Company Assessment: An Analysis of CitiGroup
Company Assessment: An Analysis of CitiGroup Introduction With origins dating back to 1812, Citigroup (Citi) is a global diversified financial services holding company providing both individuals and institutions with a broad range of financial products and services. These services include; consumer banking and credit; corporate and investment banking; securities brokerage; transaction services; and wealth management. Headquartered in Manhattan, NY, Citi currently has over 260,000 employees servicing 200 million customer accounts in more than 160 countries around the globe. Citi is organized into two divisions; Citicorp and Citi Holdings. Citicorp manages the consumer and institutional core client business, while Citi Holdings manages the brokerage and asset management divisions. Based on financial data obtained from the Citi website, the core st business (i.e. Citicorp), represents 92.9% of the $19.4 billion ($US) of the 1 quarter 2012 revenue. The total revenues of Citicorp are geographically diversified across the globe with North America representing 40% of the total, Asia at 22%, Latin America at 20% and Europe, Middle East and Africa (EMEA) accounting for the remaining 18% (Citi Financials, 2012) Over its 200 year history, Citi has been a leading innovator in financial services starting in the 1920’s by becoming the first major U.S. bank to offer compound interest on savings accounts. Also, through the acquisition of Second National Bank, Citi has the distinction of being the first bank in New York to provide separate banking services for women. Further innovations include; offering unsecured personal loans and customer checking accounts in 1928 and 1936 respectively (Citi Timeline, 2012). Citi’s original mission of offering traditional banking services evolved as they grew, however, since the financial crisis of 2008, Citi has been selling off many of the non-core operations to refocus on the traditional banking model. The refocused mission as stated on the corporate website is: “We strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible.” (Citi, 2012) The purpose of this paper is to conduct a review and overall ethical assessment of Citi which will include an overview of the mission, vision and values, ethics and compliance codes, leadership, corporate social responsibility as well as the corporate governance structure. Mission, Vision and Values Clicking on the “Our Company” link of the Citi website, you are immediately drawn to the bolded text stating the corporate vision: “160 Countries. 1 Vision. Citi works tirelessly to provide consumers, corporations, governments and institutions with a broad range of financial products and services. We strive to create the best outcomes for our clients and customers with financial solutions that are simple, creative and responsible.” (Citi, 2012) It is clear that Citi has a vision that places them as the global bank focused on client service, innovation and financial responsibility. Expanding upon the vision statement is the mission statement of Citi and the principles that guide them. The Mission statement is: “Meeting the World’s Challenges. Seizing its Greatest Opportunities” (Citi Mission, 2012). The four key principles that guide the company as they endeavor to deliver on their vision and mission are; Common Purpose; Ingenuity; Leadership; and Responsible Finance. Based on the stated vision, mission and principles, in my opinion, Citi can be described as a focused team, rewarded based on talent and merit, operating in an innovative culture with one clear goal to deliver transparent and prudent financial products globally. I consider the written vision, mission and guiding principles of Citi to be quite inspiring. Ethics and Compliance Codes In early 2005, Charles Prince, then CEO of Citi announced a bold strategy to transform the financial...
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