‘Lived’ democracy in our companies

There is no doubt in my mind that democracy is essential and needs to be ‘lived’.

It is important to ask this question:

What does this mean for companies and CEOs?

Is merely advocating for democracy enough? I don’t think so. Democracy starts in small settings—families, friendships, workplaces. Mutual respect, open dialogue, and acceptance of diverse perspectives are democratic processes that should be implemented in every company (and every country – including the Philippines).

Hierarchical structures, distrust, and top-down decisions are toxic for collaboration, fostering a narrative of division. It is essential that we work on our corporate culture and leadership, emphasizing a positive view of people, trust, and appreciation. We need to accept: Understanding individual strengths and weaknesses fosters trust.

We need to prioritize self-efficacy through training, helping employees feel empowered rather than helpless. Reflecting on emotions and behaviors aids conflict resolution and opens up new possibilities. Ultimately, it’s about taking responsibility for oneself and for the collective.

We also require adjusting decision-making, viewing leaders as guides rather than controllers. Most decisions should be made by employees, who can only take responsibility if they feel informed. We need to prioritize transparency in our communication and avoid typical symbols of power. Like in democracy, we need to prevent hierarchical dynamics.

We must communicate trustfully, address discomfort, and see it as an opportunity for change. While we don’t solve problems perfectly, we have a way to return to when needed. Empowered employees contribute to strengthening democracy, turning conflicts into opportunities. That’s how we truly become part of the solution.

When we in business talk about competitive advantages, building and maintaining an ethical culture must be part of the agenda. The private sector has to build an ethical culture in practice.

What is the difference between ethics and building a culture of trust?

Ethics are a set of principles. An ethical culture is a culture committed to pursuing those principles — and sometimes the pursuit of those principles leads an employee to take actions somebody else might dislike. Perhaps the employee reports suspicions of misconduct, involving bribery or collusion in competition or mismanagement of data privacy.

Either way, the employee needs to trust that the company will support that decision to step forward. The apparatus of a corporate compliance program—the training, the internal reporting systems, the Code of Conduct, the due diligence procedures; all of it—should work toward the goal of a strong sense of trust within the organization, which lives democracy!

you view “building an ethical culture” from that perspective, suddenly several tasks rise to the top of the priority list.

For example, as much as we all love a strong internal reporting system, most employees report their concerns to managers. Most employees also take their cues about how to behave from managers. Consequently, training managers about how to weave ethical standards into the company’s daily routines is critical. In other words: do the right thing, even when nobody is looking. That’s called INTEGRITY.

Formal training will always be important; employees will always need to know what the law says about bribery, or privacy, or collusion, or whatever else comes along. Culture, however, is much more than training, full of informal practices, norms, and expectations. Therefore, ethics and compliance programs must work with middle managers on what those practices, norms, and expectations are, and how to base them on the company’s ethical principles. That’s where we win or lose this battle.

In conclusion, implementing democracy in our organizations has many aspects. I have covered a few only, but I strongly feel, that living democracy in our organizations is as important as government living and demonstrating democracy around us.

Your comments will be highly appreciated; contact me at hjschumacher59@gmail.com