Business Roundtable
Encyclopedia
The Business Roundtable is a politically conservative group of chief executive officers of major U.S. corporations formed to promote pro-business public policy
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, President Nixon's Secretary of Treasury, and Arthur Bums, the Chairman of the Federal Reserve, who advised them to set up a lobbying organization that would specifically represent large banks and corporations. Harper was the first president, followed by Thomas Murphy of General Motors, Irving Shapiro of Du Pont, and Clifford Garvin of Exxon.
The group was formed through the merger of three existing organizations: the March Group, consisting of chief executive officers who met informally to consider public policy issues; the Construction Users Anti-Inflation Roundtable, a group devoted to containing construction costs; and, the Labor Law Study Committee, largely made up of labor relations executives of major companies. The group is called President Obama's "closest ally in the business community."
. But the Roundtables most significant victory was in blocking labor law reform that sought to strengthen labor law to make it more difficult for companies to intimidate workers who wanted to form unions. The AFL-CIO produced a bill in 1977 that passed the House. But the Roundtable voted to oppose the bill, and through its aggressive lobbying, it prevented the bills Senate supporters from rounding up the 60 votes in the Senate necessary to withstand a filibuster.
In fiscal policy, the Roundtable was responsible for broadening Reagans tax cut plan to include a sharp reduction in corporate taxes. In trade policy, it argued for opening foreign markets to American trade and investment. The Omnibus Trade Act of 1988 reflected the thinking of the Business Roundtable. In 1990, the Roundtable urged George Bush to initiate a free trade agreement with Mexico. In 1993, the Roundtable lobbied for NAFTA and against any strong side agreements on labor and the environment. It provided the money and leadership for the main pro-NAFTA lobby.
The Roundtable also successfully opposed changes in corporate governance that would have made boards of directors and CEOs more accountable to stockholders. In 1986, the Roundtable convinced the Securities and Exchange Commission to forgo new rules on merger and acquisitions, and in 1993 convinced President Clinton to water down his plan to impose penalties on excessive executive salaries. Citicorp CEO, John Reed, chairperson of the Roundtables Accounting Task Force, argued that Clinton's plan would have had negative effects on U.S. competitiveness. The Roundtable's Health, Welfare, and Retirement Income Task Force, chaired by Prudential Insurance CEO Robert C. Winters, cheered President Bush's plan, which consisted mainly of subsidies to the health care industry. The nation's health care system works well for the majority of Americans, the Roundtable announced in a June 1991 statement. "We believe the solutions lie not in tearing down the present system, but in building upon it."
It "strongly supported passage of the" No Child Left Behind Act
of 2002, "and is now actively working with states on implementation." It has issued press releases, submitted editorials, given congressional testimony, and distributed position ads.
The Business Roundtable is mentioned by G. William Domhoff in Who Rules America? Domhoff argues that the Business Roundtable supports the network of corporate control, and influence over the economy, politics, and media.
The Business Roundtable also acts as a major lobby that aims to extend or maintain administrators' rights/power in large companies. For example, the U.S. Securities and Exchange Commission adopted the so-called "shareholders’ access to proxy" rule, which aimed to empower shareholders in the proposition and nomination of administrators of big corporations. The Business Roundtable was strongly against that rule, as its president John Castellani reported to the Washington Post about removing this rule: "this is our highest priority [...] Literally all of our members have called about this". And they got the upper hand: the SEC rule was finally dropped after intense lobbying and law suits.
Members of Business Roundtable's Executive Committee include:
The Business Roundtable leadership are:
Public policy
Public policy as government action is generally the principled guide to action taken by the administrative or executive branches of the state with regard to a class of issues in a manner consistent with law and institutional customs. In general, the foundation is the pertinent national and...
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History
The Roundtable was founded in 1972 by John Harper, the head of ALCOA Aluminum, and Fred Borch, CEO of General Electric, who were concerned about growing public hostility toward corporations as evidenced by support for government regulation of the workplace environment, and about the power of unions to squeeze corporate profits in an increasingly competitive international market. The two CEOs talked with John ConnallyJohn Connally
John Bowden Connally, Jr. , was an influential American politician, serving as the 39th governor of Texas, Secretary of the Navy under President John F. Kennedy, and as Secretary of the Treasury under President Richard M. Nixon. While he was Governor in 1963, Connally was a passenger in the car in...
, President Nixon's Secretary of Treasury, and Arthur Bums, the Chairman of the Federal Reserve, who advised them to set up a lobbying organization that would specifically represent large banks and corporations. Harper was the first president, followed by Thomas Murphy of General Motors, Irving Shapiro of Du Pont, and Clifford Garvin of Exxon.
The group was formed through the merger of three existing organizations: the March Group, consisting of chief executive officers who met informally to consider public policy issues; the Construction Users Anti-Inflation Roundtable, a group devoted to containing construction costs; and, the Labor Law Study Committee, largely made up of labor relations executives of major companies. The group is called President Obama's "closest ally in the business community."
Activities
The Business Roundtable played a key role in defeating an anti-trust bill in 1975 and a Ralph Nader plan for a Consumer Protection Agency in 1977. And it helped dilute the Humphrey-Hawkins Full Employment ActHumphrey-Hawkins Full Employment Act
The Full Employment and Balanced Growth Act , is an act of legislation by the United States government.-Impetus and strategy:...
. But the Roundtables most significant victory was in blocking labor law reform that sought to strengthen labor law to make it more difficult for companies to intimidate workers who wanted to form unions. The AFL-CIO produced a bill in 1977 that passed the House. But the Roundtable voted to oppose the bill, and through its aggressive lobbying, it prevented the bills Senate supporters from rounding up the 60 votes in the Senate necessary to withstand a filibuster.
