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Private Sector Initiatives 1981-1982 (7)
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual
collections.
Collection: Deaver, Michael
Folder Title: Private Sector Initiatives
1981-1982 (7)
Box: 53
To see more digitized collections
visit: https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories
visit: https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives
Catalogue: https://catalog.archives.gov/
MEMORANDUM
THE WHITE HOUSE
sili
WASHINGTON
November 16, 1981
psl
TO:
MICHAEL K. DEAVER
FROM:
JAMES S. ROSEBUSH general
SUBJECT: P.S.I. HIGHLIGHTS
For October 20 through November 13, 1981
1. Public Relations Society of America in conjunction with
the Public Affairs Council planning a May 1982 meeting
on local communities and PSI in Minneapolis.
2. Voluntary Effort to Contain Health Care Costs - Working
with local business coalitions to control costs.
3. PepsiCo - One million dollar contribution to United Negro
College Fund.
4. National Public Radio - Announces it will renounce federal
aid and seek all support from the private sector.
5. American Express - considering expansion of its California
experiment contributing 10¢ for every credit card charge
and $2.00 for every credit card application.
6. NAM - Devotes issue of Enterprise, its magazine to PSI.
7. United Way - Local campaigns continue to report 10-24%
increases despite criticism that the Administration's
tax plan would dampen contributions.
8. National School Volunteer Program - "the major non-profit
association matching corporate and individual voluntarism
to elementary and secondary educational needs", is planning
their 1982 program based on our PSI objectives. Rosebush
gave keynote at their annual meeting November 7, 1981.
9. Consortium for Human Service - in Philadelphia has been
formed social service types and grantmakers to "achieve
a more effective utilization of resources".
10. Public Affairs Council - meeting here November 17,18 is
discussing with its corporate members the new role for
the private sector.
-2-
11. RNC - is planning an ambitious training program for state
and federal candidates right along the lines of PSI. This
will be a terrific boost. It's called "Working Partners".
12. U.S. Chamber - Board of Directors voted to endorse a state-
ment that "leadership by the private sector is essential".
13. Goodwill Industries- Admiral Cooney is citing inflation as
the number one problem endorsed budget cuts and PSI.
14. Colorado Alliance of Business - Placed 11,534 young people
in un-subsidized jobs last summer and is now coordinating
a year award youth employment program aimed at reducing
the 15% youth unemployment rate there.
15. Santa Barbara Community Schools - sponsors on November 23rd
a conference on "Community solutions to Crime and Violence".
16. Columbia University - establishing a Laurance A. Wein prize
to recognize exemplary corporate social responsibility.
17. Educational Broadcasting Service -committed to a 90-second
daily radio feature on PSI to be aired on 2,000 stations
across the country. Show to be called "The Spirit of Service".
18. IBM - Donating four memory typewriters to PSI Task Force.
19. American Camping Association -committed to expanding its
job programs for youth at camp site to a year around
activity.
20. Black College Self Help Plan - Tony Brown proposes use of
black colleges in 19 cities for economic revitalization of
self-help for blacks.
CC: Baker
Baroody
Darman
Dole
Fuller
Gergen
Meese
Pauken
Speakes
Verity
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
November 16, 1981
Sile PS/
psl
TO:
MICHAEL K. DEAVER
FROM:
JAMES S. ROSEBUSH
your
SUBJECT:
P.S.I. EXAMPLES
In the past two months we have received hundreds
of examples of effective private sector program and public/
private partnerships.
Anticipating that the Task Force may need a data base
of these programs, a volunteer has started to catalogue
them. Attached for your interest is a listing of subjects
exhibited by the materials we received.
I thought you would be interested in purusing the list
just to see the scope of the response.
CC: Dole
Fuller
prepared by
for
PRIVATE INITIATIVE FILING SYSTEM 11/3/81
Wencly Sullivan/P.loRl
Arts/ Humanities
Cities/Municipalities - General Programs
Cities/Municipalities - Development
Clippings/Articles
Conservation
Correspondance - Letters of Support
Correspondance - Offers of Help
Crime - Prevention
Crime - Rehabilitation
Crime - Youth
Education - Citizen Rights
Education - Enviornmental
Education - Financial Aid
Education - Literacy
Education - Public Schools
Education - Technical/Job Training
Elderly - Crime
Elderly - General
Elderly - Health Care
Elderly - Retirement Programs
Employment - Black Americans
Employment - General
Employment - Government Role
Employment - Public Employees in the Private Sector
Energy
Food/Surplus Goods
Handicapped - Job Training/Employment
Continued; Page Two
Health Care - Counseling
Health Care - General
Health Care - Youth
Housing - Preservation
Housing - Redevelopment
Organizations - Citizen/Government
Organizations - Foundations
Organizations - Religious
Organizations - Research
Organizations - Volunteer/Non-Profit
Private Sector Initiatives - Forms
Private Sector Initiatives- Participation/Responsibilities
Private Sector Initiatives - Programs/General
Private Sector Initiatives - Revenue Gap
Refugees
Transportation
Volunteerism - European Examples
Volunteerism - Individual Efforts
Women - General
Women - Health
Women - Job Training
Youth - Crime
Youth - Education
Youth - Health
Youth - Job Training
THE WHITE HOUSE
file
WASHINGTON
Psl
October 26, 1981
MEMORANDUM FOR MICHAEL K. DEAVER
FROM:
JAMES S. ROSEBUSHI
Private Sector Initiatives JR Highlights for
SUBJECT:
the Week of October 19, 1981
ARCO -- Creating programs to promote voluntarism and fund
market related projects.
Standard Oil of Ohio -- Increasing contributions budget 50%
from $10 million to $15 million.
National Association of Counties -- Forging alliance between
business and counties.
Advertising Service Committee -- Adopted by full resolution
of board a year long and campaign on voluntarism.
HUD -- Steve Savas developing specific private sector options
for HUD. Private management of debt collection; private
management of public housing projects.
Gannett Foundation -- Increasing their previously announced
$400,000 grant program to $1,000,000 for special community
needs.
Edie Fraser Associates -- Producing weekly list of corporate
examples to use as models.
National Urban League -- Creating new programs to fulfill corpo-
initiatives in training.
