Who Speaks for American Business? the Varied Voices of Enterprise in Public Policy
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EXECUTIVE SUMMARY Who Speaks for American Business? The Varied Voices of Enterprise in Public Policy Washington, DC | September 17, 2013 PRESENTING PARTNERS CNBC Edelman Ernst & Young Korn/Ferry International McKinsey & Company Microsoft Corporation NYSE Euronext Leslie Miller Saiontz Patriarch Partners UPS The Washington Yale CEO Caucus Septemper 17, 2013 | Washington DC Who Speaks for American Business? The Varied Voices of Enterprise in Public Policy Table of Contents Key Themes from The Yale Washington CEO Caucus 4 Jeffrey A. Sonnenfeld, Senior Associate Dean, Yale School of Management Why We Don’t Always Understand What Business Thinks It Is Telling Us OPENING coNVERsatION The Honorable John McCain, U.S. Senator, State of Arizona D. Scott Davis, Chairman & CEO, UPS Steve Case, Founder, AOL The Honorable Robert D. Hormats, U.S. Undersecretary of State (2009-2013) The Honorable Miriam Sapiro, Deputy U.S. Trade Representative RESPONSES The Honorable Philip N. Bredesen Jr., Governor (2003-2011), State of Tennessee Diane Gherson, Senior Vice President, Human Resources, IBM The Honorable James K. Glassman, U.S. Undersecretary of State (2008-2009) LIU Dashan, Deputy CEO, China General Technology (Group) Holding Clyde V. Prestowitz Jr., Former Counselor to Secretary of Commerce The Honorable J. Stapleton Roy, Director, Kissinger Institute on China and the U.S. The Honorable Christopher Shays, Member of U.S. Congress (1987-2009), State of Connecticut Frederick O. Terrell, Vice Chairman, Investment Banking, Credit Suisse Individual Efforts vs. Associations: Pluralism and Collective Voice OPENING coNVERsatION David M. Cote, Chairman & CEO, Honeywell International Edward B. Rust Jr., Chairman & CEO, State Farm Insurance Nicholas T. Pinchuk, Chairman & Chief Executive Officer, Snap-on Incorporated Thomas J. Quinlan III, President & Chief Executive, RR Donnelley & Sons Company Alan Murray, Chief Executive Officer, Pew Research Center Steve Odland, Chief Executive Officer, Committee for Economic Development RESPONSES Carmine DiSibio, Global Managing Partner, Ernst & Young Nels B. Olson, Vice Chairman, Korn/Ferry International Beverly Gage, Professor of History, Yale University David F. Melcher, President & Chief Executive Officer, Exelis MIAO Jianmin, Executive Chairman, China Life Asset Management Company William D. Novelli, Chief Executive Officer (2001-2009), AARP Mark J. Penn, Executive Vice President, Microsoft Corporation Douglas W. Rae, Professor, Yale School of Management S. Prakash Sethi, Visiting Professor, Yale School of Management David M. Walker, U.S. Comptroller General (1998-2008) Lally Graham Weymouth, Senior Associate Editor, The Washington Post © 2013 Chief Executive Leadership Institute. All rights reserved. 2 The Challenges of Public Discourse as a Corporate Statesperson: Is it Worth It? OPENING coNVERsatION The Honorable Chris Coons, U.S. Senator, State of Delaware The Honorable Joe Manchin, U.S. Senator, State of West Virginia Michael S. Dell, Founder, Chairman & CEO, Dell Inc. Michael W. Lamach, Chairman, President & CEO, Ingersoll Rand W. James McNerney Jr., Chairman, President & CEO, The Boeing Company Robert S. Miller, Chairman, AIG Brian T. Moynihan, Chief Executive Officer, Bank of America Corporation XU Niansha, Chairman, China Poly Group RESPONSES Adam M. Aron, Chief Executive Officer, Philadelphia 76ers David Chun, Chief Executive Officer, Equilar Christopher K. Johnson, Former Senior China Analyst, Central Intelligence Agency Melanie Kusin, Vice Chairman, Korn/Ferry International Vikram Malhotra, Chairman of the Americas, McKinsey & Company Marshall W. Meyer, Professor, The Wharton School Rob Rehg, Regional President, Washington DC, Edelman YANG Lin, Chief Financial Officer, Sinochem Group Legend in Leadership Award: David M. Cote, Chairman & CEO, Honeywell International PRESENTERS W. James McNerney Jr., Chairman, President & CEO, The Boeing Company D. Scott Davis, Chairman & CEO, UPS © 2013 Chief Executive Leadership Institute. All rights reserved. 