Box 2, Folder 65 – General Speeches
9/22/65, Card from Robert M Reese of U. S. Department of Commerce requesting a copy of Packard’s talk to the ASME.
Box 2, Folder 66 – General Speeches
May 11, 1965, Breakfast talk to Menlo School and College, students and faculty of School of Business, Menlo Park, CA
5/11/65, Handwritten outline by Packard of talk he plans to give. No complete text.
1. Impression of U.S. prosperity and industrial strength from trip around country. Contrast with pessimistic view from reading headlines and letters to editor, particularly in local papers and student papers such as Stanford Daily.
- As students of business you should be impressed with figures
GNP 1960 – 500 [billion?]
1964 – 625
1965 – Average above 650
1975 – 1980 above 1000
Longest period of growth with exception of World War II.
Personal income 1960 – 400 [million?]
1964 – 500 +25%
Prices 1957-1959 = 100
Wholesale 1964 – 99.5%
Consumer 1964 – 109%
Cost of Living
Services – 115%
Food – 107%
Other – 105%
Savings and liquid assets
1960 – 400 billion
1964 – 500 billion
Economic Advisors of Business Council – 1965 continue strong
Gordon Aelsley [?] Chamber of Economic Advisors – 1965 strong
New records in almost every area
Automobile – new high
Appliances – +20% gains
Color TV – sales over 2 million
Housing – possibly down
Balance of payments
Goods and services – 8 billion
Other transactions – 11 billion
Net approximately 3 billion
Build up of dollars more than adequate to finance normal world trade.
U.S. economy healthy and competitive, comparison with five years ago.
Airlines – PAA, TWA
Railroads – employment down, profit up
Steel Industry – innovation
Consumer Products – up 20%
Transistor radios from Japan – now American competitive
Trends in business management
R & D emphasis on innovation
Automation and labor efficiency
Maturity in Business/Labor /Government relationships
Business management responsibility to employees and public at large not just to stockholders.
Long range planning
Cooperation with government
Great change since Kennedy, Walter Heller
Government has recognized that small enterprise earnings and profits are necessary for a healthy economy
Tax reduction and reform investment credit and depreciated new capital equipment.
1960 – 35 billion
1965 – 50 billion
1963 –1965 gone from 38 to 50 billion
Consumer purchasing power is important. Individual tax reduction, wages, and productivity must be kept in balance. Automobile settlement excessive. Others about in line.
Business community is learning that problems of a complex economy are complex and simple solutions will not suffice.
Balanced budget not sole determinant of healthy of healthy economy. Moderate deficits manageable in growing economy.
Business has made great contribution – jobs and education will determine outcome – . not voting rights – equality cannot be legislated, but equality of opportunity can be provided by joint efforts of business government and community at large.
Despite troubles of world you are entering the greatest opportunity to make contribution to welfare of the world. Our private enterprise system is hope of world. I wish you well.”
Packard wrote out another page marked ”fill in if time” on which he outlined a profile of managers:
“What you should be if you want to be a key business executive.
% Average %Population
Episcopalian 30 3
Politics % Republican more than 1900
Public Util. 71 less than 1900
Industrial 77 same as 1900
Largest 75 more than 1900
Smallest 79 more than 1900
Lawyer 5.1% 1950 largest
Clergyman 6.2 1900 largest
5/11/65, Typewritten page of statistics with some handwritten notes by Packard,
about US balance of payments
3/18/65, Letter to Packard from William E. Kratt, President Menlo School and College, asking Packard would speak to students at breakfast meeting.
4/19/65, Letter to Packard from Bruce Carr Smith of Menlo College, thanking him for agreeing to speak at their breakfast.
5/14/65, Letter to Packard from Robert R. Gros, complimenting him on his talk
5/17,65, Letter to Packard from Bruce Carr Smith thanking him for participating.
5/20/65, Letter to Packard from William E. Kratt, thanking him for participating.
Box 2, Folder 67 – General Speeches
May 17, 1965, Business Management and Social Responsibility, Children’s Home Society of California, Palo Alto, CA
5/17/65, Typewritten copy of the text of this speech.
Packard the members of this society on their “valuable contribution” of having placed 1273 children for adoption in 1964, and segues into a discussion of the contribution of private organizations saying “Private endeavors for the benefit of society have a long and honorable tradition in the history of the Western world. Our earliest, and some of our most distinguished, educational institutions began from – and still depend on – private initiative.
“Many other important institutions devoted to the well-being of people were founded, as was yours, because an individual was concerned about the welfare of his fellow citizens.
Packard talks of how the government has taken over many segments of social welfare and how “There has evolved over the years in the United States, a unique blending of private and government efforts..
“Much of the involvement of the government has come about as a result of the magnitude of the job to be accomplished. Education, for example, is an area so comprehensive and complex that it is hard to imagine the system minus the governmental role.