Gallup Poll -- Shows 52% of all Americans are volunteering.
Mott Foundation -- Organizing Michigan Equity Investment Fund
to aid small business suffering from Michigan's economic woes.
United Way -- Predicts 12 city campaigns will come in at least
10% over their goal.
page two
Michael K. Deaver
October 26, 1981
National Society of Professional Engineers -- Establishing new
level of volunteer promotion among engineers.
State of Arkansas -- Energetic voluntarism effort. (see attached)
CC: Baker
Baroody
Darman
Dole
Fuller
Gergen
Meese
Pauken
Speakes
Verity
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
October 23, 1981
TO:
MICHAEL K. DEAVER general
file
FROM:
JAMES S. ROSEBUSH
SUBJECT:
PRODUCTIVITY
On October 15, the President received a letter signed by a
number of Congressional leaders endorsing the proposal of
the National Association of Broadcasters to establish a
nation-wide productivity campaign. You will remember the
NAB scheme is a spin-off from the earlier Ad Council -
NAB Coalition.
Our appropriate response should be that we are taking this
under advisement. My response to NAB leadership when they
presented this ambitious and rather unrealistic scheme, was
that if they could secure the endorsement of the major
business and labor organizations we would take a serious
look at their request for endorsement. So far I have
no evidence of this endorsement.
WASHINGTON OFFICE
315 Result Orier
(202) 224-3542
PROPRIATIONS
CARSON CITY
ON JUDICIARY
Miniled States Senale
705 N.WTH RELT
(702) 823-1330
WASHINGTON, D.C. 20510
LAS VEGAS OFFICE:
300 LAS VIGAS Rive., State
(702) 315-6547
REND OFFICE:
October 15, 1981
300 BocTp STATET
(702) 784-1158
Dear Mr. President:
No doubt you have been apprised of the National
Association of Broadcaster's proposed campaign to increase
the nation's productivity. This plan has our enthusiastic
endorsement as "The Right Action at the Right Time"
we
feel that it is not only eminently practical but it could
be the first of many such enormously valuable efforts by
the private sector.
We agree with the NAB that there is a need for
immediate action in this area and we hope to see the plan
start on schedule (December 25) so as to best utilize the
immense resources of the broadcasting industry.
We trust you will give the NAB's proposal every
consideration. Apart from the plan's own goals of raising
productivity, it could be the model we need to show how
volunteerism can be made to work. Indeed, the program is
philosophically in tune with the Administration.
We look forward to working with the White House
on the implementation of this program if it is found
acceptable.
Sincerely,
Halk
Leet
ORRIN G. HATCH
RAUL LAXALT
Omerican
PETE V. DOMENICI
JACK KEMP Keep
ROBERT H. MICHEL
TRENT LOTT
Been Indu
BARBER B. CONABLE
The Honorable Ronald Reagan
President of the United States
The White House
Washington, D.C. 20500
MEMORANDUM
THE WHITE HOUSE
yele
WASHINGTON
psl
October 22, 1981
TO:
MICHAEL K. DEAVER
FROM:
JAMES S. ROSEBUSH
SUBJECT:
Summary of Private Initiatives
Attached is an excellent synopsis of how private sector
corporate-related organizations are responsing to the
Administration's call for more initiative. It was
prepared by Edie Fraser for her corporate clients.
She will be providing them with weekly reports on
models that work and can be implemented.
Attachment
CC: Fuller
Darman
Dole
Pauken
Baroody
Verity
EXECUTIVE SUMMARY
PRIVATE SECTOR INITIATIVE:
BUSINESS RESPONSE TO THE CALL FOR ACTION
Introduction
Public attention is now shifting from the Reagan budget
cuts to "the gap" they are creating. The key question is
"Who is going to fill it -- and how?" Both the Administration
and the public have high expectations for the private sector.
Now is the time to move from rhetoric to action.
The White House Call to Action
Administration spokespersons have been informally encour-
aging private sector initiatives for some time, but now Pres-
ident Reagan has formed a new Task Force on Private Sector
Initiatives. Bill Verity, chairman of Armco and former head
of the U.S. Chamber, has been picked to head it. Thirty-five
members are now being selected. Jim Rosebush is key Adminis-
tration liaison.
Business Related Groups Stepping Up Activity
AEI: Baroody study to look at big picture at President's
request.
Business Roundtable: New position statement on Corporate
Responsibility.
Conference Board: Good resources; little program specifics.
NAM: Trowbridge pushes board resolution.
U.S. Chamber: Citizen review process at local levels.
Clearinghouse on Social Responsibility: Reaching outside
of own industry.
Aspen Institute: Looking at the future of private
philanthropy.
CED: Studying private/public partnerships.
Public Affairs Council: Predicts more community action.
United Way: Campaigns urging public do do more.
Independent Sector: Submitted plan to Administration.
National Executive Service Corps: Mobilizing retired executives.
Conclusion
These efforts represent the tip of the iceberg. Dozens of
other groups are recognizing the importance of joining together
to address our country's pressing problems and are developing
their own strategies for social change.
PRIVATE SECTOR INITIATIVE:
BUSINESS' RESPONSE TO THE CALL FOR ACTION
With Reaganomics in full swing, attention is shifting
away from budget cuts themselves towards "The Gap" they are
creating. As one business leader describes it, "The gap is
the difference between the amount of funds expended on social
welfare, cultural programs and education this year and the
amount budgeted under the new federal budget and tax reduction
program. Though the nature of "the gap" is clear, the question
remaining is who's going to fill it--and how?
Both the public and the Administration have high expec-
tations for the private sector. Business leaders believe it
would be impossible to raise even $1 billion more than has
been given in the past two years. In 1980, from corporations
and company foundations contributed approximately $2.5 billion.
The gap created by federal budget cuts is approximately $30
billion. Clearly, there is no way that business can "fill that
gap. " Nor should it. Yet opinion leaders agree that if busi-
ness isn't responsive, we may revert back to the social explo-
sion of the late 1960's. As Bill Norris, chairman of Control
Data sees it, "If business doesn't step in, the aftermath
of the Reagan Administration could see a rash of social legis-
lation that would match the New Deal."
