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Business case

What's in for companies

Which instrumental advantages for doing business are associated with CPR? In other words: What is the business case for democracy? While democracy does not necessarily converge with capitalism either historically or systematically, good arguments can be made as to why a democratic order is beneficial to economic activity. The rule of law stabilizes expectations and thus creates planning security. Openness and tolerance promote competition for the best ideas and talents. Participation strengthens identification and ownership. Acceptance of failure allows for face-saving course corrections and learning. The central common feature of democracy and capitalism is their structural openness. Both establish processes that allow for forms of experimentation without anticipating the answers. Which political programs or economic business models prevail is not decided by a central control authority, but by the market – the market of opinions or goods. 

In addition to the systemic advantages of democracy for business, there are positioning opportunities for companies which also speak in favor of CPR activities. Developing and living a political stance creates recognizability and differentiation vis-à-vis the competition - and thus serves to sharpen a company's profile both internally and externally. It also creates new opportunities for connecting with stakeholders such as employees, customers, business partners, political decision-makers, NGOs and other socio-political multipliers. Ultimately, this fosters a company's reputation and prevents crises. After all, if one has gained trust and established reliable communication channels, one can achieve a turn-around more quickly in case of an emergency.

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