Marriott & Bank of America: Persistence & Progress


This CNBC podcast is sponsored by capital group home of American funds. Their long-term approach helps. You say I can't find a firm with nearly ninety years of experience navigating market volatility visit capital group, dot. com slash market volatility, American funds. Distributors. Inc.. This is. I'm CNBC producer Katie creamer today, our podcast to CEOS of two large American companies tackle justice from inside the corner office. Marriott's CEO Arne Sorenson on the importance of leaders. Working together for change is not just a question about what we. Do. Recognize that what any individual company is simply not enough and light. The head of the world's largest hotel company is speaking up now. I think our employees bases demand that. CITING DEMANDS IT Bank of America's Brian Moynihan on the banks, one billion dollar pledge to address equality. Talking to put up the money and We are doubling down on it and he says it's more than a press release. Going to quiet down quiet down on terms of making the economic progress within the in the court social progress. We need to make here. It's Thursday June. Fourth Twenty twenty squad begins right now. Good morning, everybody welcome to Squawk box here on CNBC. I'm becky. Quick along with Joe, Kernan and Andrew. Ross sorkin Marriott CEO Arne Sorenson, and addressing the recent events surrounding race in this country, and in his company in a recent linked posts, saying for many years I've tried to use my purchased Marriott to advocate for opportunity for all regardless of race, gender, nationality, or any other point of human difference, each person deserves to be recognized for who we are and respected for common humanity, and the distinct qualities that make us unique joining us right now. Is Arne Sorenson? He is the CEO of Marriott international and Arnie. It's great to see you. Thanks for being with us today. Becky you to. Want to set this against the proper backdrop, obviously, the last several months have been incredibly difficult for everybody in the Travel and leisure industry. You are a global company. You've got more than seven thousand properties, one hundred and thirty one different countries, so you've been watching the arc of this as it all takes place, you've had to close properties. You've had to furlough employees. Where are we right now? How many of your properties are actually still shuttered? How many? Employees. Have you had to furlough? How many have you been able to bring back? Less aggression there, of course, the impact of Covid nineteen has been profound on our business. We've seen. By Revenue Sales, at army tells by ninety percent globally starting of course I in China then moving around the world as we got into March. And are low point. We had about two thousand, nine, hundred seventy five hundred hotels that were closed around the world. We've probably reopened three to four hundred of those I. Think when we look at even in the United States. We see the early signs of recovery, although we've gone from something like minus ninety percent revenue, something like minus eighty percent revenue so well in percentage terms. If you think about it from the bottom is up one hundred percent. is still a long long. Before and we suspect it's going to be. A slow climb beck. Levels we nineteen. So that sets the backdrop for what a difficult several months it's been already and how much you have on your plate. Employees are kind of watching this and not knowing what's happening on, either then you have the civil unrest and the riots that have taken place, and that adds to it so as A. What did this mean? Warning label to do. What are you hearing from your employees? This is obviously a just blew latest reminder, a frustratingly long Sharon criminal justice, particularly for for blacks and urban cities in the United States. where! There is unfairness that is profound, a and I suppose the only thing that are is what positive about this is the availability of cell. And the fact that we can see the outrageous behavior that obviously. Killed George Floyd in Minneapolis. Allows US I think to some sometimes. Put aside your search for him big. Unity Instead, say this is a profoundly unacceptable. And start to turn the corner in eight now. What is it that we can do about it? When I blog about this weekend, of course was was quite personal. I woke up Saturday morning and had this on my mind as everybody did. and. This is something we should communicate about. I'm obviously not black leader in a business community him United States. We have a very diverse work group and wanted to communicate with them like the more I think about it. It is not just a question about what we Mary Do, which is really the focus of blog, but recognize that what any individual company can do is simply not enough. We've gotTA. Find a way to. Make a dramatic more progress can. Is Space than any single company? Can You well what does that translate into in real terms? Arnie we, all the conversations are underway in a number of different organizations, so the VRT for Jampel is is talking about fitness a real time as we speak. I think many of us are are using our networks, folks both inside and outside our companies to. Talk about places we can make a difference I think I. Think and must each of us do what we can with our workforce and with our partnerships, unity's where we do business, but I think that we can band together also through outfits like the Bart recognized that we've got to work on criminal justice issues which. Company can't do probably ending together and advocating. Criminal Justice around educational opportunity around access