A Look at Corporations Cutting Ties with Trump and Its Significance

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Updated: Jan. 14, 2021
Originally Published: Jan. 12, 2021

On January 6, 2021, we all witnessed with disbelief as a group of domestic extremists, incited by remarks from then-President Trump and his supporters, stormed the Capitol building, disrupting the legislative process. This week, the repercussions of those actions are becoming evident, particularly for the former president, who is experiencing a significant withdrawal of support from corporate America.

Numerous well-known corporations are severing ties with Trump and his associates. While this response may seem overdue, as the damage to the Capitol and the principles of democracy has already been inflicted, it represents a noteworthy shift in public sentiment. “Corporations are particularly attuned to public opinion,” noted NBC News correspondent Alex Green in a Twitter thread highlighting the companies that have distanced themselves from Trump. “Their actions against Senate Republicans who refused to certify the election indicate they recognize where public sentiment lies.”

Twitter initiated the corporate backlash by suspending Trump’s account and ultimately banning him “due to the risk of further incitement of violence.” Following this, Facebook and Instagram also blocked him from their platforms through the end of his presidential term. Other social media platforms, including Snapchat, YouTube, and TikTok, have taken measures to restrict Trump’s content, effectively removing his ability to incite further unrest among his followers.

In the realm of online commerce, platforms are also withdrawing their support. Shopify has closed stores affiliated with Trump’s business and campaign, while PayPal shut down an account that was raising funds for Trump supporters who traveled to Washington D.C. Additionally, financial tech company Stripe has ceased processing payments for Trump’s campaign website, cutting off a crucial source of small-dollar donations.

But it’s not just tech companies distancing themselves from Trump. The PGA of America has voted to end its agreement to host the 2022 PGA Championship at Trump Bedminster. Other corporations, including Marriott International, Airbnb, and Blue Cross, have vowed to halt donations to Republicans who opposed the certification of the electoral college results.

Major financial institutions like Goldman Sachs and JPMorgan Chase have also declared a suspension of political contributions to both parties for a set duration. Candi Wolff, Citi’s head of global government affairs, emphasized that the bank would not support candidates who disrespect the rule of law.

Other companies, such as Ford and Boston Scientific, have paused political donations to reassess their approach moving forward. Even some of Trump’s staunchest backers are experiencing corporate backlash; Parler, a social media platform popular with far-right users, has been removed from Apple’s and Google’s app stores, and its hosting was discontinued by Amazon, leaving it offline.

In a broader context, many corporations are reassessing their policies in light of recent events. Companies like CVS Health and Exxon Mobil are reviewing their political contributions, while the Lincoln Project is launching an initiative to persuade businesses to cease donations to Republicans who objected to the election results.

Lee Robinson, CEO of a leading public relations firm, commented, “Corporate America is starting to realize that silence equates to complicity. Some companies are motivated by a desire to demonstrate their values, while others act out of fear of being on the wrong side of history.” Regardless of the motivations, the shift of corporate support away from Trump and his allies is significant, signaling a clear rejection of the previous administration’s dangerous rhetoric.

While this corporate reckoning comes too late, given the Capitol assault, it is nonetheless a crucial development.

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Summary:

Following the Capitol riots on January 6, 2021, numerous corporations have severed ties with Trump and his supporters, reflecting a significant shift in public sentiment. Major firms in technology, finance, and other sectors have initiated actions against Trump’s rhetoric, demonstrating a commitment to upholding democratic values. While these measures may feel overdue, they indicate a broader recognition within corporate America of the need for accountability and alignment with public sentiment.