Are Businesses Responsible for Peace and Democracy?

Businesses have a significant impact on both peace and democracy. Advancing peace requires the development of civil societies based on equity, equality, and the protection of human rights, as well as efforts to prevent recurring violence and limit economic losses caused by conflict. Democracy ensures political freedom and equal rights for all citizens. Businesses contribute to future peacebuilding and social stability through reconstruction initiatives, the promotion of economic opportunities, and support for state-building governance programs. However, business leaders often face financial, ethical, and technological challenges, which demand thoughtful decision-making in complex situations. Integrating principles of peace and democracy into corporate responsibility frameworks demonstrates an ongoing commitment to human rights advancement. This approach introduces a moral dimension to business practices and enhances their capacity to affect public policy relating to peace, democracy, and human rights.

For a long time, large, resourceful, and productive firms—often multinational corporations (MNCs)— have benefitted from the increasingly criticised global economic order, frequently profiting from trade agreements that aim to increase their economic power. However, recent discussions surrounding business responsibilities have prompted increased scrutiny of global business governance and promoted a regionalization in economic activity that underscores the sustained influence of geographic, cultural, and political proximity. For instance, nations have increased the ratification of trade agreements, tax treaties, and currency unions (see the North American Free Trade Agreement) and MNCs have established regional headquarters (such as Nestlé’s offices in Central and Eastern Europe). Businesses are now re-orienting the geography of their operations along regional lines, rather than global ones. A notable example came in April 2025, when the CEO of Coca-Cola emphasized the importance of brand localness during periods of geopolitical tension.  While MNC obligations for implementing human rights standards appear consolidated from both a governmental and managerial perspective (see the UN Guiding Principles on Business and Human Rights; see also the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct), political and legal strategies for holding businesses accountable for their violations in peace and democracy objectives remain vague and an underexplored field. The growing participation of businesses in contemporary society presents potential risks to peace and democratic principles, especially in regions experiencing conflict or undergoing post-conflict transitions. Such risks may include financing civil unrest, obstructing peace negotiations, impeding good governance initiatives, or interfering with special courts and tribunals dedicated to reconciliation efforts within communities. Additionally, business practices can negatively affect democracy by fostering mechanisms that promote corruption and human rights violations at the governmental level. In the workplace, policies that exacerbate divisions along ethnic, religious, or racial lines may also infringe upon democratic values.

Business and Human Rights (BHR) research has emerged to examine the responsibilities of business, which include (a) the respect of human rights along corporate value chains, (b) the avoidance of causing or contributing to human rights violations through business activities and conduct, and (c) the provision of remedy to those whose rights have been violated by business.

My upcoming book Peace, Business, and Democracy: Corporate Responsibility in Peace and Governance delves into the ethical and practical foundations of business responsibilities, and assesses new ways of thinking about corporate social responsibility and BHR. As I look back to when I started this book, peace and democracy have become more relevant than ever. Contemporary societies are increasingly affected by political, social and economic polarization with consequent effects on the erosion of fundamental human rights. The wind of unity and global solutions that accompanied the fall of the Berlin Wall today feels out of date, and geopolitical tensions seem to be dividing the world. The emergence of nationalism in Western democracies reveals how fragile human rights are and reflects many of the conflicts and paradoxes of contemporary thought. This struggle can be traced back to the nature of human rights that requires commitment to be renewed every day.

Forms of Business Practices for Promoting Peace and Democracy

Businesses—both MNCs and small enterprises—can promote peace and democracy by adopting internal practices for their stakeholders and external practices for those outside the organisation.

Internal practices refer to practices that enable and promote peace and democratic values within the boundaries of the business itself. The key target of these practices includes primary stakeholders, such as employees, customers, community residents, business partners, and suppliers, who are crucial to the survival of the firm. Supply-chain actors can use their market power to improve labour conditions among their business partners and suppliers. For instance, MNCs can draw upon substantial economic resources, management expertise, and technical knowledge to assist their business partners in creating a respectful work environment. Businesses can encourage democratic values by enshrining them in contractual requirements and taking action to monitor and enforce compliance with these requirements. They can threaten to withdraw if suppliers and/or business partners fail to meet their demands. This type of engagement from businesses, civil society, and institutions is likely to consolidate the pillars of democratic governance by enhancing socio-political cohesion, decreasing corruption, and reshaping the role of nonstate actors.

Conversely, external practices are targeted at stakeholders outside the boundaries of the business, in the first instance local communities and society more generally. These practices aim to address societal needs and enhance collective responsibility. They also involve learning how to mobilize resources (e.g., votes, funds, expertise) and put in place forms of political education and knowledge in specific communities and society at large. The joint statement by more than 100 businesses, including Danone, Ericsson, IKEA, and Hapag-Lloyd, urging the European Union to adopt a legal proposal on mandatory human rights and environmental due diligence, as well as the letter signed by more than 250 businesses in the United States calling on Congress to pass a law expanding the Voting Rights Act’s protections for minority voters, reveals the proliferation of external business practices aimed at promoting peace and democracy. These external practices have the potential to enhance state–business interactions by improving the quality of democratic institutions, including the social security system, tax reform, and the judicial framework.

Peace, Business, and Democracy: Reflecting on the Outcomes

Internal and external business practices enhancing peace and democracy have a great impact on civic engagement and political democracy, as well as affecting how employees view their work. Employees, business partners, and suppliers who are exposed to a democratic way of working will start implementing and demanding it in other life contexts. This social domino effect is particularly crucial for consolidating new democracies; and in contexts where democracy is at risk. There is, therefore, an interdependence between internal and external practices. Businesses which promote transparency, fairness, and justice internally encourage their employees to uphold the same democratic values and human rights in other areas, as well as to expect other businesses to do the same externally. Consequently, these business practices can be appealing to governmental institutions, serving as a substitute for government action, complementing government initiatives, and legitimizing government policies.

The insights in my first book Peace, Business, and Democracy: Corporate Responsibility in Peace and Governance emphasise the importance of integrating peace and democracy into daily business operations. This is achieved by shifting the managerial perspective and recognising the power of business’ responsibility in contemporary society. With this work, I aim to open a discussion in the field of BHR on accepted business norms for promoting peace and democracy. The debate is particularly relevant for small businesses and MNCs operating in societies where legal and political institutions are weak.

The book is intended for researchers, practitioners, civil servants in multilateral organizations, and advanced students in the fields of corporate social responsibility, business and human rights studies, business ethics, and business for peace.