Beleaguered corporate contributions committees are now
swamped with funding proposals from charities, private voluntary
organizations and groups. As a result, they are all looking
to their managements for direction. The Conference Board reports
that attendence at its annual conference on private voluntarism
was way up from the past year. Corporations are seeking answers;
they are seeking direction.
Faced with a negative economy, it is tough for many cor-
porations to be responsive--particularly in terms of financial
contributions. But the thrust of the private sector initiatives
now being developed goes beyond contributions. The general
response from the corporate community is that philanthropy in
the traditional sense is not the only answer. Today "private
sector initiatives" means "getting involved,' urging employees
to get active at the community level.
2
Because we're not going to have a great deal of money
around, we need other alternatives. The White House has awakened
to the fact that time is short and the Administration must assist.
The clock is ticking. Unfortunately, we have been hearing too
much rhetoric; businesses have spent too much time talking to
one another. It is time to move from rhetoric to action. The
budget cuts are beginning to take effect. There will definitely
be fall out from the budget reductions in the social areas.
The business community must have a response.
Fraser/Associates has been keenly aware of the increasing
challenges to the private sector. This background paper was
prepared to summarize the business community's response to
date and to give individual companies and associations some
direction for their own initiatives. We firmly believe that
the business community cannot afford to pass up this opportunity.
Several corporations are already giving more money, becoming
more active in the community, and building substantial new programs.
Other companies are doing nothing. What is needed is an overall
concerted effort. We hope the resources outlined in this report
will prove useful in putting together your own strategic plan for
private sector initiatives.
3
THE WHITE HOUSE CALL TO ACTION
The President addressed the National Alliance of Business
on October 5, outlining his new plan for fostering private
sector initiatives and voluntarism. He announced the creation
of a Presidential Task Force on Private Sector Initiatives,
comprised of 35 leaders from corporations, foundations, and
voluntary and religious organizations. Its purpose: to pro-
mote private sector leadership and responsibility and to recom-
mend ways of building better private/public partnerships.
Bill Verity, chairman of ARMCO Steel and immediate past presi-
dent of the U.S. Chamber of Commerce will chair the task force.
Reagan asked his Cabinet to develop some seed money programs
that offer incentives for private sector investment.
The key word in the Reagan speech was "voluntarism. " Many
corporate leaders, however, feel the word has little meaning
when not associated with substance and permanent programs.
Reagan sees it quite simply: "I am calling upon you today to
help in the cause to enlarge the social responsibility of our
citizens. The spirit that built this country still dwells in
our people. They want to help we only need to ask them. "
The White House involvement has been intensifying over
the past several months. Initially Elizabeth Dole, Assistant
to the President for Public Liaison, was in charge. She worked
with her deputies, Red Cavaney, Jack Burgess and others. The
issue was deemed SO political that it was moved to a higher
level at the White House. Jim Rosebush, who reports to Presi-
dential assistant Mike Deaver is now the key staff person on
private sector initiatives. Rosebush is a former Commerce
Department business liaison and corporate contributions Director
for Standard Oil of Ohio.
In an earlier Administration action, the President named
Bill Baroody, the president of the American Enterprise Institute,
to chair a special one-year project assessing the potential of
private/public partnerships potential. In a letter to Baroody
on June 19, 1981, the President said: "I know you share my
conviction that we need to restore the proper balance between
the public and private sectors. Private sector initiatives
often can be more effective and humane than government programs
because they arise from the people themselves and thus more
fully address their needs and express their traditional values. "
Baroody will continue serving as a personal advisor to
Deaver while he completes the research project. The AEI's
effort is a privately funded project being done at the Presi-
dent's request.
4
While there has been some activity on the national level,
the key problem is there has been no central strategy. Verity
may change that, and the selection of task force members is now
underway. Business leaders agree that the active involvement
of the Administration is key to making things happen, however,
and are asking for greater support -- and recognition. In the
meantime, they are gearing up on several fronts. The activities
of many of the leading organizations are outlined in subsequent
sections.
5
BUSINESS-RELATED GROUPS STEPPING-UP ACTIVITY
The American Enterprise Institute
The American Enterprise Institute project is being directed
by Dr. Jack Meyer. The purpose of the study as defined with the
White House "is to determine how the traditional institutions
in the private sector -- neighborhood groups, churches, voluntary
and ethnic organizations, corporations and labor unions - - can
help individuals in need, particularly at a time of cutback in
government services. Basically AEI plans to:
Determine who is affected by the cutbacks;
Identify specific needs that need to be filled;
Determine how those needs can be met by the private
sector institutions and what are the sources of help;
Develop the best communications strategy for White
House and federal government; and
Identify where government creates barriers or
interference with private sector initiatives.
Its objectives are ambitious. For example, AEI hopes "To
develop a complete strategy for addressing the social area of
American life, one that weaves together a refashioned government
strategy with renewed private sector initiatives. Where is
this project headed? The emphasis now is on issue areas such
as economic development and jobs. Papers will be developed as
each phase of the project moves forward.
The Business Roundtable
A rather vague but important policy statement was released
in March by the Business Roundtable. It was the organization's
Position on Corporate Philanthropy. The Roundtable "believes
that corporate philanthropy, primarily through contributions,
is an integral part of the corporate societal responsibility.
The statement emphasizes that business can do much in terms of
direct monies and in-kind support, such as loaning executives,
getting employees involved in community activities, loaning
equipment and space, emphasizing volunteer programs, providing
direct dollar investments and economic redevelopment efforts.
It adds that each company has to manage its own philanthropies
with its own standards and therefore, "the philanthropic programs
of businesses will differ depending, for example, on the needs
of the communities in which they operate.'
6
Deviating from the standard corporate practice of helping
others "behind the scenes," the Roundtable recommended that
all companies make public, in any manner they deem appropriate,
information on their corporate philanthropic programs.
The Roundtable position paper was developed by a task
force directed by Thomas Murphy, the immediate past chairman
of the Roundtable.
As a follow-up to its initial statement, the Roundtable
recently issued a second statement focusing on the broader
aspects of Corporate Responsibility. In the statement's
introduction, the need for such a statement is outlined: "If
public expectations and perceived corporate performance are at
odds, corporations will be attacked more and more on social
and political as well as economic grounds. The result would
be adverse public opinion leading to further government involve-
ment in their operations."
