The Roundtable was founded in 1972 by John Harper, the head of Alcoa, and Fred J. Borch, CEO of General Electric, who were concerned about growing public hostility toward corporations as evidenced by support for government regulation of the workplace environment and about the power of unions to squeeze corporate profits in an increasingly competitive international market. The two CEOs talked with John Connally, President Nixon's Secretary of the Treasury, and Arthur Burns, the Chairman of the Federal Reserve, who advised them to set up a lobbying organization that would specifically represent large banks and corporations. Harper was the first president, followed by Thomas Murphy of General Motors, Irving Shapiro of DuPont, and Clifford Garvin of Exxon.
The group was formed through the merger of three existing organizations: the March Group, consisting of chief executive officers who met informally to consider public policy issues; the Construction Users Anti-Inflation Roundtable, a group devoted to containing construction costs; and, the Labor Law Study Committee, largely made up of labor relations executives of major companies. The group has called itself President Obama's "closest ally in the business community."
The Business Roundtable played a key role in defeating an anti-trust bill in 1975 and a Ralph Nader plan for a consumer protection agency in 1977. It also helped dilute the Humphrey-Hawkins Full Employment Act. But the Roundtable's most significant victory was in blocking labor law reform that sought to strengthen labor law to make it more difficult for companies to intimidate workers who wanted to form unions. The AFL-CIO produced a bill in 1977 that passed the House. But the Roundtable voted to oppose the bill, and through its aggressive lobbying, it prevented the bill's Senate supporters from rounding up the 60 votes in the Senate necessary to withstand a filibuster.
In fiscal policy, the Roundtable was responsible for broadening the 1985 tax cuts signed into law by Ronald Reagan, lobbying successfully for sharp reductions in corporate taxes. In trade policy, it argued for opening foreign markets to American trade and investment. The Omnibus Trade Act of 1988 reflected the thinking of the Business Roundtable. In 1990, the Roundtable urged George Bush to initiate a free trade agreement with Mexico. In 1993, the Roundtable lobbied for NAFTA and against any strong side agreements on labor and the environment. It provided the money and leadership for the main pro-NAFTA lobby.
The Roundtable also successfully opposed changes in corporate governance that would have made boards of directors and CEOs more accountable to stockholders. In 1986, the Roundtable convinced the Securities and Exchange Commission to forgo new rules on merger and acquisitions, and in 1993 convinced President Clinton to water down his plan to impose penalties on excessive executive salaries. Citicorp CEO, John Reed, chairperson of the Roundtables Accounting Task Force, argued that Clinton's plan would have had negative effects on U.S. competitiveness. The Roundtable's Health, Welfare, and Retirement Income Task Force, chaired by Prudential Insurance CEO Robert C. Winters, cheered President Bush's plan, which consisted mainly of subsidies to the health care industry. The nation's health care system works well for the majority of Americans, the Roundtable announced in a June 1991 statement. "We believe the solutions lie not in tearing down the present system, but in building upon it."
In a press release, it said it "strongly supported passage of" the No Child Left Behind Act of 2002, and was "actively working with states on implementation." It has issued press releases, submitted editorials, given congressional testimony, and distributed position advertisements.
The Business Roundtable also acts as a major lobby that aims to extend or maintain administrators' rights/power in large companies. For example, the U.S. Securities and Exchange Commission adopted the so-called "shareholders’ access to proxy" rule, which aimed to empower shareholders in the proposition and nomination of administrators of big corporations. The Business Roundtable was strongly against that rule, as its president John Castellani reported to the Washington Post about removing this rule: "this is our highest priority [...] Literally all of our members have called about this". And they got the upper hand: the SEC rule was finally dropped after intense lobbying and lawsuits.
The Business Roundtable wrote a letter to members of the House strongly endorsing the Customer Protection and End User Relief Act (H.R. 4413; 113th Congress). According to the Business Roundtable letter, a survey of chief financial officers and corporate treasurers "underscores the urgent need for the end-user provisions" in this bill because "eighty-six percent of respondents indicated the fully collateralizing over-the-counter (OTC) derivatives would adversely impact business investment, acquisitions, research and development, and job creation." The letter concluded that the Business Roundtable "supports efforts to increase transparency in the derivatives markets and enhance financial stability for the U.S. economy through thoughtful new regulation while avoiding needless costs."
Board of Directors
Members of the board of directors include Jamie Dimon, Mary Barra, Michael S. Burke, Safra Catz, Mark Costa, Lynn Good, Alex Gorsky, Gregory J. Hayes, Marillyn Hewson, Tom Linebarger, Kevin Lobo, Doug McMillon, Larry Merlo, Dennis Muilenburg, Douglas L. Peterson, Chuck Robbins, Ginni Rometty, Arne Sorenson, Randall L. Stephenson, Mark Sutton, and Mark Weinberger.
- Greenhouse, L. (1991, March 7). The Business Roundtable is mentioned by G. William Domhoff in Who Rules America? Domhoff argues that the Business Roundtable supports the network of corporate control and influence over the economy, politics, and media. Perils to conservatives in a conservative court. New York Times, Retrieved from https://query.nytimes.com/gst/fullpage.html?res=9D0CE1D81E3EF934A35750C0A967958260
- Cowan, A.L. (1993, March 26). Methods in Stock Option Madness. New York Times, Retrieved from https://query.nytimes.com/gst/fullpage.html?res=9F0CE2DC163FF935A15750C0A965958260
- Jenkins, C., & Eckert, C. M. (2000). The right turn in economic policy: Business elites and the new conservative economic. Sociological Forum, 15(2), 312.
- Lichtman, A. J. (2008). White Protestant Nation: The Rise of the American Conservative Movement. Atlantic Monthly Press. (p. 338)
- "About Us", Business Roundtable website
- "Business leaders say Obama's economic policies stifle growth".
- "ISSUE: No Child Left Behind" website
- Cutler, Alexander M. (16 June 2014). "BRT Letter to House on the Customer Protection and End-User Relief Act". Business Roundtable. Retrieved 18 June 2014.
- "Board of Directors". Business Roundtable. Retrieved 7 March 2019.
- Business Roundtable, Official website, Leadership