Early Life and Influences:
Ken Frazier grew up in North Philly, where education was seen as a great equalizer and opportunity provider. His parents, especially his father, instilled in him strong values, high standards, and a belief in limitless possibilities. Frazier’s younger sister and he benefited from school desegregation, which provided them with a rigorous education.

Role Models and Mentors:
Thurgood Marshall, a Supreme Court Justice, was Frazier’s role model for his work in desegregating the South. Bill Coleman, a renowned lawyer, was another influential figure in Frazier’s early legal career. At Merck, Frazier had the opportunity to work with Roy Vagelos, a physician scientist and CEO who led the company based on strong values. Ken Chenault, a former CEO of American Express and Frazier’s law school senior, provided valuable mentorship and insights into business leadership.

Corporate Soul and Values-Driven Leadership:
Frazier believes that companies can have a soul, defined by two elements: purpose and values. Purpose refers to the company’s mission and its positive impact on society. Values are the principles that guide the company’s actions and decisions, creating a strong ethical culture. Frazier emphasizes the importance of embedding values into the fabric of the company, ensuring they are not just words on paper but reflected in daily operations.

Building a Diverse and Inclusive Workplace:
Frazier recognizes the value of diversity and inclusion in driving innovation and success. He encourages employees to bring their authentic selves to work and fosters a culture where everyone feels respected and appreciated. Frazier believes that diversity and inclusion are not just about compliance but essential for the company’s long-term growth and sustainability.

Challenges and Achievements:
Frazier acknowledges the challenges faced by pharmaceutical companies, including regulatory scrutiny, pricing pressures, and the need for continuous innovation. He emphasizes the importance of patient-centricity, ensuring that the company’s products and services address unmet medical needs. Under Frazier’s leadership, Merck has made significant progress in research and development, leading to groundbreaking treatments and therapies.

Company Purpose and Values:
Companies should have a clear purpose beyond profit maximization, aiming to alleviate human suffering and address societal needs. A company’s behaviors, strategies, and actions must align with its stated purpose for it to be authentic and meaningful.

Corporate Conscience and Values Leadership:
Businesses need to have a conscience and consider the greater needs of society, not just their own profitability. Values-based leadership involves inspiring and motivating people by articulating values that they believe in. Good people are attracted to companies that live their values.

Role of CEOs in Society:
CEOs have a responsibility to use their platform judiciously to take stands on important issues, even if it means facing criticism or alienating some groups. Business leaders have a unique opportunity to influence society positively and address pressing issues.

Voting Rights and Corporate Action:
Ken Frazier and other African American CEOs took a public stand against restrictive voting laws, recognizing their responsibility to speak up for what is right. The business community should collectively address broader societal issues that impact their employees, customers, and communities.

The Importance of Values-Based Leadership:
Companies exist because society allows them to, so they have a responsibility to contribute to society’s well-being. Focusing on the long-term success of a company requires considering its impact on society and aligning its actions with societal values.

Core Leadership Attributes:
The most important attribute for a leader is the ability to inspire and motivate people by articulating values that they believe in. Leaders should possess empathy, integrity, humility, and the ability to listen and learn. Effective leaders need to communicate their vision clearly, build trust, and create a positive and inclusive culture.

Values-Based Leadership:
Leaders must genuinely believe and embody the core values of their company, not just espouse them for others. Values motivate and inspire people, making them effective leaders.

Courage and Decision-Making:
Leadership requires courage, especially at the highest levels, as leaders face constant pressure and diverse opinions. Leaders must ultimately decide what is right for the company, both in the short and long term.

Empathy and Compassion:
Leaders must genuinely care about their people and customers, especially those in need or suffering. Empathy and compassion are essential for making ethical decisions and leading with purpose.

The Ebola Vaccine Example:
Merck invested significant resources in developing an Ebola vaccine despite knowing it would not be profitable. This decision exemplified the company’s values and commitment to saving lives, even in cases where profit is not possible.

Difficult Decisions and Accomplishments:
Ken Frazier will discuss some of the most challenging decisions he faced at Merck. He will also share his proudest accomplishments during his tenure as CEO.

