Goldman Sachs Reputation Sacked?

When Greg Smith published his editorial in the New York Times (14 March 2012) on the alleged debased culture and greedy exploits at Goldman Sachs, this was far from surprising after the many misdeeds of Corporate America over the last decade that saw the rise of Sarbanes Oxley in 2002 and the massive financial bailouts in 2008, which does not represent who we really are and can be. 

It's not that Corporate America is bad, it's just that they frequently get rewarded for doing the wrong things. 

All too often, promotions, corner offices, year-end bonuses, and stock options are the rewards for racking in profits, but are not necessarily tied to innovation and/or customer satisfaction.

I believe over the years this has taken many word forms from snake oil salesman, charlatans, spoilers, and many others.
Greg Smith who worked for a dozen years at Goldman--in of all things "recruiting and mentoring"--described the venerable Goldman Sachs as a place where:

- "Interest of clients continue to be sidelined" 

- "Decline in the firm's moral fiber represents the single most serious threat to it's long-term survival."

- If you make enough money for the firm...you will be promoted."

- At sales meetings, "not one single minute is spent asking questions about how we can help clients." 

- Leaders callously "talk about ripping off clients" and call their clients "muppets," a British slang terms for "idiots."

The funny-sad thing is that after all these horrific accusations, Goldman has not come out and full-on-full repudiated these claims. 

On March 15, the Wall Street Journal reported "Goldman Plays Damage Control" saying that "it will examine the claims."  

Rather than denying the accusations in specific ways and pointing out their true moral fiber, the Chairman in a memo to employees chose to downplay the accuser calling him only one "of nearly 12,000 vice presidents" of 30,000 employees. In other words, this is just the opinion of a lone wolf. 

More generally, the Chairman wrote coyly that this does "not reflect our values, our culture, and how the vast majority of people at Goldman Sachs think of the firm and the work it does on behalf of our clients."

In another article, in Bloomberg BusinessWeek (19-25 March 2012), it states similarly that "Goldman Sachs would have you believe it's learned from the financial crisis. Don't be fooled."

The article goes on to list a scathing history of scandal from Goldman Sachs Trading Corporation that "blew up" after the stock market crash of 1929 to Goldman's settlement with the SEC for a whopping $550 million in 2010. Further, it describes a current conflict of interest case with El Paso and Kinder Morgan that they call a Goldman "heads-I-win, tails-you-lose approach."

While I have always respected the likes of Goldman Sachs for their unbelievable brainpower and talent, the accusations against them and by extension against others in Corporate America is very concerning.  

The notion that customers are but idiots for Corporate America to pillage and plunder is not democracy and capitalism, but greed and evil.  

When we no longer value a creed of service above pure profiteering then moral bankruptcy is just a prelude to financial bankruptcy. 

No company can stay afloat and be competitive over time, if they do not work to strengthen their balance sheets, income statements, and cash flows.

However, at the same time, no competitor can thrive for long on a culture of greed and duplicity that sees people as victims to spoil, rather than as customers to serve.

While I do not know the details of Greg Smith's accusations, this last part I know in my heart to be truth. 

(Source Photo: here)

Goldman Sachs Reputation Sacked?

Human Trafficking Hurts Everyone

A few years ago, I saw the movie Taken (2008) about a 17-year old girl kidnapped in Paris and sold into prostitution. Fortunately, in this movie, the teenage girl's father is a retired CIA agent, and he is able to get his daughter back and inflict some serious punishment on the traffickers. The scariest scene in the movie that's been shown repeatedly in the trailer is where the girl is hiding under the bed pleading with her father to help her, when she is discovered and pulled roughly from underneath to disappear into this netherworld of child trafficking and sex abuse.

This week, I saw another movie called Trade (2007) with a similar theme, where a 13-year old girl is abducted outside her home on the streets of Mexico City while riding her new birthday bicycle. The scenes of sexual abuse, violence, forced drugging, and more were enough to send me for an emotional deep dive. In the movie, while other innocent women are trafficked, abused, and murdered, this little girl is saved by her brother and Texas cop who join forces to rescue her (and other children found behind a secret door in the same house) from being sold into sex slavery. 

At the conclusion of the movie, the tagline comes up about 50,000 to 100,000 girls, boys, and women being trafficked annually to the U.S. to be pimped out or sold for forced sex--and more than 1 million are trafficked annually across international borders against their will.

According to The Department of Homeland Security U.S. Customs and Border Protection, "There are at least 12.3 million enslaved adults and children around the world at any given time." I would guess that these numbers are quite understated given all the silent victims around the world that have been silenced by fear, coercion, and violence and so we don't even know about them and their plights. 

Further, The Department of State's Office to Monitor and Combat Trafficking in Persons has many good resources including information, tips, and training located at that site. 

I've attached, at the top, the phone number of the Customs and Border Protection hotline to report human trafficking. There is also a non-profit hotline at the National Human Trafficking Resource Center.

While this is frequently portrayed as women's issue and it is, it is also a family and societal issue that affects all of us. When a women or child is abused, the impact goes way beyond the individual.

I know that I can certainly not understand how anyone can inflict these cruelties on others. Money doesn't explain it. Circumstances doesn't explain it. To me, there must truly be such a thing as evil in this world, and unfortunately, we are all witnesses to it.

Look out for others, the way you would want them to look out after your own--maybe together, we can help tilt the scale in favor of the victims.

Human Trafficking Hurts Everyone