3 The Washington Yale CEO Caucus Septemper 17, 2013 | Washington DC Who Speaks for American Business? The Varied Voices of Enterprise in Public Policy Key Themes: The Varied Voices of Enterprise in Public Policy Overview Key Themes Despite spending significant time in Washington and significant There is enormous dissension on money on lobbying, most business leaders are frustrated and do not many of the key issues facing the believe that their views are heard by public officials. Business lead- Congress and the country. ers want greater clarity and certainty in areas such as trade, tax, and energy policy. Greater certainty will lead to a greater willingness to Senator John McCain commented on three invest and hire. of the key issues currently being debated in However, business leaders don’t currently see moderate, middle- Washington . John McCain of-the road political leaders to whom they can talk about pragmatic • The looming government shutdown. solutions; they see ideologues and a polarized environment. Current Congress already has low favorability ratings and the prospect of and former political leaders acknowledged the dysfunctional environ- shutting down the government because of lack of agreement on the ment in Washington, but still encouraged business leaders to be part budget will further hurt how the American public perceives Con- of the process and make their views heard. Political leaders suggested gress. Senator McCain agreed with a political analyst’s assessment making focused, specific arguments related to topics such as jobs in a that efforts by some Republicans to repeal Obamacare before ex- politician’s geography. tending the debt ceiling is a “suicide note.” With more than 60% of To get past the current environment, Caucus participants see a need Congress having served for less than six years, individuals are not for greater leadership. Leadership can and must come from the familiar with the past and don’t realize that the first day people’s executive branch, from Congress, and from business leaders acting as Social Security checks don’t arrive, they will blame Congress. statesmen. • Immigration reform. Comprehensive immigration reform is consistent with America’s values and is good for the country. It will boost the economy, increase tax revenues, and add to the Social Context Security Trust Fund. It is backed by an incredibly diverse coalition, On September 17, 2013, was the fourth Yale including the U.S. Chamber of Commerce and the AFL-CIO. Washington CEO Caucus. This Caucus brought Immigration reform is also important in leveling the playing field together current and former political leaders for the Republican party. (including Senators John McCain, Chris Coons, A business leader said that while many in and Joe Manchin), business leaders (including Washington see immigration reform as a Steve Case, the founder of AOL; Michael Dell, problem to solve, he sees it as “an opportu- the founder of Dell; James McNerney, CEO of nity to seize.” The United States needs to be Boeing; Scott Davis, CEO of UPS; and Brian attractive to global talent, and can’t afford Moynihan, CEO of Bank of America) and other to lose the best talent. Senator McCain said public officials, members of the media, leading Michael Dell that the majority of U.S. graduate students in Steve Case academics, and representatives from think tanks. STEM fields (science, technology, engineer- Participants discussed Who Speaks for American ing, and mathematics) are not from America. One way to help keep Business? The Varied Voices of Enterprise in this talent in the U.S. is by providing a green card to all of these Public Policy. Specific conversations dealt with: individuals upon their graduation. •Why We Don’t Always Understand What While Senator McCain is not clear how immigration reform will Business Thinks It is Telling Us get passed, he sees it as essential that it gets passed soon. •Individual Efforts vs. Associations: Pluralism • Syria. Two years ago President Obama declared that Bashar and Collective Voice al-Assad had to go and one year ago he said that use of chemi- cal weapons would “cross a red line.” But, that red line has been The Challenges of Public Discourse as a Jeffrey Sonnenfeld • crossed and Assad is still in power. The President then announced Corporate Statesperson: Is It Worth It? that the U.S. would attack Syria (which Senator McCain sup- Also, David Cote, Chairman and CEO of Honeywell International, ported), but then decided to go to Congress for an endorsement of was honored with the Legend in Leadership Award. this strategy. With votes in Congress lacking, the administration Some of the key themes from the Caucus are summarized here. has worked on an agreement with the Russians whereby Syria will remove its chemical weapons. However, the Russians refused to © 2013 Chief Executive Leadership Institute. All rights reserved. 4 agree on punishment if Syria fails to comply. This means the U.S. Among reasons that were given for why business is not being heard: is relying on the good will of the Russians and Assad, which pro- • Lack of a uniform business voice. There is not a uniform voice of vides little comfort. Meanwhile, Syria has stepped up the ferocity business. There is a large business sector, a small business sector, of its attacks, more than 100,000 people have been killed, and there and a sector of high-growth, entrepreneurial start-up compa- are one million children in refugee camps. nies. Research has shown that these fast-growing companies