The Journal: Corporate America's Embrace of Trump 2.0
Hosted by Kate Linebaugh and Ryan Knutson, with Jessica Mendoza
Release Date: January 17, 2025

Introduction

In the January 17, 2025 episode of The Journal, host Kate Linebaugh delves into the evolving relationship between Corporate America and former President Donald Trump. Titled "Corporate America's Embrace of Trump 2.0," the episode explores how major companies have shifted their strategies to align more closely with Trump's administration, the motivations behind their actions, and the potential risks involved.

Initial Corporate Reactions to Trump's Election

June 2024 Highlights:

Following Donald Trump's unexpected victory in the 2016 presidential election, many business leaders were initially uncertain about how to navigate the new political landscape.

• Chip Cutter explains, "Most of corporate America really didn't have a relationship with Trump then. You know, he was kind of a political unknown. And so a lot of executives didn't know what to expect." [03:14]

Early efforts by Trump to engage with corporate leaders included inviting CEOs to join business councils aimed at advising on economic matters. While prominent figures from companies like IBM and Pepsi participated, the relationships were fraught with tension.

In 2017, Trump's administration faced backlash from nearly 100 companies protesting his controversial immigration policies, including the widely criticized Muslim travel ban.

• A protester voiced the sentiment: "Fight against President Trump's executive order on immigration." [04:12]

These events led to a significant exodus of CEOs from Trump's advisory councils.

• Chip Cutter noted, "CEOs were almost tripping over themselves to get off of these councils and to distance themselves from Trump." [04:25]

Shifting Strategies: From Opposition to Engagement

As Trump's first term progressed, some companies began to reassess their strategies toward the administration. The initial confrontations gave way to a more nuanced approach of engagement and support.

• Chip Cutter observed, "Companies see an opportunity. They realize that they need to be in Trump's ear, that now is the time." [01:41]

This shift was marked by substantial financial contributions to Trump's inaugural fund following his re-election.

• Kate Linebaugh stated, "These donations are helping pay for stuff like galas and balls at the inauguration." [00:22]

Major corporations such as McDonald's, Toyota, Boeing, Meta (formerly Facebook), Walmart, Uber, Goldman Sachs, and Bank of America each donated approximately one million dollars to the fund.

• Chip Cutter detailed, "Million donation to President Boeing. Boeing gave money to this bond." [00:55]

Corporate Strategies for Navigating the Trump Administration

In response to the evolving political climate, corporations sought expert advice on maintaining favorable relationships with the administration. Nikki Haley, former UN Ambassador and political rival of Trump, emerged as a key advisor.

• Kate Linebaugh introduced, "One person they've turned to has a lot of experience on either side of Trump. She was both his one time UN Ambassador and later his political rival." [06:40]

Haley advocated for a non-political stance, using Dolly Parton as a model for corporate behavior.

• Chip Cutter relayed Haley's advice: "Nikki Haley says companies and CEOs should try to be more like Dolly Parton." [07:28]

This "Dolly Parton strategy" emphasizes neutrality, allowing companies to maintain broad appeal without alienating any particular group.

Additionally, CEOs like Apple's Tim Cook developed targeted approaches when interacting with Trump, focusing on specific topics to maximize their influence.

• Chip Cutter highlighted, "Tim Cook ... will just bring one topic up. He knows that he doesn't want the conversation to wander or go in all different directions." [08:34]

Corporate Actions Post-Reelection

After Trump's re-election in November, corporations intensified their efforts to align with his vision:

• Rollbacks on Diversity, Equity, and Inclusion (DEI): Companies like Walmart and McDonald's scaled back their DEI initiatives.

• Climate Policy Retreats: Major banks withdrew from a UN-backed climate coalition.

• Meta's Strategic Moves: The company ceased Facebook fact-checking services, donated to Trump's fund, and appointed Dana White to its board, signaling a strategic pivot towards favoring the administration.

• Coca-Cola's Gesture: Despite a historically strained relationship, Coca-Cola gifted Trump a commemorative bottle for his inauguration, symbolizing corporate outreach.

• Chip Cutter summarized, "Meta ended fact checking on Facebook. It donated that million dollars to Trump's inauguration fund." [11:07]

Risks and Public Perception

While these strategic alignments aimed to secure Trump's favor, they carry significant risks:

• Consumer Backlash: Companies risk alienating consumers who prioritize issues like climate change and workplace equality. Critics argue that corporate acquiescence to political winds portrays companies as lacking firm principles.

  • Chip Cutter warned, "There's this risk that companies appear too cozy with the incoming administration. ... You're turning off employees, you're turning off consumers." [15:05]

• Potential for Public Outcry: Over-alignment with Trump could provoke negative reactions, especially if policies take a drastic turn, such as mass deportations.

  • Chip Cutter posed the question, "How is that all received?... Are companies really going to be as effective as they think they are?" [12:27]

Future Implications

As corporations continue their "charm offensive" towards Trump's second term, the long-term efficacy and repercussions of these strategies remain uncertain. Companies must balance their desire for political influence with maintaining consumer trust and upholding their declared values.

• Chip Cutter reflected, "I think there's a lot of companies that are in that boat... like, yeah, we do actually care about climate change." [13:09]

Future corporate actions will likely hinge on Trump's policies and the broader public's response to their alignment with the administration.

Conclusion

The episode of The Journal effectively captures the complex and shifting dynamics between Corporate America and the Trump administration. As companies navigate this political landscape, they must carefully weigh the benefits of alignment against the potential costs to their reputation and stakeholder trust. The strategies employed now will shape the future relationship between business leaders and political power.

Notable Quotes:

• Chip Cutter: "Most of corporate America really didn't have a relationship with Trump then... lot of executives didn't know what to expect." [03:14]

• Chip Cutter: "Companies see an opportunity. They realize that they need to be in Trump's ear, that now is the time." [01:41]

• Chip Cutter: "Nikki Haley says companies and CEOs should try to be more like Dolly Parton." [07:28]

• Chip Cutter: "There's this risk that companies appear too cozy with the incoming administration... turning off employees, turning off consumers." [15:05]

Credits:
Additional reporting by Eric Schwartzel. Produced by Kathryn Brewer, Pia Gadkari, Rachel Humphries, Ryan Knudson, Sophie Codner, Matt Kwong, and others. Fact-checking by Mary Mathis.