The State of Trust Among Business & Government

The much-anticipated 2023 Edelman Trust Barometer was recently released and, once again, the results show a tremendous opportunity for business leaders.

The Barometer

For the past 23 years, Edelman has used the survey to study people’s trust — “the ultimate currency” — of institutions, including business, governments, NGOs and media. The goal of the report is to help organizations understand and navigate trust among stakeholders. The online survey sampled more than 32,000 people across 28 countries.

The Findings

Business continues to be the only trusted institution, and that trust is significantly higher than trust in government.

• Global trust: business - 62%; government - 51%;

• US trust: business - 55%; government - 42%

• US trust in business is six points higher than in 2022.

Business is seen as both more competent and more ethical than government.

• Competence: 54 points higher

• Ethical: 30 points higher

Polarization has increased at home and abroad.

• 53% of respondents globally and 67% of Americans say their country is more divided today than in the past.

• The US is one of six countries (including Argentina, South Africa, Colombia, Spain and Sweden) considered “severely polarized”.

• 41% of people said that government and business working together in partnership is most likely to result in being able to work through ideological divisions that exist.

The majority of people — on both sides of the aisle — want more engagement from business on societal issues.

• The majority of respondents expect CEOs to take a public stance on treatment employees, climate change, discrimination, the wealth gap and immigration.

• Nearly half of respondents think business should take steps to address climate change, economic inequality, energy shortages, and health care access, while only 8% thought business taking such action would be overstepping.

“...People are looking to business leaders maybe because businesses are taking action in a way that government can’t or won’t...They’re not just saying, but they’re also doing.”

— Eleanor Hawkins, Axios

The Bottom Line

As trust in government continues to erode, business has a unique opportunity to leverage its position of power and influence to both deliver results and make a positive impact on society.

Sources:

• 2023 Edelman Trust Barometer

• Axios: Trusting business over politics in shaky times

• Fortune: Can business executives help heal societal divides?

• Edelman Trust Barometer Says We Only Trust Business—And Democrats Trust It More Than GOP

Leadership Now Honoree Named PA Secretary of State & Honored by President Biden

Defenders of democracy are often unsung heroes, but every so often their deeds are so significant that they cannot go unrecognized. We were delighted to see one such hero recently receive national recognition for his commitment to protecting our democracy. This week, Former Philadelphia City Election Commissioner Al Schmidt was named Secretary of State by Pennsylvania governor-elect Josh Shapiro and honored with a Presidential Citizens Medal by President Biden.

2022 Leadership Now Award presented to Al Schmidt in May 2022

At our 2022 Annual Member Meeting in May, we presented the Leadership Now Award to Al for his commitment to election integrity which never wavered in the face of intense pressure, misinformation and threats. As a fierce defender of the electoral process, we are delighted to see him selected to champion democracy in a statewide role and recognized with the nation's second-highest civilian honor. 

Congratulations and thank you for your dedication to our democracy, Al!

January 6th, ECA Reform and a Hopeful Start to 2023

On the second anniversary of January 6th, our CEO, Daniella Ballou-Aares, shared her thoughts on the state of our democracy and the year ahead. Read her article below and subscribe to our LinkedIn newsletter here.

“Today, on the second anniversary of the January 6th insurrection, I want to share a few brief reflections on what this moment tells us about the state of American democracy. 

In short: As we start 2023, I am hopeful about the direction of America’s politics. The most hopeful I’ve been since 2016. The midterm elections proved that election denial is a losing proposition (as deniers lost high-profile races to pro-democracy candidates), critical referendums strengthened voting protections, election and campaign finance reforms continued to win over voters, and independent voters broke for the middle and political normalcy. 

And on December 23rd, Congress took another critical step — passing reforms to the Electoral Count Act. This puts in place key provisions to prevent another insurrection. It clarifies that the vice president’s role in counting electoral votes is purely ceremonial, raises the objection threshold from just one member in each chamber to 20 percent of Congress, and requires that Congress accept the lawful slates of electors for each state. Read more here.

The Leadership Now Project is proud to have joined the year-long effort to enact the legislation. In that time, Leadership Now members made the business case for protecting elections, engaged with numerous senators, made our support known in the press and in many on- and off-the-record convenings, and encouraged other business associations to sign on.

As we look to the year ahead, I am hopeful we can take steps to reinvigorate our system while remaining vigilant in responding to potential threats. January 6th reminds us that the risk of political violence persists. And my own memories of that day, when I lived only six blocks from the Capitol, are still surreal. Keeping my daughters playing in the basement while outside sirens blared. How, in the weeks that followed, a green zone was established that ended at my corner. Military vehicles patrolling the streets. They were the sort of scenes I’d observed working in emerging economies, not ones I had ever imagined seeing in my own country. 