The statement suggests that directors, officers, and
mangers of corporations consider:
Which issues of responsibility have particular
relevance to their business.
Whether the company has effective policies, the right
personnel, and adequate structure to deal with both the
economic and social expectations of constituencies and
the general public.
What changes, if any, should be made in company structure,
staffing policies, operations, attitudes, and behavior
in order to deal effectively with public policy and social
issues.
What steps can be taken to assure that responsibilities
to all corporate constituents are given adequate con-
sideration in the selection, assignment, evaluation,
and compensation of employees.
How the company can inform, sensitize, and train present
and future management to deal with these matters.
What can be done to assure that the company's larger
role in society is understood by management, employees
and other constituencies.
What are the most effective ways for the company to
communicate its concern for all its responsibilities
to the general public.
7
In the context of the current environment, the Roundtable
concludes "While it would be neither sensible nor possible to
direct the full thrust of the corporate community's efforts to
curing all the nation's social ills, it is important that each
corporation give attention to all the consequences of its
activities.
A full copy of the statement is atached to this report.
The Conference Board
Probably the business organization most involved through
the years in studying business philanthropy has been the Con-
ference Board. The Conference Board has 4,000 members and
a staff of 270 compared to the Roundtable membership of just
under 200 CEOs with a much smaller staff. The key professional
involved with private sector initiatives has been Walter A.
Hamilton, Vice President, Public Affairs Research. He has
guided the development of a superb annual report on corporate
philanthropy and annual meetings for corporate contribution
officers.
In the current environment, the Conference Board is not
emphasizing philanthropy, but taking a greater look in-kind
contributions. Hamilton notes that David Rockefeller tried
repeatedly over the last year to organize a new business organi-
zation which would encourage corporations to give more money to
the arts. His efforts proved fruitless and Rockefeller withdrew
from the mission. This confirms the belief of other organizations
which feel corporations are unlikely to substantially beef up
financial contributions in a tight economy.
Hamilton states it well when he says "it will be corporate
performance not rhetoric which will determine the outcome."
Yet the Conference Board itself has been sponsoring meetings
across the country for corporate leaders to compare notes with each
other rather than developing specific action plans. Its Public
Affairs Research Council, made up of very senior public affairs
officers has been tackling the private sector initiative
issue extensively. Other groups of public affairs officers
have had sessions under the auspices of the Conference Board
in the past several weeks in various cities across the country.
As we see it, the primary role of the Conference Board in
developing a strategic plan for corporate action is to serve as
a data and information resource. The business community can
learn from its past experiences, well documented in Conference
Board studies, how to shape an effective plan of action for the
future.
Two studies of particular interest are: Annual Survey
of Corporate Contributions, 1981 Edition, and Organizing
Managing a Contributions Program: "A How-To Guide.
8
National Association of Manufacturers
The president of NAM, former Commerce Secretary, Alexander
Trowbridge, has a long, dedicated record of service in this
area. In a recent speech at the National Press Club, Trowbridge
articulated the NAM position: "American industry is ready to
take up its share of the responsibility for providing job
training, economic development and social services as the
Reagan Administration's budget cutbacks take effect."
Trowbridge stated that the association's member firms are
"enthusiastic about what we can accomplish within the bounds
of reasonable expectation." "Reasonable expectation" was the
key phrase as Trowbridge emphasized the limits of business'
responsibility. As he put it: "Business can't take up all the
slack by any means -- not when its primary task is to revitalize
productive capacity, persue balance growth and create new
jobs.
We obviously have some distance to go in solving
America's economic problems, but the NAM board and I feel
pretty positive about the future. We not only believe that
the President's programs will work, but we're ready to take up
our share of responsibility for providing needed services in
communities across the country."
NAM's board of directors recently approved a resolution
that Trowbridge sponsored, calling on the NAM members to increase
their contributions to charitable organizations and other non-
profit groups.
U.S. Chamber of Commerce
The U.S. Chamber of Commerce is leading the pack in encouraging
private sector initiatives at the local level. Don Kroes, general
manager of the Chamber's field operations, is heading up the Chamber'
effort.
The Chamber believes that problems must be identified at the
local level and resolved at the local level. The Chamber's system
for local level response is called the Citizen Review Process.
The process was developed in part by former Chamber head Bill
Verity, who is now heading the Administration's Task Force on Private
Sector Initiatives.
The process was first employed on a pilot basis in Middletown,
Ohio. The Middletown experience is described in a how-to booklet
called "We Can Do It Together " now available from the Chamber.
According to Kroes, the Citizen Review Process is designed
to insure that "the business community is dealing with real needs
not perceived needs.' " He stresses that it is not business' role
to "fill the gap. "
9
"You cannot equate a federal budgetary cut with a gap
that needs filling. Certain programs must be pared down, and
they must be examined at the community level by those individuals
affected," Kroes says.
The Citizen Review Process involves six basic steps:
Identify how much federal aid is currently coming into
the community;
Identify federal cuts affecting the community;
Identify those affected by specific cuts;
Determine with aid of those affected, what real
needs remain;
Determine resources locally available; and
Go for the necessary dollars.
Already over 40 local Chambers are helping to put together
local citizen review task forces.
With over 150,000 members, the Chamber has phenomenal
impact potential. By joining with local Chambers, business,
government and public interest group leaders, it will establish
a support network for private sector initiatives that relies on
community planning and implementation.
The Clearinghouse on Social Responsibility
Probably the leading industry supporting private sector
initiatives is the insurance industry. Years ago, this industry
set up its own Clearinghouse on Social Reponsibility. The
Clearinghouse holds regular sessions during the year. In
fact, it just completed a conference for 115 CEO's on the
challenge of private sector initiatives. Among those attending
was Jim Rosebush, special assistant to President Reagan for
private sector initiatives. The Clearinghouse will soon be
releasing a new statement on corporate responsibility and the
private sector initiatives.
