On 5 November, the United States re-elected Donald Trump, widely regarded as the most anti-democratic president in American history, for a second term of office. This underscores a growing trend that has seen the world sliding towards less democratic governance: around 71% of the world’s population currently lives in autocracies, according to Sweden’s V-Dem Institute. This is an increase from 48% just 10 years ago.
The 2024 Democracy Index indicates that only 24 countries in the world are ‘full’ democracies (including Canada, Australia and the United Kingdom), with 50 ‘flawed democracies’ (including the United States and South Africa), and 34 as ‘hybrid regimes’.
These are alarming statistics because there is ample evidence to indicate that well-run democracies deliver stronger economies and more opportunities for their citizens. However, there’s a growing perception that democracies do not deliver as advertised.
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, who shared insights into democracy in South Africa at the 2024 Trialogue Business in Society Conference.
Such disaffection can lead to decreased voter turnout (South Africa’s turnout was 58%, the lowest for a general election in our democratic history), support for populist leaders or extremist movements who undermine democratic institutions once in power, the erosion of trust in institutions, and decreased civic engagement.
Addressing these issues means rebuilding trust in democratic institutions, increasing transparency, responding to the needs of citizens, and fostering a more inclusive, representative political process.
Should companies get involved with political issues?
Getting involved in political matters can be a challenge for businesses, which perform better in liberal democracies but are generally reluctant to get directly involved in politics. Most want to avoid divisiveness or accusations of cronyism – and they generally don't factor political action into their sustainability strategy, says the Network for Business Sustainability (NBS), a Canada-based nonprofit organisation set up to advance sustainable development globally.
Chief Executives for Corporate Purpose), a coalition of 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; drawing up civic engagement plans that allow employees to share their feelings via surveys, town halls, or intranet comments; sharing accurate, unbiased information to combat misinformation; and promoting democratic values by prioritising environmental, social and governance issues, diversity, equity and inclusion.
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.
South African companies tend to stay out of politics
Most South African companies (83%) do not support any election-related activities, according to primary research into corporate social investment (CSI) conducted by Trialogue and published in its Business in Society Handbook 2024. Less than 10% support awareness and education for employees, communities or the public.
This is a missed opportunity, however, as there are several steps corporates can take to support democratic initiatives.
Many companies shy away from overtly supporting specific political parties as they feel it may alienate stakeholders, but there are many other ways to get involved in the landscape. These actions include educating their staff about the democratic process, voting rights, and practicalities such as how to register to vote, for example. 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. 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, including community radio and newspapers. 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. 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.
Another strategy is to consider funding and supporting NPOs that advance democracy, constitutional rights, civic freedom and social justice. Very few companies currently support such organisations, with only 20% of companies surveyed by Trialogue in 2024 supporting social justice and advocacy. However, 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
How companies can make their voices heard
This year’s Edelman Trust Barometer Global Report_FINAL.pdf Edelman Trust 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.
As trusted institutions, companies are expected to make their voices heard on pressing issues affecting their employees and customers. The issues that company leaders in South Africa 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.
Companies can find their voice by joining collective business initiatives, such as Business Unity South Africa, 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.
Companies possess unique networks, platforms and resources that can significantly contribute to strengthening democracy., including advocating for democratic policies, investing in civic engagement, supporting independent media, and educating and empowering communities.
South Africa’s hopeful yet fragile democracy needs the support of actors who are willing to actively participate in the democratic process and support initiatives that foster a more just and inclusive society. 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 being brave social justice advocates. We would like to see the private and civil sectors playing a greater role in shaping a future in which everyone has a stake.
For more information on impactful collaboration in CSI, read the 2024 Trialogue Business in Society Handbook, which explores trends in responsible business and CSI, the role of business in sustaining democracy and models and examples of effective collaboration.
The Trialogue Business in Society Handbook 2024 can be downloaded for free at https://trialogue.co.za/businessinsocietyhandbook/
Trialogue and its partners will be discussing the latest developments impacting the CSI sector at the Business in Society Conference in May. You can register and find about more on the programme, masterclasses and speakers on the conference page: https://trialogue.co.za/trialogue-business-in-society-conference-2025/