Preventing another Jan 6th, and making our system more dynamic for the future, is why the Leadership Now Project exists. We hope you will join us in the year ahead in being hopeful, vigilant, and committed to building a stronger American democracy.”

Leadership Now 2022 Recap

When it comes to democracy, 2022 was full of many trials and tribulations, in addition to some pleasant surprises. While we watched the aftermath of the January 6th insurrection and saw continued attacks on inclusivity in the name of free speech, we also saw heroic attempts by people to defend the principles of democracy and witnessed an historic rebuke of election denialism in the midterms. Throughout the year, Leadership Now and its members worked together to inform, engage and mobilize business leaders to ensure the United States has a strong democracy and economy. See below for a brief recap of our 2022 highlights:

Leadership 

• Recruited new members from reputable businesses, universities, and civic institutions  

• Increased position as a leading nonpartisan, trusted voice on how the business community can protect US democracy  

• Hosted and participated in a variety of thought-provoking events from the Master of Scale Summit to Fast Company’s Innovation Festival

• Launched a LinkedIn newsletter, which obtained 800 followers after the first issue 

• More than 70 stories placed in major media outlets highlighting LNP and its members, including The New York Times, Financial Times, and Fast Company

Coverage of LNP and its members in more than 70 major media outlets

Actions & Results

• After engaging with numerous senators, making our support known in the press and in many on- and off-the-record convenings, encouraging other business associations to sign on, and working in collaboration with organizations to advance the legislation, Electoral Count Reform Act was passed as part of the ombinus spending package in December.

• Mobilized influential business groups in support of Michigan’s Promote the Vote ballot initiative, which was passed in November 

• Joined more than 60 groups and individuals submitting amicus briefs in Moore vs. Harper, which could give state legislatures unprecedented control over elections. 

• Launched the Project Democracy PAC, which supports candidates and elected officials who advance an effective democracy for all Americans . Majority of PAC-endorsed candidates won their midterm elections, including Wisconsin Governor Tony Evers

Project Democracy PAC TV ad supporting Tony Evers in Wisconsin gubernatorial race

• Hosted 30+ briefings with renowned academics and authors; elected officials and candidates; and partners like Voting Rights Lab, Protect Democracy and WorkMoney. 

• Developed innovative, informative tools including the Business Leader’s Guide to Democracy, Democracy Report Card and Corporate Civic Engagement Toolkit 

• Released impactful research on Business Risk in Flawed Democracy, ESG and Political Influence, the Role of Independent Women, and more.  

• Members, which belong to various political parties, collaborated and developed meaningful plans at our largest-ever annual meeting 

• Funded survey led by Tufts University Associate Professor of Political Science, Dr. Eitan Hersh, examining business leaders’ attitudes toward political engagement 

• Became a founding member of the Business and Democracy Initiative, a partnership that mobilizes corporate leaders committed to protecting elections and rebuilding trust in democratic institutions 

Thank you to all of our members, partners, and funders for your support and collaboration in 2022. We look forward to continuing to work together to protect and improve our democracy in 2023 and beyond.

Leadership Now Project is a section 501(c)(4) social welfare organization with a mission to protect and renew American democracy. Project Democracy is a separate, affiliated political organization that supports candidates who share that mission.

Leadership Now Applauds Passage of Reforms to the Electoral Count Act

Earlier today, Congress passed bipartisan legislation to reform the Electoral Count Act (ECA) of 1887 as part of the omnibus spending package. 

Reforming the ECA is an essential step toward preventing another January 6th. It clarifies that the vice president’s role in counting electoral votes is purely ceremonial, raises the objection threshold from just one member in each chamber to 20 percent of Congress, and requires that Congress accept the lawful slates of electors for each state. Read more here.

While ECA reform is only one among multiple essential federal and state actions necessary to protect our elections and democracy from interference, the passage of this bill that attracted support from both sides of the aisle is worthy of celebration.

Leadership Now Project is proud to have joined the year-long effort to support legislation reforming the ECA. In that time, Leadership Now members engaged with numerous senators, made our support known in the press and in many on- and off-the-record convenings, and encouraged other business associations to sign on.

Passage of the ECA is a fitting end to an important year for American democracy – a meaningful step forward while also a reminder of how much remains to be done.

Podcast: How Can Business Help Solve America's Democracy Crisis?

Leadership Now CEO and co-founder Daniella Ballou-Aares recently joined the Politics in Question podcast for an intriguing conversation with Lee Drutman and James Wallner on the state of US democracy and how businesses can and should be involved.

Highlights:

• The role of business in politics and in society is one that Americans have mixed feelings about. Recent data (e.g., Edelman Trust Barometer) show business is the most trusted institutions in society, but Americans also have mistrust of how business plays in politics, uses its influence, etc.

• The question now is, how can business play a positive role at this moment when democracy is facing such a critical moment?

• Generally, business views politics through a government affairs lens, used to minimize task and regulatory risk.

