Marc Benioff: Reimagining Capitalism through Management as a Liberal Art

What is Soft Power? A relatively new concept in the field of leadership is soft power. The term was coined in 1990 by Joseph S. Nye, a leading architect of U.S. foreign policy for six decades. He worked for two U.S. presidents and served as dean of Harvard’s Kennedy School of Government for a decade. Nye believed that whatever helped the world helped the United States. Soft power refers to an organization’s or country’s ability to influence others through attraction rather than coercion or payment. A good example is the aid that the United States gives to other poorer nations to alleviate disease, hunger, poverty, and illiteracy. Nye also discussed “smart power,” which involves using both hard power (military or political might) and soft power. (Nye, 1990). In furtherance of a more peaceful world, the question is whether we want leaders who are oblivious to the effectiveness of soft power and instead use hard power to coerce, threaten, and force people, or leaders who use both soft and hard power to help people. In the short term, hard power typically prevails over soft power, but in the long term, soft power often prevails. Hard power is a short-term solution, whereas soft power has long-lasting results. (Nye, 2025). Clearly, soft power can be more effective for accomplishing goals in many circumstances. However, there are times when hard power can be used in conjunction with soft power — the concept known as smart power — to be more effective in influencing the behavior of others. Sometimes people are attracted to or intimidated by threatening or bullying behavior (hard power). In this case, hard power is more effective because people fear the negative consequences of speaking out against the people in power (Tanis et al. 2025). An example of the failure of hard power can be seen in the United States’ invasion of Iraq in 2003, intended to limit terrorism. The invasion itself, along with brutal images of Abu Ghraib prison and the imprisonment of suspected terrorists in Guantanamo Bay Prison without any due process, was shown to increase the recruitment of more terrorists (Nye, 2008). Another example of potential real-life consequences of a leader choosing between hard power and soft power is reported in Foreign Policy Magazine (2025): Joseph Nye was dismayed that the new administration in Washington was using the hard power tactics of threatening, bullying, and ordering, along with canceling the soft power accomplishments of U.S. foreign aid programs. He predicted that they were ceding a United States-led world to one dominated by China, because China understands the potential of soft power. Apparently, the current administration does not. Veteran journalist Andreas Kluth (2025) notes that the United States Agency for International Development (USAID) is one of the most effective examples of the United States' soft power. It is best known for its humanitarian efforts to combat AIDS, malaria, and starvation abroad. It is estimated that without the work of USAID, an additional 14 million deaths will occur in the next five years. Almost as bad as the deaths is that the goodwill created in numerous foreign countries will be gone. Kluth and the United States Senate Foreign Relations Committee (2025) are concerned that China will be stepping into the void of losing USAID. They warn that China now has more soft power than the United States and outspends the United States in foreign aid 40 to 1 in its pursuit of world domination (Kluth 2025). In this regard, Blanchard and Lu (2012) point out a weakening of U.S. soft power since the terrorist attacks of September 11, 2001, the US invasion of Iraq, and continuing unilateralism of the United States. Peter Drucker Drucker was born in Vienna, Austria, in 1909, and as a young man witnessed Europe being taken over by the totalitarian, fascist regime of Adolph Hitler starting in the mid to late 1920s and Hitler’s being elevated to Chancellor of Germany in 1933. Drucker knew firsthand that totalitarianism hurts people, and he spent much of his life analyzing its causes and cautioning people against it. According to Drucker, people will not willingly allow their country to become totalitarian if society gives all people status, dignity, respect, and a meaningful place in society. Drucker called this a functioning society. He advocated for a people-centric approach in leadership, where people were given autonomy and no one was left behind or abandoned by society. Although Peter Drucker did not use the term "soft power," upon examining his writings and life’s work, it is clear that he preferred the use of soft power over hard power. His classic invention of Management by Objectives, which gives employees considerable autonomy, is a prime example of soft power (Drucker 1954). He felt that companies had a social dimension as well as an economic purpose (Drucker 1942). He wanted companies to treat workers as an important resource, rather than solely as a cost (Drucker 1993). Drucker would disapprove of the most powerful democracy in the world ceding its world leader status to a totalitarian country, China. The fear is that China being seen as the world leader might influence or encourage other countries to allow dictatorial and autocratic governance (Shlapentokh 2021).  