Answer To: BMA547 Organisational Behaviour Capstone Report – individual work Task Length: - 2500 Words (+/-...
Nishtha answered on May 20 2021
BMA547 ORGANISATIONAL BEHAVIOUR
CAPSTONE REPORT – INDIVIDUAL WORK
Table of Contents
Introduction 3
The Example 3
Compliances Improvement 5
Leading 6
Power and Politics 7
Organisational Culture 8
Conclusion 9
References 10
Introduction
Whistleblowing is characterised as an action taken by a current or former employee, who has seen unethical or illegal behaviour in a company. The employee may usually go public or to management and report it, which is defined as internal whistle blowing and the individual who can do so is known as a Whistleblower. In this case study, I have chosen very renowned organisation that is Goldman Sachs and its Malaysian operation case. Former Prime Minister Najib Razak founded 1Malaysia Development Berhad (1MDB) in 2009 as a Malaysian government-owned and managed investment fund.
The Example
The stated goal of “1MDB was to encourage foreign investment and growth in Malaysia for the good of all Malaysians. Instead, it has been dubbed "kleptocracy at its worst" and "one of the biggest financial raids in history," with some more than $10 billion theoretically stolen. Worst of all, hundreds of thousands of dollars from the stolen funds were reportedly used to rig an election and hold the crooked prime minister in power for another five years, when his rivals were defeated and at least one prosecutor was shot.”
According to Goldman, a "rogue" banker deceived and deceived many of the world's brightest, highest-paid bankers, as well as “all of Goldman's danger, compliance, legal and audit management systems, as well as all of the firm's management. This article presents the highlights of the widely publicised tale of Goldman's crucial role in 1MDB. It also highlights several of the previously recorded red flags and warning signs surrounding 1MDB, rendering Goldman's defence—that this was done by a rogue Goldman partner who has already pleaded guilty to criminal charges—unbelievable.”
As mentioned by Jones (2020), “many Goldman “veterans” are concerned that the company allegedly ignored or overlooked red flags. As explained by Solomon, Blankfein and Cohn (2019), despite the mounting investigations and litigation, including a criminal case filed in Malaysia seeking $7.5 billion in damages, Goldman maintains its "Four Monkeys" defence: see very little evil, hear no evil, talk no evil and live off the money. To put it another way, Goldman (except for the Goldman partner who has pleaded guilty) and anyone else involved in 1MDB deny any misconduct, responsibility, or information (including Najib).”
Even if Goldman's denials are right, does not this only demonstrate that, in contrast to being too big to ignore, “Goldman is both too big to handle and too big to restrict? Is not this what taxpayers bail out Goldman Sachs for in 2008? Is this the kind of bank — and these the kinds of operations — that should be backed by American taxpayers? Notice that if it had not been for bailouts, Goldman Sachs would have collapsed and gone bankrupt just days after Lehman Brothers.”
However, after already being bailed out and rescued the following year, Goldman's then-CEO Lloyd Blankfein started the partnership with Malaysia that has culminated in these massive crimes that have victimised an entire world. Although the size and reach of Goldman's involvement with 1MDB may be unusual, it is only the latest in a long history of alleged scandalous and illegal actions by the firm.
It include but are “not limited to the Abacus and other sub - prime mortgage wrongdoings, the "vampire squid" reveal, the AIG CDS backdoor rescue, Greek debt offering, Libyan Investment Fund and many others. Goldman Sachs earned $600 million for putting $6.5 billion in three no-bid bond offers for 1MDB over ten months in 2012-2013. “The sum of money Goldman Sachs produced from relatively simple bond deals [alone] might have been a bright sign to its top executives,” two “former senior [Goldman] partners” said.”
Most notably, “as detailed in the explosive book Billion Dollar Whale, the then-prime minister "won re-election by clinging to power with the most slim of margins" just two months after Goldman's third and biggest $3 billion 1MDB bond issue. That seems to have been possible only because “hundreds of millions of dollars” from the Goldman offering were redirected “to the prime minister's allies around the country” for bribery and other election-related fraud. Goldman's 1MDB bond offers have helped an alleged corrupt, anti-democratic kleptocratic prime minister stay in power. Paciuc (2018) has described that rewarding itself at the cost of a poor nation (evidently as part of the business camera set up by Goldman's then-President Gary Cohn dubbed "commercialising the state") is bad indeed.”
Goldman's 1MDB bond deals, on the other hand, helped an allegedly corrupt, anti-democratic kleptocrat stay in power for another five years, however during time the prime minister's rivals were jailed and killed. The gravity of the allegations and crimes perpetrated here cannot be overestimated. “The Department of Justice has charged criminally two former Goldman executives who have been the primary bankers on the 1MDB transactions and a third, far more senior executive has been put on leave after being named as an unconvicted co-conspirator. All three are and were partners at Goldman Sachs. Tim Leissner, Goldman's former Southeast Asia...