“And yet, we find private schools and universities still holding positions of great importance. They have a unique position of leadership because they can concentrate on quality – they have the freedom and flexibility to nurture innovation – they can institute special programs, devote individual attention to outstanding students, and often develop areas of excellence which are difficult – or impossible – for public supported institutions to match.
Packard hastens to say that public “are doing a good job, too. Having been closely involved with the field of education over the past number of years, I am convinced that our pluralistic approach has given us educational opportunities for our young people far superior to those found anywhere else in the world.”
While Packard feels “there are many…areas of our society where government agencies look to private organizations for leadership and standards of excellence.
“But unfortunately, during the past few years we have seen a growing number of critics of private endeavor. We have been bombarded with books such as “The Hidden Persuaders,” “The Organization Man,” The Status Seekers and Life in the Crystal Palace,” just to name a few. These books, and others, are focusing their attention on the business community -–but the private charitable organization is under attack as well.
“To give a recent example, in his 1964 annual report of the Carnegie Corporation, John Gardner outlines very well the nature of some of these current threats to private charity. The attack, as he points out, is aimed at the tax deductibility of charitable contributions, and at the very existence of charitable foundations – on which much of our private social benefits depend.
“The argument goes that because tax money actually belongs to the government, when an individual receives a tax deduction for his gift, he is in fact giving away the government’s money, not his own.”
“Essentially, the same arguments are used against private foundations. They insist that the wealth an individual is able to accumulate [sic] in his lifetime should not be used for purposes he selects, such as the establishment of a charitable foundation. This money, too, they say, belongs to the government.”
And Packard warns that “the institutions of private charity and private enterprise are under unnecessary attack, and vigilance is required for survival.
“ However, it is not necessary to use common dangers to support the proposition that private charity has much in common with the private business community. There are enough common goals and ideals to do that.
“John Gardner used the words “private initiative for the common good” to define the private charity, and I believe that it is as good a definition as I have ever heard to also define the motives and aspirations of the modern business manager.”
Packard says he feels the word “modern” is appropriate because he sees that “there has been a great change in the business manager profession over recent decades. He recalls a discussion with some business people 15-20 years previously “when the prevailing view was that the primary objective of the management function was to make a profit. Employee relations were directed toward maintaining production and profit, without regard for the social consequences. The concept that labor was a commodity to be bought and sold on the open market prevailed. Involvement in community or public affairs was measured in terms of the specific benefits it would buy. “Caveat emptor” still persisted in dealing with customers….the concept of “what’s good for business is good for the country” still prevailed to a large degree.”
However, Packard says that “There were, during these years, business managers who felt differently about their responsibilities. They had recognized, and honored, the view that every employee is a human being – that he has his aspirations, his home, and his family – and that in making his contribution to his job he deserved consideration beyond the mechanical payment of an hourly or daily wage. Had more managers realized this sooner, there would have been little need for the unions to take up the battle in behalf of the worker of that day.
“Some managers were also beginning to recognize that they had a broader responsibility to the communities in which their business were established than could be defined on a “quid pro quo” basis. They realized that their enterprises were an integral part of the society at large and that they did in fact have a responsibility to make sure their organizations were good corporate citizens.
“These same managers realized that they had a mandate to give their customers the best products, and the best services, that could be produced. They had come to the conclusion that the seller had a responsibility to make sure the buyer did not have to beware.”
Packard feels that since WWII “this new attitude has come to a high state of maturity. It has a strong effect on the people who make up the management profession today. It is beginning to become an accepted and expected philosophy by the general public.”
Today’s managers, Packard feels, “…are firm believers in, and standard bearers for, the free enterprise system, of course. They know they must manage their organizations to make a profit. But – and this is the crux of the management philosophy of our age – they look on profit as a measure of the contribution their organizations are making to society, and on free enterprise as the vehicle essential for achieving the social aspirations of all of the people.”
Packard compares economic progress in the U.S. since 1960 with that of other countries. “In the year of 1960, our U.S. gross national product …was about 500 billion dollars. In this year of 1965, the figure will be in excess of 650 billion dollars. This is an increase of 150 billion dollars in goods and services produced by the American free enterprise system in five years.
“The next largest economy in the free world today is that of West Germany, which will have a gross national product in 1965 of about 114 billion dollars. The West Germany economic system has performed the best of all of these other countries, and is the one most closely aligned with the American system, particularly with respect to the individual initiative and enthusiasm.
“Even so, as you can see, we have added to our economy an amount nearly one and one –half times as large as their total economy in just the past five years.
“France…will have a total economy in 1965 if around 86 billion dollars. We are adding this amount to our economy every three to four years..
“Great Britain has an economy only slightly larger than France. With a population about one-quarter that of the United States, they produce only about one-seventh the goods and services.
Packard describes “the sad plight of Great Britain….Here is a country which once had the strongest economy in the world. Her navies ruled the seas. Her products – the epitome of quality and value – were sought throughout the world. She was the champion for the free enterprise of business.