• There is a concern among the business community about political retribution for taking stands on social and policy issues that don’t align with their elected representatives,

• Two elements to businesses successfully taking a stand on democracy:

  • Pre-defining what the factors are where businesses are willing to step out on an issue because political leaders are crossing well-defined lines of what is appropriate in a democracy. These triggers could be: refusal to accept legitimate election results; responding to political violence; political retribution for free speech, etc.

  • Stepping out in a coalition, which is usually done at the state level, but in some cases can be done nationally (for example, the business coalition re: legitimacy of the 2020 election).

• Businesspeople and companies can play a meaningful role in protecting the democratic system and responding to systemic risk, as well as innovation in the system.

Click here for the full podcast.

New Research: How Are Business Leaders Engaging in Politics?

Tufts University Associate Professor of Political Science and Leadership Now member Dr. Eitan Hersh recently released findings from a new survey funded by Leadership Now that examines the changing partisan landscape of the business community and business leaders’ attitudes toward political engagement. On a call with our members, Dr. Hersh dove into the results and shared his thoughts. Here are some of the key findings:

Shifting Political Alignment

No matter their political preference, the majority of survey respondents believe US businesses have become more aligned with Democrats in the last decade. Executives say CEOs and employees have the most influence over corporate political alignment compared to other stakeholders such as customers or investors, and they believe CEOs and employees are causing the political realignment.

Policy Focus Areas

There is a widespread appetite among business leaders for companies to do more on most policy issues. The one exception is election administration policy — no matter their political affiliation, business leaders overwhelmingly disfavor companies becoming more involved in elections. Of the variety of social/policy issues companies can get engaged with, economic policy is the most popular. More engagement in environmental and social policy engagement was also of interest to business leaders, regardless of their political affiliation. There was near unanimous support from all respondents for companies encouraging people to vote as a strategy for civic engagement.

Corporate Political Activities

Most business leaders prefer political engagement in the form of “traditional elite methods”, such as advocacy through industry groups and executives meeting directly with lawmakers. Executives strongly disfavored turning away objectionable customers that disagreed with their own values; however younger executives in customer facing organizations/roles were much more likely to support dropping objectionable customers. About one-third of executives said that their companies regularly make political contributions and most executives believe that their companies should scale down their political contributions. Additionally, overall executives have concerns that increased company political activism would harm profitability, employee morale, and brand favorability; however, Democratic business leaders have a stronger preference for corporate activism than Republican business leaders.

In addition to the survey, Dr. Hersh conducted 30 hour-long one-to-one interviews with executives and was able to get a sense of the constraints the business leaders face, as well as the lack of awareness of what it would mean to be involved in lawmaking and policy efforts.

Dr. Hersh recently published an op-ed in The Atlantic with his thoughts on “political hobbyism — a performative form of civic engagement that has become the white-collar set’s preferred approach to public affairs.” He uses the example of companies that publicly stated they would not contribute to politicians who voted against certifying the 2020 election and then quietly went back to donating to them. He encourages business leaders to strategically get involved in long-term civic engagement, rather than take public stands but not hold themselves accountable.

Dr. Hersh plans to expand his research to include input from the general public and expects results in January 2023. We will be sure to share those findings once they are released.

Post-Election Analysis: Is Democracy at an Inflection Point?

Insights from the Midterms

Two weeks after Election Day, one result is crystal clear: the elections were a resounding win for American democracy. Election denialism was on the ballot, and in state after state, it lost.

Do the election results indicate we are at an inflection point? The events of the last few weeks – the midterm rejection of election denial, the repudiation of Trump jumping back in the ring, Musk’s self-inflicted Twitter wounds, and the implosion of Sam Bankman-Fried’s crypto empire – suggest that a particularly toxic brand of hubris that has become a central feature of our politics may have reached its limits.

While there are certainly risks ahead, I believe we have a unique opportunity to change the trajectory of our democracy. First up? Keep the pressure on Congress to pass the Electoral Count Act in the lame duck session (December). And then watch closely the Supreme Court case on the "independent state legislature theory”; our amicus brief argues that an unchecked state legislature is a risk to the economy and the rule of law. Oral arguments commence December 7th.

There is much more to do in order to protect, innovate and rebuild our democracy. It’s up to us to seize this moment. 

Five Key Election Takeaways for Democracy

• Pro-democracy candidates beat election deniers in key governor races in Arizona (Hobbs), Pennsylvania (Shapiro), Michigan (Whitmer), and Wisconsin (Evers). Governors and Secretaries of State oversee state election machinery and legislative decision-making on elections. The prospect that an election denier could hold such a position was frightening. But, in every swing state where they ran for Governor or Secretary of State, they lost. Republicans who didn’t embrace election denial, like Raffensperger in Georgia, fared far better.

