Evaluating Consumer Perceptions of Businesses Pre- and Post-Midterm Elections Using Business Ethics Index (BEI)

Abstract

In the United States, the political landscape is characterized by biannual changes in power between the two major political parties, the Democratic and Republican parties. The shift in power can lead to significant changes in the regulatory environment for businesses, with each party having different policies and priorities when it comes to business regulation. Our research investigates the impact of political power shifts on consumer perceptions of business ethics. We collected two sample datasets through telephone interviews, the first conducted before the November 2018 mid-term elections (N=1,003) and the second after the elections (N=1,009). Our findings were surprising. Despite the mid-term elections being a significant political event and a change in power, we found that they did not immediately impact consumer perceptions of business ethics. This study offers new insights into the relationship between political power shifts and consumer perceptions of business ethics in the United States and is the first to examine this issue. The results suggest that consumer perceptions of business ethics may be relatively stable despite changes in political power. The leniency or stringency of regulations imposed on businesses by political parties may not significantly alter consumers’ perceptions of ethical behavior. It is an important finding for businesses as it highlights the importance of maintaining ethical practices and behavior, regardless of political circumstances. Our research sheds light on the complex relationship between political power shifts and consumer attitudes toward business ethics. It provides a starting point for future investigations into this topic, which is especially relevant in today’s political climate. The findings have significant implications for businesses, as they underscore the importance of maintaining a strong ethical foundation and reputation, regardless of changes in the regulatory environment. By doing so, businesses can build trust and maintain consumer loyalty in the long run.