Michael J. Phillips, Chairman, Russell Investment Group

Initiative Session Date: April 23, 2004

Summary:
Michael Phillips talked to IGD about corporate governance and foreign investment. Phillips told the group that corporate values need to be more in line with personal values, not solely based on maximizing return. He attributed this lack of values to the recent crisis in corporate governance. According to Phillips, companies should behave ethically, not out of motivation for financial gain, but because it is the right thing to do. Atwood claimed that a multiple value system will result in more ethical governance, commitment to humanitarian and environmental issues, and a higher retention of quality workers. Phillips proposed that a “Global Responsibility Fund” be established to help connect companies and organizations to effectively address international issues. Phillips then described two programs, Russell 20-20, and EMPulse, created by Russell Investment Group to bring investment into developing countries. Phillips closed by saying that similar to the Seattle Initiative, EMPulse seeks to foster free market conditions to spur growth and alleviate poverty.

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