On the Issues
- Overview
- Responses to FCIC Requests
- Goldman, Sachs & Co. Settlement with the SEC
- Creation of the Business Standards Committee
- Lloyd Blankfein Media Appearances
- Testimony before the U.S. Financial Crisis Inquiry Commission (FCIC)
- Testimony before the U.S. Senate Permanent Subcommittee on Investigations (PSI)
- Risk Management and the Residential Mortgage Market
- Causes of the Financial Crisis
- Regulatory Reform
- Compensation Principles
- Viewpoints
Creation of the Business Standards Committee
At the May 7, 2010 Annual Meeting of Shareholders, Goldman Sachs announced the creation of the Business Standards Committee. The Business Standards Committee will undertake a review of our business standards and make recommendations to the Board of Directors and senior management to reinforce the firm’s client focus and improve upon the transparency of our activities.
“We recognize that there is a disconnect between how we view the firm and how the broader public perceives our roles and activities,” said Lloyd C. Blankfein, Chairman and CEO of The Goldman Sachs Group, Inc. “This initiative is consistent with our obligation to ensure that our standards across our business activities are of the highest quality and represent the benchmark for our industry globally.”
The Business Standards Committee will establish working groups to focus on the following five areas:
Client Relationships and Responsibilities. This group will re-examine and clarify the responsibilities we have to our clients and the different roles we may play to accomplish our clients’ objectives.
Conflict Management. This group will review how the firm identifies and manages conflicts across our business activities and how we share information with our clients.
Disclosure and Transparency of Firmwide Activities. This group will examine how the firm’s public disclosure and financial reporting can better articulate the nature of our activities and how they relate to our performance and our mission to serve clients and the public interest.
Structured Products and Suitability. This group will consider how to address various issues surrounding complex products, including the suitability of products for different types of clients.
Education, Training and Business Ethics. The focus of this group will be on how best to strengthen our training and professional development to reinforce the importance of personal accountability, professional ethics and clear and effective communication.
The Business Standards Committee will actively seek input from external constituencies and experts, including clients, shareholders, regulators, academics and public policy groups. A series of discussions and meetings will be held with these groups so the Committee hears and benefits from independent views, advice and judgment. These interactions will represent a core component of the Committee’s work.
The Committee will issue a final report shortly after the Board of Directors’ meeting in mid-December. The report will be made public.