Business Magazine

Lessons from Goldman Sachs

Posted on the 30 March 2012 by Center For International Private Enterprise @CIPEglobal
Lessons from Goldman Sachs

Goldman Sachs headquarters in Manhattan. (Photo: Bloomberg)

Two weeks ago Greg Smith’s public resignation from Goldman Sachs via an op-ed in the New York Times went viral, sparking controversy over how Goldman Sachs does business. In the op-ed, Smith named a toxic business environment as the primary reason for his departure. Whether deserved or not, Smith’s criticism of his former employer and the international reaction to Smith’s op-ed revealed two important truths for the international business community:

Good business practices are more than the pursuit of profit.

Corporate citizenship refers to a company’s responsibility to its surrounding community, including both society and the environment. Companies that incorporate environmental and social concerns into their business plans are better able to adapt to local contexts, promote their brand, and develop connections with their clientele.

One way for businesses to engage in corporate citizenship is through Corporate Social Responsibility (CSR) programs. Examples of CSR programs include providing daycare options for employees, raising awareness about informal employment in a business’ a supply chain, or training employees in environmental policies.

Corporate citizenship goes beyond CSR, however; it entails that businesses are responsible to their communities in all of their business practices. For example, Beraca Sabara Quimicos e Ingredientes Ltda., a family owned chemical business in Brazil, seeks to mitigate human rights and labor issues—which are common in many regions of Brazil—through educating local communities, building trusted relationships, and explaining why traditionally accepted unfair labor practices can be harmful. When a business invests in its community, a community is more likely to invest in the business.

Good corporate governance strengthens businesses internally, and translates into stronger market economies.

Good corporate governance ensures transparency, accountability, and responsibility in business, and is a major focus of CIPE’s work with business associations across the globe. Regardless of local context, a company that makes their operating procedures transparent and holds themselves accountable is better positioned to make informed decisions. The importance of good business practices applies to everyone, from big business to micro-enterprises, and across regions, from Latin America to Eurasia to the Middle East.

Transparency and access to information – they key principles of good corporate governance – not only allow businesses to operate more smoothly from the inside, but also promote the development of legal and institutional structures that support free and fair market-oriented societies.


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Happiness Is... Believing in Yourself

    Happiness Is... Believing Yourself

    In the blink of an eye, we've come to the last quarter of 2018. How amazing does time pass us by, right? The year end is always a very busy time for me and... Read more

    The 14 October 2018 by   A Happy Mum
    FAMILY, SELF EXPRESSION
  • Early Autumn in the Front Garden

    Early Autumn Front Garden

    When I posted at the end of September I included a photo of the front garden, which I rarely post pictures of. One of my readers suggested that I post more ofte... Read more

    The 14 October 2018 by   Patientgardener
    GARDENING, HOME
  • 6 Tips On How To Pass Post UTME

    Since institutions have been given the autonomy to carry out post UTME examination, to be on a safer side you are advised to start preparing for the exam. Read more

    The 14 October 2018 by   Naijapary
    SOCIETY, A-CLASSER
  • After 11years Of Dating, Man Takes His Girlfriend to Santorini to Propose, See...

    After 11years Dating, Takes Girlfriend Santorini Propose, Reply Gave (Photos)

    11Years? I Cannot imagine myself dating a lady for so long, I mean what are we gonna be doing all those years. But well, This man doesn’t seem like its a big... Read more

    The 14 October 2018 by   Naijapary
    SOCIETY, A-CLASSER
  • NYT Celebrates Our Kansas City Chiefs Today

    Celebrates Kansas City Chiefs Today

    Yes sir, the one and only New York Times has a very prominent, front sports page article on our own Kansas City Chiefs, our Patrick Mahomes and how we naturally... Read more

    The 14 October 2018 by   Morage
    SOCIETY
  • SEPECAT Jaguar E

    SEPECAT Jaguar

    @Le Bourget, France December 2016 Among the outdoor exhibits of the Musée de l’air et de l’espace is this Jaguar E.  The E variant was a two-seat training... Read more

    The 14 October 2018 by   Htam
    PHOTOGRAPHY, SOCIETY
  • Businesses Need Employee Engagement More Than Process

    Businesses Need Employee Engagement More Than Process

    The days of leadership without engagement are gone. With interactive social media and video everywhere, everyone needs to feel they have a relationship with... Read more

    The 14 October 2018 by   Martin Zwilling
    BUSINESS, CAREER