to healthcare around access to financial resources. These are for big areas that. Collectively. We can push for not just. What can we do as companies, but what can we? Help implement in the policy space. To to put this outrageous behavior bindis. SAY THAT! These are real time conversations that are happening with you and your peers at the Business Roundtable How quickly do you think that this is something that can, it can translate into action. We had Randal Stevenson a former head of the business roundtable on earlier this week, and he said that look when any of these big companies kind of put their mind to it, they they can have a significant amount of say in policy in Washington and that we've seen it happen time and time again. For issues that are near, and dear to any of these individual companies, hearts or that make a real difference for business business doesn't work free markets don't work in an environment where a large class of our people are perceiving and experiencing injustice, so we have an imperative to begin to use our muscle and are influenced to begin to affect policy change to address this. That this is something where? This is a moment that all of these companies are going to stick with us and say that this A. An agenda that has to carry down I do I do it again. By suggesting for a second, Bart ought to band together and use its force together. I'm not crying. Excuse the conduct that any individual company will be we will continue to be very active in this space as myriad, but I think collectively would be that much louder and I think the Bart and other organizations will move very quickly and will not let up on this. I think our employees basis demand. I think society demands it. I think fundamental aspects of fairness and the importance of opportunity. demands it and I think as a consequence. Is this event I? Don't know whether you had a chance to see prisoner after noon. But one of the things that I found some urging was to hear his hopefulness. And we we need that hopefulness. We need to take the. Outrage and the anger, but we need to marry with hopefulness. Okay, we can make a difference here. In! Let's Marshal our resources. Marshall are. The happen. let me ask and it's a question. I've raised on this program the past several days. Do you think that the Bart? If. That's how this is going to work. Will and should advocate not just on these issues, but directly on behalf of certain politicians. Four and against that are for the policies that you are advocating four and the reason I asked. I'M GONNA try to ask the most a political way. The same people who were very helpful in terms of lowering corporate taxes in America are absolutely against things like affordable. Affordable Healthcare Act. Which of course helps the people at the lowest levels and often the lowest levels at our economy, and often people who are black and Brown, and so so let me let me a guess. Answered it this way. I'm obviously not a spokesperson for the Business Roundtable Thrown table will come out and quite soon. Talk about work. That will be done in this space. I do share the business room. Get a tables task force on healthcare, and I'm quite convinced based on the work that we've done before that. The Business Roundtable will continue to speak out in favor of. Access for all Americans to healthcare. and. That obviously gets wrapped into the affordable care, act or Obamacare, and and there are a different political voices at times which are either using that as a symbol to attack or simple to defend Let let's stay away from this most superficial symbolism of this and go to the most important fundamental aspect of this, and that is that everybody in the United States deserves access to healthcare period. And the Business Roundtable members. I think overwhelmingly agree with that notion in. We'll advocates were hey, aren't we really appreciate your time today? I know this is an issue that you're following up on that and also the coronavirus response from the Business Roundtable. We'll have you back very soon to talk about all of it, but thank you for your time today. It's good to see you. Love. Next on Squawk Pod Bank of America's CEO, Brian Moynihan on fighting inequality from the C. Suite. We could not let it quite. The business community have to. To make the product. Occur, not quite now. We'll be right back. This CNBC podcast is sponsored by capital group home of American funds. Their long-term approach helps you say I can't find firm with nearly ninety years of experience navigating market volatility visit capital group DOT, com slash market volatility, American Funds Distributors Inc... Protesters gathered in major cities across the country for another day yesterday in many locations, cheering the additional charges brought against Minneapolis police officers, regarding the death of George Floyd. New York City saw its first curfew insent five years earlier this week. The city's first since. World War. Two February nineteen, forty five to be exact. A few want short history lesson. Franklin, Roosevelt, was president. The allied forces had just bombed. Germany, and the United States was facing a coal shortage. These latest protests come at a time when businesses are looking to reopen after months of Corona. Virus induced lockdowns on Tuesday. Bank of America announced a one billion dollar commitment over the next four years to help. Local communities address economic and racial inequality, especially in areas hardest hit by the coronavirus pandemic, the funding will be appropriated for initiatives, including virus, testing, flu, vaccine, clinics and support. Support for minority owned small businesses