In May, the company issued a report titled the “Business Standards Committee Impact Report” which laid out 39 recommendations. The report says it was the most extensive review of the firm’s business standards in its 144 years. The CEO, Lloyd Blankfein, led 23 three-hour sessions in 2011 and 2012 with partners and managing directors on personal accountability and included a case study about communications within the firm and with clients, according to the report. It represented “tens of thousands of hours of discussion, analysis, planning, execution, and, importantly, training and professional development which, alone, totaled approximately 100,000 hours. The BSC held 17 formal committee meetings. The Board Committee overseeing the BSC met 13 times. The BSC Implementation Oversight Group held 11 meetings and made five presentations to the Board of Directors. It also met three times with a separate subcommittee of the Board’s Corporate Governance and Nominating Committee which provided ongoing oversight of the BSC implementation.” They also identified three themes that reached across all the recommendations and one of them was “reputational sensitivity and awareness and its importance in everything we do.”
Because I regularly report on how companies recover from reputaional loss, I thought it was important to readers to hear about how one company was finding its way after its reputation was hurt. This report probably represents a good roadmap for other companies that want to strengthen their business practices and reputation. It is also important to note that the CEO has played a major role in getting the committee’s findings infused into the organization.