The director of the Clearinghouse, Stanley Karson, believes
that insurance companies will definitely be increasing their
philanthropic support. Unlike most business organizations, the
Clearinghouse is placing emphasis on more money. Karson contends
that "private industry knows they are going to have to give
more, and give it selectively and carefully. But they don't
want to raise expectations that private industry can fill the
gap because it can only stem the tide." According to Karson,
such contributions are in business' own self interest.
10
Karson emphasizes the urgency of the situation. As he puts
it: "The business community's response must be positive and it
must be prompt. The Clearinghouse is taking a new direction
by helping to motivate corporations outside its own industry
to respond to the call for action.
The Aspen Institute For Humanistic Studies
The Aspen Institute, an innovative think tank founded in
Colorado, has received a grant from the MacArthur Foundation
to deal with private sector initiatives. "We're going to take
a close look at the future of private philanthropy, says
Bobbie Kilberg, project director, "in terms of the private
sector, the corporate giving sector, and the support given
through foundations.'
The Institute has focused not only on the private sector
but also on national and community-based foundations. The
project involves several different sessions and studies. A
Seminar on the Future of Private Foundations was held in Aspen
in August. It followed an initial seminar on The Evolving
Roles of Community Foundations, held in June of this year.
Aspen's efforts confirm that local emphasis works best.
This theme is being echoed by many other groups. Focusing on
communities, Kilberg has a three-part message:
Recognize the massive change in funding programs for
the community;
Realize the political climate change; and
Appreciate that there has been a public attitude change.
"The last seminar we held concerning community foundations
proved to answer two questions; what projects were working and
what projects were not working," Kilberg says. "We're finding
that the community-based foundations are becoming more and more
important, corporations will become increasingly dependent
upon them. We need a network between the corporations and
communities."
The Committee For Economic Development
Long recognized as a leading educational organization pro-
moting business-academic partnerships, the Committee for Economic
Development (CED) is comprised of approximately 200 Trustees
who represent major corporations, universities and social insti-
tutions.
11
The CED has been working long and hard on a major study
to examine corporate solutions to social and economic problems
in major cities and gather successful examples of private/public
partnerships. The project director is Scott Fosler. Its study,
which is expected to receive approval from the Trustees by
December is the result of two years of extensive research
based on two primary assumptions:
revenue is constrained within cities; and
the federal role is limited.
The CED's study addresses important questions. For in-
stance, why are some cities doing better than others in future
planning? Why is there greater willingness to engage in mutual
problem solving in certain cities? Why are some cities respon-
sive, others are not? What creates the mindset for an urban
community to employ successful programs for a progressive
future? Cities examined in the report include: Minneapolis,
Pittsburgh, Baltimore, Chicago, Dallas, Atlanta, and Portland.
CED has looked at projects and organizations in the urban
communities, how resources are applied beneficially, and the
active versus passive role as a factor in city planning. The
goal of the CED study is to look at case studies, draw an
effective and accurate analysis from the research, and then
issue a policy statement on behalf of CED's position and
findings.
The Public Affairs Council
The organization most committed to providing education and
counseling to companies in dealing with public issues is the
Public Affairs Council. The Council is a non-profit, non-
partisan organization of some top 400 corporate public affairs
executives which "encourages its members to be active and
informed participants in public affairs and to provide thought-
ful leadership as corporate citizens." Dick Armstrong, presi-
dent of the Public Affairs Council and Ray Hoewing, vice presi-
dent, are among those who have been in the forefront on public
policy issues such as the future of private sector initiative
and private/public partnerships.
"We at the Public Affairs Council anticipate that the
members will be more involved now than in the recent past in
community affairs, says Hoewing. "If corporate involvement is
to be truly effective, it must be achieved through a community-
by-community approach.
"There are many organizations already involved in helping
companies administer their philanthropic programs. Because
companies implement their programs through their public affairs
departments, we expect to be called for advice in developing
strategies and programs."
12
According to Hoewing, the PAC is moving ahead on several
fronts:
The Public Affairs Council already has a clearinghouse
for policy issues. It is expected that the key issues associated
with private sector initiatives will be part of this clearinghouse.
These include voluntarism, educational projects and initiatives,
loaned executives, etc.
Many organizations are looking at the future of private
philanthropy. Hoewing says that he expects member companies
to seek counsel from PAC concerning how to get "more bang for
the buck." A conference on the future of private sector
philanthropy is a possible PAC project.
The Public Affairs Council anticipates the need for
some conferences for corporate executives who have the front-line
responsibilities. Watch for conferences and seminars in 1982
and 1983.
The Public Affairs Council has for many years been
involved in anticipating issues on the state and local levels.
With the community emphasis of the new private sector initiatives,
the PAC's state and local expertise will no doubt be called
into play.
Hoewing anticipates a new focus on urban affairs as we
see problems arise, needs identified and programs resulting at
the community level.
United Way
On September 17 in a nationally televised message, President
Reagan officially kicked off the 1981 United Way Campaigns.
United Way is the nation's largest voluntary federation,
representing more than 37,000 voluntary agencies and programs.
In kicking off the campaign, Reagan made a special appeal
for private sector initiative: "Tonight I ask all individuals
of every income level and I ask all corporations of every size
to give more generously than ever before to this fall's United
Way Campaigns in your community," he said. "We're shifting
responsibility away from the federal government, but to do SO
requires people's needs to be met at the local level. We need
new, imaginative partnerships between state and local government
and voluntary organizations if people's needs are to be met.
In a speech to the National Press Club, United Way chairman
Donald Seibert echoed the President's statements. "Tighter
budgets and increased social welfare decisionmaking by states
and communities are long term realities. Our job is to accept
these realities and work within them. We must work to help
meet human needs in the most equitable, efficient way possible.
We must work toward cooperation."
13
Seibert outlined three steps that must be achieved in
order for private sector initiatives to be effective. They
were:
Cooperation among voluntary groups and governmental
officials at state and local levels;
Taking a hard look at our institutions and programs
both public and voluntary to see how well we are
using limited resources; and
Raising more money.
Seibert closed by echoing the President's call for private
sector action. "Today is the beginning of a new opportunity.
That opportunity is for the private sector -- United Ways,
voluntary agencies, foundations, corporations and you and I as
individuals -- to do more than we have ever done before.
We can do more
we should do more
we will do more.
The national interest requires our combined efforts to do more
as never before."
