AI, Human Rights, and Business Ethics: Can Corporations Lead Where Governments Fail?
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In a recent America at a Crossroads discussion, Michael Posner, Director of the Center for Business and Human Rights at NYU’s Stern School of Business and former Assistant Secretary for Democracy, Human Rights, and Labor under the Obama Administration, shared his insights on the growing challenges of content moderation in the digital age. In his new book, Conscience Incorporated: Pursue Profits While Protecting Human Rights, Posner argues that businesses, particularly tech companies, can balance financial success with ethical responsibility. However, in the current political climate, major social media platforms are moving away from content moderation, allowing disinformation and extremist rhetoric to thrive.
The Ethical Dilemma of Business and Human Rights
Many multinational corporations face an ongoing ethical dilemma: how to expand globally while maintaining high human rights standards. Posner highlights a notable example in the cloud computing industry. Microsoft, Google, and Amazon—three of the largest cloud providers—initially competed for business in authoritarian countries like Saudi Arabia, Russia, and China, where governments sought access to private data.
Recognizing the dangers of unrestricted surveillance and human rights abuses, these tech giants took an unprecedented step: they agreed to a shared privacy framework, ensuring that they would not compete on customer data access. This cooperative effort demonstrated that businesses, even while pursuing profit, can establish ethical standards that protect users and maintain global credibility.
Yet, Posner cautions that these successes are rare. Many corporations, particularly in sectors like social media, AI, and supply chain management, still prioritize revenue over responsibility. Without external pressure—whether from consumers, investors, or regulatory bodies—most businesses are unlikely to self-regulate at the scale required to prevent harm.
AI and the Growing Disinformation Crisis
One of the most pressing concerns in today’s digital landscape is the rapid advancement of AI, particularly generative AI models like ChatGPT and deepfake technologies. Posner warns that AI-generated misinformation is already flooding online spaces, making it increasingly difficult to distinguish fact from fiction. This problem is exacerbated by the lack of meaningful oversight from both tech companies and government regulators.
The Biden administration had begun exploring AI regulations, but these efforts have since been revoked under the Trump administration, which has expressed little interest in tech regulation. Without government intervention, AI companies are racing to develop and deploy powerful new models without fully understanding their implications. Posner argues that AI, if left unchecked, will amplify the challenges that social media has already created—spreading disinformation, polarizing societies, and undermining democracy.
The Global Human Rights Implications
Beyond AI, the retreat from ethical business practices is also evident in the dismantling of U.S. international aid efforts. The drastic cuts to USAID, which once provided billions in humanitarian relief and global health initiatives, have left a void that private philanthropy alone cannot fill. Millions of people around the world rely on U.S. foreign aid for essentials like malaria and HIV treatments. As the government withdraws, businesses and nonprofits must decide whether they will attempt to fill this gap or let global health and human rights deteriorate further.
Despite the grim outlook, Posner believes that certain global trends may help counterbalance this retreat. He points to the European Union’s Due Diligence Directive, which mandates stricter oversight of corporate supply chains and human rights practices. Similarly, Germany’s Supply Chain Act holds multinational corporations accountable for labor conditions in their operations, regardless of where they operate. These efforts suggest that while the U.S. government is stepping back, European regulators are moving forward in setting global business ethics standards.
Will Businesses Step Up or Step Back?
Posner emphasizes that corporate leaders are privately expressing concerns about the current trajectory of government policy. However, few are willing to take a public stand—especially those whose businesses rely on government contracts. The fear of political retaliation has kept many CEOs silent, even as tariffs, immigration policies, and regulatory rollbacks threaten economic stability.
For businesses, the stakes are high. A damaged global reputation, unpredictable regulatory environments, and consumer distrust all pose risks. Some industries, such as agriculture and construction, are already facing labor shortages due to immigration policies, while American brands struggle to compete internationally amid growing anti-U.S. sentiment.
The Path Forward: Regulation or Self-Governance?
Despite the obstacles, Posner remains cautiously optimistic. He sees potential in businesses adopting self-imposed ethical frameworks, as seen with cloud computing privacy agreements. Additionally, he believes that global regulatory pressure, particularly from the EU, could compel U.S. companies to change course—even if the U.S. government remains inactive.
Ultimately, the question remains: will businesses take responsibility for AI ethics, human rights, and corporate governance, or will they continue prioritizing short-term profits? With government leadership waning, the private sector may hold the key to shaping a more responsible and ethical digital future.
As consumers, investors, and employees, individuals can also play a role by demanding transparency and ethical business practices. Whether through advocacy, supporting responsible companies, or calling for stronger global regulations, public pressure remains one of the most powerful tools in holding corporations accountable.
The future of business and human rights depends on whether companies embrace their role as ethical leaders or continue to operate unchecked. The next few years will determine whether corporate responsibility is merely a talking point or a genuine commitment to protecting human dignity and democracy worldwide.
About America at a Crossroads
Since April 2020, America at a Crossroads has produced weekly virtual programs on topics related to the preservation of our democracy, voting rights, freedom of the press, and a wide array of civil rights, including abortion rights, free speech, and free press. America at a Crossroads is a project of Jews United for Democracy & Justice.