• Michigan voters make their voices heard, prioritizing democracy. A ballot initiative strengthening access to voting and protecting against election interference in the state’s constituencies was resoundingly approved. Exceptional leaders beat election deniers to retain the top three statewide positions. Implementation of objective redistricting – secured in a citizen-led ballot initiative in 2018 – led to more competitive state legislature races. Democrats won majorities in the state House and state Senate for the first time in 40 years and as in other states, Michigan voters used the ballot to prevent restrictive abortion laws that lacked popular support.

• New York turns competitive: New York’s rushed redistricting led to multiple new competitive House seats, 4 of which Democrats lost. The complacency of NY Democrats, a top of the ticket that failed to generate enthusiasm among voters (Hochul’s margin lagged Biden’s by 17 pts), and a sense of frustration with crime and other local issues appeared to be at play. New York stood in contrast to Ohio, where the courts found newly drawn maps unlawfully gerrymandered but refused to mandate new maps (which the NY courts did). The result is that unlike NY, Ohio’s distribution of Congressional seats remains disconnected from the actual partisan breakdown of voters in the state.

• Election and campaign finance reforms continue to win over voters: Nevada voters approved final five primaries with ranked choice voting, Connecticut voters backed early voting, and a divided Arizona electorate overwhelmingly approved a measure curbing undisclosed spending in political races. At the municipal level, several cities approved ranked choice voting systems, including Seattle, WA; Portland, OR; and Portland, ME.

• Talented new Gen X candidates prevail: Newcomers to Governor’s mansions include dynamic, pragmatic Gen Xers from Wes Moore in Maryland to Josh Shapiro in Pennsylvania and Maura Healey in Massachusetts – who each won by double digits. Similarly, compelling candidates retained their seats in tough House races, Angie Craig (MN), Abigail Spanberger (VA), Katie Porter (CA), and Elissa Slotkin (MI) among them.

Leadership Now Members Take A Bold Stand for Democracy

In the 2022 midterms, the business leaders in Leadership Now’s membership took action. Here are four ways our organization and members contributed:

• Making the business case that democracy was at stake in 2022: Leadership Now focused on making the case that democracy was a central issue in the midterm elections. Our unique analyses helped explain the risks and dynamics in 2022 for members and wider business audiences, including in major media outlets. Our Election Risks analysis and ESG & Democracy memo were shared widely with C-suite executives, Boards and investors. We polled independent women in swing states and launched a state Democracy Report Card to inform state level priorities. Weekly member briefings, the annual member meeting in NY, and numerous member-hosted events convened leading thinkers and political leaders and drew attention to the critical issues at stake this cycle.

• Standing up against an election denier in Wisconsin: In an ad viewed 4M+ times, and produced by the Leadership Now-affiliated Project Democracy PAC, business leaders and Leadership Now members endorsed Gov. Evers as the only candidate committed to certifying elections regardless of the result. Evers won by ~90K votes against Michels.

• Ensuring democracy is protected in the Michigan constitution: Leadership Now endorsed the successful Promote the Vote Ballot Initiative (which won on a 60% to 40% margin) and helped secure critical business endorsements, including from the Detroit Regional Chamber. The initiative protects access to voting and reduces the politicization of elections.

• Supporting highly qualified candidates that mobilized the middle: Unlike most midterm elections, the majority of independent voters broke for the party in the White House. Leadership Now supported highly-qualified candidates for Congress and Governor who successfully inspired voters in the middle including our 2022 Candidates to Watch list. WelcomePAC, a Leadership Now partner, invested in races where compelling moderates ran but were overlooked by the Democratic Party and considered unwinnable. Two such races, CO-3 and CA-41, where election deniers Lauren Boebert and Ken Calvert lost by exceedingly small margins. These races reinforce the case for overhauling candidate funding models.

How to Boost Your Brand Through Civic Engagement

With voter turnout in the 2022 midterm elections at the second highest level in more than 40 years, many businesses are seizing the opportunity to engage stakeholders and tie their brand to civic engagement.

A recent Inc. Magazine article lays out four ways companies can promote their brand during an election season:

1. Provide accurate and accessible voter information.

2. Make it easier for employees to vote by giving them paid time off.

3. Focus on one issue important to the company and its stakeholders.

4. Help voters get to the polls.

Our work was highlighted in the piece: ”One of the most commonly reported barriers of getting to the polls is getting time off from work, according to a report from Leadership Now Project, an organization formed by a group of Harvard Business School graduates who seek to improve governance.”

Read the full article: https://www.inc.com/xintian-tina-wang/midterm-election-2022-campaigns-brands.html

How Did 2022 Ballot Measures Affect Democracy?

The 2022 midterm elections included voting and election ballot initiatives in several states across the country. While some measures made it easier for people to vote and introduced new electoral systems, others tightened voting laws. Many of these initiatives will directly impact each state’s overall grade on our Democracy Report Card.

