Donald Trump’s not-so-blind trust doesn’t cut it
President Elect Trump has told the American people that the federal conflicts of interest laws do not apply to him as President. In that he is correct. However, just because something is legal does not necessarily make it ethical.
Prior to inauguration Trump promised to transfer legal title to his business holdings to a trust overseen by his sons. However, the trust assets will revert back to him at the end of his presidency. By maintaining an ownership interest in his business, even a future one, the president elect leaves the door open for ethical violations.
Public officials, be they the dog catcher or the President of the United States, owe an ethical duty of loyalty to the public that they have been elected to serve. This means that they must put the public’s interest before their own.
They also have a duty to maintain trust in government— because without public trust government doesn’t work. They therefore have a corresponding duty to avoid even the appearance of impropriety.
The plan he announced does not eliminate possible conflicts or the appearance of conflicts. Trump claims that there will be no communication with his sons about the business. Although this declaration strains belief, there are other means of communication.
For instance Trump is requiring that his sons render an annual accounting. The accounting will not be itemized by business venture, but Trump is requiring a general accounting nonetheless. Why? If he is not to be associated with the business at all, why does he need to know how it is doing?
We also don’t know if Trump will be able to communicate with those doing business with his firm. At the very least he will be able to keep tabs on his business through the press.
There will be those who try to curry favor with the President by doing business with his sons in an effort to improve the President’s business position when he leaves office.
Trump is appointing an ethics officer to determine whether any business dealings engaged in by the sons create conflicts for the President. If the advisor is appointed by Trump, will he or she be truly independent? Will the advisor report to Trump or at the very least alert Trump to possible conflicts? This by itself will give rise to communications about the business.
Trump’s trust solution creates more questions than it answers. The only way Trump can avoid conflicts or the appearance of conflicts is absolute divestment.