Corporations have traditionally been supportive of United
Way Campaigns and active in United Way programs in their
communities. The relationships which have been built up over
the past years are likely to prove fruitful in expanding such
cooperative programs. In fact, a number of corporations have
already increased their commitments to United Way as the
foundation for their new programs.
Independent Sector
The Independent Sector, an umbrella organizations promoting
private sector philanthropy in areas such as education, science,
health, welfare, cultural and religious life, is playing an
important role in fostering effective private/public partnerships.
Its membership includes any copanies, trade and professional
organizations as well as non-profit groups.
In September, John Gardner, chairman of the Independent
Sector, developed a strategy for revitalizing the non-profit
side of the private sector. In a written proposal to Vice
President Bush, Gardner urged Administration support. Stressing
that much of our society is shaped by activities nurtured
through voluntary initiatives, Gardner said the Independent
Sector "is weakening and may not continue to represent so rich a
source of personal and community development. " As he sees it,
"relative declines in giving and long term trends toward domination
by government make it difficult for the sector to respond to
the increased expectations of it.'
14
Gardner outlined a series of actions the Administration
could take to substantially strengthen the non-profit side of
the private sector. In general, they were:
Encouragement of giving by individuals;
Encouragement of public responsibility by corporations;
Strengthening the funding capacity of foundations;
Encouragement of volunteering; and
Encouragement of voluntary organizations.
Gardner listed several ideas concerning how the Administration
could encourage public responsibility by corporations. He
feels, "corporate leaders are wary of any expectation that they
should fill the gap of government cutbacks. They know that no
matter how well they do, their funds are inadequate. On the
other hand, corporations can do more and are willing to do
more, but are only likely to respond to a partnership effort
with the Administration. Specifically, Gardner suggested that
Bush:
Use the White House as a platform to encourage and
applaud the leading businesses and business executives
responsible for the recent dramatic growth.
Work with the major umbrella groups in the business
community listing their participation and the growth
of corporate public responsibility.
Speak to the major meetings of the same organizations,
using the opportunity to applaud the leaders within the
groups who have excelled in the effort and to increase
public responsibility including contribution.
Encourage a broader concept of corporate public
responsibility, including far more than contributions
-- volunteer time, loaned executives, in-kind assistance,
program related investments, purchasing from minority
firms and many other ways in which a corporation
pursues its public responsibility.
The Independent Sector's plan, as outlined to the Vice
President, contains a wealth of ideas for fostering private
sector initiatives. The Independent Sector is sponsoring a
national conference this fall entitled "Working Together:
Creative Responses to Difficult Times." Topics to be addressed
include: philanthropic and voluntary organizations, an update
on budget cuts, status of block grants and prospects for funding.
There will also be sessions on strengthening private/public
cooperation and a status report on the Independent Sector's
efforts to promote private sector initiatives.
15
National Executive Service Corps (NESC)
NESC is a non-profit organization offering management
assistance to non-profit organizations across this country.
The National Executive Service Corps represents a powerhouse
of retired executives delivering technical assistance and
management help -- directly to those non-profit organizations
that need help most. The NESC is rather new; it was founded in
June, 1977. It was patterned after the International Executive
Service Corps (IESC).
Frank Pace, Jr., former CEO of General Dynamics, serves
as the president of the group. Other committed individuals
include: Jim Linen, vice chairman, who's a retired president
and director of Time, Inc. ; and Curtiss E. Frank, retired
president, Dunn and Bradstreet, Inc.
John W. Macy, Jr., former chairman, Civil Service Commission
and former chairman, Council of Better Business Bureaus serves
as vice president for the NESC Management Assistance System.
Macy asserts, "We just can't buy all this talent. We move
these CEOs and other executives into supporting these local
programs. They have substance." Macy continues, "It's going
to take time. There will be a gap, and money is not the only
answer. But we find with this program that we can play a
major role, especially with linkage to the United Way Program.' "
Macy believes that the National Executive Service Corps
is certainly one of the answers to the Reagan challenge. Its
projects in certain areas include the arts; education; health;
religion; and social services.
Certain corporations are following NESC's lead. Union
Carbide, for example, has already established its own non-profit
consulting organization, the Carbide Retiree Service Corps.
NESC sees a natural linkage between itself and the Indepen-
dent Sector. One of the sector's objectives is to improve the
management of nonprofit organizations. This is precisely the
goal of the National Executive Service Corps. As Macy says,
We can't afford waste. We need control on some of our programs;
we need to make more careful judgment on what works at the local
level. "
In certain cities, such as Cleveland, Los Angeles, Denver,
San Francisco, Chicago, Dallas, and Indianapolis, local Executive
Corps are proving successful. Macy wants to take this program
to other cities, one-by-one.
16
Who takes the leadership for the National Executive Service
Corps in local communities? According to Macy, it depends on
who has influence in the community and can articulate idea.
The national office in New York spins off the creative ideas
but is the drive, spirit and commitment that is responsive at
the local level.
CONCLUSION
Whether motivated by the opportunity to demonstrate crea-
tivity and effectiveness of the private sector or the fear of
a public backlash, the business community is reaffirming its
commitment to society in a range of public forums. The actions
of leading business organizations indicate that corporations,
associations and small businesses are now gearing up to demon-
strate that commitment through dynamic action programs.
While the programs now underway are widely different, there
are some general themes on which most groups agree. They are:
The private sector cannot "fill the gap" created by
government budget cuts -- nor should it. "
The primary private sector initiatives will be designed
and implemented at the local level with national direc-
tion in the broadest sense;
Talent, ideas, manpower, and other private sector
resources will be applied to community problems --
not just money; and
Private sector initiatives must be results-oriented. in
order to demonstrate the true extent of business' role
in bringing about social change.
The organizations mentioned in this report are by no means
the only ones involved in this effort. Other leading groups
promoting private sector initiative include ACTION, The Urban
Institute, Local Initiatives Support Corporation, the Council
of Better Business Bureaus, Volunteer, the nation's Community
Foundations, and a wealth of others.
There is a clear recognition that no sector of the public
will be able to accomplish its goals in the current environment
without the support of colleagues in government, non-profit
groups, businesses, educational institutions and others involved
in insuring a good quality of life for Americans.
