For us to be successful, our men and women. must reflect the diversity of the communities. and cultures in which we operate.

Transcription

1 G l o b a l L e a d e r s h i p a n d D i v e r s i t y For us to be successful, our men and women must reflect the diversity of the communities and cultures in which we operate. That means we must attract, retain and motivate people from many backgrounds and perspectives. Being diverse is not optional; it is what. From Goldman Sachs Business Principle Number Seven

2 visionary. commercial. determined. innovative. inclusive. invested. At Goldman Sachs, we regard diversity as a business imperative it is at the very core of our ability to serve our clients well and to maximize return for our shareholders. Diversity supports and strengthens the firm s culture, and it reinforces our reputation as the employer of choice in our industry and beyond. To drive this strategic priority for the firm, the Office of Global Leadership and Diversity was established in 2001 with the mandate of determining how we could reinforce more rigor, accountability and global thinking in the firm s diversity practices. The value diversity brings to Goldman Sachs is clear: our clients demand it of our teams, our global footprint requires it to succeed in a range of cultures, and our ongoing pursuit for the best talent is dependent upon it. With the same energy that drives our client-focused activities, we have placed ongoing emphasis on diversity in recruiting, career development and promotion. We have broadened our outreach to attract diverse, top talent from a broader range of institutions in the U.S., Europe, China and India. We have developed a rich collection of employee networks around the globe, and we are engaged in mentoring, professional development, community service and cultural awareness. We have instituted an annual diversity planning process that engages the most senior leaders of the firm, and we have developed standards for good management and leadership practices that are having a positive impact, particularly for underrepresented groups around the world. And we have demonstrated commercial success through the Urban Investment Group and ascend, A Goldman Sachs Leadership Exchange. While our People Survey shows we have made progress on many fronts, we know there is still much work to be done. We have a long horizon before us, and achieving our goals requires determination and resolve. We are proud of the individual and collective efforts that our people have made, and continue to make, to promote and support diversity at Goldman Sachs. Our commitment to an inclusive work environment is unconditional it is what. catalysts. Lloyd C. Blankfein Chairman and Chief Executive Officer The Goldman Sachs Group, Inc.

3 visionary. What will our business look like in the future? How will we meet the needs of investors and issuers? What countries, industries and technologies will offer the greatest opportunities? At Goldman Sachs, we envision the business and financial issues that will confront our clients tomorrow and ensure that we have the competencies we will need to serve them. In a global business environment, this calls for an immense array of resources. It necessitates expertise in local, regional and global capital markets and the technical infrastructure to access them. It requires specialized industry knowledge, as well as proficient cultural and language skills. It demands fresh perspectives and new solutions. Envisioning this future means that to remain the advisor of choice, Goldman Sachs must be the employer of choice by attracting and retaining the best and most diverse talent. The firm s Office of Global Leadership and Diversity (GLD) plays a strategic role in helping us maintain these positions and reinforces our culture of meritocracy by advancing leadership and management skills and integrating diversity and inclusion into our key business and people processes. We realize that to manage diversity well, we have to manage people well, and we must ensure that our formal management processes successfully address the differences that may be experienced by everyone at Goldman Sachs. We advance our objective for a diverse and inclusive work environment through: Rigorous recruiting, retention and promotion initiatives Specialized career development programs and strategies Dedicated training and awareness programs on diversity and leadership Support of and partnership with affinity networks Tactical diversity workforce planning and analysis Visionary leadership relies on awareness of key issues. To that end, the Office partners with the firm s senior leaders to promote and reinforce diversity consciousness at all levels. I think our business is on a trajectory of everincreasing globalization. Preparing for that future means having people who reflect a broader range of diversity. And when you consider that this firm includes more than 147 different citizenships, I think we are well on our way. Argentina Australia Brasil Canada Deutschland España

4 The diversity of our people is not just an enhancement of our problem-solving or our creativity or our ability to get on with our clients. It is a source of business opportunity. commercial. Building our business means we must look to the future. Running our business demands that we focus on the present. Goldman Sachs leverages the diversity of our people to meet these challenges a global client base that reflects a multitude of cultures, with markets that are active 24 hours a day and new financial problems that demand unconventional solutions. Our clients count on us to provide the freshest thinking about trends in business and demographic shifts, and to provide capital and build relationships with a changing universe of marketplace participants. Goldman Sachs constantly develops new insights into global markets and industries and helps shape the debate in every sector in which we are involved. Dreaming with BRICs: The Path to 2050, a Goldman Sachs Economic Research report, gained international attention when it forecast a major shift in the global economic Our ascend, A Goldman Sachs Leadership Exchange series brings together influential women business leaders with our own senior professionals to discuss politics and government, economics and business, thereby advancing existing and future business relationships. balance and highlighted the significant implications for international policy-makers and investors. The report concluded that by 2050, the BRIC (Brazil, Russia, India and China) economies together could be larger in U.S. dollar terms than those of the G-6, which consists of the U.S., Germany, Japan, the U.K., France and Italy. We invest our capital and rely on our people to meet client expectations of global financial expertise. We were the first nondomestic bank to offer mutual funds to Japanese investors. At the end of 2004, Goldman Sachs became the first foreign entity in China to establish and operate its own domestic securities firm and we were the first nondomestic bank to underwrite domestic share sales there. In the U.S., we ve been working to further the interests of underrepresented groups, in both the professional and personal sides of life. In 2000, we launched the Urban Investment Group (UIG) to provide investment capital to ethnic minority businesses and urban real estate ventures. Projects have included financing the largest, privately held Hispanic radio company in the U.S. and partnering to create a unique housing development with on-site social services in New York City s Harlem neighborhood. France Ireland Italia México

