Remarks at the Silicon Valley Leadership Group Annual Public Policy Luncheon, Santa Clara, CA, October 30, 2015

[Edited transcript]

Acknowledgements

Thank you, Geetha, and good afternoon. It is always a privilege to spend time with the Silicon Valley Leadership Group. I think this has to be at least the third or fourth time we've been able to get together. There's a reason for that, and it's embodied in your CEO and my dear friend, Carl Guardino.

Carl is a force of nature. And what I so admire about Carl is that he tackles difficult problems, sometimes monumentally difficult problems, and even in the face of adversity... he never loses hope. He keeps on fighting. And when it comes down to it, that's what I admire about so many of you in this room, too. It's what, to me, the Silicon Valley Leadership Group represents. It's what Silicon Valley represents. You marshal the power of your respective industries and this remarkable group of leaders to move our economy and our country forward on so many important issues.

In a world of seemingly unending cynicism, it gives me great hope. Too often, we hear the pundits say that the issues we confront are the unavoidable result of globalization and technological progress. "It's structural," they say — inequality is the new normal. And too many politicians use that cynicism to justify gridlock and their lack of genuine leadership.

Well, I just don't buy that. And fortunately for our nation, this room is full of people who don't buy that, either. You are problem-solvers, questioners, pioneers. You're not ideological. You're not out there to score political points or get the last word on a Sunday-morning talk show. You're out there tackling the big issues and looking towards the future. America is a better place to live today, and it will be a better place for our children to live tomorrow, because of the people in this room.

That's why I spend so much time with you, and why — first and foremost — I'm here to say "thank you."

Jean Jennings Bartik

I want to begin with a story from my friend Walter Isaacson's book, "The Innovators." Jean Jennings Bartik was a programmer who worked on ENIAC, the first electronic, general-purpose computer. She grew up in a small town in Missouri to parents who weren't wealthy, but fiercely valued education. Jean was able to major in mathematics at Missouri State College for $78 a year. In 1945, her calculus teacher gave her a flyer soliciting women mathematicians to go to the University of Pennsylvania and help on an Army project. She hopped on the next train heading east. Along with five other women programmers, Jean laid the groundwork for the computer that changed the world.

Today, the tuition at the college that nurtured Jean's curiosity and talent is now twelve times higher than it was when Jean attended — even after adjusting for inflation. The train line that carried Jean east to her destination simply doesn't run anymore, because we have a woefully inadequate transportation structure. If Jean were in the workplace today, odds are that she would make about 79 cents on the dollar compared to her male colleagues — that's if she could get a job, even though she is so talented. If Jean loved a Joan, she could still be retaliated against at work in 28 states in America. If Jean lived in many zip codes, in urban areas and elsewhere in America, the deck would be really stacked against her, even though zip code should never determine destiny. If Jean was actually Juanita or Jorge, this story — even today — might not be possible because of our broken immigration system. And yet, America's representatives in Congress, who for generations invested in our people and their potential, have been gripped by a brand of conservativism that would make Ronald Reagan blush. He, after all, passed comprehensive immigration reform and raised taxes.

By telling Jean's story, Walter Isaacson is challenging us to think about whether the digital age is going to equalize access to information and opportunity, or if it's going to widen the persistent gaps we see today.

Today, I want to expand on that by posing two questions:

How do we build the broad-based, accessible opportunity that allows for more stories like Jean's and not fewer? And as that opportunity generates prosperity, how do we ensure that that prosperity is broadly shared?

We have the wind at our back right now, but we need to make sure that the rising tide lifts all the boats and not simply the yachts.

Investing in Infrastructure

As we lay the groundwork, expanding opportunity and ensuring shared prosperity must begin with basic investments in three types of infrastructure.

We need an educational infrastructure from cradle to grave that delivers critical skills and critical thinking that young people need to compete for the jobs of today and tomorrow, no matter where they live, where they were born, what they look like, or what their last name is. Education, my parents taught me, is indeed the great equalizer and one of the greatest tools for social mobility ever known to humankind.

We also need a physical infrastructure to support our businesses and connect our country. That's just common sense. That's Dwight Eisenhower. As President Obama astutely said earlier this month, "the only thing that right now is holding us back [on infrastructure] is Washington dysfunction. We could knock another percentage point off unemployment rate if we started rebuilding roads and bridges and airports." I would add the word "ports" to that sentence, as well.

And we need an infrastructure of democracy that supports the robust, respectful, solutions-oriented debate that quite literally built this country. Let's face it. Money has corrupted our democracy. Ill-conceived voting laws in some states consciously make it harder for eligible Americans to vote. Hyper-partisan redistricting in so many parts of the country have made this, the 50th Anniversary of the Voting Rights Act, a very bittersweet and sadly ironic moment for so many in this people.

Where do we go to build that infrastructure of democracy? I think we go back to Walter Isaacson, who writing about Ben Franklin, gave me another way to think about this. Ben Franklin brought together shopkeepers, artisans, and tradesmen — the middle-class people of his day — in what he called "The Leather Apron Club." They met every Friday to talk about the virtues and values you needed for a good society. Their discourse wasn't simply talk. It resulted in action. It's the kind of discourse that allows us to not only define, but to live by, our values — it's the kind of discourse America deserves and sorely needs today. It's how we overcome any crisis. Make no mistake, there are storm clouds overhead. But our democracy has weathered far worse. Why has it weathered worse? Because Ben Franklin, and so many others, as Walter Isaacson pointed out, understood that idealism and practicality weren't mutually exclusive, that compromise is not a four-letter word. As Walter Isaacson said about Ben Franklin, "compromisers may not make great heroes, but they make great democracies."

