Leaders of universities have expressed shock when actions by Donald Trump and his 2.0 administration officials have gone directly counter to what he and his appointees supposedly learned during their business-related college education. But what do professors know?
I’ve been privileged to teach and serve as a Marketing department head at an Association to Advance Collegiate Schools of Business-accredited institution; only 6% of business schools worldwide have achieved AACSB recognition. As such, one gets to know the multi-year process that third-party evaluators, including corporate executives, use to rigorously examine the curriculum offerings of accounting, economics, finance, marketing, and management—and, subsequently—what principles well-trained business students should exemplify.
However, when business leaders of Fortune 500 companies are alarmed when Mr. Trump and his 2.0 administration ignore basic business principles, it then becomes an even more salient, noticeable, and damaging judgment on our 47th president and his allegedly business education-trained appointees.
Let’s explore some of the business principles taught at all AACSB-accredited institutions and revered by executives but ignored or abused by Mr. Trump and his acolytes.
Executives’ perspective of Trump 2.0
Recently, dozens of top Fortune 500 executives, primarily Republicans, met at the Yale Chief Executive Leadership Institute’s CEO forum and expressed … “worry that Trump is undermining an economic system that took decades to build … all for short-term gains … a hollowing out of U.S. economic foundations and institutions …” (Fortune, Sept. 21).
CNBC reports that many of Trump’s appointees regularly disregard expert business advice and have abandoned evidence-based business principles, harming, in just 325 days of Trump 2.0, the following industries: agriculture, automotive, construction, consumer goods, manufacturing, mining, and retailing. This begs the question: what industries have not been harmed by Trump 2.0?
Econ. 101
Concepts such as stable markets, free competition, and long-term business investment are taught in a freshman-caliber macroeconomics class. Yet evidence is replete that Trump’s policies are undermining these core concepts. CEO’s have described the administration’s approach as politically driven and disruptive to the most basic of business fundamentals (Fortune, July 10)
CNN reports that a lack of strategic planning and erratic policies under Trump 2.0 have resulted in economic instability, market volatility, and an environment akin to “zero-trust,” which goes counter to the cardinal premise of maintaining a steady domestic and international business environment.
Econ. 102
The topic of tariffs is taught in a freshman-level microeconomics class and reinforced multiple times in other sophomore, junior, and senior-year business classes.
It’s a sad commentary that Mr. Trump, et al, doesn’t recognize that imposing tariffs disrupts business supply chains, increases input costs, reduces gross margins, stockpiles unnecessary inventory, increases cash-flow risks and reduces profitability, let alone dramatically increases the cost of products, goods and services that consumers are forced to pay (American Economic Liberties Project, Aug. 1).
Philip Kotler, known as the “father of modern marketing,” noted that the broad use of protective tariffs appears to favor short-term political gains rather than sound economic and business fundamentals of competitive advantage (ActivistsBrands.com, Feb. 13).
Given the result of Mr. Trump’s 2017-2021 tariffs and current tariff debacle, it’s safe to say he and appointed leaders were absent when the tariff subject matter was taught, and most likely failed tariff-related examinations.
Marketing
The Trump 2.0 administration’s deregulatory stance on digital advertising and privacy regulations risks reducing consumer protections, which contradicts modern marketing principles that emphasize ethical data use and respect for customer privacy (Basis, Feb. 26). The marketing concept of “caveat emptor”—buyer beware—is more alive under Trump 2.0 than at any other time in history.
Accounting
The Foreign Corrupt Practices Act (FCPA) requires publicly-held companies to maintain accurate records. Trump’s 2.0 executive order paused FCPA enforcement, which undermines the foundational accounting principle of internal controls, accurate record-keeping, transparency, ethical conduct, and—most importantly—increases the risk of financial misreporting and corruption (Morgan, Lewis & Bockius LLP, Feb. 12).
Mr. Trump and his administration officials probably did not do well in sophomore-level cost accounting and managerial accounting college courses.
Overall Trump-era policies
Many business school faculty members have explicitly opposed Trump-era policies, noting the administration’s executive decisions reflect poor strategic and ethical judgment that contradict the basic tenets of business organization and critical thinking, as well as a multitude of other concepts taught in the business curricula (Harvard Business School).
Business leaders are convinced that principles such as accountability, conflict of interest, ethical governance, risk management, compliance, tariff trade practice, supply chain instability, and long-term strategic planning have been breached under Trump 2.0 leadership.
Throughout Yale’s top Fortune 500 executive forum, CEO’s expressed that the fundamental college-level business education principles Mr. Trump and his officials should have learned in college are being ignored.
The final resolution of the Fortune 500 CEO’s forum was a call—and plea—to make America, America again.
Steve Corbin is Professor Emeritus of Marketing at the University of Northern Iowa.
