Archive for the ‘Goldman Sachs’ Category
Aren;t most companies like this
Posted March 15, 2012
on:- In: Business | CEO Evaluation | Ethics | Goldman Sachs | Human Greed | Shareholders
- Leave a Comment
It looks like Mr.Greg Smith is going to be a disappointed man. Most companies around the world are doing exactly the same. They are all trying to do the same. And this is happening because we measure our CEOs by what they deliver for the company shareholders.
Read this article at HBR regarding this topic http://hbr.org/2010/06/column-you-are-what-you-measure/ar/1. You are what you measure.
Stretching this further it reflects the adage “people get the government they deserve”.
It looks like we are getting into a spiral which looks like as follows:
1. The general populace invests in stocks to make money (without working)
2. The CEO of these companies try to optimize their cost to deliver maximum profit. How do they do this?
a. Outsources jobs to be performed
b. Cuts corner so the quality of service and/or product goes down (Goldman Sachs reflects this)
c. Take high risks (Housing Bubble anybody?)
3. This leads to poor services/products for the same investors
Are we fooling ourselves that this will work?
Is it because of our greed?
How do we get out of it?
To get out of this situation the only way is that we all because honest, temper our expectations and learn to live within our means. But will that kill growth? Seems to be a conundrum.