Rationalizations Gone Wild

Since the Greg Smith letter of resignation from Goldman Sachs via the op-ed page of the New York Times, Wall Street has been on defense. Well, more accurately, Wall Street has been in full rationalization/justification/”it’s just what we do” mode. Herewith a few of the classics:
• “Instead of ‘examining’ unprovable accusations, Goldman and other banks should ditch the ‘clients-first’ mantra they constantly recite and state clearly what they are about.” (Wall Street Journal columnist, Francesco Guerrera) Okay, here goes, the new approach to clients: “We’re in it for the money, not you, and we don’t make any bones about it, so invest with us.”
• “Banks aren’t charities—they should have said—and they don’t just seek to make money for customers. . . . Customers and the public should be aware of that.” (Mr. Guerrara, again!) Well, they are now!
• “It’s my job to stand up and support companies that are here in this city that bring us a tax base and employ our people.” New York City Mayor, Michael Bloomberg on his tour of Goldman Sachs after the Smith letter. Okay, so they did some bad things, money is money.
• “It’s from the gut. These are his people, and they felt his pain.” Professor Kenneth Sherrill on Bloomberg’s visit and a possible political tin ear. Nothing like a lap dog for the big dog who stands in solidarity with his own.
• “You know, you go to work for a company, it seems to me, they have an obligation to never dis you. They can part company with you, but they should never do that, nor should an employee ever walk away after being there for so long.” Michael R. Bloomberg on his Goldman Sachs post-Smith letter tour of the firm. Yes, you want to stand blindly in the ranks, regardless of conscience.
• “They were keenly alert to the possibility that Goldman was looking out for itself, but they found Goldman worth doing business with anyway.” Boston Consulting Group’s findings on its survey of what CEOs really think about Goldman Sachs. It’s hard to keep ethical standards when the customers love the lack of them.
• “Goldman is clearly looking out for itself. If it weren’t, Goldman’s capital would quickly become the customers’ capital, and Goldman would be out of business. Need it be added, after the disasters of recent years, that we want financial firms to protect their capital?” Holman W. Jenkins, Jr. Wall Street Journal columnist. Where do you start when they are this far gone?

About mmjdiary

Professor Marianne Jennings is an emeritus professor of legal and ethical studies from the W.P. Carey School of Business at Arizona State University, retiring in 2011 after 35 years of teaching undergraduate and graduate courses in ethics and the legal environment of business. During her tenure at ASU, she served as director of the Joan and David Lincoln Center for Applied Ethics from 1995-1999. In 2006, she was appointed faculty director for the W.P. Carey Executive MBA Program. She has done consulting work for businesses and professional groups including AICPA, Boeing, Dial Corporation, Edward Jones, Mattel, Motorola, CFA Institute, Southern California Edison, the Institute of Internal Auditors, AIMR, DuPont, AES, Blue Cross Blue Shield, Motorola, Hy-Vee Foods, IBM, Bell Helicopter, Amgen, Raytheon, and VIAD. The sixth edition of her textbook, Case Studies in Business Ethics, was published in February 2011. The ninth edition of her textbook, Business: lts Legal, Ethical and Global Environment was published in January 2011. The 23rd edition of her book, Business Law: Principles and Cases, will be published in January 2013. The tenth edition of her book, Real Estate Law, will also be published in January 2013. Her book, A Business Tale: A Story of Ethics, Choices, Success, and a Very Large Rabbit, a fable about business ethics, was chosen by Library Journal in 2004 as its business book of the year. A Business Tale was also a finalist for two other literary awards for 2004. In 2000 her book on corporate governance was published by the New York Times MBA Pocket Series. Her book on long-term success, Building a Business Through Good Times and Bad: Lessons from Fifteen Companies, Each With a Century of Dividends, was published in October 2002 and has been used by Booz, Allen, Hamilton for its work on business longevity. Her latest book, The Seven Signs of Ethical Collapse was published by St. Martin’s Press in July 2006 and has been a finalist for two book awards. Her weekly columns are syndicated around the country, and her work has appeared in the Wall Street Journal, the Chicago Tribune, the New York Times, Washington Post, and the Reader's Digest. A collection of her essays, Nobody Fixes Real Carrot Sticks Anymore, first published in 1994 is still being published. She has been a commentator on business issues on All Things Considered for National Public Radio. She has served on four boards of directors, including Arizona Public Service (1987-2000), Zealous Capital Corporation, and the Center for Children with Chronic Illness and Disability at the University of Minnesota. She was appointed to the board of advisors for the Institute of Nuclear Power Operators in 2004 and served on the board of trustees for Think Arizona, a public policy think tank. She has appeared on CNBC, CBS This Morning, the Today Show, and CBS Evening News. In 2010 she was named one of the Top 100 Thought Leaders in Business Ethics by Trust Across America. Her books have been translated into four different languages. She received the British Emerald award for authoring one of their top 50 articles in management publications, chosen from over 15,000 articles. Personal: Married since 1976 to Terry H. Jennings, Maricopa County Attorney’s Office Deputy County Attorney; five children: Sarah, Sam, and John, and the late Claire and Hannah Jennings.
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