| | Remarks of U.S. Assistant Secretary of Commerce for Economic Development David A. Sampson Abilene Christian University Monday, September 30, 2002 | Back |
| Thank you Representative Hunter for the kind and gracious introduction. I am
very proud to be here today in Abilene as a member of the Bush administration.
I am a graduate of both ACU and David Lipscomb University - and the education
I received here, both academically and spiritually, formed the foundation to
whatever success I have been blessed to achieve in both my personal and professional
life:
The friendships I formed here have remained steadfast through the years and
will continue to do so. My professors, who took a personal interest in my academic
and spiritual development, gave me a passion for lifelong learning. I am sure
your professors instill this passion in you as well.
I encourage all of you to continue to pursue your academic and spiritual goals
well past graduation for the rewards you will reap in your lives by remaining
focused will be immeasurable.
Today, we meet at a unique and pivotal moment in history. Potential further
terrorist attacks, the threat of Saddam Hussein, a weakened economy, and corporate
credibility issues have shaken us. To be sure, many Americans are uncertain
about the future and President Bush understands that. But, ladies and gentleman,
as President Bush recently said, "The foundation for economic growth in
America is strong."
I want you to know that the President is focused on assuring the Nation's taxpayers
that their government is pursuing a budget based on fiscal responsibility.
As President Bush said recently, "If you overspend, it creates a fundamental
weakness in the foundation of economic growth."
The President is committed to working with Congress to make sure they hear
the message -- the message of fiscal responsibility.
This means that we must set priorities. The most immediate threat to our country
is from those who wish to do us harm. And so our most important priority, when
it comes to budgeting and time and effort, is to protect American citizens.
The President is optimistic about the future, because the fundamentals for
growth in the American economy are strong.
" Inflation and interest rates are low;
" Auto and retail sales are strong;
" New home sales are setting records;
" Wages are rising faster than inflation; and
" Consumer spending remains strong.
Our Nation is on track for sustained economic growth.
However, the President won't be satisfied until every American who wants a
job can find a job, and all Americans have economic security.
From tax breaks for individuals and businesses, to working to ensure America's
place in the global economy by boosting exports, President Bush is working tirelessly
to complete the economic turnaround.
But economic turnarounds cannot, and should not, come at the expense of our
ethics and values. As you have all heard in the news recently, corporate scandal
has been rocking the confidence of investors, workers and average citizens in
this nation. President Bush is deeply concerned about what he believes is a
breakdown of ethics in corporate governance and the effect these breakdowns
have been having on the economy.
As business students at a Christian university, you are keenly aware of the
importance of pursuing the highest standards of ethics in a business environment
- and in life.
On June 29, President Bush said, "No violation of the public's trust will
be tolerated. The federal government will be vigilant in prosecuting wrongdoers
to ensure that investors and workers maintain the highest confidence in American
business."
"America is ushering in a new era of responsibility, and that ethic of
responsibility must extend to America's boardrooms. I want every American to
know that the vast majority of businesspeople are honest individuals who do
right by the employees and their shareholders. The unethical actions of a few
should not be allowed to call into question our whole free enterprise system."
So what is the Bush administration doing about the breakdown of ethics in corporate
governance? Simply put, the President led efforts to place ethics - not just
the bottom line - back in the boardrooms and accounting offices of American
businesses.
The Administration's corporate governance plan is guided by the following core
principles:
- Provide better information to investors;
- Make corporate officers more accountable; and
- Develop a stronger, more independent audit system.
Throughout the decade of the '90's, we were told that personal integrity had
no impact on the discharge of our public responsibilities.
We now see all to clearly what happened when that mindset permeated the nation's
boardrooms. When words like "expense" and "profit" are shorn
of meaning, shareholders, employees, and our market economy suffer immense harm.
To put it plainly, among too many CEO's devotion to public good during the '90's
has been supplanted by rampant avarice.
What has set America's robust capital market apart from the world has been the
innovation of generally accepted accountancy principles former Treasury Secretary
Lawrence Summers said, "Transparency is good because it avoids surprises
and shocks that cause crises. Transparency is good because, as someone once
said, conscience is the knowledge that someone is watching. And it discourages
bad behavior."
Well, unfortunately, we now know that there was not enough scrutiny of what
was going on in the 1990's.
Legislation was passed by the Congress to tighten oversight of corporate governance
and accounting procedures. But business ethics and confidence in the accuracy
of corporate financial reports cannot be ensured by external legal standards
and more rigorous regulation alone. Ethical business practices must instead
be built on the inward moral convictions of business leaders.
This summer in a brilliant NY Times OP ED piece entitled "Capitalism Depends
On Character," Jean Strause recounted how in 1912 a lawyer for a congressional
investigating committee asked financier J.P. Morgan whether bankers issued commercial
credit only to people who already had money or property. Morgan said, 'No sir;
the first thing is character.' 'The skeptical lawyer repeated his question and
Morgan in his typical Victorian terminology elaborated on his answer, 'because
a man I do not trust could not get money from me on all the bonds in Christendom.'
"
If you take one thing to heart from our meeting today, I hope it is this - as
you move from the academic world into your professional careers, I ask each
of you to reflect upon the strong moral and ethical base this wonderful university
has instilled in you. Capitalism and the market economy are the foundations
upon which our American business community is built - but the foundation, if
designed and constructed through shortcuts, quick fixes and slight of hand,
will surely crumble, taking our way of life and our nations' place in history
- down with it.
I seem to remember a parable of Jesus from my Sunday school days about the
foolish man who built his house upon the sand. "When the rains came down
and the floods came up, the foolish man's house went 'splat.'" But under
those same storm conditions, the wise man's house, which was built upon the
rock, "stood firm."
There is nothing more important in business - or in any career - than a strong
moral foundation, than building your house, your life, your business and career
on the solid rock of truth. The old adage is still true - "The wise man's
house stood firm".
Again, I thank you for coming today and may God bless you.
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