By Janet M. Stovall, CDE
What happens when the path of least resistance becomes a dead end? In the corporate world, companies often go along to get along, especially when faced with pressure from powerful government actors. But that quiet compliance is actually a form of surrender, with far-reaching consequences for everyone.
This isn’t theoretical. As legal expert Tom Moore explained on a recent episode of the In This Moment podcast, we’re seeing a rise in what he calls “anticipatory obedience,” where organizations capitulate to governmental pressure before it’s even formally applied. Companies aren’t just avoiding a fight. They’re making a strategic miscalculation that could have devastating effects on our economy and our democracy.
The anatomy of capitulation
Consider NVIDIA and AMD, two of the world’s leading chipmakers. As Moore pointed out, these companies agreed to pay 15 percent of their Chinese sales to the U.S. government in August 2025, an arrangement that experts say is unprecedented. Scott Kennedy of the Center for Strategic and International Studies told PBS NewsHour that he had “never heard of a deal like this” in his entire career watching U.S.-government business relations. The deal raises constitutional questions about export taxes, though it would require a court challenge to determine its legality. They weren’t responding to a law. They were responding to pressure, and in doing so, they set a dangerous precedent. This is the “bully taking lunch money” scenario playing out in the C-suite. Once a bully knows you’ll pay up, they keep coming back for more.
This trend isn’t limited to tech. We’ve seen law firms and universities fold under pressure, while others have resisted. A Conference Board survey from August 2025 found that 78 percent of U.S. corporations describe today’s political environment for companies as extremely challenging or very challenging. The problem is that when companies are picked off one by one, there’s no collective force to push back. Industry groups and trade associations have a critical role here. These organizations exist to represent the interests of their members, and that includes standing up to overreach from any source. But as Moore notes, these groups are only as strong as the will of their members. If individual leaders don’t make it clear that they expect a firm stance, the default will be to do nothing.
The power of collective defense
What’s the alternative to quiet capitulation? Moore calls it “collective defense.” When Harvard University was threatened with a funding cut, they didn’t wait to see what would happen. They went to court and had a temporary restraining order by noon the same day. That’s what it looks like to challenge everything and take nothing lying down.
This requires CEOs to look beyond the immediate risks and consider the long-term consequences of inaction. As Moore puts it, “We will all lose everything if we don’t fight this.” Research from Just Security confirms that broad-based democratic fronts that bring people together across sectors are the strongest bulwarks against authoritarianism.
The 3.5% rule, a concept researched by Erica Chenoweth at Harvard University, becomes powerful here. Her work has shown that no government has been able to withstand a challenge of 3.5% of its population mobilized against it during a peak event. While this research has focused on nonviolent social movements, the underlying principle is relevant for the business community. As anthropologist Margaret Mead famously observed, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” If just a fraction of companies in a given sector were to collectively resist undue pressure, it would be incredibly difficult for that pressure to be maintained.
Three things leaders can do now
For leaders who want to move from being a target to being a force for stability, here are three concrete actions:
- Build your coalition before you need it. Don’t wait for a crisis to find your allies. Start having conversations with other leaders in your industry. Work through your trade associations to establish a clear red line on what your industry will and won’t accept. Make it clear that an attack on one is an attack on all. In August 2025, more than 150 U.S. arts organizations signed a joint statement pledging to resist political pressure, demonstrating the power of collective commitment.
- Empower your legal team to fight, not fold. Your chief legal officer’s job is to manage risk, but that doesn’t mean avoiding every fight. Have a frank conversation about the difference between short-term legal risk and long-term existential risk. Give them the mandate to be creative and aggressive in defending the company’s interests and the rule of law. A Harvard Law Review analysis from April 2025 discusses the critical role lawyers play in preventing rising authoritarianism.
- Educate employees. Employees are the first line of defense. They need to understand the difference between a legal requirement and a pressure tactic. Encourage them to ask questions and to challenge assumptions. As Moore says, we should all be going about our lives as if we have a rule of law and a constitution, because we do.
The question for every leader is whether they want to be on the side of compliance or on the side of courage. As Winston Churchill famously said, you can always count on America to do the right thing, after they have tried everything else. In this moment, we can’t afford to wait until the last possible second. The time to stand up is now.
