Dr. J.P. (Jack) London
CACI International Inc
Chairman, President and Chief Executive Officer

Good evening everyone. And thank you, Dr. Al Pierce, for that warm introduction.

Vice Admiral Naughton, Mrs. Naughton, midshipmen of the Brigade, ladies and gentlemen, fellow citizens: It's a distinct honor to be here tonight, and to recognize the outstanding work this group has produced. The Center for the Study of Professional Military Ethics is a great concept and a great program for the Academy. And, while the finalists and winner will be singled out for special recognition later, I want to take this opportunity to salute all of you for your accomplishments.

As Al said, I'm the CEO of CACI International, headquartered in Arlington, Virginia, and our 5500 employees deliver Information Technology and network communications solutions in defense, intelligence and e-government through 90 offices in the U.S. and Europe. Today, our project operations in support of the DoD are worldwide. CACI just celebrated its 40^th anniversary in business and we're publicly traded on the "Big Board" at the New York Stock Exchange. So it's especially meaningful to be invited here tonight - on the eve of the first anniversary of the terrorist attack of September 11, 2001. And there are many remembrances planned for tomorrow. Tomorrow morning I have the honor of being invited to ceremonies at the Pentagon, where President Bush will convey the nation's remembrances.

But terrorist attacks against the World Trade Center and the Pentagon are not the only events of the past year that has shaken some people's confidence in America. Another crisis has been the scandals that have rocked our economy. And I'm going to focus on that topic tonight. But let me make it clear from the outset that the bad news we see in the newspaper is just one part of the story.

I want to emphasize that the American economy is a great economy. Our institutions are strong. Overall business is thriving. American innovation and entrepreneurship remain high. Unfortunately, it only takes a few bad apples to make the news. And I am convinced that those who did wrong are just a disgusting, greedy few. The vast majority of corporate executives, I believe, are doing the right thing.

But the Enrons, WorldComs and Global Crossings are making the news. They were high-fliers, touted by Wall Street and the media. Now they are virtually worthless, and we're still seeing an edgy stock market and continuing signs of shaky investor attitudes. There is still a nervousness in the economy. For we are, somewhat, in a crisis of confidence. President Bush got it absolutely right in his speech on Wall Street on July 9, when he said, "All investment is an act of faith." And, unfortunately, when companies engage in deceitful practices, they cause a breakdown of trust in our economic institutions.

To those who broke the law, I say: "You should be punished - to the full extent of the law. You thought you could get away with breaking the rules and keep your millions. You thought that white collar crime doesn't hurt anyone - but it does: it hurts your shareholders - your employees - your reputation - our economy - and our country."

So, how did we get to this place? I think the cause of this crisis is a decline in our national values. But I will not speak to this broader issue here tonight. As to the corporate scene, at some of these companies the reigning culture was clearly one of greed and corruption - where the rules only applied to some - and where fancy footwork was more important than hard work. Take Enron, for example. Fortune magazine named Enron the "most innovative" company. Enron people were able to think outside the box. Their creativity allowed the company to deliver higher revenues, quarter after quarter.

But the true culture was one of greed and selfishness and deceit - some executives were cutting risky and highly questionable deals. And the push for constantly improving quarterly earnings statements became a destructive end in itself. It turned out that the true creativity and innovation were found only in the finance and accounting departments.

The Wall Street Journal of August 26 carried a front page article that told how the ENRON bosses created a culture of "pushing limits" - with a charter to "intimidate people." The article said that Chief Financial Officer Andrew Fastow had a Lucite cube on his desk - supposedly laying out the company's values: One of these was "communication." The cube's inscription explained what that meant. It read: "When ENRON says it's going to 'rip your face off'... it means it will rip your face off!!" The ENRON corporate culture, apparently, was one of extremes and excesses... hardly the formula for a healthy, growing, business enterprise.

The ENRON example runs contrary to everything we know about operating a business. If your culture is corruption, you operate dishonestly. You can't admit to any mistakes. And if you can't admit to mistakes, you can't fix them. If you have to maintain your image at the expense of the truth, you start taking liberties with your ETHICS program. You start to use slippery accounting practices, or falsify results, or fail to report material events or transactions. And, worst of all, you fail to uphold the trust of your customer. I can tell you, from my decades of experience in business, that a relationship of trust with your customer takes years to create - but it can vanish overnight.

At CACI, we believe, we do it very differently. And we have done it differently for a long time. As head of a public corporation, here's how I address issues of business ethics.

Number one - At CACI, the company, and all who work for it, have a true obligation to ethical behavior. It's pretty simple. Our widely published Operational Philosophy places "integrity and honesty above all else."

