Germany’s business elite are facing mounting pressure to actively counter the rising influence of right-wing populist forces, according to a leading ethics professor. Markus Scholz, a professor of business administration at TU Dresden and INSEAD Fontainebleau, argues in his new book and in a recent interview with “Der Spiegel”, that Germany’s economic and political stability are inextricably linked and that businesses bear a responsibility to safeguard democratic values.
Scholz’s assessment comes amidst growing concerns about the potential for the Alternative für Deutschland (AfD) to gain further political power, with several polls suggesting the party’s support is nearing record levels. He cautions against any potential coalition government involving the AfD, highlighting what he characterizes as the party’s inherently destabilizing tendencies. According to Scholz, populist movements operate under a simplistic “friend-enemy” paradigm, routinely eroding the rule of law, fostering clientelism, curtailing media freedom and stifling civil society.
Beyond the immediate political ramifications, Scholz emphasizes the long-term economic consequences of populist governance. Drawing on economic studies, he posits that countries governed by populist regimes typically experience a significant slowdown in economic growth, potentially lagging behind democratic nations by as much as 10% within a 15-year period. This divergence, he argues, stems from a climate of uncertainty, weakened institutions and discouraged investment.
Scholz’s advice transcends passive condemnation; he calls for proactive engagement from corporate leaders and worker councils. He recommends workshops designed to educate employees about the benefits of liberal democracy, skillfully avoiding explicit endorsements of individual political parties or direct warnings against the AfD. Instead, the focus should be on reinforcing foundational democratic principles. He recognizes, however, that these initiatives alone will likely be insufficient, advocating for stronger collaboration between management and labor unions, even while acknowledging the AfD’s efforts to infiltrate these crucial societal pillars. The implicit challenge is clear: German businesses must actively defend democracy, not just rhetorically, but through concrete actions that strengthen societal resilience against populist encroachment.
