Legislative Update by Congressman Mike Ross
Restoring Small Town Values to Big Corporations
 
July 19, 2002
 
This week in Congress, I had the opportunity, as a member of the Financial Services Committee, to listen to our Federal Reserve Chairman, Alan Greenspan, give his semiannual report on our economy to the United States House of Representatives.  I found his remarks quite encouraging, despite the effects of recent corporate scandals on our economy.  He said that even the slightest increase in the possibility of strict or even criminal penalties for unethical behavior of CEO’s can affect corporate governance, and that ‘while we may not be able to change the character of corporate officers, we can change behavior through incentives and penalties.’

As a lawmaker, I take that remark as a call to action.  The selfish actions of a select few from behind boardroom walls have hurt investors, employees, and our nation as a whole.   A few CEO’s decided to do whatever it took to keep stock prices up so they could get their multi-million dollar bonuses.  As a result, families across our country have to rethink their plans, to change their lifestyles, to work years longer than expected to make up for losses in their retirement accounts.
 
Small business owners know their customers.  Those customers are neighbors and friends, and they would never do them wrong.  That’s just how we were raised.  I think perhaps some of our corporate leaders have forgotten these values they were raised on because they don’t see the faces of their customers, their employees, or their investors.  They only see an opportunity for personal gain.    

We must act as swiftly as possible in Congress to restore small-town business values in our big corporations, to enact legislation that continues efforts to hold corporate criminals responsible.  We must restore the confidence of hard-working Americans in our market, and we must get legislation to the President’s desk before the August district work period, as he has requested.


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