Stepping Up

I'm not joined by Ken Chenault and Ken Frazier. Two men who had spent more than a decade of CEOs of Fortune, 500 companies tension, open American Express and Ken Frazier at work. This past spring, it was these two individuals movement for the business community in more than 70 black Business Leaders, Corporate America, choose their stance. Coca-Cola, reverse their positions on the Georgia, voting law calling is unacceptable and wrong and Major League Baseball, relocated summer, All-Star

game from Georgia to Colorado within 100, Corporation spoke to defend voting rights issue sparked a debate in this country. That continues as Texas becomes, the latest date to sign new new voting restrictions into law in while the picture of diversity in Corporate America. Today is also Bleak only for African-American CEOs in the Fortune 500 or talk about all of this, and where we go today, and how to move forward in Washington, at the state level and The boardroom. We want to welcome Ken Chenault and Ken Frazier. Good afternoon to the cans. Good to see you at Andrew.

Thanks for being here. We've been together in person at this event many times before and I appreciate you being here virtually with us one with an extraordinary year for both of you and your strength every year for this country. But I'm hoping that you can help us today. Try to understand the lessons of the experience you went through and some of the decision-making processes around it. What was so unique about this year? Was you effectively not only called for corporations to take a stand on this issue. But in many ways called out your peers, oftentimes white

peers. In this case. Ask you, if you try to take us inside the room on how this all happen, can. What was very important here is that? Ken and I and others felt that. Voting rights. is really fundamental to our democracy and that our democracy if you will was under attack. because of, Issues, historical issues around voting blacks in America. People die. Trying to get the right to vote. We did something that never happened before in Corporate America. And that was having

black leadership in Corporate America. Come together. On this issue, which was not a partisan issue. I also think was very important. Was that our colics, many of them white? Decided to join us because I think there was an understanding. Corporate America needed to stand up for our democracy. So just add that. You know, I think it's can just said, voting is a fundamental, right? I take a step back all of our colleagues believed strongly in the importance of the free enterprise system or companies are based on investments that were able to make it because we live in a country

where we do have free enterprise. Free, enterprise is a close cousin of democracy. If you don't have a democratic government, really do have a free enterprise system and a quarter. That is equal participation in that system equal access to that system. So in the spring, I think when the Georgia law was passed, a number of people were concerned and we got calls from people in Georgia calls from people in the African American community. In the reason why this was important

African-American Is that many of these Provisions could be viewed on their face as neutral, could be viewed as broadly applicable, but they actually had a disproportionate effect on people who lived in urban areas where the lines were long in the election. And so I think for African-American people like myself, and can we have a platform and opportunity to speak and opportunity to cause our colleagues? Because I may be a little bit more aware of what was actually in that long and why is it that long? I might

expect not just African-Americans, but all employees in a way. It's so I think this is fundamental to our businesses that the decision to do this and the decision to call out your peers. As you said. The first time this has ever been done was not an easy decision to make. Can I do with Tennessee now? Andrew is frankly, because back to the points that I've made, we saw these laws as assault on our democracy and It came about very quickly. So literally 45 people saying what could we do? We said this is this is an

issue that we need to take a stand and I think what was important is wasn't so much is calling out. Corporate America being very clear. That this issue was so fundamental that we had co.'s actually calling us. What did you think of it? Didn't sign on. Look, I think at the end of the day. Reasons. We got one people saying, this is a partisan issue from the beginning was this has nothing to do with this is for the Middle country stands, for others. Who said this is too

controversial. We are concerned that we will be attacked. and at the end of the day, Argue was. That this is an issue that people need to stand up. When we ask you though, about the role of CEOs today. In being outspoken, on these issues. There has been criticism and you know about it. Let me just read you something. This is from Marco Rubio who says the following this. You said about Delta, after all of this Dead quotes far too many multinational corporations are too eager to make

their voices heard on the news of the day in the United States, are named stunningly silent or Delta's case complicit in real ongoing atrocities in countries. Like China. Do you have the situation where you have elected officials? Now, criticizing public companies and in some cases thinking about creating laws that would be less attractive to business as a result. I can't believe. Senator Rubio was really saying is, I don't care about the fundamental principles. I mean, literally,

if you read, The letter. Someone is going to tell me that that is controversial and that company should not take that position. I just think that's the reality is partisan. Do we have to be aligned on as a country is one of the fundamental values and principles that I don't think that we can be discouraged or should allow ourselves to be discouraged or principles of this country. What's the value of having a seat at the table versus what's the value of publicly protesting on a more moral grounds or other grounds? And it

