AMEX CEO touts "Small Business Saturday"

(CBS News) 

NEW YORK - With our elected officials so far unable to solve the country's economic problems, CBS News has been consulting with the CEOs of some of America's most successful corporations.

Monday, CBS Evening News anchor Scott Pelley sat down with Ken Chenault of American Express. Fortune Magazine called American Express one of the world's 20 most-admired companies. Chenault was Fortune's choice as CEO of its "Fantasy Executive League."

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Pelley asked Chenault what the failure of the supercommittee would mean.

Kenneth Chenault: I think our country is a very resilient country. And I think we will go on. But it will be an incredible missed opportunity. And I think that our leaders need to be held accountable.

Scott Pelley: Well, the Democrats believe that they have it right. The Republicans believe that they have it right. And this is a battle of ideology to see who wins.

Chenault: I think what's very important, and we really do have something that we can follow, and that's the Bowles-Simpson Commission, which I think was a real example of principled compromise.

Read the Simpson-Bowles report

Pelley: Is it your opinion that there has to be compromise on cutting and tax increases? There has to be some of both in order to move the country forward?

Chenault: I don't see how you can have absolutist positions on either side. And that's what Bowles-Simpson was all about. And if we simply have both sides go to their respective corners, the fight never takes place and no one wins. So we need principled compromise.

Pelley also asked Chenault how to create jobs. One idea, he said was to support small business. American Express is promoting something it called "Small Business Saturday" on Nov. 26. Chenault says everyone should do their holiday shopping in small community stores that day - mom and pop shops.

Chenault: Small businesses create half of the jobs in the private sector. And in fact, have created 65 percent of the net new jobs over the last 17 years. And so, what small business is all about, is where the individual can help our economy because we need to create jobs. And if people support independently owned small businesses in their community, they can make a difference.

Pelley: Your message to Washington then is what?

Chenault: My message to Washington is very simple. Face reality. Be leaders. Demonstrate accountability. Engage in principle compromise. And understand your job is to find solutions. The stakes are too high, and failure is not an option.

Chenault says he hopes "Small Business Saturday" will become as important as Black Friday, which is the traditional start of the holiday shopping season.

[paulsegreto]

This Saturday, November 26th is the 2nd Annual American Express Small Business Saturday. Most likely you have seen advertising and promotions for the event. Possibly you've seen the event's Facebook page that has over 2.3 million LIKES. If you spend as much time online as I have you, then you have definitely seen promo after promo mentioning the event.

Well, franchising, supposedly the cornerstone of small business and as many claim, the driving force behind economic recovery in America, has been excluded from the event. Here's the AMEX notice...

ELIGIBILITY: The Program is only available to independently owned businesses. Small business cannot promote any of the following: pharmaceuticals, drugs, politics, pornography or sexual aids, diet aids, gambling, liquor, tobacco, firearms/weapons, or any sensitive topic with respect to current events, and any such small businesses are not eligible for this Program. Franchisees, national chains and government agencies are not eligible. By participating in this Program, you represent and warrant that (i) your business complies with the requirements set forth herein and (ii) you are the owner of the business and have the right to participate in this Program.

Yet, American Express heavily solicits franchise brands and franchisees to accept the American Express Card. And, as we all know, at a higher rate than that of Visa and MasterCard. Not to mention the fact that American Express typically exhibits at franchise conferences and trade shows where they promote AMEX Merchant Services. Besides, aren't franchise locations independently owned and operated?

At the very least, franchisees should be able to participate locally even if franchise brands are prohibited from participating at the national level!

So, do you believe American Express was correct in excluding franchise brands and franchisees from Small Business Saturday? What are your thoughts?

Read more at...

http://franchisessentials.wordpress.com/2011/11/25/was-franchising-slapped-in-the-face-by-american-express-by-accident/

http://franchisessentials.wordpress.com/2011/11/21/franchises-are-not-small-business/

[OneCrazyRedhead]

It's great to promote small business in the hope of creating new jobs but Mr Chanault does not promote or create jobs in the United States. He outsources Amex jobs overseas. An Amex call center in Greensboro N.C. resently closed because the call volume dropped. It dropped because the calls go overseas. How many other major companys do the same thing. How many people are unemployeed do to outsourcing. Interview Ken Chanault about that.

[phxhispanicall4thelaw]

And that is not the worst part....if you work at American Express in the United States of America in Phoenix AZ you will see nothing but Indians...there is about 80% of them instead of American...so Ken is also giving the local jobs to foreigners right here at home!!! He is liar...and violates Banking and Security policies all the time and no one reports on American Express.....it is a little Mumbai.

[MariaMarsala]

Good idea -- wrong day of the week. Why celebrate on a Saturday when some small business owners don't work on Saturday?

[mitchellll]

You should be ashamed of yourselves and embarassed to give this self promoting hypocrite one secand on your show>He promtes creating and supporting jobs in the U.S. but when you call his company you get India.He outsources his buisness which obviously takes jobs from Americans and the fact that you did no research to discover this does not supprise me.Shame on you and you prove you why you have such terrible ratings.

[Samlv]

If you think you can do that guy's job for less than he makes, sound off.

I bid 10% of his current pay package, or about $1MM / year.

[endrepubs]

American Express charge outrageous merchant fees and blaming both Dems and Reps for the gridlock is totally inaccurate as he knows damned well the Repubs did not budge on the revenue increases stance. No wonder a lot of businesses wont take AMEX.

[Samlv]

A breathtaking PR stunt by AMEX, which CBS proudly put atop their web page.

Editors: Why did you do that?

[longtree-2009]

small businesses, mom and pop, stores don't have the selection of major stores and don't have the lowest of prices either. most small businesses,, mom and pop, stores open late and close early unlike major stores that open early and close late. as for chenault, he is like any other ceo with huge salary, perks, stock options, while eliminating jobs. sbc telecom, now at&t, is another example of a major corporation that took over regional bells, clinton was in office, and threw thousands out of work for merger reasons, downsizing reasons, while ed whitacre the ceo made tons of millions. not picking on sbc/att but giving an example of one most should be familiar with today.

[Freepress1111]

Great concept. Shop local, shop small, and pay small as well, in other words, DON'T use American Express.

[KPrice121]

Chenault lost my respect when he took the easy way and blamed both sides rather then pointing out the fact that the Republicans in the super committee took the absolutist stance while the Democrats offered a balanced approach similar to the one he said is the solution. He fell into the usual trap of corporate leaders by speaking in vague generalities so that he offends no one. In the political realm, you must take sides and offend people. That is why business leaders make lousy political leaders.