Sullivan Principles

In the spirit of Ben Franklin, what I'd like to do is convene our annual summit of the Leather Apron Club here in the Silicon Valley. I want to propose something to all of you that requires a bit of context. Reverend Leon Sullivan was a Philadelphia-based Baptist Minister and civil rights leader. In 1971, he joined the Board of General Motors, becoming the first African-American in our nation's history to sit on the Board of Directors of a major corporation. He used that tremendous role as a platform for anti-apartheid activism.

He developed what was called the Sullivan Principles, a simple code of conduct for companies and the nations where they do business. They included equal pay, non-segregation, training opportunities, and quality of life in housing, education, and health.

Those Principles were a catalyst for divestment and later adopted by the United Nations. As we move forward, as we think about the unfinished business of this economic recovery, I've been thinking we need a Sullivan Principles for Shared Prosperity in the American workforce. These are not principles of corporate charity. They are principles of proven, effective long-term governance. They also happen to be the core principles that helped build this country.

I've thought about a few, and I'm going to guess that you have a few more.

Principle number one: Reject false choices and think long-term. It is a false choice to suggest that you either take care of your shareholders or your customer or your worker. Effective companies like Cisco, as we just heard, do all three. They know it's not a zero-sum game. They know that the high road is the smart road when you are trying to build something that lasts. Shareholders are best served when all stakeholders are well-served.

Principle number two is very simple: If you work full-time in America, you shouldn't live in poverty, and you shouldn't have to rely on food stamps to feed your family. There's no dignity in working a 40-or 50-hour week and getting your food from the food pantry. We can do better.

Principle number three: Worker voice is essential to business competitiveness, and all of your employees deserve a meaningful say. Workers have got game, and they ought to have skin in the game. There are many different ways to include your workers in your business decisions and give them a chance to contribute great ideas. I will leave you with a confession: I haven't had an original idea in my life. But I do pride myself on being a good listener. It helps me, it helps the Department of Labor, and it helps the nation.

Principle number four: If you really believe family comes first, don't pay lip service to it... put it in practice. I meet so many people in my travels who make the unconscionable choice between the job they need and the family they love. This is the only country in the world where we are forcing people to make those choices. This is the only country in the world where paid leave is a partisan issue. We can change that. I want to thank the Silicon Valley Leadership Group for your leadership on paid leave and so many other critical issues.

Principle number five: Innovation is America's middle name, and innovation is in the DNA of everyone in this room. At the same time, the key to long-term success is inclusive innovation that benefits everyone. You know the story, and we've seen so many examples of that.

Principle number six: Successful businesses embrace diversity, or as Dan said, they do it because it's smart, and not because it's PC. I couldn't agree more. As I teach my kids, we tolerate Brussels sprouts. We embrace diversity. Diversity and success go hand-in-hand, they're not either-or.

That leads me to my final principle: we all succeed only when we all succeed. I had the honor of traveling to Selma, Alabama for the 50th anniversary of Bloody Sunday. There, President Obama said that the most important word in a democracy is "we". When we all succeed, we all succeed. Selma was about ordinary people who did extraordinary things. The work in this community to build shared prosperity is about remarkable people doing extraordinary things. That principle of organizing in the social-justice movement doesn't simply apply to the social-justice movements. We pride ourselves on the rugged individualism in this country, but what really made this country strong is that we understood that we all rise together, we all grow together, we all innovate together, we all sacrifice together, that's how we build an America that works for everybody.

There are some in this country who believe that if you blow out your neighbor's candle, it will make your candle shine brighter. That's not what my parents taught me, because it's not true. As I see and visit people, I get inspired. People sometimes ask me, how can you be so optimistic, Tom? I'm optimistic about our future because I meet people like you every day. When I meet the CEOs who are part of the inclusive capitalism movement; when I meet the Fight for $15 workers — one of whom is working 40 hours a week and sleeping in her car because she can't afford housing; when I meet so many people who were long-term unemployed but got up, got upskilled, and as a result of the courage of people in this audience to hire them, they're back on their feet; when I see DREAMers — the President said, DREAMers aren't just a group of people, they're a values statement about who we are as a nation; when I meet those coal miners in Kentucky who were laid off and they aren't getting their jobs back, and now they're coding for a start-up — going from coal to code; they inspire me. That's what this is all about.

I am strongly confident because of the folks in this room. We've weathered far worse storms in this country. We will weather this one. I hope you can give me feedback on these principles. I'm confident there are some you may agree with, I'm confident there are some you may disagree with, and I'm confident there are some I've left out.

We've got to keep doing this. Don't get discouraged about Washington. In the end, optimism always prevails over cynicism. In the end, we play different instruments, but we're all in the same orchestra — that's the orchestra of opportunity, the orchestra of shared prosperity. The arc of this country is long, but it always bends towards justice. It always bends to people who seek to expand opportunity, but it never bends on its own.

Keep staying involved. Let's work together to make sure that promise is realized.

Thank you so much. I look forward to your questions.