This work deals with the political transition in Spain from authoritarianism to democracy and its impact on business. It addresses the fundamental questions of how business was affected by the transition and how business, in turn, influenced the course of democratization, through collective action, and how it influenced the marketplace through the aggregate of individual business decisions. The work has a strong empirical base. Data was collected from the chief executive officers of 260 Spanish companies and the managing directors of over one hundred affiliates of the top-ranked business association, the Spanish Confederation of Business organizations (the "CEOE").