“Today, Great Britain is no longer competitive in world trade. The integrity of the pound is upheld only by the charity of her friends through the largest loans ever granted from the international monetary fund.
“The spirit of her people is broken. They enjoy a wage level about a quarter of that found in America. They can’t afford housing, so the government supplies it for them on a subsidized basis. They can’t afford medical care, so the government provides medicare. The whole country has forsaken free enterprise for socialism.
“There is a lesson here for us. We are being presented with the largest dose of public welfare ever received by any nation. The War of Poverty Commission has billions of dollars available to it to combat any local economic situation they can find, which might possibly improve the standard of living for a few people.
“The Administration seems convinced that private initiative in medical care is a failure, and that only the federal government can solve the problem.
“They are convinced that education needs federal support – and if you analyze the federal education bill you will find that they intend to give this support to education in every state whether it is needed or not.
“Under the present administration we are walking in some of the same footprints made by Great Britain. If we continue along this same path, it is bound to have the same results for us that it has had for them.”
“I firmly believe that free enterprise in social welfare is an absolute necessity to support free enterprise in business. Once social welfare becomes a government monopoly – as it is rapidly becoming – it is only a matter of time before we see it requires only another series of steps to put business under government monopoly. And then, we will be following the lead of Great Britain in moving from one of the world’s greatest economies to the position of a second-rate nation.
“But fortunately we are not there yet and to get back to the present economic situation, I would emphasize that in 1965 our gross national product will exceed the total of all the other countries of the free world combined..
“Estimates on the economies of Russia and China are hard to come by – but I have heard reports that Russia produces something in the neighborhood of 350 billion dollars.
“If we add up all the known free world economies, and the estimates for the communist-dominated portion of the world, it is within reason to say that the United States produces some 35 to 40 percent of the world’s economic strength – and all of this with some 7 percent of the world’s population.
“In light of these impressive figures, it is surprising that the image of the business manager remains so poor. At least one survey I have seen with the past few years indicates that industry generally is gaining on the government and labor in receiving a favorable vote of confidence by the public – but on the reverse side of the coin, business still holds a rather strong lead among those people who have an intense unfavorable attitude toward one of the three major categories of business, government and labor.”
“We in private industry, have much to do to improve the image others have of us – but the image is less important than the performance. Management has accomplished quite a bit already, and it is going in the right direction.
“Our philosophies are the same as yours. Our goals, by necessity, must be on a broader spectrum, but then collectively we are much larger, In dealing with the more all-encompassing segments of public welfare, we are not forgetting the individual private organizations such as yours that provide the day-by-day services that are so important to, and so thankfully received by the people of this country.
We will do all that we can to strengthen the public’s realization of the significance of the role played by private charitable organization.
“And, more important, the private business community will continue to help you and all of the other private charitable organizations in the task you have set for yourselves.
“For our future n the American society, and for that matter, in the world society, is closely interwoven with yours.
“Both are the essence of private initiative for the public good.”
3/28/65, Letter to Packard from Charlotte De Armond , with Children’s Home Society, expressing appreciation that he has indicated willingness to Annual Meeting speaker.
3/31/65, Letter to Packard from Charlotte De Armond asking for a title for his forthcoming speech.
4/6/65, Copy of letter from Packard to Charlotte De Armond giving the title as “Business Management and Social Responsibility.”
4/17/65, Text of a speech by Henry H. Fowler, Secretary of the Treasury. Marked for release to news papers April 17, 1965.
4/22/65, Publicity release announcing May 17 dinner with Packard as speaker.
5/27/65, Letter to Packard from Charlotte De Armond thanking him for speaking. Also saying she had sent copies to all their District Directors.
5/28/65, Letter to Packard from Harry Goodfriend, thanking him for speaking.
Also included are several fact sheets and other reference material.
Box 2, Folder 68 – General Speeches
May 31, 1965, Remarks honoring Frederick E. Terman, Stanford University Convocation.
5/31/65, Typewritten copy of this speech.
Packard says he appreciates the opportunity to honor Fred Terman, but saddened to see his career at Stanford come to an end. “He represents to me perhaps more than any other single individual what Stanford is and what Stanford has been.
“That he has in very large measure contributed to the ending of the old and the beginning of the new does not alleviate my concern. I am not at all sure the greatness Stanford is seeking for the future will in every way surpass the greatness of Fred Terman’s days at this University.”
Packard tells how he first became acquainted with Professor Terman. “Among my hobbies was Amateur Radio and I spent a spare hour now and then in the radio shack in the old attic of the Engineering Building. Professor Terman’s laboratories were next door. Some times he would stop to chat for a minute or two. After several such brief visits, I was amazed to find that he knew a great deal about me….He knew what courses I had taken and what my grades had been He had even looked up my high school record and my scores in the entrance examinations. Fred Terman had developed his characteristic thoroughness over thirty years ago.
