The Shifting Relationship Between Business and the U.S. Government

What It Covers

Yale professor Jeff Sonnenfeld, founder of the Chief Executive Leadership Institute, examines how U.S. CEOs are navigating the current political environment under the Trump administration, addressing fear of retaliation, the value of collective action, and why business leaders cannot afford silence when democratic institutions and economic stability are at stake.

Key Questions Answered

• •Collective Action Over Solo Stands: Individual CEO dissent carries severe risk — the Harley-Davidson CEO was fired after Trump publicly attacked the brand, tanking stock. Instead, coordinate through peer groups or trade associations. When 93 CEOs issued a joint statement on the 2020 election, it produced measurable political impact that no single voice could have achieved alone.
• •Triage Your Issues: CEOs should not take positions on every social or political issue, nor fear a slippery slope into endless advocacy. Michael Dell tracks roughly 100 issues simultaneously and selects the most urgent to address publicly. Leaders should apply deliberate triage — identifying what matters most to employees, customers, and shareholders — then act on that shortlist.
• •Engage Power With Force, Not Flattery: Sonnenfeld argues that transactional deference — donating money or attending ceremonies without substantive positions — does not produce policy results. Trump responded to IBM, Michael Dell, and the National Association of Manufacturers because they arrived with credible economic force. Leaders must present data-backed arguments, not appeasement, to influence this administration effectively.
• •Trade Groups as Protective Cover: Individual CEOs face retaliation risk when speaking alone, but trade associations provide collective cover that reduces personal exposure. The National Association of Manufacturers condemned tariffs post-Liberation Day and achieved partial policy reversal. CEOs should pressure their industry associations to take positions rather than defaulting to institutional silence, which Sonnenfeld characterizes as cowardice.
• •Social Capital Is a Business Asset: Drawing on Alexis de Tocqueville's 1840 analysis, Sonnenfeld frames CEO truth-telling as foundational infrastructure for functioning markets. The Edelman Trust Barometer consistently shows CEOs rank as the most trusted institutional voice among employees — above clergy, politicians, and journalists. Leaders who leverage that trust to defend factual, verifiable information protect both democratic stability and long-term shareholder value.