Remarks at the presentation of the Malcolm Baldrige National Quality Awards

Weekly Compilation of Presidential Documents, March 11, 2002

March 7, 2002

Thank you, Secretary Evans, and thank you all very much. It's an honor to be back here. It's a pleasure to see so many students here today. I understand some of you took a tour of the White House. You must have behaved well, because I didn't hear the dogs barking. [Laughter] I hope you enjoyed being there as much as Laura and I enjoy being there. It's a fabulous place, the White House is. I'm so glad you were able to see it.

I'm also pleased to be back to congratulate the award winners of the Malcolm Baldrige National Quality Award. I'm really pleased that school districts have been added. I want to commend the Baldrige Committee for including education. Secretary Rod Paige is here. Both of us believe so strongly that no child should be left behind. Both of us know the potential of the public school systems in America, and we want to thank and congratulate the school districts here that have set the highest of high standards not only at the secondary level but also at the high level of education.

I was privileged to know Malcolm Baldrige. He was one of America's most distinguished Secretaries of Commerce, and what a fine and honorable man he was. The award that bears his name reflects the virtues that he brought to public service and how he lived in his private life, a commitment to excellence, shrewd judgment and sound judgment, principled leadership, integrity, and a sense of responsibility.

Today's honorees have met a rigorous test, and such a worthy example for others. And I know Malcolm would have approved of the winners.

It's a great honor to be with Midge Baldrige again--you're looking pretty darn good these days--[laughter]--and Letitia Baldrige as well. I know we've got some Members of the United States Congress here. I think Bill Jenkins from Tennessee is here. I know Connie Morella is here. Thank you for coming, Connie. I also appreciate Nancy Murkowski, the wife of Frank Murkowski. Nancy is committed to quality education in the State of Alaska, and I know you're as proud as I am for the winners who are here. And I always want to thank the U.S. Army Band for providing such wonderful music.

I appreciate the fact that prior winners of the Baldrige Award are here. I think it's important for you to stay involved in the process. As you heard, some of the recipients also appreciate of you being here. And I want to welcome five more organizations to your ranks, the school districts, the University of Wisconsin-Stout, as well as the fine symbols of entrepreneurial spirit in America, Pal's Sudden Service of Tennessee, and of course, Clarke American Checks, represented by some rowdy Texans.

This is a high, high honor. I know you all understand what a big deal this is, having gone through the process. It is an important award, and I congratulate you all so very much. The award goes to organizations rather than any single individual, and that's important to note. As we've seen today, success happens in an atmosphere of teamwork, common values, and trust.

An organization needs a good idea and a good product or a good service. It certainly needs a good strategic plan. But more than anything, it needs good people, men and women of integrity who understand their duties to each other and to the public interest.

And this is true throughout our entire economy. The free enterprise system draws upon the best in people, creativity, ingenuity, energy, a desire to make life better for ourselves and for others. The whole design of free market capitalism depends upon free people acting responsibly. Business people must answer not just to the demands of the market or self-interest but to the demands of conscience.

The bottom line of the balance sheet defines a business' goal but not the sum of responsibilities of its leaders. Management should respect workers. A firm should be loyal to the community, mindful of the environment.

In America, by far--by far--most businesses fulfill their responsibilities. They do not cut ethical corners or neglect workers or disregard community standards. A good business finds opportunities and makes the most of them, and a good business always respects the boundaries of right and wrong.

In our country, the law defines many of these responsibilities, from workplace safety to environmental protection. For publicly held corporations the law goes further, defining standards of disclosure with independent certification by auditing firms.

We have seen lately just how important these standards are and the harm that can follow when they are ignored. Exactly where the blame lies may take a long time to determine, and legal judgments are for regulators and for courts. But this much is clear: To properly inform shareholders and the investing public, we must adopt better standards of disclosure and accounting practices for all of corporate America.

The reason that a single bankruptcy can cause so much concern in America is that more Americans than ever have invested their money in public corporations. Today, about 80 million Americans own stock, either individually or through their pension plans. This is one of the causes for the expansion in personal wealth over the past 20 years. This has been an incredibly positive development for America. Stock ownership allows citizens from all walks of life to own a part of the economy and to share in its growth. The people who run public companies owe a special obligation to these investors, many of whom have put their savings and future security on the line.