Clinton Takes Moderate Stance on Working Conditions

President Clinton on Saturday offered new details of his plan to foster better corporate citizenship but he indicated that he intends no broad confrontation with U.S. business over its role in improving the lot of workers.

In a speech at Xavier University and in his weekly radio address, Clinton urged businesses to give workers better health care, training, family benefits, pensions and a greater say in the workplace.

But turning aside the advice of some lieutenants, he stopped short of proposing any new federal regulations, tax incentives or other measures to advance these goals.

Instead, he praised American business as the “engine of prosperity and the envy of the world,” saying he would oppose any rules that could hold it back.

“Business has a role to play too if we want people to have better lives,” he said. Indeed, the president said, many businesses have shown that they can “do well by doing right”--prospering by investing in their employees’ welfare.

But he quickly added: “Let me be clear: The most fundamental responsibility for any business is to make a profit.

“We can’t do anything that will try to freeze the dynamism of the economy, otherwise we won’t be able to create jobs,” he told his college audience.

He suggested that special efforts on behalf of workers were primarily the responsibility of larger enterprises. “We recognize that every business cannot afford to do more than worry about the bottom line--especially a lot of small businesses,” Clinton said.

The remarks amounted to the most complete exposition yet in this election season of Clinton’s views on corporate responsibility, which became a significant campaign issue when debate began to settle on the social cost of corporate downsizing and wage stagnation.

In what the White House billed as a political trip, the president also addressed Democratic Party fund-raisers here and in Columbus, Ohio’s capital.

Clinton has said that he has not completely ruled out ideas being advanced by some of his more liberal advisors, such as Labor Secretary Robert B. Reich, including a suggestion that the administration should consider supporting special tax incentives for businesses that pay high wages and good benefits. But Saturday’s speech suggested that no such move is likely any time soon.

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White House officials indicated that Clinton believes that he is prodding business enough already with his support for raising the minimum wage, which has held steady for five years, and for a pending Senate bill to mandate better employee access to health care.

The measure, sponsored by Sens. Edward M. Kennedy (D-Mass.) and Nancy Landon Kassebaum (R-Kan.), is designed to protect the health care of employees who leave their jobs or might be excluded for persistent ailments.

Aides indicated that Clinton could still choose a more aggressive approach later in the campaign by, for example, proposing additional rules to safeguard employee pensions.

But they said it was more likely he will remain with his current hortatory approach, which would probably arouse no opposition from any corner of U.S. business.

At Xavier, Clinton laid out “five pillars” of his plan for businesses to further help their employees: adequate health insurance, protected pensions, a partnership between workers and management, quality skills training and a safe workplace. He also held up a number of firms as positive examples in each area.

He called for firms to be “friendly to families” by helping with child care, flexible schedules and leave policies. He cited the case of Proctor & Gamble Co., based in Cincinnati, which allows new mothers one year’s leave and entitles them to reduced work schedules for five years after they return from maternity leave.

And urging business to provide better health and pension benefits, he cited the example of Seattle-based coffee chain Starbucks Corp., which covers even its counter workers.

He also talked of the benefits of providing continuing training, noting the programs of motorcycle maker Harley-Davidson Inc. and Xerox Corp., the office machine firm.

And he said companies need to take steps to ensure a healthy and safe workplace, even beyond federal requirements. Clinton mentioned the efforts of Motorola Inc., saying that the electronics concern’s safety record is 70% better than the industry average because of its special efforts.

The president also announced he would invite chief executives of a number of companies to Washington to publicize the steps they are taking to further their workers’ interests. The meeting will be held before Clinton leaves for Tokyo in mid-April.

Clinton said his goal was to “talk about the good things that are being done, and how we can spread them.” While he didn’t want to compel good behavior, he said “we ought to be able to get this information out all over America.”