Pro-democracy initiatives were on the ballot in three states:

• Michigan's Proposal 2 passed, providing free postage for absentee ballots, implementing nine days of early voting, and requiring ballot drop boxes for every 15,000 voters in a municipality. Leadership Now, local business leaders, and the Detroit Regional Chamber supported this “Promote the Vote” ballot initiative. As a result of these robust changes, Michigan may be able to take a leading overall grade in democracy, currently ranked fifth nationwide.

• In Connecticut, Question 1 passed, which will allow the state legislature to provide for early voting. Early voting will improve Connecticut's grade. 

• Nevada has cleared its first hurdle toward changing the status quo - despite opposition from both political parties. Question 3 passed, introducing open primaries and ranked choice voting (RCV). Like Alaska's new system, Nevada's traditional partisan primaries could be replaced with a ballot of all primary candidates where the top five will advance to a ranked-choice general election. The introduction of RCV has several positive effects on a state's democracy and could help raise Nevada’s current D grade in voting and B grade in electoral systems. The new voting system may increase competition between candidates, encourage cross-partisan efforts, reduce extreme messaging, and reveal the candidate with the most support across the entire electorate, not just the most passionate voters. To amend the Nevada Constitution, voters must approve Question 3 a second time in 2024.

Stricter voter-ID laws were on the ballot in two states. Arizona’s Proposition 309 is likely to fail, while Nebraska’s Initiative 432 passed. Nebraska will now require a photo ID to vote. Nebraska was previously the only Republican state without a voter-ID law. By adding a barrier to voting, Nebraska's average grade will decrease. Notably, a divided Arizona electorate overwhelmingly approved a measure curbing undisclosed spending in political races. 

Ohio passed Issue 2, which will limit voting for noncitizens. According to the measure, only US citizens registered to vote for at least 30 days are eligible to vote in state or local elections. Ohio has a C rating across the board, and this change may have a marginal impact on its grade. 

Additionally, state lawmakers in Arkansas tried to deceive voters into making the ballot initiative process harder to use. But voters rejected Amendment 2. The democracy grade for Arkansas is among the worst in the nation. 

We look forward to sharing details on how the midterm elections affected each state's Democracy Report Card in the coming weeks.

Smooth Midterm Elections Relieve CEOs

“As long as the political system isn’t functioning, CEOs are going to be pulled in all the time to solve political issues . . . So it is in [their] interest to have a functioning system,” said our CEO Daniella Ballou-Aares in a recent Financial Times article titled: “Business Leaders See a Split Congress as Reason to Celebrate.”

Daniella also shared that several of the Leadership Now Members expressed “a lot of relief” that the midterm elections ran smoothly.

Read the full story here: https://www.ft.com/content/3428b2bc-a2d8-4df3-9247-20e1aaff2de8.

Ohio Business Leaders Urge Congress to Reform the Electoral Count Act

On November 6, Leadership Now Senior Advisor Richard Stoff co-signed an op-ed published in The Cleveland Plain Dealer along with five prominent Ohio business leaders. They urge Congress to pass much-needed reforms to the Electoral Count Act. 

“American democracy enables free markets to thrive, in which consumers and employees have a stake. It’s no coincidence that nearly all of the world’s largest companies are founded and based in democracies. 

But increasingly our elections, the very bedrock of our democracy, are under attack. An essential part of safeguarding our elections is fixing the glaring weaknesses in the rules governing our electoral and presidential transition process.”

Read the full op-ed: "Electoral Count Reform Act will strengthen our democracy and our economy: Albert B. Ratner and John E. Pepper"

Albert B. Ratner is the former co-chairman and CEO of Forest City Realty Trust in Cleveland, and John E. Pepper is the former chairman and CEO of Procter & Gamble in Cincinnati.

Joining them in authorship: 

Alex R. Fischer, former president and CEO of The Columbus Partnership. 

Richard A. Stoff, senior adviser to the Leadership Now Project and co-founder and former President and CEO of the Ohio Business Roundtable.

Michael H. Thaman, former chair and CEO of Owens Corning in Toledo. 

Thomas L. Williams, CEO of North American Properties and vice chairman and co-principal owner of the Cincinnati Reds. 

Leadership Now Files an Amicus Brief in Moore v. Harper

On October 26, Leadership Now filed an amicus brief in the Supreme Court case Moore v. Harper, which could give state legislatures unprecedented control over elections.

This case relies on an untenable interpretation of the Constitution's Elections Clause, referred to as the independent state legislature theory. Independent state legislature theory holds that state legislatures may regulate elections without the constraint of state constitutional provisions, state courts, or potentially a governor's veto. Learn more here. 

Leadership Now joined more than 60 groups and individuals submitting amicus briefs, including former generals, state attorneys general, Arnold Schwarzenegger, and the US solicitor general herself. Our brief uniquely makes the case that independent state legislatures would create substantial risks to businesses and markets through gerrymandering and election interference. 

