News in the World - CITI Group Example Brief

News in the World - CITI Group Example Brief - Research...

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Research Brief on CSR Social Responsibility Project Sauder School of Business Prepared by : Marie Claude de la Bourgogne Date : January 28, 2012 Introduction This brief was written as a research project for the Social Responsibility Project (SRP) at the Sauder School of Business, University of British Columbia. The purpose of the brief is to underscore the Corporate Social Responsibility activities—or, at times, lack thereof—of a for profit corporation and to seek a synergistic relationship with a not-for-profit organization, or NGO, whose activities and interests align with the strategic corporate interests of the for profit company. The for profit company I have chosen is Citigroup, and my goal is to convince the bank to engage in a cooperative partnership with the newly constituted NGO One Brick at a Time . Citigroup Citigroup: the Transformation of Corporate Banking Established in 1915, Citi is one of the global titans of corporate banking, and is one of the principal financial firms implicated in the ignominious financial/corporate meltdown of 2008 . Since the bailout by the US government in 2009, Citi has had a mixed economic performance. The corporation has embarked on a diverse investment strategy that aligns with the bank’s increasing international focus. 58% of Citi’s gross revenues derive from international banking operations—the majority of which are centred in Europe, Asia, and Latin America—and although the international banking centres have contributed significantly to the company’s profitability, US banking operations (plagued by an ongoing recession and anaemic domestic growth) continue to weigh heavily on the corporation’s profitability. Citigroup recently achieved its first profitable year since 2007, with a reported $10.6 billion in profit after substantial losses in previous years. 1 Nevertheless, Citi’s return to profitability has created a firestorm (and a simmering backlash) in the public eye for the unseemliness of the company’s earnings in the wake of ongoing mass unemployment, an unrelenting collapse in the housing sector, and the general malaise of the working masses in economically troubled America. Most troubling about the return to profitability of the company (at least from the perspective of the company’s image and PR generally) is the revelation that the company continues to pay significant bonuses to its proprietary traders, some in the range of millions of dollars—proprietary trading involves the trading of bonds, currencies, derivatives (mainly speculative), and commodities.
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  • Summer '13
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  • Corporate social responsibility, Citigroup, Social Responsibility Project

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