“I’VE never known it to be an embarrassment for a business leader to be associated with an American president,” declares Max Bazerman of Harvard Business School. Donald Trump, in particular, has positioned himself as a businessman-president, whose corporate acumen would unleash a new era for American business. Investors seemed to believe him—his election prompted a giddy “Trump bump” in the stockmarket—and corporate bosses flocked to his side. This week they fled. For many, it seems as much a clear-eyed business calculation as a moral awakening.

Some distanced themselves more quickly than others. The trigger was Mr Trump’s reluctance to condemn neo-Nazis and white supremacists who staged violent protests in Virginia on August 12th. Kenneth Frazier (pictured), chief executive of Merck, a big pharmaceutical firm, was the first to leave Mr Trump’s advisory council on manufacturing. On August 14th Mr Trump denounced racist groups in a scripted statement. But the bosses of Under Armour, a sporting-goods outfit, and Intel, a computer-chip giant, defected, too.

On August 15th Mr Trump appeared once again to equate white supremacists with demonstrators opposing them. As word leaked the next day that chief executives might resign en masse, Mr Trump swiftly tweeted that he was disbanding his manufacturing council and his strategic and policy forum,...Continue reading