investment for affordable housing, and inside the Bank itself recruitment and retention of staff from low to moderate Income Communities Bank of America Chairman and CEO Brian Moynahan joined us. Here's Becky quick. Just wonder if you could talk a little bit more about why you're doing this right now. Becky Thank you for having me on the first of all You know these. Why are we doing this now? We're doing this now because one. These something horrible deaths that occurred just have been cited and anger and our teammates in a worry. In our teammates. So, they obviously wanted them to condemn these actions, but also they want us to do something about it. In the same thing happened on communities in as you know, take with the healthcare crisis another taking the community centric customer center teammates centric approach. This is consistent with that how we run the company, but the reason for now you're seeing two things. Come together. One is the. Long held issues about opportunity economic. Mobility and things that have practiced that had just. Fast in this country, and on the other side you see a healthcare crisis affects those communities and an add more adverse ways, affecting the broader society, and we thought instead of just talking this time to put up the money, and we are doubling down on our efforts to help drive success in Syria. Will the money be used I know it's it's over four years, and it's going to be used in some of the communities where you're already putting money to work. What what kind of infrastructure do you have built right now? What will does new funds allow you to? Do you know we've been doing a Lotta great things? So if you take an example like housing, we do five billion dollars a year in financing for low and moderate and community housing. Across the country. The difference with this in housing. That specifically is there's money that's needed. It's more equity, the harder money to find and so in case, Charlotte for example recently. We put my. Family owned. We've put equity. And then that was able to be leveraged along with other CEO's in Charlotte who also admitted money from the financial institutions and others that we ended up raising a quarter of billion dollars to build extra housing so in a case housing. It's going to be tough for money. The money is farther down the capital and help build, and also brings expertise, and so we have worldwide expertise in doing this and then Charlotte. We open an office for. The non profit work with so they could help drive to go to healthcare, so we did a million dollars for testing support for Howard University Hospital and the idea was. They need the money to conduct tests in the communities in Suffolk. With a tougher number of cases coming up and they WANNA test, and so they needed money to conduct test, so we did a million dollar contributions on the healthcare. It'll be that type of thing which will be testing. Contact tracing. Clinics and other things that we can do to help. The healthcare crisis been housing on the other end so thousand jobs killing health care crisis, and also support the small businesses importantly Brian. When you talk about this money that's going into housing in that money to build housing, or is that money to to finance loans that normally would not be approved, or that would have very high interest rates. How's that work? This is built housing. Good affordable workforce housing, but it's the differences. There's a there's a large infrastructure that builds housing developers and other types of things, but the question is. Where do you get the equity and sometimes the seed money? Where do you get the expertise money? And that's what will be thinking about now in. Charlotte if we looked at our opportunity, task, force and a lot of work. A seismic healthcare crisis goes back to the to the work that we've been doing over the years around opportunity around economic mobility. There's a rush I. Think you had on your show. The freemen others have been studying this. And unfortunately our home headquartered city was the last out of fifty. And so a group of A. Business Community and other politicians and others got together and studied it. Somebody outcomes was the lack of affordable and workforce housing and so. The CEO's the building at the idea is to double down and throw down on these programs and beat them up and on the other side as the opportunity around education so reskilling people sweetheart, ten thousand people from low and moderate incomes communities over the last few years, just a commitment to bring them into our company to work. Communities we serve if we also work with community colleges and others sitting high schools to start developing programs with a group of CEO's. I, think that Thi this is, this is the money. It's hard to find all these different program areas, but I think the programs we have seen across the country that provable just need more money now to create more opportunity, more mobility, and that over the long term help solve these issues. It won't solve some the criminal justice issues and things like that. That, but will solve the underlying economic issues I think all of us look at the events, and what's been happening and we want an instant fix an instant solution, but the solutions you're talking. About are things that really take time, and we'll play out over a number of years How do you make sure that when things quiet down when you know? The streets are quieter when when businesses opened up again that that that focus isn't lost. That goes back to how we think about. the company in terms of we believe our company is a place where team can have conversations and. Talk about things