The impact of the US government policies on consumer perceptions of business ethical behavior

Abstract

Purpose The unethical behavior of businesses toward their customers is thought to contribute to a loss of trust and confidence in the integrity of American corporations. Distrust between the two parties in the marketplace inhibits business transactions. The business ethics index (BEI) was established to formally and continuously measure the consumer sentiments of the ethical behavior of American businesses. This paper aims to measure the effect of political affiliation on consumers’ ethical perceptions of businesses. Design/methodology/approach The BEI was originally developed as an indicator of consumers’ sentiments toward the ethicality of business practices. The current research uses the BEI once again to evaluate consumers’ perceptions of business ethics in the era of President Donald Trump and his administration. The BEI was therefore extended with the question: “Do you believe that because of the new president Donald Trump, businesses will behave: ‘more ethically’, ‘about the same’ or ‘more unethically’?”. Findings Data from 1,008 telephone interviews in the USA were used to calculate a BEI of 114.5, indicating an overall positive consumer sentiment toward the ethical behavior of business. Respondents’ political affiliation was found to significantly affect their perception of the ethical behavior of businesses. Originality/value This is an initial step in studying the connection between governmental policies and business ethics perception.