ian Cheshire
“With some tech businesses being bigger than some economies, there is a responsibility that comes with that power. Looking at how disinformation has impacted campaigns around the world. It’s incumbent upon those leaders to think about engagement with governments, the guard rails have clearly not been in place”.
- Robin Hodess
What are the dangers/ benefits of a business going beyond obeying laws and regulations and engaging in active political topics?
“In terms of benefits, business should be looking at where the next generation will have jobs, how AI will feature in the world, common denominators for the future of work – we must move beyond culture wars and focus on the trends for the future of business and the future of employment”.
- Robin Hodess
“The thing that has changed in my lifetime is transparency and the way that social media permits interactions that simply weren’t possible before. It’s not about lifting your head above the parapet, the parapet has been taken away”.
- Sir Ian Cheshire
What should the responsible elites – to quote Martin Wolf – "do to fulfil their broader duty of care? Can they change the economic outcome for citizens that has failed to drive productivity and real wage growth?
“As a society we need to look at circular models, environmental limits etc. We didn’t plan for the increase in inequality – the 1% being on rocket boosters since the pandemic and how this is shaping how we have public finance around the world and what this means for people and their opportunities. Gen-Z are approaching the world of work with an entirely different approach now”.
- Robin Hodess
“The is a fundamental point here for business: do you understand your role in doing what you do in a sustainable way for the planet and its people? Business must not to wait to be regulated but be proactive, forward thinking and have the courage act on important issues”.
- Sir Ian Cheshire
Is there an anxiety about the competence of business to resolve important issues? And what about Trade Unions?
“In the UK as an example, large, nationalized industries can be massively inefficient but without the correct regulatory framework and being able to adjust it as you keep learning its no surprising”.
- Sir Ian Cheshire
“There is a stronger role for trade unions and a need for workers voices within organisations. Inequality is one of the main drivers of the demise of democracy and we need to look at the broader stakeholders including activists, people who are effected in areas of operation as well as workers”.
- Robin Hodess
“The long-term trend in the UK is a decline in trade union involvement. It is much more about leadership understanding relationships with colleagues – smart leadership encourages representation and uses the motivations of the workforce to drive change and do the right thing”.
- Sir Ian Cheshire
What, if anything, did the Farage/NatWest episode teach us? Is there a more joined up thinking in Europe?
“There are complications with banking regulations about politically exposed people – but this is an example if a lack of authenticity around what they’re doing. It was an interesting example of a super transparent world where things become PR storms quickly. Organisations will get things wrong and the key is the quality and speed of your response”.
- Sir Ian Cheshire
About the Business and Democracy Commission Interim Report:
The Business and Democracy Commission Interim report, supported by Jericho, Ipsos, and CIPR, explores the key challenges in the evolving relationship between business and democracy.
It outlines why business and democracy rely on each other, identifies how we got into the confused state we seem to be in and sets out some of the key challenges and opportunities for business along with the potential risks of doing nothing.