Enrolled in Terman’s course in his senior year, Packard found him to be “a great teacher. He had the ability to make a very complex problem seem the essence of simplicity. He would eliminate the unimportant factors from complex mathematical analysis and reduce the answer to terms even I could understand. This was the secret of his book on Radio Engineering. This is why this book became the most widely used text on this subject in the world.”
“The highlight of his course for me was the opportunity to visit some of the laboratories and factories in this area. Here for the first time I saw young entrepreneurs working on new devices in firms which they had established. “
Packard relates how “Up until that time I hoped I might be fortunate enough to get a job with one of the great electrical companies like G. E. or Westinghouse. But this was the Fall of 1933 and the Spring of 1934. There were nowhere enough jobs available for all of us who were graduating. Thus it was Professor Terman who convinced me that if I could not find a job to my liking, I could perhaps make one for myself. I did get a job at G.E. gut Professor Terman kept in touch with me, and with Bill Hewlett, and he helped to bring us back to Palo Alto together to begin the business venture we have been struggling with ever since.”
“The electronic industries we visited around here in 1934 employed only a few hundred people, and had a combined annual volume of probably less than a million dollars. Today, the electronics industry of the Bay Area employees [sic] about 45,000 people, and will produce this year three-quarter billion dollars worth of goods and services Fred Terman, more than any other single individual is responsible for this amazing development.”
Packard tells how it was Professor Terman’s vision that encouraged the academic community and the business community to work together for the benefit of both.
“Many of the benefits Stanford has received from its close association with business and industry are evident to all. By 1955 gifts to Stanford from Corporations had reached the level of $500,000 annually. In the first eight months of this fiscal year they have been $2.2 Million.”
“Not so well known, particularly in academic circles, is the fact that business leadership in America has been rapidly developing a sense of broad social responsibility. Business leaders are taking an active and a constructive role in civil rights. They are becoming much more aware of the importance of the arts and the humanities. And the social sciences. A great many of them fully recognize the importance of the great universities like Stanford to the welfare and the progress of society at large.”
Packard tells how other universities have developed close associations with industry in their areas – but not all. ”There is little such development around Yale and Princeton. Only a small amount of industrial development in the Boston area can be attributed to Harvard. Purdue has a great engineering school, as does the University of Illinois, and Michigan State. Leaders from each of these schools, as well as others, have asked me how they can establish a relationship between their University and industry, such as we have at Stanford. My answer is simple – I say “Go out and find yourself a Fred Terman.”
Packard talks about the characteristics ”which have made Fred Terman one of the great men of Stanford….important intellectual contributions to his academic discipline …a great teacher in his ability to convey his subject matter to his ….Equally important student, he knew his students personally, and he took a great interest in each of them. He never seemed to consider Stanford just as a community of scholars, or as an Ivory Tower separated from the practical affairs of the world. Rather, he built a strong bond of understanding between the business community related to his discipline and his department in the University.”
Packard notes several teachers and professors who have been a part of the long tradition at Stanford of combining the intellectual and the practical, and adds that “Fortunately we have many young men on the faculty today following in these footsteps.”
“Members of the Stanford faculty from the beginning through the years of Fred Terman’s career have had a long and distinguished tradition of active involvement in the practical affairs around them. It is almost as though they were guided by Senator Stanford’s desire – that Stanford be a practical school – not one devoted to educating useless men.
“Over the past few years Stanford has been undergoing a great change. Fortunately many new and distinguished professors have joined this faculty. Many of these new people are sympathetic to the Stanford tradition. There are some who do not seem to understand that Stanford has a great tradition of being itself. They would propose to remold this University in the image of Harvard, or Yale, or Oxford, Paris or Heidelberg..
“And so as Fred Terman’s career at Stanford comes to an end, and we move on to the future, it is my sincere hope that we will continue to honor him by persevering some of the great things he has given our University. In the words of Tom Barclay – “I would like to believe that you will take with you, as a heritage, something of the spirit of the old Stanford, as well as the benefits of the new.”
5/31/65, Printed program for the Stanford University Convocation.
4/28/65, Letter to Packard from J. K. E. Wallace Sterling, President of Stanford, Asking if Packard would be willing to speak at the Convocation honoring Fred Terman.
5/22/65, Copy of advance press release from Stanford regarding the Convocation.
5/28/65, Copy of letter to Dr. J. E. Wallace Sterling from Herbert Hoover Jr. saying he will be unable to attend the Convocation for Dr. Terman.
5/28/65, Copy of letter to Dr. Frederick E. Terman from Herbert Hoover, Jr. saying how much he regrets not being able to attend the Convocation.
5/31/65, Copy of press release from Stanford telling of the Convocation.
6/1/65, Newspaper clipping regarding the Convocation.
7/29/65, Handwritten letter to Packard from Mrs. Allan E. Charles saying she regretted they could not attend the Convocation.
7/29/65, Letter to Packard from Ira S. Lillick saying he had enjoyed Packard’s speech.
