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Copyright © 2018 by Stanley S. Litow. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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Library of Congress Cataloging-in-Publication Data:
Names: Litow, Stanley S., author.
Title: The challenge for business and society : from risk to reward / by
Stanley S. Litow.
Description: Hoboken, New Jersey : John Wiley & Sons, Inc., [2018] | Includes
index. |
Identifiers: LCCN 2018003396 (print) | LCCN 2018005296 (ebook) | ISBN
978-1-119-437505 (epdf) | ISBN 978-1-119-43748-2 (epub) | ISBN 978-1-119-43388-0
(cloth)
Subjects: LCSH: Social responsibility of business. | Business—Social aspects.
Classification: LCC HD60 (ebook) | LCC HD60 .L5694 2018 (print) | DDC
658.4/08—dc23
LC record available at https://lccn.loc.gov/2018003396
I dedicate this book to three young people who can help us all realize
a brighter future, Henry, Robinson, and Wilder, and my life partner,
Amy, who makes my future brighter day by day.
When I joined IBM in April 1993, my mandate from shareholders, the board of directors, and, yes, many employees was all about change. IBM had just reported one of the largest losses in the history of corporate America, and I was soon to learn that we were in danger of running out of cash by the end of the year. Therefore, many things had to change. We sold off underperforming businesses; we strove to reconnect with our customers; and, most urgently, we had to reduce expenses.
However, having been a great admirer of IBM during its many decades of undisputed leadership among large multinational corporations, I knew that there were pillars of strength that should be maintained and, if possible, reinforced. One of those was investments in research and development, and I made certain we protected this extraordinary resource.
Another great strength of IBM was its decades-long commitment to corporate responsibility, whether it was in civil rights, leadership in providing opportunities to women and people of color, or advances in workplace and family benefits. This, too, was an area I wanted to protect.
However, I quickly discovered that one area of corporate responsibility, namely corporate philanthropy, had, like many parts of IBM, become bogged down in bureaucracy and history. It seriously needed new leadership.
Not seeing an internal candidate, I began to search for someone to come in from outside. It didn’t take long for Stan Litow to stand out as an excellent choice. He was a risk taker—a trait not found often in the philanthropic world. Moreover, he shared my personal passion for the importance of reforming K–12 education in America. I had worked for more than 30 years prior to coming to IBM on many efforts aimed at trying to fix our public schools, and I knew I wanted the new IBM to throw its many resources behind this important effort.
Stan turned out to be everything I needed to reinvigorate IBM’s long-standing commitment to public service. For a decade, we worked side by side on a very active corporate responsibility agenda. And much of it focused on K–12 reform.
Stan then supported my successor, Sam Palmisano, for another decade as IBM further expanded its philanthropic work. Finally, the indefatigable man, Stan went on to serve so well Sam’s successor, Ginni Rometty.
This book discusses many of the activities that Stan led so successfully at IBM. This focus is understandable since he had a distinguished 25-year career at the company. However, Stan also draws on many examples from other companies, and as a result this book should be helpful to all those businessmen and -women who believe strongly in the importance of corporate philanthropy.
On a personal note, I am unabashedly a proponent of active corporate citizenship. I know there are some in the business community who do not share this view. When our communities are healthy and, hopefully, thriving, the companies in these communities enjoy many levels of support. Conversely, operating a business in a declining, negative environment only adds to the challenge of corporate leadership. Effective public-private partnerships almost always benefit both participants.
The business community is under considerable pressure today. Whether it is income inequity, jobs lost to Asia or Mexico, stagnant wages, or tax avoidance, citizens as well as politicians are pointing fingers at the business community. Responding to these criticisms will require far more than good corporate citizenship. Nevertheless, greater attention to all the ways businesses can support our communities will be a very important ingredient in any significant repositioning of American business in the eyes of America’s politicians, media, and academics, as well as its employees and ordinary citizens.
Lou Gerstner
December 14, 2017
The content of this book draws heavily on my professional experience in the public sector, private sector, and civil society. I have been fortunate to have had substantial experience in all three sectors over a long period of time. My colleagues in all my work experiences have been extremely valuable as colleagues and as friends. Working in the administration of John V. Lindsay during his tenure as mayor of New York City offered me a unique leadership opportunity at an early age on issues facing the city. My associates at the Urban Corps under the leadership of Deputy Mayor Tim Costello helped me to learn and grow as a professional and create a meaningful range of opportunities for college students to contribute to the functioning of the city, benefiting all city residents.
In the creation and operation of Interface and the Educational Priorities Panel, both of which I led, I had a unique opportunity to develop policy studies and advocacy strategies that assisted the city as it coped with and then recovered from a massive financial crisis. I had a good deal of help in that effort from many colleagues. In my tenure as deputy schools chancellor I had an opportunity to work with one of America’s finest education leaders, Joseph Fernandez, and adept political leaders like Bobby Wagner and Carl McCall, as well as many colleagues in my IBM tenure under three CEOs—Lou Gerstner, who hired me, and Sam Palmisano and Ginni Rometty, who succeeded him—I benefited from their strong leadership and consistent support.
The colleagues who worked with me and supported me throughout my career in government, the private sector, and civil society are far too many to mention, but I’d like to call out the following: David Lebenstein, Jill Blair, John Mattoon, Tina Kelly, Ariel Zwang, Jim Vlasto, Kim Bohen, Sarah Williams, Jen Crozier, Gina Tesla, Doris Gonzalez, Grace Suh, Maura Banta, Diane Melley, Ann Cramer, John Tolva, Sherry Swick, Donna Mattoon, Rashid Davis, Kevin Rothman, Karen Amaker, Armando Rodriguez, and so many more. Julius Edelstein and Al Bowker, both now deceased, were very valuable mentors and dear friends.
Apart from my professional experiences, I have benefited from close friends and family who have supported me in everything I have been able to accomplish, especially my son and daughter, Andrew and Alexandra, their spouses, Lauryn and Ryan, and especially my life partner, Amy Brenna, who has been there for me every step of the way.