Goldman-Sachs Mission And Vision Statement And Value Analysis

The people of an organization are its greatest power. While this idea may now seem trite yet the gospel truth is that an organization is loved and trusted by its employees first and then by its customers. Role of employees has taken a turn of the century in recent times and Goldman Sachs banks on the role of its employees. The job description of people working for a company like Goldman that carries history and stature goes way beyond collecting a steady paycheck and working at least 14 hours a day. The people are the resources as well the product for this giant American financial institution. 

Goldman-Sachs

Headquartered in The Big Apple, Goldman Sachs Group ranked 62nd on the Fortune 500 list of the largest United States corporations by total revenue. The role of the company, in simple words, can be described as that of an advisor. It engages in making recommendations and giving advice to its clients, which includes shareholders, other companies, local, state and national governments. The company invests on behalf of its clients in financial markets on the basis of the client’s need to grow, raise capital, take risks etc.

Currently headed by David Michael Soloman, the investment group has contributed towards generating many future political leaders for the United States as well as the world, including Jim Hames, a democrat, Malcolm Turnbull, Prime Minister of Australia and the recently appointed Prime Minister of Italy, Mario Draghi. While the company has an incredible history and magnificent present, it is not always so delightful. One of the recent major scandals that the company was associated with was with 1Malaysia Development Berhad ( 1MDB ) which ended with Goldman Sachs paying a record fine in a corruption case amounting to 2.9 USD approximately.

The company operates in four major business units that are as follows:

  1. Investment Banking – Goldman Sachs is one of the top 5 investment banks and reasonably so. Investment banking makes up more than 21 percent of the company’s total revenue. They are also committed to co-investing with the clients. They provide innovative and best in class advice to their clients and provide excellent execution of complex investment procedures. They aim at helping their client grow and achieve their strategic goals.
  2. Global Markets – They provide the largest share of the revenue for the company as it is a working giant in the global markets too. Goldman Sachs is the leading investment bank, globally as of April 2021. The company performs a variety of operations to deliver to their client in the global market such as lending market insight, asset management, analyses of risk and distributing it over different financial assets etc.
  3. Asset Management – This refers to investment solutions offered to major asset holding clients on diverse financial platforms from the equity in institutions to real estate. At Goldman it involves finding impact investment options keeping in mind the social and communal challenges across the country. The revenue from this business unit has decreased by 11 percent in 2020 as compared to its revenue in 2019. This indicates a decrease in equity investments and lending and debt. This decrease could be due to a shift in client strategies or liquidity of assets.
  4. Consumer and Wealth Management – Currently the consumer and wealth management business unit contributes the least towards the total revenue of the firm, however it has shown a significant increase as compared to the year 2019, which is an increase of about 15 percent. The company and the client work in conjunction to bring in a new angle to deal with the investment goals and financial well-being of the client by bidding adieu to traditional investment practices. Goldman Sachs Personal Financial Management is the business unit responsible for managing wealth investment and security of individuals with high net worth.
  5. Research – For a company that deals with clients with diverse backgrounds and has its operations expanded in more than 50 countries and 25 stock markets, research is paramount in existence. The research needs to be thorough to retain the trust of clients and maintain the 150 year old reputation of the firm. The research function is carried out in various fields, from analyses of the global market scene, company’s strategic goals, to identify opportunities in the worldwide stock market, credit research, macro research etc. Goldman Sachs has dedicated a separate think tank for this purpose, known as The Global Markets Institute.

Mission of Goldman Sachs Group

The multinational investment bank did not start right from the top of the corporate ladder. Incorporated in the year 1869, by Marcus Goldman in New York City, it was a small company that aimed to provide investment guidance to local families and assist them in navigating the process. Little had anyone imagined that the foundation to revolutionize the process of exchange of financial services was laid.

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By 1882 it was a full family affair, meaning that it was during this time that Marcus Goldman brought his son in-law Samuel Sachs to join the firm. Not long after in 1885, Goldman introduced his son Henry and son in-law  Ludwig Dreyfuss to the business.

The company was then given its present name – Goldman Sachs & Co. The identification of the goals and combined family values drew the mission statement for Goldman Sachs Group:

“Commit people, capital and ideas to help our clients, shareholders and the communities we serve to grow.”

On analyses of the mission statement, it is evident that 

  1. The Goldman Sachs Group is determined towards committing its resources in the form of manpower and money to unearth ideas for its diversified client list.
  2. The aim of growth of the company is meant to be achieved through serving its community of shareholders and other clients, and improving their standard of living in the process.

