What is the role of a corporation in a democracy? If you asked Milton Friedman, the answer would be none at all. He famously said in the 1970s that the only corporate social responsibility a company has is to turn a profit for its shareholders.
Some 40 years later, the answer to that question looks very different. Companies are increasingly stepping up to fill what they perceive to be a void left by polarized and paralyzed government. In the past year, we’ve seen Patagonia advocating to protect national parks from the Trump administration and Dick’s Sporting Goods banning the sale of assault weapons after the Parkland shooting. These organizations wield a lot of power, both financially and in swaying public opinion.
Forrest Briscoe, a professor of management in Penn State’s Smeal College of Business, has been studying the gradual closing of the gaps between business, government, and civil society and talks with us about what it means for employees, for companies, and for consumers.
The echo chambers we experience among our friends and our media may be bleeding over into the workplace — which has some serious implications for democracy. In a tight job market, a company’s political beliefs may even be a deciding factor when someone is considering multiple job offers.
The space between business, government, and civic life is closing faster than you think. We argue that it’s not necessarily a bad thing, but something that we should be aware of as workers, consumers, and democratic citizens.