Leading business executives, academics and experts gathered at INSEAD’s Europe campus in Fontainebleau to address one of the most critical dilemmas in corporate responsibility today: when and how companies should engage in political discourse.
Hosted by the INSEAD Ethics and Social Responsibility Initiative, the event marked the launch of a Working Group on Corporate Political Engagement. This group will focus in the first instance on developing an academic article that outlines the boundaries of corporate political engagement, offers initial managerial guidance and establishes a research agenda to guide future studies.
The Working Group aims to help businesses examine when, how and where they should take a stand, particularly in complex environments like authoritarian regimes, where the moral and business case for speaking out may be stronger but opportunities are more limited and consequences potentially severe.
They also seek to clarify commonly used and misused terms, such as Political Corporate Social Responsibility and Corporate Political Activism. They will define what it means for a company to speak out and the different ways activism can take shape, including “diplomatic” interventions by business leaders. The group will further explore the broader effects of corporate activism on society, including its influence on populism, polarisation, elections and democracy itself.
“Determining when to take a stand and when to hold back is one of the toughest decisions for companies today,” said Craig Smith, the INSEAD Chaired Professor of Ethics and Social Responsibility and Executive Director of ESRI. “When values or business interests are at stake, companies have a responsibility to act – but it must be strategic. This Working Group will play a pivotal role in clarifying the ambiguity around corporate political engagement – when companies should and shouldn’t act and what risks and rewards they might face.”
Markus Scholz, Professor for Responsible Management at TU Dresden and one of the event organisers added: “Many companies and their leaders are committed to protecting liberal democracy. I find that admirable. But we need to better understand the possible positive and negative outcomes of this corporate political engagement. In the light of recent events in the United States and Germany, we need to discuss the legitimacy of companies and wealthy entrepreneurs getting involved in politics in general.”
INSEAD Dean Francisco Veloso highlighted the broader implications of corporate political engagement, saying: "Business leaders do not control government decisions, but they are uniquely positioned to understand populist forces and find ways to counteract them. Whether they do so publicly or privately, their efforts can be immensely impactful in shaping a more equitable and stable society."
Several companies, including Jenoptik, Commerzbank, Airbus, and Celanese, contributed to the event. Jenoptik CEO Stefan Traeger shared how his company launched a bold media campaign featuring employees to counter the rise of far-right populism. The campaign emphasised the importance of “staying open” to new ideas and diversity, delivering a strong message on inclusivity without explicitly endorsing or opposing any political party.
The Working Group established at the event includes a diverse panel of academics from institutions such as The Wharton School, HEC Paris, Ecole Polytechnique, the University of Zurich, Villanova University, the University of Bath, the University of Queensland, Bayes Business School, and the University of Amsterdam, among others.
The aim is for the academic article emerging from this collaboration to be published in 2025. It will offer clear guidance on corporate political engagement, helping leaders and researchers navigate this complex issue responsibly.
