Over the past year, Goldman Sachs has experienced
negative sentiment from both inside the
financial community (in the form of analyst
downgrades), and outside (Occupy Wall Street),
and even within the company (Greg Smith’s “Why
I Am Leaving Goldman Sachs” letter in The New
York Times). Smith’s scathing missive struck such
a chord that Goldman Sachs experienced a USD
$2.15 billion loss in valuation in a single day.
Furthermore, the firm’s cost-cutting maneuvers,
in the form of layoffs, and accusations regarding
betting against clients, seem to be at odds with its
core client service values of “integrity, fair
dealing, transparency, professional excellence,
confidentiality, clarity, and respect.”
In response to the controversy that has unfolded
since 2008, Goldman Sachs continues to push
its corporate citizenship efforts closer to the
forefront and emphasizes a renewed commitment
to transparency, risk management,
accountability, and rigorous measurement of
results. Though the firm appears to be committed
to becoming a better institution, questions
regarding the authenticity of its efforts continue
to dampen their effect. Despite the negative press
it has received, Goldman Sachs continues to meet
its customer needs. Now, the firm must manage
its reputation carefully to avoid further damage
and restore its former luster.