Box 2, Folder 69 – General Speeches
July 15, 1965, “Uncommon Man” degree for Herbert Hoover, Stanford Associates
7/15/65, Copy of text of remarks made by Packard at Stanford Associates “Uncommon Man” Degree Dinner
Packard says Herbert Hoover “was definitely not a common man. He was a humble man, and one who showed great consideration and compassion and understanding of his fellow-man – but he was not common.
“”It was evident early in his career – through his achievements as an engineer, as a humanitarian, throughout his distinguished government career, and by his leadership here in America and abroad, that Herbert Hoover was one of the great men of our time.”
Packard recites a quotation from Hoover regarding the career of engineering where Hoover says “It is a great profession. There is the fascination of watching a figment of the imagination emerge through the aid of science to a plan on paper. Then it moves to realization in stone or metal or energy. Then it brings jobs and homes to men. Then it elevates the standards of living and adds to the comforts of life. That is the engineer’s high privilege.”
Packard says Hoover spoke of the American way of life and our free enterprise system, referring to the business, industrial and financial managers as “rugged individualists.”
Packard continues to quote Hoover discussing managers and saying “they are self-reliant, rugged, God-fearing people of indomitable courage. They were the ones who asked only for freedom of opportunity and an equal chance. They gave America a genius that distinguished our people from any other in the world.”
Packard says that “This matter of being an individual – an uncommon man – was a subject close to his heart. He fully realized that social, economic, and intellectual progress depended upon these relatively rare men. He recognized the importance – the absolute necessity – for individuals who could rise above the masses and provide creative leadership.”
Packard then includes I statement of Hoover’s wherein he decries the idea of the “Common Man”. He says most Americans would dislike being referred to as “common”. Hoover believes most Americans believe in “equal opportunity for all, but we know that this includes the opportunity to rise to leadership – in other words, to be uncommon.”
Speaking of Hoover Packard says “A truly uncommon man he was, and an uncommon man he will be remembered in the ages to come.
“It is my great privilege and honor, then, to present at this time the Stanford Associates Uncommon Man Degree posthumously to Herbert Clark Hoover. The degree reads”
“To all whom these letters shall come, greeting: The governors of the Stanford Associates, on the recommendation of his many friends, and by virtue of the privilege in them vested, have therefore conferred on HERBERT CLARK HOOVER, who has exceeded every standard of loyalty and service to Stanford University, the degree of Uncommon Man, with all the rights, privileges, honors and respect thereunto appertaining. Given in the assemblage of Stanford Associates on the fifteenth day of July in the year of our lord one thousand, none hundred and sixty-five.”
“Signed, “Duncan McBryde, President of the Associates.” And “J. E. Wallace Sterling, President of the University.”
“Mr. Allan Hoover will receive the degree in behalf of his father. I present it to him now with pride and gratitude.”
7/15/65, Printed invitation to the dinner honoring Herbert Hoover.
7/15/65, Time schedule for the dinner program and speakers.
7/15/65, Note to which are attached lists of the guests.
6/14/65, Letter to Packard from Duncan McBryde inviting him to the dinner honoring Hoover.
6/25/65, Copy of a letter to Allan Hoover from Jack L. Shepard giving details of the dinner schedule.
6/23/65, Copy of a letter to Duncan McBryde from Allan Hoover saying he will come and accept the degree on behalf of his father.
6/29/65, Copy of a letter to Jack L. Shepard acknowledging receipt of the dinner schedule etc.
6/30/65, Note to Packard from Duncan McBryde enclosing copy of time schedule.
7/3/65, Letter to Packard from Andrew M. Doty providing a draft of remarks Packard may use for his talk presenting the degree.
7/6/65, Copy of letter from Packard to Herbert Hoover Jr. expressing the hope he will be able to attend.
7/12/65, News release from Stanford telling of the degree award.
7/16/65, Reprint of an article in the Los Angeles Times on the award, attached is a card from Otis Chandler
7/21/65, Letter to Packard from Arthur C. Oppenheimer II thanking Packard for inviting him to the dinner.
7/23/65, Letter to Packard from Duncan McBryde thanking him for his help in the dinner.
7/21/65, Letter to Packard from H. Edward Hanson requesting a copy of Packard’s speech
7/30/65, Copy of letter from Packard to H. Edward Hanson enclosing a copy of the speech he made at the dinner.
8/2/65, Letter to Packard from Helen M Sheldon, Secretary to Jeremiah Milbank, thanking Packard for sending copies of pictures taken at the dinner, which she will send on to Mr. Milbank.
8/3/65, Letter to Packard from H. Edward Hanson, requesting a dozen more copies of Packard’s speech.
Also in the folder are many letters to Packard indicating acceptance or regrets to the dinner invitation.
Box 2, Folder 70 – General Speeches
July 20, 1965, Dedication of Herbert Hoover Room, The Hoover Institution, Friends of Stanford, Hoover Institution, Stanford.
