Yahoo Finance Trump's business councils collapse: how the corporate world reacted to Charlottesville
Donald Trump disbanded his two business advisory groups on Wednesday, after a flurry of members quit following his remarks about the "alt-right" rally in Charlottesville, Virginia last weekend.
The President of the United States failed to denounce white supremacists immediately after the incident, which left one protester dead and others injured, before giving a seemingly reluctant statement two days later condemning racism as evil.
On Tuesday, however, Mr Trump reverted to his original response to the violence, blaming both sides. He said: “I think there is blame on both sides. You had a group on one side that was bad. You had a group on the other side that was also very violent. Nobody wants to say that. I’ll say it right now.”
Mr Trump's remarks caused a total of eight members of the Manufacturing council to quit, including Ken Frazier, CEO of pharmaceutical giant Merck, Brian Krzanich of computer company Intel, and Scott Paul of the Alliance for American Manufacturing.
Kevin Plank, founder and CEO of sports retailer Under Armour, and Richard Trumka and Thea Lee of national trade union AFL-CIO also resigned, as did 3M chief executive Inge Thulin and Campbell Soup head Denise Morrison.
I love our country & company. I am stepping down from the council to focus on inspiring & uniting through power of sport. - CEO Kevin Plank pic.twitter.com/8YvndJMjj1
— Under Armour (@UnderArmour) August 15, 2017
A further three members of the council quit earlier this year due to other Mr Trump controversies, including Elon Musk of SpaceX and Tesla, and Bob Iger of Disney, who both resigned in June after Mr Trump pulled out of the Paris climate agreement. Former Uber CEO Travis Kalanick dropped out in February after Mr Trump's travel ban.
Four other business leaders had left because they have either retired or moved on from their respective companies.
I cannot sit on a council for a President that tolerates bigotry and domestic terrorism; I resign, effective immediately. pic.twitter.com/ip6F2nsoog
— Richard L. Trumka (@RichardTrumka) August 15, 2017
Some 15 members, from the initial 28 in January, had remained in the group. These included heads of major companies such as Dennis Muilenberg of Boeing and Alex Gorsky of Johnson & Johnson. Many of these remaining council members had come under fire on social media over the past few days with calls from people to boycott their companies.
Both the manufacturing council and the strategy & policy forum were disbanded by Mr Trump on Wednesday, with the President posting a tweet in which he said the decision was taken "rather than putting pressure on the businesspeople".
But it is understood many of the remaining members had threatened to quit the council amid a wave of condemnation for Mr Trump from all sides of the political divide.
Other top businessmen which were not Mr Trump's council - set up as part of his job creation agenda - had taken to social media to express their views on his Charlottesville response, with many praising those who have taken a stand against the President.
Lincoln: "A house divided against itself cannot stand." Isolate those who try to separate us. No equivalence w/ those who bring us together.
— Lloyd Blankfein (@lloydblankfein) August 14, 2017
Goldman Sachs CEO Lloyd Blankfein quoted former President Abraham Lincoln who said: "A house divided against itself cannot stand."
While Unilever CEO Paul Polman applauded Mr Frazier, the first council member to step down following Charlottesville, for his "strong leadership".
Thanks @Merck Ken Frazier for strong leadership to stand up for the moral values that made this country what it is pic.twitter.com/ckabeobZBL
— Paul Polman (@PaulPolman) August 14, 2017
Mr Trump had lashed out at those who have resigned from his council, including Mr Frazier, by calling Merck a leader in high prescription-drug prices and in moving jobs overseas.
In a speech on Tuesday he had said of those members who had quit: "They're not taking their job seriously as it pertains to this country.
"Some of the folks that will leave, they're leaving out of embarrassment because they make their products outside," he added.
.@Merck Pharma is a leader in higher & higher drug prices while at the same time taking jobs out of the U.S. Bring jobs back & LOWER PRICES!
— Donald J. Trump (@realDonaldTrump) August 14, 2017
For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on. JOBS!
— Donald J. Trump (@realDonaldTrump) August 15, 2017
While Trump’s manufacturing council had seen a number of resignations, the 16-strong Strategic and Policy Forum, his other advisory council, had reportedly instead been planning to inform Trump of their decision to disintegrate, though had not yet made a public announcement.
Members of that council include top CEOs such as Jamie Dimon of JP Morgan, Ginni Rometty of IBM, and Indra Nooyi of PepsiCo.