about going on in society and affecting them individuals that can bring your whole self to work and be who they are. One of the other areas that were pushing us to take that that that that kind of openness and conversations and dialogue, and and try to scale it across inside a company it's it's a disaster and outside the company. Things aren't going to quiet down. They shouldn't quiet down on terms of making economic progress within the in the course social progress. We need to make here I go back two years ago when the United States was. In very tough circumstances around these similar issues. It's fifty years later. There's twice as many people working. There's nice states make great progress, but still we haven't fixed some of these issues, and it's time to take them, so we can't let a quiet down as we have to. Keep pushing and that by doubling down on efforts will make a lot more money, available and I'm sure other companies because companies believe that they have to be part of the solution. Healthy is someone with more money for faster cross proven programs across the country. But I just don't want. Leave the thought that this is gonNA close down. It shouldn't cry down we we not let it down as the business community we have to. Redouble our efforts to make the progress, so it doesn't occur not quite. Brian you mentioned at the top that that you had heard a lot of anger from your employees. What what have you heard? Who Have you talked to? What what kind of things have you heard back? We have formal and informal mechanisms. Everybody in the company. My email address is available and they sent me notes and about their feelings and you know. We have the more more formalized mechanisms. Diversity inclusion networks and groups of teammates in Hispanic and African American groups that come forward in this program was in development frankly for a year with those. Those leaders across the company. Is Any our company and our communities of color saying you know we need to. We just need to do more and then Lo and behold we. A healthcare crisis affects communities where we have these tragic circumstances around these. And the and the fact that occurred. Multiple Times over the last few years including Charlotte a few years ago. If you remember we had. A similar ship incident, and so the idea was those teammates had helped form this process. You know it was going along, but then we said we have hit it then we think we doubled the money that they're as they were suggesting along with our NCA TAC which is community visor group, which is from the leaders in these. She's across. Country just doubled up because. And, so it comes informal by them having four months put on process, and how we think about how we deploy resources along these dimensions, but it comes in formerly a lot of notes for people saying I'm angry on fearful and. I like the fact. That work I feel safe but I. Don't feel safe in my community and. Are we going? GonNa say something, and are we gonNA. Do something and that's what you know what I think to use our. To do. Not only say something, but do something, and this is the doubling tripling of our efforts to do something. How many employees do you have an and they all have your email address to reach out. Says everybody nine states. In the world, it's my emails in public domain so that hundred nine thousand. Believe me after we announced. The initiative yesterday they came back and are are thankful that we're only saying something condemning graphic of the issues. That the tragic and things like that, but we're doing something that's that's the thing you. If you go back conversations at Davos. over the years and even last time together with seems like forever ago. You know the conversation was about companies need to serve their stakeholders all the stakeholders, and then you deliver the profit for the shareholders to experience for the customer experience for teammates. In the community, but they also have to deliver society for society at large, and you know on the company to do what we call the genius, the end to be able to deliver for our core stakeholders and society of Arjun, and this is part of that, and so it's very consistent with how he's on the company how you're not talking about across the ears and. And so that they've coming out of saying. You know that's our money or mouth is in. You know where they can team designed a program that we think will have meaningful impact, and it's not enough money. We need a lot more money from a lot of other people, but it is meaningful change. The trajectory of what we were doing and help jobs straight needs to get Ling and small businesses. Now's fine. Thank you for your time and thank you for your leadership on this. We really appreciate talking to you today. Thank you, Becky and thank you for continuing dialogue. These issues with with our company Bank of America. In the CEO's generally so keep pushing us we. We got a healthier cause capitalism. SQUAWK POD, we'll be right back. That's the show for today. Thank you for listening. squawk box is hosted by Joe, Kernan that quick and Andrew Ross. Sorkin tune in weekday mornings on CNBC at six am eastern and to get the best of our. TV show right into your ears subscribed to squash pod. We are on spotify stitcher. Apple podcasts wherever you listen will evac here tomorrow. This CNBC podcast is sponsored by capital group home of American funds. Their long-term approach helps. You say I can't find a firm. With nearly ninety years of experience navigating market volatility visit capital group dot com slash market volatility. American Funds Distributors Inc...

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