'Heck, I'd Be Mad, Too' : 'Heck, I'd Be Mad, Too'.(Bill Esrey)(Brief Article)(Interview)

The United States has had no shortage of corporate critics in recent months. From fraud to rigged IPOs to simple, naked greed, a stream of negative revelations has badly tarnished the image of the U.S. boardroom. Up until now, many of the captains of American commerce have remained silent, understandably reluctant to challenge the wave of popular outrage.

Last week, though, Corporate America seemed to find its collective voice. Speaking at a conference in West Virginia, leaders of some of America's largest companies--including JPMorgan Chase and Hewlett-Packard--challenged the prevailing image of the crooked CEO and defended the virtues of American capitalism. They also warned that heavy regulation and costly litigation could discourage innovation and risk-taking. Bill Esrey, chief executive of Sprint and one of the conference participants, argued the CEOs' case to NEWSWEEK's Adam Piore. Excerpts:

PIORE: Up until now, Corporate America has been reluctant to step up and say, in effect, "Let's get back to business." Why did you choose to do so this week?

ESREY: I think there is a feeling that we needed to take the initiative to convince people that the vast majority of business people were outraged by what was going on. The man on the street thinks that most business people are crooks, but the reality is different. It's up to corporate leaders to re-establish trust.

I think what we've done so far, legislatively and voluntarily, has been needed to help restore public confidence and public trust. On the other hand, what business people and boards also need to be worried about is that they don't look over their shoulders too much and be so concerned that people will second-guess them that they get overly cautious. That's the last thing the economy really needs at this point.

Do you see that happening?

It's a matter of degrees. But I do think it's a real risk, particularly when the economy is going through an adjustment. Then you impose new regulatory requirements. In talking with people down in West Virginia, chief executives seemed more cautious than I had ever seen them.