Integrity, conscience and service.

The second inauguration of President George W. Bush has just taken place--with all the pomp and ceremony we do so well. It is helpful to be reminded every four years of the exceptional manner in which our country dissects and reinvents itself on a regular basis. We continue to have our disagreements, to be sure, but once every four years we peacefully gather to restate the ideals our country stands for.

In his address, the President made a powerful and passionate plea for the idea of freedom as the right of all peoples.

    "In America's ideal of freedom, the public interest depends on
    private character--on integrity and tolerance toward others, and the
    rule of conscience in our own lives. Self-government relies, in the
    end, on the governing of the self."
    President George W. Bush, Second Inaugural Address, Jan. 20, 2005

I found it interesting that the President included in this treatise on freedom the above statement, which drills the global notion of freedom down to an individual level. He links together public and private accountability, and makes it clear that conscience and integrity are the underpinning of self-government.

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They are also the underpinning of responsible corporate environments. We have seen all too clearly the negative effects on consumer and investor confidence of a severe lack of conscience and integrity, and we have made enormous strides since the days of Enron and WorldCom. I would hate to think, however, that the spotlight on ethics, which has ruled corporate finance for the past few years, will eventually fade away as just another fad of the moment. There is always the danger than an idea that becomes highly popular--even becomes a "buzzword"--can later be discredited as just a passing phase in popular culture. It is critical to our profession and to the health of our economy that the sea change in corporate ethics awareness remains the norm, and not a passing fancy.

Although we believe that integrity cannot be legislated, we must continue to encourage and motivate our members to take active leadership roles in their organizations and to promote a proper ethical tone at the top. That is where good governance starts.

I have always maintained that the majority of financial executives are ethical and conduct themselves and their businesses with integrity. It is important that we continue to dedicate ourselves to this ideal. FEI has been, and must continue to be, a defining force for ethical leadership and sound governance.

We can also take meaningful direction from the President's address with regard to the important place that service plays in the life of our association. I am proud of the fact that FEI is certainly no stranger to the idea of service and community involvement. Our chapters have proven time and time again their dedication to community and those less fortunate, and our membership is replete with selfless volunteers who are more than willing to share their time and the wealth of their experience with each other and their neighbors.

D.C.'s Demolition Derby 

As we go to press, the President has just given his State of the Union address--with his bold plan to overhaul the Social Security program a centerpiece of this address. This issue is the Washington, D.C., equivalent of a demolition derby.

(Whether you agree with the President or not, I was struck by the booing and hissing that came from the audience of U.S. Senators and Congressmen and women. I found it unbecoming, classless and extraordinarily disrespectful. The time for debate is after the speech--not during it.)

The President had been talking about "privatizing" Social Security for some time, but his speech made clear that this was going to be the largest domestic priority of his second term. He provided additional details for his plan that include: 1) the proposed personal accounts would be open to workers born in 1950 and after, and would be phased in over three years, beginning in 2009; 2) the contribution limit would be 4 percent of income up to $1,000, an amount that would rise by $100 a year; and 3) workers would choose from a small number of stock and bond funds that would be invested according to age. The question will be whether he can garner the 60 votes needed in the Senate, where Democrats hold 44 seats.

Just as the President has taken this bold move to push his passion, I urge FEI members to renew your commitment to reaching out to your local communities and giving of the expertise and resources that FEI possesses.