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Corporate Political Responsibility (CPR): Why politics is a business case  


Leading up to the European elections, we saw a remarkable increase in public statements by CEOs in favour of diversity, freedom, tolerance and democracy. According to a survey by the German Economic Institute, 47 percent of German companies have taken a stand against the AfD (far-right party), with internal opposition even higher at 55 percent. This engagement is encouraging. One example is the drugstore chain dm which credited employees for hours spent working as election volunteers. Another is the chemical manufacturer Evonik whose CEO Christian Kullmann publicly speaks out against right-wing extremism. Such measures can be an entry point for systematically developing a company’s political brand. Conceptually, this can be framed as Corporate Political Responsibility (CPR). 


Based on a strength-focused political mission statement companies can define measures to support the democratic system. This is also a business case. The rule of law, political education and open political processes enhance economic prosperity. Future leaders will increasingly have to think in (geo)political terms to organise supply chains – especially against the background of the current conflicts, wars and large-scale trends such as migration. Assuming political responsibility also caters to the interests of the younger generation, who demand more accountability from cooperations. CPR can thus be seen as a recruitment tool. 


So, what prevents companies from adopting CPR? There is still the widespread perception that politics is essentially party politics, which companies don’t wish to engage with. But that misses the point. CPR isn’t about engaging in partisan debates, which are rightly open to contestation in a democratic society. Rather, it focuses on supporting the fundamental principles of the democratic system – values that everyone should be able to stand behind. In this endeavour, we need the voices of corporate leaders who often enjoy considerable trust and can thus constructively participate in public debates (CEO activism). Ideally this top-down engagement is complemented by bottom-up activities from employees, who can organically spread the message to friends and family (employee activism). Further options to put CPR into practice include internal democracy and debating workshops. Helpful frameworks might be found in the UN’s SDGs, particularly goal 16 (peace, justice and strong institutions), and the ESG criteria, whose governance dimension could increasingly be interpreted to refer to the public arena. 


In any case, “political neutrality” is not an option as politicisation can also come from the outside. This reality compels companies to build political expertise, enabling them to respond effectively in a way that protects their interests and image. In short: companies that practice CPR invest in the social and political conditions of their economic success. Especially in the year of the 75th anniversary of the German Basic Law, they should be bold and protect the freedoms it has made possible for citizens and business alike. 

 

*The following article is loosely based on an interview Johannes Bohnen gave to Table Media on the 28th of May 2024 

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