Absolutely. As two-thirds of the world continues to evolve towards political democracy, organizations operating democratically can act as a powerful force and a potential leverage point for furthering democratic development around the world.
Take a look at some of the positive ripple effects that a democratic organization can have on the world:
Economic Development
Democratic organizations have higher levels of innovation and job creation, contributing to overall economic development within a country.
Anti-Corruption and Ethics
Democratic organizations are more transparent and open to employees, shareholders, and stakeholders, making it harder for unethical practices, such as nepotism and corruption, to occur. Less corruption means a more stable economic and business climate for further business development.
Individual Empowerment and Civil Society
Democratic organizations create a work environment that develops employee skills in areas such as leadership, individual accountability, decision-making, independent thinking, conflict resolution, teamwork, communication, and financial literacy. As employees develop themselves and their sense of self-worth, they may increasingly look for ways to volunteer and engage civically as well.
Foreign Direct Investment
Democratic organizations are increasingly able to adapt to and prosper from market changes. This agility strengthens their business capacity, making democratic organizations good candidates for foreign direct investment (FDI). Democratic organizations help attract necessary capital to fuel a developing nation’s growing economy.
Sustainable Peace
According to research done at the University of Michigan’s Ross School of Business, democratic organizations directly contribute to building a lasting peace in their communities.
Organizational democracy can be a powerful tool to help build thriving democratic countries around the world.
