Question

Goldman Sachs was one of the investment banks involved in the 2008 financial crisis. It sold mortgage backed securities, called collateral debt obligations (CDOs) to thousands of investors. Its employees reaped lucrative commissions selling CDOs.
Four years after the crisis, Greg Smith, head of Goldman Sachs’ U.S. equity derivatives business in Europe, Africa and the Middle East, resigned. He wrote an opinion piece, published in the New York Times on March 14, 2012, about his resignation after 12 years with the bank.
He wrote about an appalling deterioration in the firm’s organizational culture. Formerly, it had centred on “teamwork, integrity, a spirit of humility, and always doing right by our clients. The culture was the secret sauce that made this place great and allowed us to earn our client’s trust for 143 years.”

How could the Goldman Sachs culture be changed? (200 words)
Smith found the modern culture destructive and toxic. He blamed senior managers for shifting away from worrying about what was best for the clients, into focusing on what was the most profitable for the firm. “Leadership used to be about ideas, setting an example and doing the right thing. Today, if you make enough money for the firm (and are not currently an ax murder) you will be promoted into a position of influence. … It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as ‘Muppets’, sometimes over internal email.”

He said that, currently, there were three quick ways to become successful at Goldman.
1.Persuade clients to buy investments that Goldman was trying to get rid of because theywere unprofitable.
2.Persuade clients to buy products that that were profitable for Goldman to sell, rather thanproducts that best suited the needs of the client.
3.Sell illiquid or opaque products, especially those with three-letter acronyms, that aredifficult to understand and may not be aligned with the client’s goals.
He concluded his op-ed with a plea for the board of directors to refocus the firm’s culture back to what it was when he first joined Goldman Sachs, twelve years ago.

How could the Goldman Sachs culture be changed? (200 words)

Answer 1

Below answer is 100 percent correct.

Goldman sachs culture can be changed by-

concerning that lifestyle, that is frequently what's possibly to regulate under the Goldman's new DJ-in-boss.

1. lots of transparency or even a few vulnerability-

Goldman has surely had a private, cryptic, almost circle like lifestyle. All matters thought-about, it's improved drastically because it were a private company; as partner open company (the company indifferent to the planet in 1999), syndicalist has recede mystery and less stodgy. Be that as it could, there's nonetheless hundreds of vicinity to create a extensively lots of open lifestyle. What's lots of, as of late, D-Sol et al at syndicalist have publicly indicated that the company should be a more and more more easy, open, and lots of pleasant paintings setting.

2. Less highlight on pedigree-

Toward the end of closing year, D-Sol changed into the subject of partner Exchanges at syndicalist internet recording (the method that the company functions a virtual broadcast is some other indication of evolving instances), wherein he surpassed a few notable recommendation for undergrads, to Illustrate,

1) take open speakme and composing categories,

2) take clerking publications, and three) take publications in territories you're addicted to. Likewise of enthusiasm for the virtual broadcast changed into that D-Sol talked concerning his very own university understanding, as soon as he changed into partner understudy at Hamilton college, a piece university in upstate huge apple. That's important in lightweight of the very reality that, soon, the CEO of seemingly the most splendid cash company at the earth.

3) lots of passion-

Maybe the most critical idea and maximum uncovering aspect that D-Sol surpassed in the internet recording documented better than changed into this: "On the off chance which you simply can't find out the manner to have pursuits and request while the ones pursuits and blend them into your expert existence and your very own existence, it's entirely more difficult to very own the energy to keep doing this." D-Sol is via way of means of all debts language that at the same time as now no longer the functionality to function as a DJ, he wouldn't have the selection to live performing at syndicalist. That is, tune is one in each of his pursuits, and he should have the selection to seek while it. On the off chance that which means surely doing it at evenings and at the ends of the week, at that point hence be it. In any case, he should be in search of while it via way of means of a method or some other and working for a gap that underpins that. Or except, in any occasion, allows him to try to do that.

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