Tag Archive | Goldman Sachs

Responding to the Goldman Sachs Resignation Letter

I’ve been following the response to Greg Smith’s resignation letter in the New York Times with great interest over the past several days. The letter has been analyzed, parodied and discussed at length. What I find particularly fascinating is that the response brings together a number of issues I regularly look at:  the power of social media in shaping public discourse, the importance of corporate reputation, as well as communication strategy.

The Atlantic Wire reported that the letter cost Goldman $2.15 billion in the markets the day it was released, showing the value of reputation, particularly on Wall Street in today’s environment. In the post-Occupy Wall Street environment, large financial institutions are looking to rebuild trust with the public, clients but also their employees. Greg Smith’s resignation was clearly written with this hostile environment in mind.

An internal memo by Goldman Sachs CEO Lloyd Blankfein was published in Bloomberg shortly after it was sent out to employees that had clearly been written with an eye to being released publicly. Blankfein tries to emphasize that Smith represents a minority opinion and that Goldman works hard to do what’s right for clients. His quick response to try to maintain trust with his employees and the public with a well crafted memo was smart, but not sufficient to quell public discourse.

The Associated Press published an article in the Washington Post, entitled, “Goldman Sachs muppet essay only the latest in a proud tradition of bridge-burning”. It explores the human impulse to have a “Jerry Maguire inspired farewell” and therefore part of the reason this letter struck a nerve and went viral. I’m quoted in the article talking about how this is often a way for employees who feel powerless to enact change to feel like they have a chance to take back some of that power.

The social media environment has kept the letter alive through sharing, but also interacting with the letter through parodies–everything from fake responses from Blankfein to sharing of resignation letters from the past. The New York Daily News did a great roundup of some of the best parodies out there, but one of my favorites is a fake resignation letter from the New York Knicks coach Mike D’Antoni (who really did resign the same day as Greg Smith) published in the Wall Street Journal.

Depending on Greg Smith’s future career goals, publishing his resignation letter in the New York Times may not have been wise, but it gives us another opportunity to bring reputation, trust and the power of social media back to the forefront of conversation–and hear a few good Darth Vader jokes as well.

More on Blankfein and Same-Sex Marriage

English: Logo of The Goldman Sachs Group, Inc....

Knowledge @ Wharton wrote a follow-up post to the New York Times article I was quoted in regarding Blankfein’s new role as spokesman for same-sex marriage. Some excerpts are below and you can find the full article here

“I’m Lloyd Blankfein … and I support marriage equality.” Those are the words used by the chairman and CEO of Goldman Sachs in a new video spot produced by The Human Rights Campaign, a national organization that advocates equal rights for gays, lesbians, bisexuals and transgendered people.

Blankfein is not the most obvious spokesperson for such a campaign. As an article in The New York Times points out, he has been “a lightning rod for Wall Street critics” taking aim at exorbitant executive pay packages and the role Goldman Sachs and other investment banks played leading up to the financial crisis.

Read More…

Blankfein to Speak Out for Same-Sex Marriage

The New York Times Dealbook recently asked me to comment on Goldman Sachs CEO Blankfein’s decision to speak out for same-sex marriage. I have posted some excerpts including my quote below, and you can read the full article in New York Times’ Dealbook here

Lloyd C. Blankfein, the chief of Goldman Sachs who has become a lightning rod for Wall Street critics, might seem an unlikely advocate for same-sex marriage. But his credentials — a public figure in a conservative industry — could make him a powerful voice for that cause.

The Human Rights Campaign, a national organization that promotes equal rights for gay, lesbian, bisexual and transgender people, has persuaded Mr. Blankfein to be its first national corporate spokesman for same-sex marriage, an issue that will come up for a legislative vote in several states this year, including Washington and Maryland. Fred Sainz, an executive with the Human Rights Campaign, said the organization sought Mr. Blankfein, in part, because he is “an unexpected messenger.”

Paul A. Argenti, a professor of corporate communication at the Tuck School of Business at Dartmouth, says Mr. Blankfein’s decision isn’t likely to have any positive impact on the reputation of the firm — or Mr. Blankfein.

“If you are a Goldman employee and you are gay or contemplating coming out, this is great,” he said. But for Goldman and Mr. Blankfein, the issue of same-sex marriage has nothing to do with what Goldman Sachs does. “If Mr. Blankfein was taking a radical stand on pay you could say wow, that’s big. But equality is simply not an issue you associate with Goldman.”

Still, the campaign is sure to turn heads on Wall Street, which despite having made progress on equality issues over the last decade, is still considered to be a male-dominated, testosterone-driven place.

…Read the rest of the article here.

%d bloggers like this: