RRJ#5

Bixi Li
EPA1
May 5, 2010
Business
Why Goldman should overhaul its board
Reference:
Barr, C. (2010,April 20). Why Goldman should overhaul its board. Retrieved April 21, 2010, from CNN.com
http://money.cnn.com/2010/04/20/news/companies/goldman.board.fortune/index.htm
Summary:
In this article, the author mainly discussed the fact that Goldman is in a bad situation. Goldman disagrees with the allegation that they ripped off customers to get big profits, and they began to fix it from Goldman’s board and the tone of the firm's dealings with the public. The author compared Goldman and Citi, and says that Citi is doing better in dealing with public, but Goldman is not. Populists resent Goldman's giant pay packages and its ties to anywhere in Washington; this event is a good lesson for Goldman. Professionals said the board of Goldman is too cozy and very unprofessional, but people who pay money to Goldman agree with their ideas; they would not check on them. There are some scandals about Goldman and the board hided them. But someday it will blow up Goldman’s once glowing reputation if they work on this train. Blankfein still is Goldman’s CEO, even though independent board leadership has become obvious. However, the situation will become worse, if he does not follow Pandit’s way of redemption. The firm will take scrutiny; Goldman probably cannot control their agenda freely.
Reaction:
After reading this article, I think that a good reputation is very important for a company. Profits and a good reputation are complementary. To make the company have a good reputation requires a lot of efforts. Not only are products of the firm high quality, but also the service of the company is fulfilling. Those things can win people’s good opinion of the company. Beliefs from customers are a treasure and the key to doing a good business. On the other hand, a wise leader also is vital for a firm. But the wisdom means a person not only has a lot of professional knowledge, but also can keep a good relationship with employees. The leader knows how to make them work hard for him and be happy to be his staffs, and take care of them. A nice mood can improve the efficiency of a person. For example, the ex-CEO of Google, Kaifu Li, has a good relationship with his staff. From an interview of Google China, there are several rooms for employees to relax in their office, such as snack room, game room and bed room. Staff can use these rooms any time, and they also work hard. There is a restaurant, year round supply of seafood and staff can take seafood back to their family. After Kaifu Li left Google, many numbers were willing to follow him. The most important reason is they feel happy about working for Kaifu Li. Furthermore, those employees are personnel. Therefore, a good leader is the wealth of a company.


Vocabulary:
1. overhaul—an exam of a system, including repairs and changes.
2. board—a group of people have power to make decisions a company.
3. heresy—strongly disagree of a belief.
4. cue—information be implied.
5. Sin— a moral error.
6. Redemption—save something from evil; act of exchanging shares for money.
7. omnipresent—exist in anywhere.
8. outrage— very angry.
9. allegation— a public statement.
10. composition— something is organized.
11. drub— hit heavily.
12. savvy— knowledge, understanding of something.
13. scandals—bad behavior made public angry or shock.
14. reputation— the opinion that about do you like or not.
15. amend—correct the law, document, statement, etc.
16. claw back— the money that is paid back
17. scrutiny—careful and thorough examination
18. agenda—a list of items to be discussed at a meeting.