7/20/65, Typewritten text of Packard’s speech at this dedication.
Standing in the Herbert Hoover Room Packard says “As one stands in this room and surveys the exhibits which demonstrate the wide range of accomplishments of this man – his service to humanity through his relief work – his public service under five presidents of the United States, and as president himself – the honorary degrees and awards he received – the books he wrote – and many other evidences of the great works of his life and of the esteem in which he was held by millions of people throughout the world, it is indeed gratifying to recall that he considered this institution the most important work of his lifetime.”
To Packard, “…this seems to emphasize the fact that the welfare of humanity was the great motivating aspiration of his life. This concern for human welfare, this love of fellow man, was amply demonstrated in everything else he did..
Packard recalls that Hoover began his career as an engineer and businessman, and “When speaking of his profession, he emphasized its social benefits – the “unending stream of goodness”, “jobs and homes to men.” He said engineering “elevates the standard of living and adds to the comforts of life.”
“His early devotion to the welfare of mankind no doubt stemmed from his Quaker upbringing and it led him from his career as an engineer and businessman to devote the last 50 years of his life to public service. Time and again his high motives called similar response from those who knew him and who worked with him. As a food administrator during World War I he called for men to volunteer as he had done. But more important, he relied largely on voluntary cooperation in solving the many problems of maintaining an adequate supply and distribution of essential foodstuffs to mount a successful war effort.”
“And in his administration of this program, although there were great and serious difficulties, most of these were solved because the business community rose above their selfish interests under his leadership.
“And his leadership toward a higher ethic in business affairs continued as he took charge of the Department of Commerce and introduced many policies and programs which helped the business community better serve the public welfare.”
Packard says advancing human welfare became a dominant motivation for Hoover as he devoted his life to public service. “Service to humanity, however noble, was not a common characteristic of the world of commerce and business during the early decades of the 20th Century. Profit was the businessman’s dominant objective and human considerations were secondary. Labor was considered to be only a commodity to be bought and sold on the open market and the best advice for the customer was “caveat emptor.”
However, Packard sees that this attitude has undergone a “momentous change” in the last few decades. “Businessmen now fully recognize they have a responsibility to their employees, to their customers, and the welfare of society at large. Mr. Hoover’s influence, by way of his example and by way of his constructive thoughts and actions throughout his many years of public service, have had no small effect in contributing to a higher ethic in the administration of business and industry.”
Noting that the Hoover Room is just across the way from the new Business School building, Packard hopes “that future generations of students studying for a career in business will have the opportunity to visit this room and thereby receive some inspiration toward the high ethical standards which are reflected by the life work of this great man.”
Turning to Hoover’s contributions to Stanford he says he won’t try to recount them all, “But I think it worth noting that he served as a trustee from 1912 until his death last year – over a half century of devoted, uninterrupted service.
“He established the Building and Grounds Committee of the Board in 1914 and had much to do with the University’s early architecture and campus planning. In 1936 he took leadership in a petition to the Superior Court of Santa Clara County to obtain authority for the Trustees to invest the University’s endowment funds in common stock. Until then the investments had been in seasoned bonds and first mortgages only and amounted to $24 million. As of last month the appreciation of the stock portfolio amounted to $47 million, approximately twice the value of the total endowment at the time of the court action initiated by Mr. Hoover.”
“His health prevented his coming to the campus during the last few years of his life, but he continued to serve his Alma Mater. His last great contribution was as Honorary Chairman of the PACE program, and many of our major gifts during the past three years were a direct result of his participation by way of letters written to prospective donors or meetings in his apartment at the Waldorf Towers.
“It is a great American and a great son of Stanford we are honoring today.
“It is my hope that the Herbert Hoover Room will serve as a continuing inspiration to all here present and to all who follow to assure that the Hoover Institution on the Stanford campus achieves the lofty goals set by its founder.
“It is also my hope that the Institution will serve as a great beacon on the path of world peace, and as a wellspring of dedication and faith for the American society which Herbert Hoover loved so well.”
7/20/65, Printed invitation to the dedication.
6/9/65, Note from Margaret Paull to Packard informing him of Dr. Campbell’s call inviting him to the dedication ceremony.
6/25/65, Letter to Packard from W. Glenn Campbell giving details on dedication.
Box 2, Folder 71 – General Speeches
July 29, 1965, Article “A Management Code of Ethics,” Supervisory Management Magazine, AMA, New York
7/29/65, Copy of typewritten text of article.
In this article Packard expresses the thought that “One of our country’s greatest assets – and perhaps its most powerful weapon in the struggle against Communism – is the immense strength and vitality of our economic system.
“We need to remind ourselves of this fact from time to time because of the tremendous responsibility it imposes on business and industrial management. This responsibility includes the continuing obligation to produce goods and services of the highest quality, to increase productive efficiency, to maintain high levels of employment, and to do the many other things required to keep our economy strong and growing.”
