Unveiling the Untold Power:
How Business Shape Politics for Positive Change
How companies can challenge conventional narratives and drive positive change in the political landscape
The untapped potential of businesses as agents of social reform, transcending borders and reshaping democracy for the benefit of all
In a world where politics and business intersect, the relationship between the two spheres is far from straightforward. While companies are frequently criticized for their involvement in politics, it is important to recognize their potential to drive positive change. With their resources, expertise, and organizational capabilities, corporations can contribute to tackle complex problems and provide innovative solutions and inform elected officials.
Ted Cruz, a US republican senator drily but effectively described the level of preparedness of regulators to deal, to mention a complex issue, with Artificial intelligence: “To be honest, Congress doesn’t know what the hell it’s doing in this area” he declared to Politico on June 15.
Today, companies are increasingly taking responsibility for addressing pressing social and environmental issues. By engaging in advocacy on hot topics, they can contribute to promote a more informed policy-making. Grassroots movements driven by concerns for social and environmental justice, challenge the corporate narrative and demand greater accountability from both politicians and corporations. This collective power disrupts the traditional political landscape, giving space to alternative voices that corporations must confront, necessitating adaptation of their lobbying strategies and tools.
The relationship between business and politics in Italy takes on a unique character due to the legacy of state-owned enterprises. The intertwined interests of corporations and political elites often lead to speculation about the true power brokers. However, an unconventional perspective emerges when considering the role of small and medium-sized enterprises (SMEs) in shaping the Italian political landscape. These often-overlooked actors, driven by an entrepreneurial spirit, represent an alternative, powerful, constituency to the dominance of corporate giants and foster conditions for a more diverse and dynamic political landscape.
In contrast, in the United States, companies have a long tradition of being privately held with a marked risk taking approach which in turn, among others, spurs innovation and progress. This feature contributes to transformative change based on shared democratic principles. Through their influence, they can stimulate technological advancements, support educational initiatives, and promote social reform.
Contrary to popular belief, the alignment of corporate interests with public welfare can act as a catalyst for positive change, fostering a flourishing democracy for the benefit of all citizens.
One well-known example of this dynamic is Patagonia, an outdoor clothing and equipment company that has been at the forefront of promoting environmental and social responsibility. The company has consistently fought for conservation and environmental sustainability, supporting initiatives such as renewable energy, carbon footprint reduction, and protection of public lands. Patagonia has also been involved in social causes, actively campaigning for social justice, gender equality, and fair labor practices. By aligning its business practices with its values, Patagonia has set an inspiring example of how companies can promote social and environmental reform.
In Italy, Barilla, a food company specializing, has taken significant steps to promote diversity and inclusion. The company has been recognized for its efforts to support the rights and fight discrimination. Barilla has engaged in dialogue with all possible constituencies, implementing policies that promote inclusion.
Brunello Cucinelli, founder of a quintessential Italian fashion brand, promotes an idea of Humanistic Capitalism and Human Sustainability. In the medieval village of Solomeo in Umbria, he has put in practice this concept. To prevent your generations from leaving local traditions, he founded the High Contemporary Craftsmanship School for the Arts and Crafts inspired by the ideas of visionaries such as John Ruskin and William Morris with their Arts and Crafts.
Italian companies have long embraced a localized approach to advocacy, nurturing a deep sense of community and prioritizing social impact initiatives that directly benefit their surroundings.
On the other hand, American companies have historically been driving forces behind global change and innovation. Fueled by an entrepreneurial spirit and a thirst for boundless possibilities, they take a broader approach to advocacy, aiming to make an impact on a global scale. Their focus on scalability and widespread impact positions them as global catalysts for change. They combat climate change, promote diversity and inclusion, and pioneer technological innovations that revolutionize entire industries.
While approaches may differ, it is crucial to recognize that both Italian and American companies play vital roles in the political life of their respective countries.
Italian companies can learn from their American counterparts in terms of global outreach and harnessing technology for social good. Conversely, American companies can draw inspiration from the Italian tradition of prioritizing community well-being and preserving cultural heritage, infusing their efforts with a sense of local impact.
While companies are critical, they cannot be a substitute to policy-makers, elected officials legitimized by the democratic vote to intermediate between the interests of the capital and that of the workers. The primacy of policy would indeed be welcomed back. A possible inspiration for policy-makers and business leaders.