THE WHITE HOUSE
WASHINGTON
October 21, 1981
die
Dear Mr. Nestande:
Thank you for your letters to Edwin Meese and Michael Deaver,
describing private/public efforts in Orange County to integrate
immigrants, refugees and other minority residents into the
mainstream of community life.
You and your associates are to be commended for your commitment,
energy and initiative in addressing community problems beyond
the resources of government assistance programs. You represent
precisely the spirit President Reagan is attempting to rekindle.
Once again, thank you for bringing the program to our attention.
With your fine example, the Task Force on Private Sector
Initiatives may call upon you in the future for assistance.
Sincerely,
June
James S. Rosebush
Special Assistant
to the President
Mr. Bruce Nestande
Vice-Chairman of the
Board of Supervisors
Orange County Hall of
Administration
10 Civic Center Plaza
Santa Ana, CA 92701
10/13
THE WHITE HOUSE
To Jim WASHINGTON Rosebuch
FROM:
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Information
Action
STATE
SUPERVISOR, THIRD DISTRICT
BRUCE NESTANDE
SEAL
vice-chairman OF THE BOARD OF SUPERVISORS
ORANGE COUNTY HALL OF ADMINISTRATION
10 CIVIC center PLAZA, SANTA ANA, CALIFORNIA 92701
PHONE: 834-3330 (AREA CODE 714)
October 9, 1981
Honorable Edwin Meese, III
Counsellor to the President
The White House
Washington, D.C. 20550
Honorable Michael K. Deaver
Deputy Chief of Staff and
Assistant to the President
The White House
Washington, D.C. 20550
Dear Ed and Mike:
I am addressing this letter to both of you as it pertains to a subject
with which both of you are concerned - the Administration's focus on
foreign refugees and your increasing emphasis on the role of the private
sector in resolving problems of a significant nature in a given community.
I believe we have a program here in Orange County which could well serve
as a model for the Reagan Administration to highlight with other communi-
ties throughout the United States which are impacted by large numbers of
foreign refugees coming into the community.
Very briefly stated, as you know, we have 32,000 37,000 documented
Chinese refugees here in Orange County at the present time. In reality,
that figure is probably in excess of 50,000. As a direct result of the
leadership of one of the community's preeminent private sector leaders,
the Fluor Corporation, a special project was developed which now operates
under the auspices of the United Way of Orange County. This project is
called the "Immigrant and Refugee Planning Center." Its purpose, as part
of the overall private sector involvement, is to enlist both the finan-
cial and manpower commitments of the private sector in meaningful "main-
streaming" programs that will lead to the assimilation of these refugees
into the community. The total private sector program is designed to pro-
vide meaningful cultural assimilation, language training, and job training
programs designed to get these people off the various government assistance
programs which they have been introduced to (and on which so many of them
have become dependent), and into productive jobs. A second "parallel"
track is being designed by the group to accomplish the same results for
the large number of Hispanics in our county.
The "cornerstone" of the program is the "data base" that has been estab-
lished through a most unique, extremely complex, and far-reaching survey
conducted among Orange County employers, the Hispanic community, other
Honorable Edwin Meese, III
October 9, 1981
The White House
Page 2
Honorable Michael K. Deaver
The White House
members of "host" communities, and among the refugees themselves. In-
credibly, no such data base existed before this project was undertaken.
This means that literally millions of taxpayer's dollars have been thrown
at attempts to deal with hundreds of thousands of Indo-Chinese being
brought into this country without having an adequate data base (inventory
of job skills, educational levels, employment needs, language skills,
attitudes and needs of employers, etc., etc., etc.) upon which to build a
logical and meaningful program.
The survey that produced the data base, now available in Orange County,
was designed and conducted by Dick Wirthlin's firm DMI (Decision Making
Information). Dr. Gary Lawrence, Dick Wirthlin's right-hand man in Orange
County, was responsible for developing and conducting the survey and is now
working with the Immigrant and Refugee Planning Center staff in interpre-
ting the data so that it can be used in developing the "mainstreaming" pro-
grams. The private sector, in conjunction with the Immigrant and Refugee
Planning Center, will be playing the major role in financing and implement-
ing these programs, all of which are designed to get these people main-
streamed and into meaningful employment. County government -- particularly
the Orange County Board of Supervisors -- will be working closely with the
private sector to eliminate governmental roadblocks and in other ways
assist in the effort.
I am appalled when I think of the confusion, duplicated efforts, and often
counter-productive actions which various government agencies have employed
in dealing with the refugee problem. I am also shocked at the tremendous
costs borne by the American taxpayers for these efforts which do not even
have a valid data base upon which to operate. We sincerely feel that with
the leadership shown by the private sector here, we have a most unique
project underway in Orange County; a project which truly can be a model for
other areas of this country impacted by immigrants, refugees, and other
minority residents. You may want to discuss this with Dick Wirthlin the
next time he is in the White House, and, of course, I will be happy to give
you additional details.
I did want to call this to your attention, given the increased focus on
private sector involvement -- particularly in problem solving where the
problems involved were created, or at least compounded, by government.
I sincerely hope you will give this example of private sector leadership
and commitment your careful attention and that I may have the opportunity
to discuss it with you in greater detail at your earliest convenience.
BRUCE Biuce NESTANDE
Sincerely,
BN:sn
THE WHITE HOUSE
WASHINGTON
October 14, 1981
MEMORANDUM FOR MICHAEL K. DEAVER
FROM:
JAMES S. ROSEBUSHA
gar
SUBJECT:
Private Sector Highlights for the week of
October 5, 1981
Committee on Economic Development (CED) -- Comprehensive study on
private sector alternatives and public/private partnerships com-
pleted. Will be valuable to PSI Task Force. CED will provide
gratis research assistance to Task Force.
International Paper -- Some expansion of contributions budget.
Very willing to help.
SRI -- Planning meetings on models for public/private ventures
interested in coordinating with our efforts.
National School Volunteers -- In 47 states pushing parental and
volunteer involvement in education. Mrs Bush to honor National
Conferees November 17, 1981.
Pull for Youth -- Privately funded group of former athletes helping
young people with education and jobs. Wants to expand in the em-
ployment area.