is very hard. As you know, what to do. Both in the reason I ask is China's just one example of this, but almost in any case, it's very difficult to be publicly declaring something on one end and against somebody else. And then still get a seat at the table and an environment where everybody wants transparency. They put you in a tough spot. Companies. With respect to their businesses. Take a piss on policy. And what's in a further? What we're saying is there are

cases on social issues. Where companies need to take a position and so, I don't think it's in either War. I think it's critical. As you got to be guided by. The mission of your company, the values of your company. When do you think is the time to speak out? But that should not prevent you from having a seat at the table. If I say that, I believe people should have a fundamental right to vote. Does that mean that I can? be at the table on a range of other issues, so I don't think it's either or

Guys are going to pick up the conversation if I could to race in America, but frankly racing Corporate America. Both of you have had extraordinary success. But the truth is there are too few of you. I only four of you today at the top of Fortune 500 companies in I know we've been having this conversation together for so long, but I I hate to say it. I thought about a year-and-a-half ago. We were about to make a shift and we were going to see a real shift and I wonder whether you think that shift is upon us or not. Frankly. I'm not sure

what I would say is. I have been heartened by the level of support, we received on 110 from Corporate America. Have been very sincere and very focused on. But I do think that. Can you tell me about? You can't tell me all these. What 1:10 is just everybody, everybody knows. an organization that can and I Charles Phillips to create a million jobs for black Americans. In ten years, we have over 60 companies have signed up for this Ken Frazier and Jenni Rivera and can probably

appropriate for you just to talk a little bit about. So this is a coalition of the Willing of approximately 60 companies. It's actually 60 CEOs, who are interested in looking at your own, internal job criteria, the simple fact of the matter. Is that as we look at our jobs, in this group, approximately 90% of the jobs in our company require a 4-year degree. The reality of the world is that for black Americans aged 26, only about 75% of them. I should say only about 25% of them have a four-year degree for the math doesn't work. So what we've been trying to do is ask ourselves, which

of these jobs really require that four-year credential, of course, many of them do, but many of them are frankly based on skills. And so, we've been staying two companies unless you willing to look at this standard against goes back to example, I used it, the voting situation on their face. The requirement of a four-year degree is racially neutral, but in reality and applying it has a disparate impact of African-Americans because the lack of Education opportunity. So what we're saying the people is try to figure out which jobs we can train, people upscale rescale

people in so that they can go into jobs that have family-sustaining wages. There is Some talk of what are called racial audits that are being proposed for the first time this year. What do you think of that? So I think that the challenge that we have in diversity is not that we don't have the best intentions are good intentions. I think we haven't taken intentional actions to ensure that our words and our rhetoric were actually addressed by the structural things in our company. I was simply say that at Merck everything that we think is important. We

actually audit and we actually actually mom to our progress in terms of numerical progress. So while I think everybody can agree that we don't want to set artificial numbers photos. For example, I think it does make sense for us to look very carefully at what's happening in our companies are making it back promise cuz I have to say, you talk about 4, so yes, if you go back 10-15 years, so we're more than four black CEOs and Corporate America. So so every company has its own story. So I won't try to express what happened across 500 companies. But if you have 500 companies yet for African-American.

I think we can. All agree that the progress we made this small compared to the most pessimistic idea a 30 years ago and I want to come back to what I think is the problem. I think people have good intentions, but they don't put a place kind of the structures that are necessary to ensure that we were interrupted the sort of unconscious bias that exists not just in Corporate America elsewhere. So the hardest thing to overcome is the status quo. So what do I mean by that? Inside our company's we have social networks, we have processes. If we don't ask ourselves, why these

processes, why these social networks are constantly producing something, other than diverse types of people at diverse promotions, then I think we go. Continue to do the same thing and not get different outcomes. Both of you are now in the Venture Capital business at General Catalyst. And one of the things it does strike me is actually how little diversity there is within the Venture world and how crucial that may very well. Be in terms of actually creating cultures from the very beginning that are diverse. What are you staying in that reason

why it is very interested in in Venture technology, as we know it is an incredible enabler. What's important though is what's the purpose that we should be involved in it? And one of the concepts were focused on Innovation. And one of the Pillars of Creation is diversity and inclusion. Clearly, you made Andrew. The record in Venture is dismal, is not a good record. And one of the things that is to improve diversity in Venture, and in technology overall, what are the things we're trying to do is let's get it right from the beginning. Let's make sure we have prophecies

