Milton Friedman on “The social responsibility of business is to increase its profits”
Goldman Sachs is one of the world’s biggest investments banks in the world. Goldman Sachs is one of the oldest bank in the U.S which was founded in 1869 by Marcus Goldman in NY City. Goldman Sachs is also a financial advisor to many governments, investors, corporations around the world. Greg Smith former vice president of Goldman Sachs resigned On March 12th 2012. He wrote an essay regarding his resignation which was published in the NY times. On his essay Greg states he’s leaving Goldman Sachs because Goldman is constantly deceiving his clients trying to pursue a profits looking for more benefits to the company rather than serving the client. He also mentions the Leadership and culture that Goldman Sachs once had its no longer there. Leadership and Culture is what brought Goldman Sachs to where it is today and he feels the company should realize this issue before it’s too late. In this essay Greg seems fed up almost relief that he will no longer be part of Goldman. When Greg was fresh out of college he joined Goldman Sachs was one of the best places to work for due to its environment, leadership and business ethics in which he can no longer see any off it today.
Greg states “culture is the vital part of Goldman Sachs’s success” which was integrity, teamwork and always doing the right thing for the customer. Goldman Sachs has been earning the customers trust for over 143 years due to its culture. Before it was more about doing the right thing and now it’s gone down to how do we make more money for Goldman at the expense of the customer. After working for Goldman Greg sees no sign of culture and only greed. At this step the company will start its downfall. Greg was in recruiting potential candidates to work for Goldman but today he can no longer look at them straight in the eye and tell them what a great place to work and enhance their careers. Greg was also in charge of many of the biggest accounts worldwide and always advice his customers on what was right for them but this belief started to vanish at Goldman. Over the years the customer satisfaction started to become irrelevant. Today during if we sat in a meeting Goldman Sachs you realize that customer success was not part of the plan at all because all they speak about how to make more money off them. Goldman employees and managing directors use derogatory terms to refer to their customers such as “Muppets” which it may not sound as a big insult to the average person but in the world of business it’s very insulting. It makes you wonder if the company has any integrity left. They went as far to push and pitch products to their customers which they did not want or meet their expectations. Greg still wonders if that’s legal. Greg hopes his resignation will open up the eyes of the board of directors and make their customers a priority again, instead of bankrupting their customers help them. They need to reestablish the culture that Goldman Sachs once had and realize the customer success is what’s going to keep Goldman Sachs up, people that only think about money