American Business Conference -- Press release supporting PSI.
Partners -- A privately funded program to match delinquent kids
with adults. A good model to build on.
Business Roundtable -- Establishing a committee to exclusively
take up PSI issues.
Redington, Inc. -- Pilot program of 500 Fairfield county firms
to encourage corporate giving now being planned.
National Neighberhood Watch -- Expanding its self-help crime pre-
vention program.
Tune-In-America -- Highly successful volunteer placement service
in New York. Will be inviting the First Lady to serve as honorary
chairman.
Page Two
Michael K. Deaver
October 14, 1981
Foundation in Teaching Economics -- Interested in Presidential
Commission or some other appropriate boost for economic
education.
National Council for Urban Economic Development -- Setting up
special board committee and outreach program on PSI.
American Express Company -- Decided to devote 10¢ for every
credit card transaction in San Diego and $2.00 for every new
card application to help fund discontinued projects in
San Diego county. Fund could amount to $100,000.
Coca-Cola -- Chairman speaking out in favor of PSI.
CC: Baker
Baroody
Darman
Dole
Fuller
Gergen
Meese
Pauken
Speakes
EXAMPLES OF
PRIVATE SECTOR INITIATIVES
FROM SRI RESEARCH
Employment and Training
o
Continental Illinois Bank along with other corporations parti-
cipating in Chicago United have provided special technical
training courses in the public schools.
o
Hewlett-Packard, Memorex and IBM in collaboration with the
school districtin San Mateo County, California have set up
special schools for training high school students in electronics.
0
Union Carbide, Polaroid, Bankers Life and Casualty have established
flexible work schedules and special hiring policies for the
elderly.
o
Control Data Corporation and Honeywell in Minneapolis as well
as Avantec and Signetics in Santa Clara County, California
provide special on-site training programs for Indochinese
refugees.
o The Dallas Citizens Council, a business executives' committee,
has taken the lead in establishing English language training
and job placement efforts for refugees.
o
Macy's and Chase Manhattan Bank provide transitional employ-
ment opportunities for deinstitutionalized mental patients
in collaboration with Fountain House in New York. Hecht
Company and Drug Fair do the same in collaboration with the
Green Door in Washington, D.C.
- 1
Neighborhood Economic Development
0
Control Data Corporation has located plants in economically
deprived areas in St. Paul, Toledo, and Washington, D.C. and
provides day care on site for employees.
o
Clorox, Kaiser and World Airways have worked closely with the
City of Oakland on downtown revitalization. Clorox located
its corporate headquarters in a revitalizing area, and "adopted"
local high schools, providing assistance for vocational programs.
o
Businesses in Jamestown, New York; Pittsburgh, Pennsylvania; and
Los Angeles have set up Business Retention Committees to provide
management advice and assistance to small businesses.
Motorola and other corporations in Phoenix set up a Small
Business Development Corporation that provides management
advice and helps target procurement of large businesses to
small firms.
Housing and Neighborhood Revitalization
Aetna has worked with neighborhood groups on local initiatives
to reduce home insurance costs.
Taft Broadcasting and General Mills have invested in the renova-
tion of housing stock for use by low and moderate income people.
0
American Bank for Savings in the Boston area established a
"First Fund for Dorchester" which promoted community reinvest-
ment.
Broadview Savings and Loan in Cleveland established a reverse
annuity mortgage for the elderly.
- 2 -
Health
o
3M, General Mills, Honeywell and other corporations have been
leaders in the Minnesota Coalition on Health Care Costs which
has been promoting ways to reduce health care costs in that
state, including the development of HMOS.
O
AT&T, Speidel, Xerox, Citibank have special prevention health
programs for employees.
o
Kimberly Clark, General Motors have special mental health
programs on site.
o
Dupont has established alcohol abuse counseling programs for
its employees.
Reducing Consumer Costs (Child Care, Food, Utilities)
0
Polaroid and Control Data Corporation provide day care for
employees on site.
o
Carnation has been an active participant in the "Second Harvest"
Food Bank in Phoenix through surplus food donations.
o
Baltimore Gas and Electric Company helped set up the Baltimore
Fuel Fund in which the utility matches dollar contributions from
private funds to help pay the utility bills of persons facing
shutoffs.
- 3 -
THE WHITE HOUSE
WASHINGTON
TO: Jim Rosebush
FROM:
MICHAEL K. DEAVER
Assistant to the President
Deputy Chief of Staff
Information
Action
Add Max Fisher per James Baker's
request.
MAX M. FISHER
take ap with
Out
2210 FISHER BUILDING
DETROIT MICHIGAN 48202
tojr
Decemer -
7MT
Brh. - Tues,
October 12, 1981
10/17
James Baker, III
Chief of Staff
The White House
Washington, D.C. 20500
Dear Jim:
I notice that President Reagan has
appointed a committee on volunteerism to
help ease the problems created by the
budget cuts.
In 1969, I was appointed by President
Nixon as Special Consultant to the President
on Voluntary Action and I served for over
two years in this program.
If needed, I might be able to provide
valuable insight and opportunities for such
a program because of my years of experience
and subsequent involvement in other
volunteer programs.
If I can be of any help or assistance
to the above committee, I gladly offer my
services and think that there are some real
opportunities in this program.
With kindest personal regards,
Sincerely yours,
Max M. Fisher
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
October 19, 1981
fill
TO:
FRANK HODSOLL
FROM:
JAMES S. ROSEBUSHW
SUBJECT: ROGER MANDLE
I hope you had an opportunity to meet briefly with Roger
Mandle, Curator, Toledo Museum of Art, after the arts lunch
Wednesday.
There are few individuals that could rank as highly in my
view as Roger. He has a superb grasp of cultural issues,
is very articulate, and politically savvy. If this Admin-
istration could convince him to take a top arts post, we
would benefit immensely. Roger is all in favor of the
private sector approach to financing the arts and he has
demonstrated this by the money he has raised for shows as
well as a major addition to the museum.
It's just not every day you spot someone with the combin-
ation of talent, diplomacy and skill Roger has. I hope we
can think about him in our future discussions about the role
of the arts in this Administration.
CC: Deaver
Brandon