approaches a mindset that will really Drive diversity in our company's. And so that is a very high priority, very high priority for me. And I know it's a very high priority, but I was asked to join General Catalyst. That's what stood out to me. What's this concept? We're just talking about this and diversity around intentionality. So if you're thinking, let's try to build companies from the very beginning for growth as well as social good, you know, avoiding all the unintended consequences that have occurred elsewhere

in our country created more opportunity Claymore access for people there. Not something that I'm very interested in, you know, we talked about diversity. I like the word opportunity because I think that's what we're really talking about. Are we providing opportunity to? People irrespective of where they come from in our society. Or are we using criteria. Unintentionally screen out? People who may have the talent to contribute to our society. I have to ask you about this great news about this work therapeutic. And what you think it means up for the

trajectory of this pandemic, which I hope we're on the other side, getting closer to. So I think we're very excited to bring to market. The first oral antiviral pill for covid-19. We think it could be a very important contributor in a society like ours, where we have access to vaccine, vaccine should be the first line of defense, but we also know we have seven and a half billion people on the planet. And in order for us to overcome a global pandemic, we're going to have to have the kinds of medicines that are easily accessible. So

because this is an oral medicine, it can be used. All of the world. All you need is drinking water to use with these pills at what we've done. As you may know, Andrew, as we agree to make these this medicine available to all the low income in low and middle-income countries. Free of charge. We think the Dachshund up too many people in the importance here is if we don't actually treat people in those countries, we have a better chance of a more variants and more mutation. So very excited that this pill could make a big difference around the world, is your sense. Just wrote just the way I

understand it, though, that we are on the other side of this. Now, I think that the quote Winston Churchill, we're certainly at the end of the beginning. I think that this is going to be a virus that we're going to live with for a long time will be endemic at some stage and we're going to need new medicines. Just like we do with HIV with HIV newly diagnosed HIV patients, have the same life expectancy as people who don't have HIV because we have good medicine. And that's what we're aiming for here is to be able to make sure that if you do get

infected that you don't necessarily get very very ill or die before I let you go. What do you think of the issue of vaccine hesitancy, especially among the African-American community? So I think it's very unfortunate. I think there's a lot of misinformation. Of course, in the African American Community. There's a lot of mistrust going back to things like the Tuskegee. Experiment is so, it's very important for us to have role models in the community of people who are trusted because right now, I think it's very unfortunate, the amount of misinformation

that's out there, about vaccine safety about the, the idea that the vaccines actually going to cause harm. And as you know, that the sad thing is that life expectancy for African Americans because of this pandemic has decreased by three years in just two years. So that's a huge issue. Compared to white Americans. It's actually declined by one year, but it's three times more for Hispanics and African-Americans. So we have to overcome that fear of vaccine and it can only be done through truck. Which gets back to work and was saying about General Catalyst in the idea

that we have to create new system that provides access to people that have trust that actually allow people to have access. Not just when they get really sick. Because obviously, when people get sick, they go to the hospital and get on ventilator. We need to maintain the health of people. And as you know, this pandemic, we see the impact on Mental Health, received the impact on substance abuse. So we're trying to create a system where we can maintain the health of all Americans. I want to end this year which is 10 for you just talked about role models and it just so happens that you

happen to be a role model for him and a mentor to him. I hope it's just a little bit about how you got to know each other and how you became his mentor. Can I met at Harvard Law School? I was in my third year Ken was in his first year and and we knew each other but we weren't really good friend somewhat because of the difference in classes in his first line position and said that I wanted to spend time with him and can you can take it from there? Well, I can say that the importance was that, I had no real experience on the business side and to have someone you know, I like tension out who's so

effective in his job and so well-respected tutored me about how I should think about business from the customer service and portly for me was how did I think about climbing that ladder inside? Mark aspiring to be a CEO having the right relationship with God and so for a sub I have to say that I was extremely fortunate to have someone as skilled and it's accomplished as Ken Chenault translate to me how one becomes a business person, how one thinks about shareholders employees, how one thinks about boards

and I have to say on my best day and many ways. I'm irritating functional. I don't know what I would say clearly. Ken was someone that I saw had the courage of his convictions and he made some very tough calls at work just to seem a very tough calls and how he conducts his life when he pulled out of the council. He was on in Charlottesville. So, this is how very much of a partner relationship. Ken Chenault. Ken, Frazier. Thank you so much for joining us. Thanks for having us.