Oral arguments for the case start on December 7.

Political Violence and Election Denial are on the Ballot

A Midterm Message from Our CEO

As we approach a highly uncertain election, I’ll attempt to cut through the noise and share a few thoughts on what’s at stake, what is being done, and what you can do. 

But first – be sure to vote. November 8th is election day and many states have already started early voting. Encourage friends, colleagues, customers, and employees to participate. Find info on your polling place at vote.org.

What’s at stake in this election?

Political violence and election denial are on the ballot.

• The attack on Paul Pelosi is a warning sign. His attacker was fueled by online conspiracy theories. While Pelosi was recovering from surgery, Twitter’s new owner, Elon Musk, used his platform to spread disinformation about the violent incident.

• 60 percent of Americans will have an election denier on the ballot. This isn’t an isolated incident of disinformation. In many GOP primaries, election denialism is an essential requirement to win.

• Governor and Secretary of State races are key to future election legitimacy. These elections will determine if election denial becomes a governing philosophy in states from Arizona to Michigan and even New York. 

• Arizona is ground zero. Aggressive armed patrols of ballot boxes and pervasive doubts about election legitimacy are increasing the threat of election violence and risk deterring voters in Arizona. Unabashed election deniers are running for governor, secretary of state, and attorney general – and all have a solid chance of prevailing.

• While the risks are significant, turnout and engagement may be high, particularly among women. In battleground states, registration by women has surged. As I discussed on Morning Joe in October alongside Leadership Now member Tom Rogers, addressing the priorities of independent women will be critical.

How are business leaders responding to the threats?

Leaders unite from Michigan, Wisconsin, and beyond, but much more is needed.

• Wisconsin business leaders set clear democracy standards. A few weeks ago, bipartisan Leadership Now Wisconsin members gave a questionnaire to each candidate for Governor to confirm their commitment to certifying elections without bias. Only Governor Evers made that commitment; Michels didn’t respond. Watch what they had to say below and read about it here.

• Michigan business leaders support the Promote the Vote Ballot Initiative. The Detroit Regional Chamber and business leaders in the state endorsed the November ballot initiative, which protects access to voting and reduces the politicization of elections.

• The Electoral Count Act has a strong chance of passing in the lame-duck session, backed by Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell. Leadership Now and our members have endorsed reforming the ECA, as has the Partnership for New York City, Business Roundtable, and the National Association of Manufacturers (NAM).

• We joined a massive response to the Supreme Court Moore v. Harper case that could give state legislatures unprecedented control over elections. Read Leadership Now's amicus brief. We joined more than 60 groups and individuals submitting amicus briefs last week, including former generals, state attorneys general, Arnold Schwarzenegger, and the US solicitor general herself. Our brief uniquely makes the case that independent state legislatures would create substantial risks to businesses and markets through gerrymandering and election interference. Oral arguments for the case start on December 7.

What can you do?

Be prepared and vote.

1) First, be prepared not to know all of the results on Election Night. Several key states – including Michigan, Pennsylvania, and Wisconsin – do not allow the counting of mail-in ballots until Election Day or the day before. Other states, including New York and California, can take days to tally mail-in ballots, which can be postmarked through Election Day. While much is uncertain, if history is a guide, it will likely be a night where Democrats lose more than they win (the party not occupying the White House usually does well in midterm elections). Election violence or refusal to accept results by local or even statewide election boards is possible, and lawsuits are almost guaranteed.

2) Vote early or make a plan to vote on Election Day. It may seem obvious, but it must be said. Encourage your family, friends, networks, and employees to act on their civic duty and make a voting plan.

3) Support candidates that meet the Principled Candidate standard and commit to free, fair, and secure elections. We've continued our practice, started in 2018, of highlighting a list of extraordinary, highly-qualified candidates for Congress.

4) No matter what happens in the election, the ECA and the Supreme Court Independent State Legislature case will be critical to the conduct of future elections. Make your voice heard by engaging your members of Congress or publicly speaking out on these and other democracy issues.

5) Read on to learn about our new State Democracy Report Card, and for the latest Leadership Now news and recommended reads.

Thanks again for your commitment and leadership.

Best,
Daniella

Democracy Report Card: What Grade Did Your State Get?

Leading up to the midterm election, we’ve worked with our network of business, academic and civic leaders to create a state-level Democracy Report Card. Specifically, our research team assigned a letter grade to each state based on its democratic performance across three critical categories: voting, electoral systems, and campaign finance.  

With our research, your business can make more informed decisions on political influence and philanthropy.  

Top 3 Lessons  

1. Every state, regardless of the dominant party, can make improvements to ensure elections are modernized, secure, accessible, and transparent.  

