Analysis Of Goldman Sachs Advocating For CSR

Why Is Goldman Sachs Advocating For CSR and Sustainability?

It is generally believed that a company increases its social and environmental performance in order to :

• Save money

• Enhance profitability

• Generate business value

In the modern era of hyper competitive market and global uncertainty, various consulting firms and investment bankers believe that better corporate social responsibility is equivalent to making more money.

In fact various thought leaders such as Accenture, Deloitte, Goldman Sachs, Harvard Business School, McKinsey & Company, and PricewaterhouseCoopers have released data-driven case studies, global surveys, and exhaustive reports offering compelling proof that using business as a force for good is also good for business.

Goldman Sachs, Buying Redemption

A lot of Business leaders were taken aback by the philanthropic approach of Goldman Sachs. This is because they consider Goldman Sachs to be the money maker and not a money giver. Also, owing to the controversies mentioned in the report earlier, many used to consider it as a symbol of Wall Street greed and excess. However, with passing of time, they have shown their charitable and philanthropic side as well.In fact, it has taken itself to a position as one of the nation’s leading corporate philanthropists. Since 2008, they have given away more than $1.6 billion as charity.

A number of Goldman top executives have declared that the firm wants to give something back to the society. It is also taken by many as a way of trying to polish its reputation for its past controversies. Goldman Sachs’ chief of staff, John F.W.Rogers is considered to be the main driving force behind the bank’s philanthropic efforts.

CreditThe New York Times

It is noteworthy that Goldman is a firm that prides itself on discretion, but it isn’t giving away its billions

Few Data Points :

• Was the fourth largest corporate giver in America, in 2012, when it donated $241.3 million to charity.

• It contributed a total of 3.9 percent of its 2011 pretax income, in 2012, which is very huge by any means

The tradition of philanthropy in Goldman Sachs is an old and long one. For many years most of the money was donated by the partners themselves. In 1999, the Goldman Sachs Foundation was started with $200 million.

They also have something called the Goldman Sachs Gives, which is financed out of the compensation pool of Goldman’s 450 partners. Since 2010, this fund has given $667 million to about 3,000 charities.

There are a lot of other philanthropic activity described later in the report in detail which ultimately helped Goldman Sachs revive its image amongst the various stakeholders as well as the customers. They have a higher opinion of Goldman Sachs now. They no longer consider it to be merely an organization making a lot of money. Rather, they admit that Goldman Sachs is trying its level best to give back to the