Number two - We set standards and we adhere to them. Our corporate values are spelled out in our "Corporate Credo and Business Values" statements. All members of the CACI team know precisely what is expected of them

• We demand accountability. It starts at the top.
• The same rules apply to everyone.
• We require rigorous adherence to legal, regulatory, and contractual requirements, at all levels in the company.
• We're not perfect, so we correct our mistakes, and we correct them quickly. We also punish intentional wrongdoing.
• We encourage a culture of excellence, of distinguishing ourselves and our products.
• We scrupulously work to maintain our reputation.

Number three - Ethics is a part of everything we produce. At CACI, when we provide products and services, we're also creating value for our clients. Two-thirds of our work is for the Defense Department, so CACI's products support the warfighter around the world with communications, technology and engineering services. In some cases, the very lives of our service personnel depend - in part - upon the quality of CACI's work.

What does all this have to do with you, the midshipmen of the Naval Academy? As students at this great service academy, you are being trained to be America's leaders of tomorrow. And the challenges facing leaders are often much the same, whether in the battlespace or in the boardroom. You've already addressed many of these issues in your Ethics class - questions of fidelity, loyalty - duty, honor - right and wrong - and more! And I would like to share with you tonight some insight from a book I've brought with me. It's called Profiles in Courage, and was written by John F. Kennedy while he was still a U.S. Senator. The book contains portraits of Americans who took positions of principle - even at great personal cost. One of these is Sam Houston, a giant figure of 19^th-century America. Houston defeated the Mexican Army, became President of the Republic of Texas, served in the U.S. Senate and was elected governor of Texas.

And although Houston was a slaveholder, he spoke passionately against the dissolution of the Union. By 1861 Houston had endured months of threats and hostility. In March Texas seceded from the Union and ordered all state officers to take an oath of allegiance to the Confederacy. When Houston's name was called there was silence. The Convention declared that the Office of Governor was vacant. In fact, at that moment Houston was writing this message to his constituents: "In the name of my own conscience... I refuse to take this oath. I love Texas too much to bring civil strife and bloodshed upon her." Houston's decision cost him a lifetime of devotion from his people.

Of course the tragedy of the Civil War created difficult decisions for a great many. Robert E. Lee of Virginia gave up a major command opportunity under Lincoln - to join with his family, his kinsmen and friends of his home in Virginia, in its secession. And this fine man also suffered destiny's sharp stings - and he still does. I hope you will never have to make decisions or sacrifices like these. But, whether you are Naval officers or leaders in government or business, at some point you will be faced with difficult choices - perhaps even greater than Houston's! So, what tools will help you make the right choice?

Probably the only guidance you'll ever need can be found in the Navy's core values of: honor, courage and commitment. These values guided me through my time at the Academy, my 24 years as a Naval officer, 12 active, 12 reserve - and through a long career in business. And while I've made lots of mistakes, these values have continued to set the true course. We can't predict every ethical dilemma you may face in life, but if you conduct yourself according to these principles, they will cover just about any situation.

If you conduct yourself with honor, you'll

• Tell the truth.
• Insist on one set of rules for everyone.
• Reward accomplishments that bring credit to your organization.

If you have courage, you'll

• Speak up when you see wrongdoing.
• Take responsibility for your actions, even when it hurts.

And if you have commitment, you'll find a way to do the right thing. No one can give you a road map. But the core values give you a compass, and teach you how to find the right course. And as my Navy friend Admiral Leighton Smith, Class of '62, ("Snuffy Smith") mentioned to me in a recent meeting - "ethics are like the compass that always points north - you use them to steer your course." And for the business side, as President Bush said on Wall Street: "We need men and women of character, who know the difference between ambition and greed... between enterprise and fraud... By reasserting the best values of our country, we will reclaim the promise of our economy."

So, you midshipmen here tonight are those men and women of character. It falls to you to uphold the high standards of our great nation and our great military services. You can work to sustain confidence in America's historic values, principles and institutions.

So thank you for letting me share my thoughts with you. My congratulations again to the contest finalists. And to all of you - I am confident that with your excellent training and your steadfast commitment to principle, you will have outstanding careers.

By the way, I received my copy of Profiles in Courage directly from President Kennedy. My mother worked for his 1960 campaign in the state of Oklahoma. Graduating in 1959, I was a LT JG, soon to be a Navy pilot, and soon to be flying off the carrier Randolph in Soviet ASW hunter-killer operations in the Atlantic. (You know... the "Hunt for Red October.") Inside the cover it reads: "To: J. Phillip London, With Best Wishes, John Kennedy." It was sent with a letter from the White House dated March 14, 1961 only weeks after his inauguration on January 20^th. Only one and a half years later President Kennedy would draw his own "Profile in Courage" during the Cuban Missile Crisis of October 1962. And during those "13 days in October," some 40 years ago, Lt. JG London was also in the Caribbean in support of the Naval blockade of Cuba.

Thank you, and God bless America. And God bless the U.S. Naval Academy.