Bardy et al. (2010), in their study of Peter Drucker and ethics in the United States and Europe, posit that Drucker’s good ethics in business efforts ensure that society is being served and that change efforts are successfully brought about by adhering to Drucker’s discourse and right behavior. They said that Drucker was caring and ethical in his treatment of managers and employees, much like a leader who prefers soft power. Drucker was quoted as quoting William Norris; “The purpose of a business is to do well by doing good” (p. 539). Showing his preference for doing good for people demonstrates care ethics (Coorman, 2025), which is mostly what soft power is entails. Conclusion Peter Drucker is renowned for his ability to predict future trends in various domains, including business, economics, and society (Cohen, 2012). Currently, the world seems to be at a crossroads: Will democracy survive? Will we learn how to communicate with each other? We need to remember the wise and ethical teachings of Peter Drucker, especially on the effectiveness of using soft power. Drucker’s blend of practical management advice with profound ethical underpinnings underscores his status as a thought leader who not only understood the mechanics of management but also engaged with the moral implications of leadership within complex societal frameworks. References Bardy, R. & Rubens, A. (2010). Is There a Transatlantic Divide?: Reviewing Peter F. Drucker’s Thoughts on Ethics and Leadership of U.S. and European Managers. Management Decision. Vol. 48. Iss. 4. 528-540. DOI:10.1108/00251741011041337. Cohen, W. (2012). Drucker on Marketing: Lessons from the World’s Most Influential Business Thinker. McGraw Hill. Coorman, L. 2025. Soft Power. Master’s Thesis. Indiana University, Herron School of Art and Design. 2025. https://hdl.handle.net/1805/50513 Drucker, P, (1942). The Future of Industrial Man. Mentor Book/New American Library. Drucker, P. (1954). The Practice of Management. Harper & Row. Drucker, P, (1993). The Concept of the Corporation. Routledge. Kluth, A. 2025. How the U.S. is Making China Great Again. The Week. Iss. 12. Aug 2, 2025. Nye, J. (1990). Bound to Lead: The Changing Nature of American Power. Basic Books. Nye, J. (2008). Soft Power. Leadership Excellence. Vol. 25. Iss. 4. April 2010. Nye, J. 2024. Invest in Soft Power. Foreign Policy. Sept. 9. https://foreignpolicy.com/2024/09/09/us-soft-power-culture-political-values-democracy-human-rights/ Nye, J. (2025). Obituary. Los Angeles Times, 5/21/25 p. 11. Shlapentokh, D. 2021. Marxism and the Role of the State in the Soviet and Chinese Experience. International Journal of China Studies. Vol. 12. Iss. 1. (Jun. 2021) 157-186. https://2q21dwppn-mp03-y-https-www-proquest-com.proxy.lirn.net/scholarly-journals/marxism-role-state-soviet-chinese-experience/docview/2565686898/se-2. Tanis, F. and Emanuel, G. 2025. To Speak or not to Speak: Why Many Aid Groups are Silent about the Trump Cuts. NPR Weblog Post. August 1, 2025. https://www.proquest.com/abitrade/blogs-podcasts-websites/speak-not-why-many-aid-groups-are-silent-about/docview/3235492953/sem-2?accountid=150887

Previously, I shared de Tocqueville’s concept of equality of condition and how it is manifesting in today’s perception that democracy has failed to deliver on its promise of economic and social equality for all. Promises of economic equality are impossible to fulfill; but democratic societies can and should offer all of their members dignity and a sense of purpose. In this final installment, I’ll share de Tocqueville’s prescriptions for shoring up the institutions of a democratic society – as well as some of his warnings about challenges that democracies face. Tendency Towards Strong Authority According to de Tocqueville, the love of equality found in democracies leads to a tendency towards favoring strong, centralized governmental power. As conditions become more equal, “individuals seem of less and society of greater importance” (Tocqueville, 1835, p. 290). This leads to what he refers to as “uniformity of legislation”: the belief that laws and rules should be applied uniformly to everyone across society. Nuance and complexity are lost, and individual difference is subsumed to a concept akin to Rousseau’s General Will (which Drucker treated with the utmost