ABSTRACT
A near-universal consensus was reached in the post-Cold War years on the desirability of the democratic model of political organisation and superiority of the capitalist system of economic governance. The consensus on democracy and capitalism over the last two decades has prompted many to consider the two as mutually reinforce each other. However, past and present socio-economic and political junctures have thrown doubt on the relatively solid conviction that democracy and capitalism are, first, superior systems, and second, naturally reinforcing. As economic actors in a capitalistic society, businesses exercise political influence by shaping regulatory changes bearing on social and environmental issues through active lobbying, membership in advisory committees, and other traditional political channels. This chapter seeks to address the increasingly political role of business in a global context. While extensive research has been conducted both on the interactions between business and politics and on how business responds to social demands, little work has been done on the positive duty of business in relation to democracy-building. By first reviewing how general theoretical perspectives have actually been applied within PCSR research, I arrive at insights that make possible an in-depth analysis of democracy-building practices engaged in by businesses. In order to address this question, this chapter adopts an approach that brings together PCSR scholarship with political science theories about democratisation, helping to advance the expanding agenda of research into the political role of business. I outline a theoretical framework detailing the prerequisites of and motivations for internal and external democracy-building practices on the part of business. On the basis of this framework, I then identify implications for PCSR theory and practice.
