Pre-midterm Review: Investment Banks and Governance

Goldman Sachs prioritizes client needs above all else, reflected in their values and the '14 Commandments' that emphasize client satisfaction, team collaboration, honesty, and reputation.

Goldman Sachs prioritizes long-term relationships and partnerships with clients, fostering trust and working towards mutual benefits.

Goldman Sachs emphasizes teamwork, attracts top talent, and offers competitive compensation to create a collaborative and high-performing work environment.

Going public resulted in a shift from a partnership structure to a public company, impacting decision-making and introducing new challenges for Goldman Sachs.

Goldman Sachs has faced controversies, including accusations of fraud related to subprime mortgages and involvement in the 1MDB scandal, highlighting the importance of ethical practices.

The partnership structure instilled a sense of collective responsibility, while the public company structure introduced a greater focus on shareholder value and potentially shifted decision-making dynamics.

Goldman Sachs' reputation has been shaped by its client-first mentality, commitment to teamwork, and its history of ethical conduct, although it has faced controversies that impacted its image.

Goldman Sachs has been a major player in investment banking, influencing industry practices and facing significant challenges related to globalization, regulation, and ethical conduct.

The individuals and groups impacted by Theranos's actions, including board members, employees, investors, the US government, and potential job applicants.

Theranos gained significant investor and public interest due to claims of revolutionary blood testing technology, despite lacking substantial evidence or peer-reviewed research.

A former Theranos employee who raised concerns about the company's fraudulent practices, leading to investigations and ultimately contributing to Theranos's downfall.

Theranos engaged in deception by exaggerating the capabilities of its technology and using traditional blood testing methods while claiming to use their own innovative devices.

Holmes, the founder of Theranos, was sentenced to 11 years in prison for fraud and conspiracy, ordered to pay restitution, and is scheduled for release in 2032.

Balwani, the former COO of Theranos, was sentenced to 13 years in prison for fraud and conspiracy, and ordered to pay restitution.

The individuals responsible for overseeing and guiding Theranos's operations, including high-profile figures with diverse backgrounds, who ultimately failed to effectively identify and address the fraudulent activities.

Theranos's downfall highlights the importance of transparent reporting, robust internal controls, ethical conduct, and due diligence for both investors and employees.

A 2017 Department of Defense project utilizing Google's AI technology for automated object recognition in drone footage. It aimed to improve the analysis of surveillance footage.

The competition between major world powers, including the US, China, and Russia, to develop and deploy advanced artificial intelligence technologies, particularly in the military sphere.

Project Maven sparked concerns about the ethical implications of using AI in military applications, raising questions about Google's role in potentially facilitating lethal outcomes.

Over 3,000 Google employees protested against Project Maven due to ethical concerns, reputational damage, and potential for misuse of AI technology.

Google's long-standing ethical principle stating that the company should not engage in activities that harm or exploit others. The Project Maven controversy challenged this motto.

After public scrutiny and employee protests, Google decided not to renew its contract with the Department of Defense for Project Maven.

Government officials argued that the US military faces real threats and that accusing them of 'evil' is misguided, emphasizing the challenges soldiers face in conflict zones.

Project Maven controversy negatively impacted Google's brand image and created internal conflict, ultimately leading to a change in their motto from 'Don't be evil' to 'Do the right thing.'

Rice farming societies emphasize collaboration, complex irrigation systems, and collective effort. They value interdependence, holistic thinking, and a focus on larger societal needs.

Wheat farming societies emphasize individual effort, independent farming practices, and less labor-intensive techniques. They value individualism, analytical thinking, and breaking problems down into components.

People from different cultures may exhibit different communicative styles. For example, North American students tend to be more outspoken in class compared to their Korean American counterparts.

Cultural norms can shape how individuals present themselves. For example, Japanese Olympic medalists often emphasize their failures and shortcomings, while American medalists tend to highlight their strengths and successes.

Moral obligations may be understood differently across cultures. In Indian contexts, helping others is considered a moral duty regardless of personal feelings towards them.

Multinational companies face ethical challenges when operating in different countries with varying moral standards. This can lead to tensions when a host country's ethics differ from those of the home country.

Donaldson explores the ethical dilemmas faced by individuals who are operating outside their home country's values. It challenges us to understand the complexities of ethical behavior in a globalized world.

Universal moral principles that companies must uphold, like respect for basic rights, human dignity, good citizenship, and cultural traditions that don't violate these values.

Ethical conflicts arising from different levels of economic development between countries, often leading to practices that might be considered acceptable in one country but not in another with higher standards.

Ethical conflicts arising from differing moral, religious, or cultural values between countries, leading to practices that may be acceptable in one country but unethical in another.

Applying ethical standards across borders, considering both core human values and local traditions. It involves analyzing whether practices are acceptable at home and if they violate core values.

Offering, giving, receiving, or soliciting something of value to influence someone's actions in their official capacity.

It undermines fair competition, erodes trust in institutions, distorts the market, and impedes economic development.

Laws that prohibit bribery within a nation's borders ('domestic') and those that extend jurisdiction to acts committed abroad ('extraterritorial') by its citizens or companies.

The Foreign Corrupt Practices Act (FCPA) in the US and similar legislation in other countries like the OECD, aiming to prevent bribery of foreign officials by companies.

A diverse board goes beyond capital and networking to include technical expertise, ensuring a more well-rounded perspective.

It's crucial to conduct thorough due diligence, including conversations with individuals at various levels of the company, to gain a balanced view of the organization and its operations.

Even seemingly insignificant stakeholders can significantly influence a company's direction and outcomes.

A series of groundbreaking studies revealing a strong predisposition towards obedience to authority, regardless of individual characteristics.

The tendency for individuals to feel less personal responsibility for harmful actions when they are part of a group.

Fundamental and non-negotiable values that underpin human rights and moral principles, forming the basis for ethical decision-making.

While companies are obligated to respect human rights, they are not bound to the full range of human duties, focusing on preventing rights violations.

Mandatory goals are non-negotiable and tied to intrinsic values, while discretionary goals are self-defined and optional.

A concept that prioritizes the fulfillment of intrinsic values in business operations, giving special significance to companies operating in industries defined by those values.

Factors that hinder inclusion and equal opportunities for diverse groups, such as poverty, discrimination based on gender, race, or class, and government policies.

A business model that monetizes user attention on social media platforms, maximizing engagement through addictive design features.

A complex phenomenon driven by a combination of factors including intermittent rewards, social validation, and the absence of stopping cues.

A framework that emphasizes essential capabilities for human flourishing, such as life, health, and meaningful relationships, which can be undermined by excessive social media usage.

Government initiatives aimed at mitigating potential harms associated with artificial intelligence, including regulations for transparency, data security, and responsible use.