5 determined. The keystones of the Goldman Sachs culture integrity, teamwork, a ceaseless striving for excellence and the primacy of our clients interests are the foundation for the firm s ongoing success. An inclusive workplace generates collegiality, creativity and impact attributes that we value. Our approach to diversity is therefore one of ardent determination. We enhance our culture through proactive leadership development, which utilizes measurement, provides training and demands accountability. Our Senior Leaders Analysis requires executives at the highest levels of our organization to review our senior talent individually and consider ways to maximize their potential and broaden the diversity of our leadership. Similarly, Career Development Committees in each division meet regularly to ensure that our people are receiving the experience, guidance and assignments they need to progress to the next level. Goldman Sachs Person by Person, one of our diversity training programs, educates the firm s population on cross-cultural issues, inclusion and workplace policies. Our diversity training efforts also include individualized One-on-One Meetings with Managers to share specific Infusing diversity and inclusion into our leadership curriculum, our Experienced Leader Program helps managers gain insight into how to manage diverse global teams. feedback and provide personalized coaching, as well as initiatives like Diversity Master Classes led by the firm s senior leaders. Ensuring accountability, our Firmwide Diversity Committee answers to the Board of Directors and retains ultimate responsibility for the state of diversity at Goldman Sachs. This committee requires annual commitments from divisional and regional managers for recruiting, retention, training and career planning for their populations and ensures that they deliver on those commitments. Goldman Sachs relies on this annual Diversity Planning process as a cornerstone of its workforce strategy. People who work here really believe in things like meritocracy and integrity, in taking the high road. And that is exactly the environment that diversity needs to flourish. New Zealand Suid-Afrika Sverige Schweiz

6 innovative. Having a diverse group of people think about any given subject will elicit more innovative ideas than a homogeneous group of people sitting and considering the same problem. So diversity is a requirement for us to excel. And we think strategically about promoting diversity at the firm. Creativity is at the heart of our business. Goldman Sachs offers its clients innovative ideas for raising and investing capital. We leverage this same spirit to promote diversity at the firm. The Goldman Sachs environment is one where people with completely different world views and ideas come together to create solutions they might never have imagined individually. It is a workplace that is dedicated to innovation. Every other year, we conduct our People Survey in order to understand our employees experiences and perspectives at the firm and to create responsive policies and programs to address them. Our Great Expectations Manager Maternity Training program resulted from our 2003 People Survey. This program is designed to ensure a smooth transition for women taking and returning from maternity leave. Our retention strategies feature programs like our Flexible Work Arrangement policy that helps our people manage their professional work with their personal responsibilities. We partnered with several private sector leaders to sponsor the Center for Work-Life Policy s study on career path off-ramps and on-ramps for high-potential women. Through our work with this initiative, we established the New Directions program that aims to lower the barriers for former professionals to return to the workforce. To acknowledge the complexities of navigating To respond to the needs parenthood of our gay and lesbian and employment, the employees, we offer Domestic Partner firm has created the Benefits and sponsor Help-at-Home Bulletin educational forums Board, an electronic forum for Goldman Sachs employees to both seek and suggest that address the unique experiences faced when making financial- and benefitsplanning decisions. available child care providers as well as other forms of household help. This resource supplements a comprehensive Wellness Exchange strategy that promotes the overall health, safety and well-being of every employee at Goldman Sachs. United Kingdom United States Argentina Australia Brasil

7 inclusive. At Goldman Sachs, we place a high premium on the value of teamwork. At the center of teamwork lie the firm s tenets of inclusion and meritocracy. As our people come from diverse backgrounds and work together across geographies and markets, each must feel integral to the group effort in order for the team to excel. The firm s Affinity Networks support people from historically underrepresented populations in building communities within Goldman Sachs and in bridging differences across the firm. Members of the networks gain a forum to share ideas, concerns and successes and identify opportunities for professional development and advancement. These networks Asian Professionals Network, Firmwide Black Network, Firmwide Hispanic/ Latin Network, Gay and Lesbian Network, and the Goldman Sachs Women s Network operate divisional and regional chapters at the firm, and are each sponsored by members of the firm s Management and Partnership Committees. Goldman Sachs also sponsors large-scale events to promote diversity awareness and cultural sensitivity. Our Diversity Awareness Week features guest speakers and the firm s most senior leaders who reinforce the importance of our diversity efforts. At the firm s Senior Women s Events, we actively solicit this population s unique viewpoints and knowledge in small group sessions led by members of the firm s Management Committee. These annual forums enable senior women to discuss relevant business issues and network with leaders and their peers across the firm. We recognize that inclusion as a corporate value is not always tangible to every employee at every level. So we formed the Mentoring Advisory Committee to support relationshipbuilding between senior leaders and junior employees. The committee coordinates formal programs to foster the sharing of experiences, insights and career advice on a personal, oneto-one basis. Our Goldman Sachs India Women s Network, launched in Bangalore, is an example of the critical importance and vibrancy of our Affinity Networks. This firm operates on all cylinders because our people feel comfortable enough to offer their ideas and respected enough to disagree. Canada Deutschland España France Ireland

