President Bush on Corporate Responsibility

President Bush addressed the New York business community on July 9, 2002. In his speech he proposed instating new criminal penalties for corporate fraud, signing an Executive Order creating a Corporate Fraud Task Force, strengthening laws that criminalize document shredding and other forms of obstruction of justice, and other reforms.

Thank you very much for that warm welcome. I'm pleased to be back in New York City. New York City is a unique symbol of America's creativity and character and resilience. In the last 10 months, New Yorkers have shown a watching world the true spirit of your city. (Applause.) A spirit that honors the loss, remembers its heroes, and goes forward with determination and with confidence. The people of this city are writing one of the greatest chapters in our nation's history, and all Americans are proud of New York. (Applause.)

I've come to the financial capital of the world to speak of a serious challenge to our financial markets, and to the confidence on which they rest. The misdeeds now being uncovered in some quarters of corporate America are threatening the financial well-being of many workers and many investors. At this moment, America's greatest economic need is higher ethical standards--standards enforced by strict laws and upheld by responsible business leaders. The lure of heady profits of the late 1990s spawned abuses and excesses. With strict enforcement and higher ethical standards, we must usher in a new era of integrity in corporate America.

The American economy--our economy--is built on confidence. The conviction that our free enterprise system will continue to be the most powerful and most promising in the world. That confidence is well-placed. After all, American technology is the most advanced in the world. Our universities attract the talent of the world. Our workers and ranchers and farmers can compete with anyone in the world. Our society rewards hard work and honest ambition, bringing people to our shores from all around the world who share those values. The American economy is the most creative and enterprising and productive system ever devised. (Applause.)

We can be confident because America is taking every necessary step to fight and win the war on terror. We are reorganizing the federal government to protect the homeland. We are hunting down the terrorists who seek to sow chaos. My commitment, and the commitment of our government, is total. We will not relent until the cold-blooded killers are found, disrupted, and defeated. (Applause.)

We can be confident because of the amazing achievements of American workers and entrepreneurs. In spite of all that happened last year, from the economic slowdown to the terrorist attack, worker productivity has grown by 4.2 percent over the last four quarters. In the first quarter of 2002, the economy grew at an annual rate exceeding six percent. Though there's much work left to do, American workers have defied the pessimists and laid the foundation for a sustained recovery.

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