However, Packard adds that “The role of management…extends far beyond these traditional concepts. It includes broader social responsibilities which, until recent years, went either unnoticed or unheeded. Not until World Wear II was there any noticeable effort by business and industrial leaders to participate in l0cal, national and foreign affairs – outside of normal business activity. During the first 40 or 50 years of this century the great majority of managers had one overriding objective in the conduct of their businesses. That objective was to make a profit.”
While stating that these earlier managers “gave us a rich and valuable heritage” Packard adds that “Today’s business manager must add to this heritage, not merely use it. He can best do this by first realizing that profit is not the proper end and aim of management, but only that which makes all of the proper ends and aims possible. And a very proper end is social progress.
“Evolution of social progress is achieved through three mechanisms. One is a build-up of countervailing forces of power. The union movement is one example, while another, and more recent example, is the civil rights movement.
“A second mechanism is the intervention of a super authority, such as our federal government.
“The third, and most constructive mechanism, is one where the people in a position to improve a social situation, do so by a process of self-enlightened action.”
And Packard sees “…that within the past 10 or 15 years a large section of American management has acknowledged the superiority of the latter method, has begun adjusting to the concept, and has, in some cases, made an attempt to disclose this new posture to the various publics with which it deals.”
Packard says that the AMA has encourages the adoption of statements of ethics, and, “ in effect, they have helped build corporate codes of ethics out of the personal ethics of the modern manager.
“A code of ethics is a code of conduct not imposed by low, not imposed by common custom, but self-imposed because you believe in it. It comes from a belief in some higher selfless spirit and is directed toward the achievement of a high objective.”
“The great ethic, around which Western Civilization has developed, is the Judaic-Christian Code. It comes presumably from divine authority and has the highest objective for its individual adherents…a place in heaven for eternity.
“But, more important, at least for this discussion, it has a high worldly objective, the brotherhood of man. The great accomplishments of the free world come from its broad acceptance. The theme is common for all, whether it be expressed as the “Golden Rule,” the “Ten Commandments,” the Sermon on the Mount” or from the teachings of the Talmud. It has had a tremendous impact in a worldly sense. All of those things which we cherish in our Western Civilization have come from the common acceptance of this code throughout the Western world.”
Packard points out that nearly every organization in this country – the Rotarians, the Kiwanians, the Boy Scouts – have “grown around its own code of ethics based generally, of course, upon the Judaic-Christian Code.
“It seems strange indeed, then, that the great fraternity of business management as a whole has not developed a code of ethics of more common acceptance. It is not only strange; it is unfortunate, because no other group in the country with a common interest has so much influence over so many people. Our influence cuts across party lines; its extent knows no race, color or creed. We affect, in fact control, every media of mass communication.
“But, too often we continue to stick to the proposition that we are in business primarily to make a profit. There are some very good reasons for this in the very nature of a corporation. As managers, we are agents of our stockholders; they invest in our businesses to make a profit. We have a responsibility to do this for them, and we can point with pride at our achievements of producing goods and services that have raised the standard of living in this country to a level almost beyond belief.
“But, for all these achievements there are signs that American business has not quite measured up in the eves of the world. “
“We also know from experience that people overseas like our products but question our ethics.
“We in private industry have much to do to improve the image others have of us. Perhaps translation of our own personal codes of ethics into our management jobs is not enough. If we are to assume the rather awesome social responsibilities we have at home and abroad, perhaps we need to develop a clear-cut management code of ethics which can stand on its own and be accepted and supported throughout the business community.
“One of the reasons we have not done this is because we have not yet agreed upon a higher aim – the preservation of our business freedom on which to base a code of ethics.
“As a suggestion, here a few tenets that might be considered for a management code. These are not one man’s ideas. They come from statements business leaders have made over the past several years.
“One tenet is to manage our business enterprises first and foremost so we make a contribution to society. If we provide a service, it should be the best possible service, oriented toward the public welfare. If we make a product, it should represent the utmost in quality and value. This is, of course, precisely what the most successful businesses do.
“Another tenet is to recognize the dignity and personal worth of every person we employ. In subscribing to this tenet, we must provide an opportunity for employees to share in the company’s success, provide them job security based on job performance, and most importantly, recognize their need for personal satisfaction that comes from a sense of accomplishment.
“This concept has achieved some acceptance. It must be emphasized that the objective of this proposed tenet is not simply to make our organizations more efficient, although this will certainly be one result. This ethic, however we choose to express it, must be based solidly on the premise that labor is not a commodity to be bought and sold in the marketplace.
“The third tenet has to do with management’s responsibility to society at large. Our churches and schools play a great part in the intellectual and moral training on which we rely every day and rarely give a second thought. Many of the tools and techniques we use in our day-to-day work have emanated from the efforts of our great universities in extending the frontiers of knowledge.
“We have a responsibility for our private charities. Not only should we provide them money from our businesses and encourage our employees to give them support, but we should also participate actively in the establishment and achievement of their goals. Whenever possible, social welfare should be the responsibility of privately supported institutions.