Ken’s First Hard Decision:
Ken faced pressure from investors and peer CEOs to cut research budgets and return more money to shareholders. He had to decide between pleasing his investors or upholding Merck’s values of scientific excellence. Ken chose to maintain Merck’s commitment to scientific excellence, despite the potential consequences.

The Importance of Company Values:
Merck’s success relied on doing great science, which required recruiting and retaining top scientists. Scientists would observe Ken’s actions to determine if he valued scientific excellence or external pressures. Ken had to balance the company’s values with the demands of Wall Street investors.

Another Hard Decision:
Ken faced another difficult decision, which is not specified in the provided text.

Background:
Ken Frazier, CEO of Merck, faced a difficult decision early in the Trump administration regarding whether to remain on the President’s business advisory council. His concerns stemmed from the President’s comments in response to the Charlottesville incident, which Frazier felt did not align with the company’s values.

Decision-Making Process:
Frazier weighed the potential consequences of his decision, including reprisals from the President, against his personal values and the company’s reputation. He consulted with his board of directors, who unanimously supported his decision to step down from the council.

Personal Impact:
Frazier’s decision had a significant impact on his family, particularly his daughter and son. His daughter expressed concern about the perception of him associating with the President, while his son encouraged him to take a stand based on his values.

Company Perspective:
Frazier felt it was his obligation to represent the company’s interests on the council but ultimately decided to prioritize the company’s values over his personal position. The board of directors agreed with his decision and allowed him to make a public statement expressing both his personal and the company’s values.

110 Initiative:
Following the murder of George Floyd, Frazier spoke out against the incident in an interview on CNBC. Shortly after, he helped establish the 110 initiative, a non-profit organization dedicated to promoting racial justice and economic equality.

110 Objectives:
110 aims to address systemic racism and create a more just and equitable society by: Advocating for policies that promote racial justice Supporting organizations working towards racial equity Raising awareness about racial disparities and discrimination

Hiring Practices and Systemic Barriers:
African-American CEOs, such as Ken Frazier, are frequently called upon to address issues of racial injustice. In response to civil unrest and concerns about the criminal justice system’s handling of incidents like George Floyd’s death, CEOs began discussing ways businesses could contribute to addressing these issues.

Focus on Hiring as a Solution:
Ken Frazier, along with colleagues, recognized that hiring could be a powerful tool for addressing systemic barriers faced by African Americans. They proposed that companies re-evaluate their job requirements and focus on skills-based jobs rather than requiring a four-year college degree for positions that don’t necessitate it.

Structural Barriers to Employment:
76% of African Americans at age 26 do not possess a four-year college degree, making degree requirements a significant barrier to employment. Many jobs in retail, healthcare, IT, and manufacturing can be learned through training, making skills-based hiring a viable solution.

Introspection and Re-evaluation of Job Requirements:
65 large companies have committed to introspectively review their job requirements and eliminate unnecessary degree requirements. This shift is not about lowering standards but rather about creating opportunities for individuals who may not have had access to higher education.

110 as a Startup and Ecosystem for Change:
110 is a startup that aims to create an ecosystem that transforms how jobs are created and opportunities are provided. The organization challenges the win-lose mindset by emphasizing that focusing on specific customer segments, in this case, underserved communities, can lead to positive outcomes for both businesses and individuals.

Changing Jobs and Expanding Opportunities:
Businesses are encouraged to communicate how changes in job roles can benefit a broader population. 110 aims to hire one million African-Americans without a four-year degree into family-sustaining wage jobs in 10 years.

Impact on Society:
Creating opportunities for marginalized groups can positively impact the entire society. Analogy of curb cutouts for wheelchair accessibility benefiting everyone. Business can play a vital role in solving societal problems like climate change and inequality.

Importance of Business Community:
Business community has the ability to reinvent the United States. Sustainable solutions involve creating environments where people can work and create value for companies and families.

Ken Chenault’s Next Chapter:
Exploring venture capital, where he sees the potential to create both financial and societal value. Working with young founders who aim to build companies that create dual value.

Summary of Ken Chenault’s Life:
Feels blessed to have had opportunities for education, mentors, and sponsors. Attributes his success to the support and guidance he received. Emphasizes the importance of supporting others and maximizing one’s potential. Expresses gratitude for the award and appreciation for the audience’s attention.