disdain). The United States that de Tocqueville visited was still relatively rural and homogenous in 1830, but there certainly were tensions brewing with respect to slavery, the role of women in society, and the balance between manufacturing and agriculture in the economy. Today, the United States at times stresses the importance of strong federal power, usually to assert law and order or negotiate with other sovereign nations, but at other times lauds the role of individuals having a voice in state and local matters, such as educational curriculum and budgetary control. This tension between the desire for central authority and states’ rights has a long history and continues to impact legislative and other matters. Role of the Judiciary De Tocqueville holds up the Constitution as an exemplary system of checks and balances to counter this tendency towards the power of the “despotic majority.” James Madison famously warned of “tyranny of the majority” in his Federalist Paper Number 10. De Tocqueville favored the system of federalism, which limited the powers of the federal government to those functions that were best suited to a central power and delegated the rest to the states. He stated that this allowed “the Union to combine the power of a great republic with the security of a small one” (Tocqueville, 1835, p. 299). De Tocqueville was particularly impressed with the power given to the judiciary in the United States. He wrote extensively on our system of trial by jury, arguing that serving on a jury was a form of legal education for everyday people, and thus an important part of understanding the workings of the legal process enshrined in the Constitution. The judiciary, he said, “check and direct the impulses of the majority without stopping its activity” (Tocqueville, 1835, p. 299). The role of the courts in the United States today is under challenge. Recent Supreme Court decisions have ceded the power of that body over the executive branch (see Trump v. CASA and Trump v. United States). However, federal courts continue to function to “check and direct” questionable actions through injunctions. Globally, an independent judiciary is seen as crucial to counter rising authoritarianism (Satterthwaite, 2022). The Art of Association Alexis de Tocqueville was fascinated by Americans’ affinity for local action. As a member of the French aristocracy, this was completely foreign to him. He observed Americans participating in local government, clubs, religious congregations, and reform organizations. He used New England as a model, remarking that the system instituted under Puritan rule (which involved self-government and autonomy) fostered a strong sense of local activism: “The New Englander is attached to his township not so much because he was born in it, but because it is a free and strong community, of which he is a member, and which deserves the care spent in managing it” (Tocqueville, 1835, p. 66). Because local action bonded people to one another (in Drucker’s words, provided status and function), they feel a sense of purpose. This “art of association” that Americans demonstrated to de Tocqueville countered the tendency towards negative individualism and the despotism of the majority that he feared. Many authors have documented the increasing atomization of society and subsequent loss of social mixing that was the hallmark of American public life (see Galbraith, The Affluent Society, Putnam, Bowling Alone, and Bishop, The Big Sort). The rise of social media has only increased this tendency. To counter this reality, radio and television commentator Michael Smerconish created “The Mingle Project”, a series of events bringing diverse groups of people together to discuss topics of interest. Free Press De Tocqueville is well-known for advocating for a free press. It is, in fact, one of his core tenants of a functioning democracy: “to suppose that they [newspapers] only serve to protect freedom would be to diminish their importance: they maintain civilization” (Tocqueville, 1835, p. 111). While he acknowledges the existence of “junk news”, he argues that there is much more good information than bad. De Tocqueville was particularly impressed with the wide range and number of newspapers available, particular smaller news outlets. As the primary information source of that era, newspapers allowed people to not only stay current on politics, but also to know of events they could attend. Perhaps most importantly, a free and diverse press sheds light on government, creating yet another possible guardrail against abuses of power. There is substantial research on the impact of declining local news, showing that it contributes to political polarization, lack of voter engagement, and reduced accountability in the public sector (see The state of local news and why it matters, American