“The fourth tenet in our code should be directed toward a better understanding of the nature of profit. Profit is the monetary measurement of our contribution to society. It is the difference between the value of the goods and services we give to society, and the value we take from it. Profit is the insurance we have that our business will continue to grow and flourish. With a good profit we can meet our obligations to our customers, to employees, and to the public at large. We can also provide our stockholders with a fair return to encourage their continues investment as well. And, most importantly, it is the wherewithal we need to assist in the furtherance of man’s progress.”
Packard tells of attending a conference the previous year, attended by a cross-section of business and industrial leaders, where they discussed how they could aid education, how they could help government do a better job, how they could influence international affairs, and many broad social problems. He says “They all believe, of course, that an adequate profit is necessary for a business to grow and flourish in our free enterprise economy. But that subject was not mentioned.”
“The contribution of the business community to this progress is gradually increasing. But the weight of our contribution will not be felt until we recognize that final and permanent change for the better in all human affairs comes not from strife between people, nor groups of people attempting to force acceptance of their views; not from power imposed by a super authority; but rather from self-enlightened action of all concerned – whether they be individuals or nations. This is the challenge and the responsibility of the free society. And, as part of the free society, it is the challenge and the responsibility of American business management as well.
A management code of ethics can provide direction of purpose, and significantly enough, at the same time provide an essential ingredient in the bonding and unification of the business community – a unification so necessary to the advancement of American business, the American economic and political system, and a free and enlightened world.”
3/65, Letter to Packard from Peter C. Reid, Associate Editor, Supervisory Management, asking if he would be willing to write a sequel to his article which appeared in their magazine in 1958.
6/2/65, Copy of a letter from Packard to Peter C. Reid saying he would write a sequel.
7/29/65, Letter to Peter C. Reid from David B. Kirby [HP Public relations Director] asking for the date the article will be published.
Box 1, Folder 24 – HP Management
January 15, 1965 – Management Conference, Monterey
1/15/65, Handwritten notes by Packard titled “Agenda”
New Product Program, what growth targets to expect
How to increase efficiency
Government Contract policies and relations
Objectives for 1965
Need to review objectives in light of changing environment for HP and in light of expanding character of Company
Government market largest factor in the market for HP products
Government market leveling off and may go down
We must work harder to obtain our share of Government influenced market
Increase effort to expand involvement in non-government influenced markets
As to objectives Packard starts with Profit, saying “It should be our aim to maintain profit margins while building strength for the future. We have stated that overall corporate profit should be 8% after taxes…This will require that all divisions must move to an operating profit of 20% or more. Marketing costs per dollar of sales be held at or below present levels
“The second objective – to make important contributions to the field of electronic instrumentation….All of our experience indicates that the best opportunities are generated by the new products which really make a substantial contribution….Our success can in some measure be attributed to our specialization and concentration in the field of measuring instruments. We should not diversify our efforts too far but it seems clear there other opportunities within range of our abilities and these should be considered.”
1/15/65, Conference agenda and supporting material.
Box 1, Folder 25 – HP Management
March 20, 1965 – Talk to Salesmen, New York
From Packard’s notes for the talk:
Gives report on sales and shipments to date.
Corporate profits 8%, result of good management of costs
Result of good new product effort.
Appreciate excellent performance of all of you here.
Projections for future: double in five years, double everything we have done in last 25.
Requires careful planning: financial, buildings, people
“As we look to future we must keep opportunity for each individual to have opportunity to achieve his aspirations – to utilize his abilities for common benefit of us all.”
“Our underlying objectives to find the best balance between the individual responsibility and…to combine with it a desire and incentive to join this in an objective to contribute to the strength of the corporation as a whole.”
“It is the underlying principle of these plans that you people in the marketing organization provide the most important unifying bond for the corporation. You are charged with the talk of bringing all of the manufacturing divisions together at the level of the customer.”
“We must meet the needs of our customers – this is the final aim of our combined effort – if we fail to do this we will fail in everything we want to achieve.”
“We have in our organization here in this room tonight the greatest collection of talent which has ever been assembled. There has never been a greater opportunity for any group of individuals – there has never been a greater opportunity for any company. It is up to all of us to do the job.”
Box 1, Folder 26 – September 23, 1965, – Sanborn Management Conference, Andover
9/23/65 Extracts from Packard’s handwritten notes for the event.
Big picture, gives growth %. “Our goal to meet opportunities available to us – 15% per year [growth] – double in about 5 years…. Duplicate everything in the next five years we have done in last twenty five.”
“If we are to meet our goals – to live to the opportunities that are available to us as an organization and as individuals we must look forward to change and to growth. I fully expect our entire organization to meet this challenge. I have no doubt we will be twice as big and I hope also twice as good five or six years from now than we are today”
9/23/65, Agenda for Conference and some supporting material.