In fiscal policy, the Roundtable was responsible for broadening Reagans tax cut plan to include a sharp reduction in corporate taxes. In trade policy, it argued for opening foreign markets to American trade and investment. The Omnibus Trade Act of 1988 reflected the thinking of the Business Roundtable. In 1990, the Roundtable urged George Bush to initiate a free trade agreement with Mexico. In 1993, the Roundtable lobbied for NAFTA and against any strong side agreements on labor and the environment. It provided the money and leadership for the main pro-NAFTA lobby.
The Roundtable also successfully opposed changes in corporate governance that would have made boards of directors and CEOs more accountable to stockholders. In 1986, the Roundtable convinced the Securities and Exchange Commission to forgo new rules on merger and acquisitions, and in 1993 convinced President Clinton to water down his plan to impose penalties on excessive executive salaries. Citicorp CEO, John Reed, chairperson of the Roundtables Accounting Task Force, argued that Clinton's plan would have had negative effects on U.S. competitiveness. The Roundtable's Health, Welfare, and Retirement Income Task Force, chaired by Prudential Insurance CEO Robert C. Winters, cheered President Bush's plan, which consisted mainly of subsidies to the health care industry. The nation's health care system works well for the majority of Americans, the Roundtable announced in a June 1991 statement. "We believe the solutions lie not in tearing down the present system, but in building upon it."
It "strongly supported passage of the" No Child Left Behind Act
No Child Left Behind Act
The No Child Left Behind Act of 2001 is a United States Act of Congress concerning the education of children in public schools.NCLB was originally proposed by the administration of George W. Bush immediately after he took office...
of 2002, "and is now actively working with states on implementation." It has issued press releases, submitted editorials, given congressional testimony, and distributed position ads.
The Business Roundtable is mentioned by G. William Domhoff in Who Rules America? Domhoff argues that the Business Roundtable supports the network of corporate control, and influence over the economy, politics, and media.
The Business Roundtable also acts as a major lobby that aims to extend or maintain administrators' rights/power in large companies. For example, the U.S. Securities and Exchange Commission adopted the so-called "shareholders’ access to proxy" rule, which aimed to empower shareholders in the proposition and nomination of administrators of big corporations. The Business Roundtable was strongly against that rule, as its president John Castellani reported to the Washington Post about removing this rule: "this is our highest priority [...] Literally all of our members have called about this". And they got the upper hand: the SEC rule was finally dropped after intense lobbying and law suits.
Officers
The current chairman of the Roundtable is Boeing CEO, Jim McNerney.Members of Business Roundtable's Executive Committee include:
- David M. CoteDavid M. CoteDavid M. "Dave" Cote is the Chairman and CEO of Honeywell. He was first elected president, CEO and a member of the Board of Honeywell in February 2002, and became chairman of the Board of Directors on July 1, 2002...
, Honeywell International Inc., Vice Chair - Andrew Liveris, Dow Chemical, Vice Chair
- Robert A. "Bob" McDonaldRobert A. "Bob" McDonaldRobert A. "Bob" McDonald is the current Chairman, President and CEO of Procter & Gamble. He was promoted from within after working for the company for 29 years.-Life and career:...
, Proctor & Gamble, Vice Chair - Harold McGraw IIIHarold McGraw IIIHarold Whittlesey "Terry" McGraw III is chairman, president and chief executive officer of McGraw-Hill Companies and chairman of the Business Roundtable, an association of CEOs of American companies.-At McGraw-Hill:...
, McGraw-HillMcGraw-HillThe McGraw-Hill Companies, Inc., is a publicly traded corporation headquartered in Rockefeller Center in New York City. Its primary areas of business are financial, education, publishing, broadcasting, and business services... - Ajay BangaAjay BangaAjay Banga is the current president and chief executive officer of MasterCard.MasterCard announced on April 12, 2010 that Ajay Banga, previously MasterCard’s president and chief operating officer, had been named by the Board of Directors to serve as the company’s president and chief executive...
, Mastercard Inc. - Alexander M. CutlerAlexander M. CutlerAlexander 'Sandy' Cutler is the current chairman and chief executive officer of Eaton Corporation. Previous to this appointment in 2000, he served as Eaton’s president and chief operating officer....
, Eaton CorporationEaton CorporationEaton Corporation is a global diversified power management company with 2010 sales of $13.7 billion. The company is a leading provider of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment;... - Bill GreenWilliam D. GreenWilliam D. Green is an American business executive. He is currently the chairman of the global Accenture management consulting firm.- Early life :...
, AccentureAccentureAccenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across... - Mike MorrisMichael G. MorrisMichael G. Morris is president, chief executive officer, and chairman of Columbus, Ohio-based American Electric Power, one of the USA's largest generators of electricity. He has held this position since 2004....
, American Electric Power Company - Antonio PerezAntonio Pérez]Antonio Pérez was a Spanish statesman, secretary of king Philip II of Spain.- Early years :Antonio Perez was born in Madrid in 1540. In 1542 he was legalized as son of Gonzalo Pérez, Secretary of the Council of State of king Charles I of Spain . Most probably Antonio was indeed the son of...
, Eastman Kodak Company
The Business Roundtable leadership are:
- John EnglerJohn EnglerJohn Mathias Engler is an American politician and a member of the Republican Party. He served as the 46th Governor of Michigan from 1991 to 2003....
, President - Larry BurtonLarry BurtonLawrence Godfrey "Larry" Burton is a former professional American football player and world-class Olympic sprinter, finishing fourth for the United States team in the 200 meter final at the 1972 Summer Olympic Games in Munich, West Germany.Burton was selected by the New Orleans Saints in the first...
, Executive Director - Johanna Schneider, Executive Director
- LeAnne Redick Wilson, executive Director