Journalism Project, https://www.theajp.org/news-insights/the-state-of-local-news-and-why-it-matters/). Declining circulation and advertising revenues have resulted in the closure of thousands of local media outlets despite the fact that most Americans have positive impressions of local journalists. Furthermore, fewer Americans are paying attention to local news, and the majority prefer to get their news from online forums such as Facebook or Nextdoor (Shearer et al., 2024). De Tocqueville’s Warnings It is clear that de Tocqueville saw rule of law, vibrant local organizations, and a healthy fourth estate as counterbalances to the tendency towards despotic rule by the majority and centralized power in democracies. He furthermore warned against two specific threats to democracy: capitalism’s ability to create a permanent social underclass, and citizen apathy. A Manufacturing Aristocracy In 1830, America’s economy was beginning its transition from one based on agriculture to one driven by industry. That transition would accelerate after the Civil War, but de Tocqueville remarked on the transformation that he saw during his visit. He was most concerned, however, with industrialization’s impact on society. As manufacturing became more specialized and routinized, the work itself became more mundane and unfulfilling; de Tocqueville describes to a tee what Karl Marx and Friedrich Engels would a decade or so later describe as “alienation of labor”: “as the workman improves, the man is degraded” (Tocqueville, 1835, p. 158). Spending twenty years “making heads for pins” leaves the worker no room to exercise any curiosity or intelligence; instead, the worker is assigned “a certain place in society, beyond which he cannot go” (Tocqueville, 1835, p. 159). At the same time, manufacturing “raises the class of masters” to the point where worker and owner have nothing in common. Each fill a position that is fixed, and they are dependent upon each other. This, de Tocqueville argues, is an aristocracy. The creation of a “permanent inequality of conditions”, he claims, would spell the demise of democracy. History has shown his analysis to be sound. The Work of Democracy De Tocqueville described the slow delegation of decision making over everyday events from the individual to the state. People, he said, had two conflicting desires: “the want to be led, and they wish to remain free.” In order to fulfill both of these desires, they elect governments democratically but then surrender to “administrative despotism” in the form of rules and regulations that slowly erode individual decision making over matters (Tocqueville, 1835, p. 319). This is another byproduct of equality of conditions; if everyone is the same, then rules can apply to every aspect of life without considering individual circumstances. But of course, this is not the case, and so expanding limitations on judgment, de Tocqueville argues, reduces the ability of democratic citizens to think for themselves. In essence, he is warning that democratic governance requires engagement, involvement, and faith in people’s ability to govern themselves. Otherwise, democracies will simply become administrative tyrannies where the tyrants are duly elected. Conclusion Benjamin Franklin famously responded, when asked what kind of government the Constitutional Convention had created, “A Republic, if you can keep it.” His comment captures the fragility of this form of government, and the responsibilities it construes on its citizens. Alexis de Tocqueville’s observations and warnings send a similar message to us. We have a responsibility to ensure that fair-minded journalism, judicial equity and oversight, and meaningful social and civic engagement are part and parcel of our democratic system of governance. If we fail to pay attention to the warnings from those who were closest to the early stages of democracy’s development, we stand a fair chance to lose what we have been bequeathed. Sources Bishop, B. (2008). The big sort: Why the clustering of like-minded America is tearing us apart. New York: Houghton Mifflin Harcourt. Galbraith, J.K. (1958). The affluent society. New York: Houghton Mifflin Company. Putnam, R. (2000). Bowling alone: The collapse and revival of American community. New York: Simon and Schuster. Satterthwaite, M. (2022). The role of an independent judiciary in protecting rule of law. Asia Pacific Justice Forum, World Justice Project, Dec. 8-9, https://worldjusticeproject.org/news/role-independent-judiciary-protecting-rule-law. Shearer, E. et al. (2024). Americans’ changing relationship with local news. Pew Research Center, https://www.pewresearch.org/journalism/2024/05/07/americans-changing-relationship-with-local-news/. Tocqueville, A.D. and Reeve, H. (1835). Democracy in America. London: Saunders and Otley, to 1840.