2. Many aspects of a state’s democratic performance are tied together; addressing one issue can lead to improvements in other aspects. For example – increasing mail-in voting access can decrease voting wait times and increase voter turnout, generating an improvement in voting through an improvement in electoral systems.  

3. Challenges in democratic performance aren’t endemic to either red or blue states; most states rank poorly, with the majority receiving a “C” grade.

Here is a list of our key states and a brief analysis of their score:  

• Michigan (86%) Michigan has improved its elections measurably via citizen-led ballot initiatives over the last several years. Its independent redistricting commission has led to fair legislative and congressional districts, and its automatic voter registration system has led to high voter registration. Michigan does less well in the campaign finance section, with relatively high campaign contribution limits and higher than average dark money spending. 

• Massachusetts (82%) Massachusetts has enacted strong laws supporting access to voting; however, its political culture at the state legislative level of few contested races, racial disparity in voter participation, and loopholes in campaign finance laws offer opportunities for improvements. 

• California (82%)  California’s laws around voting access are strong, with significant opportunities for voting by mail. The state also has an independent redistricting commission to create fair maps. Unfortunately, there is a history of relatively low voter registration and turnout, along with higher than average racial disparities in turnout. 

• Georgia (78%) Georgia has been moving in the wrong direction around voting access, with recent laws enacted that make voting more difficult and give more power to political forces around election certification. It also has a history of long waits at the polls. On the positive side, its automatic voter registration system has led to relatively high registration rates while racial disparities around voter participation are relatively low. 

• New York (77%): Since 2019, lawmakers in New York State have made important reforms including automatic voter registration, enabling those on probation and parole to vote, online voter registration, and early voting. These reforms have significantly improved New York’s rating. What hinders the rating is the state constitutional prohibition on “no excuse” absentee voting, the very high contribution limits for statewide offices, long waiting times at the polls, and general low participation rates.  

• Pennsylvania  (75%) Pennsylvania has significant opportunities for improvement. Its lack of any limits for campaign contributions to statewide candidates is out of sync with most other states; its relatively low voter registration rate and lack of an automatic voter registration system are a concern; and on the positive side, Pennsylvania courts have struck down partisan gerrymandering schemes which have led to much fairer legislative and congressional districts. 

• Wisconsin (75%) Wisconsin has terribly gerrymandered state legislative and congressional districts and no automatic voter registration, along with significant racial disparities in turnout (a very high percentage of voters of color live in Milwaukee, where participation is historically low). The state also has high campaign contribution limits and significant dark money spends. On the positive side, of those who are registered, turnout is overall very high compared with other states.  

• Texas (70%): The Lone Star State has a grim history of voter turnout, especially in primaries and midterms. The state legislature has restricted voting by mail; requires voter IDs; limits “drive-thru voting;” outlaws 24-hour polling locations; has no online voter registration process; and does not require accessible polling places near colleges.  

For the full rankings, metrics and sources, and actions you can take with this data, visit the 2022 Democracy Report Card. Additionally, in the weeks following the next election, we will do follow-up analysis to see how this report card did or did not predict voting and campaign finance in the midterms.   

5 Articles about Democracy You Must Read Before the Midterms

At Leadership Now, we understand there is an influx of news from a wide variety of sources about democracy. Therefore, we regularly curate the latest, trustworthy information from our members, researchers, and media sources into this Democracy Digest.

Latest Democracy News

Why Business Leaders Should Take an Active Role in Preserving Democracy

At Fast Company’s Innovation Festival, execs from Edelman, the Leadership Now Project, and Seventh Generation discussed how leaders should weigh in on thorny social issues.

Former NFL Commissioner Stresses Need to Protect Democracy

"No outside adversary, no internal critic, no individual or institution, and no ideology—can be permitted to destroy or diminish our democracy," states former NFL commissioner and LNP member Paul Tagliabue in his recent Newsweek article.

Corporate America Has Embraced ‘Both Sides’ Political Spending - That Has to Stop

In this article, we make the business case and provide a pathway for updating political giving practices.

Independent Women Hold the Keys to Power in the Midterms

Women who don't identify as Republican or Democrat will make the greatest difference in key 2022 congressional race outcomes. LNP member Tom Rogers shares findings on their viewpoints from our recent survey in this article.

Wisconsin Business Execs praise Gov. Evers for Pledging to Accept Election Results

The Milwaukee Journal Sentinel featured a new ad produced by Project Democracy PAC last week. Four Wisconsin business leaders, including members Anoop Prakash and John Florsheim, made the business case for why they support Wisconsin Governor Tony Evers. The ad will run through election day. Our members Kahlil Byrd, Patrick McGinnis, and Minh-Thu Pham are directors of the PAC, which is endorsing a slate of democracy-focused candidates in the midterm elections.

