Citigroup, of Which Solomon Is One Division, Was Found Guilty

question 5

Essay

Citigroup, of which Solomon is one division, was found guilty of unethical behavior in 2003. The separate divisions of brokerage, investment banking, and insurance were coordinated for the benefit of the company, but to the detriment of external investors. This scandal followed the one in the 1990s. Discuss the issues of organization architecture that can lead to recurring corporate scandals like this. What possible changes in organizational architecture might reduce the temptation for managers to cheat in the process of wealth creation?

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Definitions:

Legitimate

A term that refers to something that is lawful, sensible, and justified within a given set of rules or societal norms.

Referent

An entity or aspect that forms the basis for comparison, identification, or referencing in communication or thought processes.

High Integrity

This term describes individuals or entities that consistently adhere to strong moral and ethical principles in all their actions.

Politics

Activities associated with the governance of a country or area, especially the debate among individuals or parties hoping to achieve power.