During a speech in New York on Thursday titled "Corporate Governance and Corporate Well-Being," held in conjunction with Harvard Business School Publishing Conferences' Governance Forum, Parrett outlined his perspective on company performance, failure, corporate governance and the regulatory environment, as well as global issues such as harmonization of accounting standards and business practices. The speech was part of a two-day program, "Burning Questions 2003: The Quest for Authenticity and Enduring Value" held at the Metropolitan Club.

 

"It is absolutely appropriate to consider our corporate governance procedures in the spirit of review and renew," said Parrett to the audience of academic and business leaders. "Because placing corporate governance in the right context means we can see regulation as part of, but not as the whole answer."

 

"We need to take the broad view of corporate governance, not merely a regulatory view," said Parrett. "Let us not fall into the trap of abiding by the letter of the law while betraying its broader spirit and purpose. That spirit and purpose is to protect the interests of shareholders and stakeholders and promoting sustained corporate health."

 

Citing the firm's commitment to integrity and quality or "IQ," Parrett said that it was essential that top executives champion these attributes and consistently deliver clear messages tied to these themes. "Our organization's messages about IQ are clear," he said. "We expect all our people to sharpen their sense of healthy skepticism. This chiefly involves two things: objectivity and independent thinking."

 

Parrett also addressed the challenges of global harmonization, observing that harmonizing and aligning different business cultures and practices is more difficult than anticipated.

"Harmonization is not a short-term proposition. We need to try to understand the differences -- maybe even embrace the differences -- in business environments," he explained. "Harmonization requires accepting and respecting these differences. Accepting and respecting are critical to the quest for authenticity and enduring value."

 

Parrett cautioned that leaders should not move too quickly in attempts to align various business cultures, and not to assume that politically dominant nations offer the best practices.

 

The CEO-elect concluded his remarks by affirming that future growth and success lies in a balanced view of corporate governance and a balanced assessment of our business risks and opportunities, an approach that is best for the well being of corporations and the investing public.

 

Parrett will assume the global CEO role for Deloitte Touche Tohmatsu, effective June 1, 2003.