A Little Something Extra…

We know that the seriousness of our current social and political environment can be draining; therefore, we also regularly highlight something of interest beyond the need-to-know updates. This week, we are featuring the Broadway revival of The 1776 Project. “This new 1776 means less to reanimate the nation’s founding than to talk back—or even down—to it,” writes Jane Kamensky, the Trumbull Professor of American History at Harvard.

Women Registered as Independents in Swing States Can Influence Midterms...If They Vote

“When it comes to deciding the key 2022 congressional races, the constituency that will make the greatest difference in the outcome is independent women. That is, women who do not currently identify as Democratic or Republican,” stated Tom Rogers, editor-at-large for Newsweek and founder of CNBC in his article.

Rogers made this assessment after viewing the results of a survey we did with our partners at Emerson College Polling. Together, we wanted to gain greater insight into the viewpoints of registered Independent women in key swing states, including Arizona, Georgia, Michigan, Pennsylvania, and Wisconsin.

We wanted to understand how the “most purple of voters in the most purple of states” felt about abortion, gun control, and democratic values, versus economic issues like inflation.

This infographic shows some of the key findings:

Want to dive into the data more? View the full report.

Also, you can see this information highlighted on Tom Rogers on MSNBC's Morning Joe.

Leadership Now Applauds Lawmakers Reforming the Electoral Count Act

Leadership Now Project joins business leaders and associations across America, including the Partnership for New York City, Business Roundtable, and the National Association of Manufacturers (NAM), in support of legislation reforming the Electoral Count Act. 

As business leaders, we know firsthand that the health of our economy and markets rests on the founding principle of our democracy: free and fair elections. The aftermath of the 2020 election revealed significant weaknesses in our system, threatening the stability of our nation. The bipartisan framework addresses vulnerabilities, protects election workers, ensures a peaceful transition of power, and is a critical step to preserving the trust and confidence in American democracy.

Our organization applauds the bipartisan group of lawmakers and staff who have worked together to craft and advance this legislation. If you would like to learn more and support our efforts, please contact Gretta Determann. 

Leadership Now Encourages MBAs to Vote

MBA (Master of Business Administration) students are seen as the next generation of business leaders. In fact, more than half of CEOs in the US hold MBA degrees. With growing enrollment in courses related to social impact, MBA schools have seen an increased interest in the intersection of capitalism and democracy among its students. However, MBA students aren’t engaging in democracy while they’re in graduate school, despite their schools having the resources to help them.

The Data

Business school turnout falls far below the turnout of peers in other programs. Overall, MBA students on average vote 18.5% less than other schools at universities. Below is data from the top three MBA schools in the country:

To learn more about this data, visit the NSLVE Data Portal.

The Federal Higher Education Act requires colleges and universities to make a “good faith effort” to distribute voter registration materials to all students; however, this is often fulfilled through a school-wide email that is almost never read by students.

How Business Schools Can Help

In anticipation of National Voter Registration Day (September 20), Leadership Now members are actively reaching out to their alma maters and encouraging them to promote voter engagement and increase turnout.

With the 2022 election right around the corner, we know some schools may feel like it’s too late to take action. But there are some simple steps they can take. We encourage each school’s dean to send a communication to all MBA students providing nonpartisan voting resources and encouraging them to vote. Additionally, schools should commit to holding no exams or assignments on Election Day, to make it easier for students to have time to vote.

MBA schools should also begin preparing for the Presidential Election in 2024.  Our recommendations are below:

• Hold no classes on Election Day

• Provide comprehensive resources on registration, early voting, and Election Day voting from the Dean of the school

• Provide resources to student groups leading nonpartisan civic engagement efforts

The Future is Now

Future business leaders are being cultivated right now at MBA schools across the country. While many students’ studies are focused on social impact and the connection between business success and democracy, the majority aren’t participating in elections by voting. MBA schools should play an active role in building a culture of civic participation. The health of our democracy depends on it.

Wisconsin Business Leaders Speak Out on the Importance of Democracy

Wisconsin LNP members John Florshiem and Sachin Shivaram recently released an op-ed urging business leaders to take action and protect American democracy. Florshiem is the president of Weyco Group and Shivaram is CEO of Wisconsin Aluminum Foundry. Below are highlights from the article.

• After the January 6, insurrection, businesses across the country overwhelmingly spoke out against the events, including implementing policies to prohibit providing funding election objectors.

• These actions played an important role in ensuring a peaceful transition of power.

• However, since the insurrection, threats to our democracy have continued. These threats have a direct impact on market stability and economic growth.

• Because they have a variety of stakeholders, businesses are put in the difficult position of deciding if and how to act when threats to democracy occur.

• Business leaders must use their collective voice to ensure political stability and adherence to the rule of law.

“We also know that the tempation to turn a blind eye — to believe this is not a problem of ours — is strong. But it is wrong.”

— John Florsheim & Sachin Shivaram

Read the full op-ed here.