The year 2026 marks the 50th anniversary of one of the “D”s of the Armed Forces Movement’s Program: Democratization. Following the adoption of the Constitution of the Portuguese Republic on April 2, 1976, the organs of sovereignty were elected through free and pluralistic elections: legislative (April 25), presidential and regional (June 27), and municipal (December 12). At the end of the year, Jornal de Notícias declared on its front page, “Democratic capacity demonstrated by the Portuguese people.”
But another “D” remained: Develop. The post-April 25 period was tumultuous for business in Portugal. Nationalizations swept across land, banking, insurance, electricity, and transport, while instability and restructuring plunged the country into crisis. On June 9, 1976, Expresso captured the moment: “The Economy at the forefront of concerns.”
Fifty years later, the economy remains at the forefront of aspirations. Since the transition to a democratic market economy, the relationship between the country and businesses has evolved significantly, from providing the institutional conditions for markets to function to recognizing companies as stakeholders in democratic governance, through transparency, fair competition, and participation in public debate.
Economic development does not occur in a political vacuum: it depends on stable, predictable, and democratically legitimized institutions. Businesses, as direct beneficiaries of such systems, are also partly responsible for their preservation.
In a context of polarization, misinformation, and declining trust in public institutions, democracies face clear vulnerabilities. Expectations of the business sector are therefore rising: not only on ethical grounds, but pragmatic ones. When democratic stability weakens, so does the business environment, increasing uncertainty, reducing investment, and constraining growth.
Data from the Edelman Trust Barometer shows that companies are now among the most trusted institutions, often surpassing governments. This trust brings expectations: that companies help create solutions and speak out when democratic principles are at risk. Yet this role is not without cost — taking a stand can expose companies to criticism, boycotts, or stakeholder divisions.
In Portugal, where the memory of democratic transition remains strong, this responsibility carries particular weight. Development depends on an open and democratic system, and the companies operating within it today are also heirs to that process. Protecting it is therefore part of their role, through transparent practices, respect for the rule of law, and responsible participation in the public sphere. Prosperity ultimately depends on this shared commitment.
Have a great and impactful week!
Matilde Campos da Cruz, Researcher at Center for Responsible Business & Leadership, CATÓLICA-LISBON