 |
|
|
|
|
|
|
Alain Belda's letter to Alcoans on the importance of integrity.
July 30, 2002
Confidence and trust in business haven't been so sternly tested in the U.S. for as long as I have been working. Scandals at Enron, Global Crossing, Tyco, WorldCom, Qwest, Adelphia, etc. have eroded the public confidence not only in business as an institution, but in regulators, auditors and the American capital market system in general.
Here, in this developed economy, people from all over the world have been willing to invest in “pieces of paper” because of a basic trust that there are systems in place to make the “pieces of paper” valuable. What is happening is that the trust about investing in “pieces of paper” is being eroded by the idea that there is not an oversight system that works to protect the investor. It is also being eroded by the actions and omissions of some of the people entrusted to run these companies, and oversee their governance and reporting.
When confidence is not present, investors want hard assets, not “pieces of paper.” This freezes capital and slows growth and opportunities. Far more is at stake than the accounting and governance of companies. At risk is the trust of investors, employees, the public and the ethical viability of the corporate sector and capitalism.
For all these reasons, I support the recommendations from the different branches of government and others that are requiring more transparency, more disclosure, better and stronger control of the accounting industry, and better governance.
In the next few days, Rick Kelson, our CFO, and I will be signing documents attesting that our financial statements represent the truth as we know it, and include all material information necessary to ensure that such financial statements are not misleading. I have always believed that the CEO is responsible for the acts of the company and agree that I should be accountable for the financial disclosures of Alcoa.
While we have not completed the process, I will take the risk to say that I do this with a strong belief that our governance processes, our controls and transparency have been implemented well ahead of these recent requirements and mandates. This stems from our Values structure - the overall company culture of integrity and accountability to do the right thing, rather than the expedient one.
There is no amount of laws or regulations that will force a company to behave with integrity. Learning from these events, we are taking steps to further improve standards, controls and accountabilities. The best line of defense is for integrity to be a part of the living Values of each individual member, each Alcoan.
Finally, we should look at these events as an opportunity to renew the pride we have in Alcoa and Alcoans, of our Values and of the way we live them. It should enhance your confidence in the company, your colleagues and our future.
Alain Belda
|
|
|
|
|
