I recently attended an educational session for board members of private companies. Common themes included uncertainty, confusion, building costly redundancy in supply chains, and the need for agility. But not once did the CEOs and directors mention a significant root cause behind these trends: the Trump administration and its policies.

In private, Trump is frequently criticized, as evidenced by the reporting from a Yale University meeting of CEOs.
·      His tariff policy has been costly, according to 2/3 of the businesses in attendance.
·      Uncertainty is reducing investments.
·      They are concerned about Trump’s shift toward state-sponsored capitalism, as reported in The Wall Street Journal.
·      On net, Trump is bad for business, Forbes summarizes from the meeting.
Yet publicly, the business community and its leaders have remained silent or conciliatory.

Why the silence?

It is a whole new world, and a scary one, when the President publicly demands that the Justice Department go after his enemies. He forced the resignation of the US Attorney for the Eastern District of Virginia for being unable to find proof of mortgage fraud by the New York Attorney General. She became an enemy of Trump when she won a case charging his business with fraud. Companies fear speaking out lest they join the enemies’ list.

This risk is why media companies, law firms, healthcare facilities, and universities have complied with Trump’s demands. They have capitulated, despite having a good chance of stopping his demands by winning in court. A few brave organizations have sued the administration and won.

Another example of compliance is media companies that he claims criticize him 97% of the time. Comics are at the top of the list. Makes one miss Lyndon Johnson, who said, “It is part of the price of leadership of this great and free nation to be the target of clever satirists. You have given the gift of laughter to our people. May we never be so somber or self-important that we fail to appreciate the humor in our lives.”

The GOP Congressional leadership is guilty of caving in. They are allowing Trump to usurp powers that clearly belong to Congress, such as tariff policy and spending authority.

Disney is our recent example of capitulation. The FCC leader threatened not to approve mergers significant to Disney unless ABC (owned by Disney) took Jimmy Kimmel off the air. Texas Senator Ted Cruz likened the move to something seen in a mafia movie. Disney’s CEO and board (which I assume had to be involved in the decision) acted in their short-term interests, even though the FCC’s threats were outside its legal scope.

But what about the long term?

Disney now faces boycotts for its streaming services, as well as its amusement parks. After all, Universal offers a compelling alternative to Disney these days in Orlando, Florida.

The other long-term risk is to democracy and free markets, which are the foundation for long-term national economic well-being. It is this capitulation that empowers authoritarian leadership. Timothy Snyder, a historian and leading expert on tyranny, notes, “Most of the power of authoritarianism is freely given. In times like these, individuals think ahead about what a more repressive government will want, and then offer themselves without being asked … teaching power what it can do.”

What are business leaders to do, caught between a rock and a hard place?

I want to say speak out loud and clearly. But I understand the risks and responsibilities to owners and shareholders. So, determine what your brand, company core values, and talent require of your firm’s response. It will be easy for Patagonia to speak out against Trump as he stands against the firm’s clear commitment to saving the planet from climate change, an environmental risk that Trump denies. Deere could speak out about how tariffs and immigration crackdowns are causing significant financial harm to farms. It will be harder for companies facing regulatory commission approvals.

In this pivotal time in our nation’s history, define your role as an individual citizen.

While your business may not be able to speak out, you can vote. You can boycott. Contact US Congressional leaders to express concerns. A walk in the No Kings March on October 18th may be too public, but you can try to influence others in the upcoming midterm election. The data shows that if 3.5% of our population engages in active resistance, we can preserve democracy.

Asked after the 1787 Constitutional Convention whether we had a Republic or a Monarchy, Ben Franklin responded, “A republic … if you can keep it.”
Whether we do is up to us.