Working truly by its mission, the company has proven itself over and over again. The core specialty that Goldman Sachs has managed to manifest since its very incorporation, is that of understanding exactly what the client wants for themselves or their businesses. With a clear focus on empowering the clients, the group has and continues to exploit its expertise to deliver to the clients in full capacity. It is this understanding of the financial market and needs of the customer, sometimes gaining more understanding than the customer themselves, that the group has shaped investment banking and other financial services. In today’s rapidly changing business environment and never sleeping stock market, Goldman Sachs has definitely mutated its mission in the following ways:

  1. They focus on innovating ways to meet the client’s needs
  2. The institution values diversity and to meet with these diversified nature of requirements, they constantly work on giving customized services to their clients.
  3. With a desire to serve the community, The Goldman Group focuses on the sustainable growth and development of their company and the financial markets.

Thus, it is the mission of the company, to achieve its personal growth and expansion goals by living up to its claims of committing its workforce to work to provide exemplary services to the community that it serves. It is fair to say that the investment giant surely puts its money where its mouth is.

Vision of Goldman Sachs Group

Goldman Sachs always carried a long-term vision and has put a lot of trust in the power and future of financial freedom for all. It is this perception that Goldman Sachs & Co. formed this vision:

“Establishment of investment and financial freedom for all.”

Analyses of the vision statement

  1. The company establishes an environment where it provides surefire ideas to help its clients in realizing their individual goals.
  2. They treat their client’s concerns and issues as their own and invent solutions keeping the client’s best interests at heart. 
  3. To provide financial freedom for all, the company gives customized solutions to all, keeping in mind the variety of dreams and desires, past obligations and value system integration of the client with the company.

The company is well equipped and possesses an adept group of employees that work as financial wizards and it believes in marketing that strength. It is with this vision that Goldman Sachs has managed to set records in time. It was in 1898, just two years after  Goldman Sachs & Co. instigated the use of commercial paper for entrepreneurs and became a registered company in the New York Stock Exchange that the firm’s capital stood at an unprecedented 1.6 million dollars.

Value System and Analyses

The key values that the company promises to have inherited over decades and a century include:

  1. Client Service

The company takes its clients on a first come first serve basis. Goldman group focuses on anticipating the needs of the customers which definitely gives the business an edge and ensures a safer environment for its clients. It searches for profitable investment opportunities for its clients invariably while keeping in mind the position of each individual client. The value system of Goldman Sachs allows it to give utmost priority to its clients.

  1. Excellence

The company has come this far with the help of excellence in performing its tasks. They value their business and strive to achieve exceptional results through their performance that in turn has led to the achievement of outstanding outcomes for the shareholders, clients and the company. 

  1. Integrity

Goldman Sachs Group promises integrity in the operations of the company. They assure their shareholders and clients of ethical business practices and ensure transparency to the highest level possible. As the company continues to grow from its experiences, the integrity in operations instills a sense of pride among the employees.

  1. Partnership

To achieve personal and professional growth and excellence, it is vital for a company to value its partners. First, the company needs to identify its partners in the form of its clients, investors, employees and shareholders. Second, it is important to realize the need to include the necessary partners on multiple decision-making occasions and take into consideration their values, mindset and ideas. The diversity, culture and goals of each partner need to develop into a voice that is heard and included.

The core values at Goldman Sachs Group include serving different partners with utmost sincerity. These partners are namely:

  1. Their People – The firms ability to do everything it promises relies upon its people. Thus it serves as one of the core values of the company, to recognize its people and their hard work and create an environment that allows them to prosper and excel and ensure a safe and reliable workplace for them.
  2. Their Firm – Applying the value system to the way in which the firm operates ensures that they continue to have a leg of reputation to stand on. The future of the firm, its profitability and expansion probability depends on the honesty and integrity in the actions of the firm.
  3. Their Clients – Giving Priority to the clients while making decisions is what makes Goldman so popular among clients. It is necessary to value the client privilege, gain and retain the trust of clients with the same.
  4. Their Community – A company with a magnitude like Goldman Sachs is responsible for much beyond its own profitability and client satisfaction. Goldman Sachs is one of the largest revenue-making companies for The United States of America, thus it is responsible for a lot beyond its walls. This is the company that has led the investment banking scene for other major companies. Trust and reputation do not affect the entity alone but affect the prosperity of the entire community.

The enormity of Goldman Sachs & Co. gives it great capacity and reach. It is obligated in many ways to return something to the society that has kept it flourishing for decades. It is fortunate that Goldman Sachs has engaged in philanthropy consistently. In 2007, they formed a donor-advised fund called Goldman Sachs Gives. Current and retired senior employees of Goldman Sachs make recommendations to give funds to non-profit organizations and help them in achieving their goals. Till now, the fund has made nearly $1.8 billion in donations through the fund in over 100 countries.

Goldman-Sachs Mission And Vision Statement And Value Analysis

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