In its newly released signature report, the Denny Center for Democratic Capitalism at Georgetown Law finds that the private sector, specifically the corporate sector, has a vested interest in supporting the long-term health of society more broadly. Because the largest 500 U.S. companies make up about two-thirds of GDP, the report focuses primarily on public company boards of directors, the challenges they face, and the rationale for prioritizing non-shareholder stakeholder interests. According to research highlighted in the report, boards that (1) give explicit consideration of all stakeholder interests and (2) assess shareholder value over longer time horizons are able to better address the needs of employees, customers, vendors, and communities without sacrificing long-term value creation for shareholders.

In his 2005 Economist essay, “The Biggest Contract”, McKinsey’s Ian Davis argues that large corporations should adapt Rousseau’s idea of a social contract: “More than two centuries ago, Rousseau’s social contract helped to seed the idea among political leaders that they must serve the public good, lest their own legitimacy be threatened. The CEOs of today’s big corporations should take the opportunity to restate and reinforce their own social contracts in order to help secure, for the long term, the invested billions of their shareholders.” In other words, if they haven’t already, those who steward our largest companies should broaden the scope of their responsibilities to include the health of society more broadly, recognizing this broadening is in their business’s self-interest.

Within this context, the Denny Center’s 2025 Report on the Health of Democratic Capitalism revisits key datasets from its 2024 Report and, in addition, examines the role of corporate boards in supporting democratic capitalism. This year’s report addresses important questions including:

• What do we know about the largest public company boards?
• How do boards currently prioritize their time?
• What external pressures are challenging boards today, and what dilemmas are boards facing as a result?
• Why should boards care about the health of democratic capitalism, and how might they factor it into long-term strategy?

Over the last 200 years, free market capitalism has proven itself to be an unmatched engine for driving innovation and economic growth in the United States and around the world, and yet big problems persist.  Reconciling the benefits of capitalism with broader societal needs and aspirations is a perennial tug of war, and maintaining the balance between the two is critical to the future of both capitalism and a flourishing democratic society.  Established in 2020 by a generous gift from Georgetown Law alumnus James McCahill Denny (L’60) and charged with a unique vision grounded in life experience, the Denny Center exists to reconcile the benefits of free market capitalism with the values and expectations of a democratic society. Though reasonable voices may disagree on potential solutions, the report aims to present objective data all sides can accept as a true reflection of the present realities – and to raise critical issues that require long-term solutions.

The 2025 Report includes supporting essays from the University of Michigan’s Betsey Stevenson and American Enterprise Institute’s Michael Strain.  The center is also grateful for the important contributions of its Research Director, Kelsey Harrison.

Read the 2025 Annual Report on the Health of Democratic Capitalism: Examining the Role of Corporate Boards.