8 invested. It can feel very safe when you re surrounded by people just like you. But it wouldn t be a very stimulating environment. And people here would always opt for stimulating over safe. At Goldman Sachs, we strive for excellence in everything we do. To achieve this on a global scale across diverse markets and cultures requires an equally diverse workforce. So we utilize creative strategies to identify, retain and advance the best and brightest people with the widest range of experiences. We identify potential hires early, through internships, special programs and workshops. We cast a wide net and invest significant resources to find the right people, even if it takes years to yield results. And we work to develop and retain this talent in mutually beneficial ways. In Europe, the firm s affinity networks and recruiting teams sponsor programs and symposia tailored to A-level students as well as those in their first and penultimate year at university. In the U.S., the Goldman Sachs Scholars Program works with gifted high school students to stimulate interest in investment banking, and to ensure their success in college and beyond. In Tokyo, diversity recruitment efforts begin even earlier with Girls Day, an educational program for our clients daughters. Other initiatives focus on exposing talented and diverse people to our industry. In New York, the Goldman Sachs Camp, an intensive program of presentations, workshops and social events, encourages incoming MBA students to explore financial services careers. In Hong Kong and Tokyo, our Top Women in the City networking events help build relationships with women throughout the industry strengthening our candidate pool for future experienced hires. To help experienced, but newly hired employees, the firm offers a tailored orientation to help these individuals find their place and their Our Scholarship for pathways to success. Excellence Program The Women s Career recognizes talented Strategies Initiative, students while building a six-month program designed to support the retention of our the next generation of financial leaders. The Program offers cash awards and paid internships female associates, to Black, Hispanic promotes relationships with senior role and Native American undergraduates. models to broaden exposure to the firm s businesses and culture. The ultimate goal is to help talented women find successful career paths at Goldman Sachs. Through these efforts we re shaping our workforce to meet the needs of our people, our clients and our firm. Our business relies on knowledge, so we work to have the greatest supply. Italia México New Zealand

9 catalysts. Commitment is at the core of our diversity initiatives. In keeping with a long tradition of public and socially responsible business practices, Goldman Sachs continually strives to be a catalyst for innovation, progress and economic growth. Globally and locally, as a firm and as individuals, we seek to be a positive force. The Goldman Sachs Foundation promotes excellence and innovation in education. The Foundation is a global philanthropic organization that achieves its mission through a combination of strategic partnerships, grants, loans, private sector investments and the deployment of professional talent from Goldman Sachs. The firm s Charitable Services Group provides financial support to a broad range of organizations and programs serving diverse populations. Its signature Community TeamWorks initiative offers the people of Goldman Sachs opportunities to partner with nonprofit organizations and to participate in volunteering efforts that make a tangible difference around the world. Our Supplier Diversity Program seeks to build long-standing relationships with minority- and women-owned businesses that share our commitment to quality and service. By leveraging their unique expertise, the firm gains access to innovative ideas, a broader consumer base and new avenues of business all benefits that help us to better serve both our clients and community. The Global Markets Funded in 1999, the Institute informs policy- Goldman Sachs Foundation has awarded makers and the public grants in excess of about the role of $72 million since its the capital markets inception, providing in society. Through opportunities for young people in more than research, conferences 20 countries. and educational programs the Institute examines how global markets create economic opportunity, foster prosperity and ensure financial security. The Community Capital Group at Goldman Sachs promotes public awareness and understanding of the integral role the modern market system plays in local communities around the world. In sharing our financial expertise we support community projects that promote the understanding and use of efficient capital markets tools to enhance local economic opportunity. This firm is very thoughtful about the contribution it makes, as a global business and as a world citizen. And while we feel very good about the contribution that we make to the global economy, we have some very high expectations about the legacy we should leave to our communities. Suid-Afrika Sverige Schweiz United Kingdom United States

10 At Goldman Sachs we regard diversity as a business imperative something that is requisite to serving our clients at the highest standard of excellence, that maximizes the return to our shareholders and that strengthens our firm and its people. Achieving real diversity and inclusion throughout the organization requires ongoing determination and indomitable will. Without question, we possess that level of purpose. As our business becomes increasingly global in an industry that demands relentless innovation, we are called upon to deliver unique and robust solutions to clients in a wide range of circumstances. We can meet this challenge only with people of diverse cultures, experiences and viewpoints. We are proud of our progress to date. Our strategy is global in scope, but it is implemented at the regional level to ensure sensitivity to local traditions. Our people are rigorously assessed on their contribution to an inclusive workplace, and we have instituted programs to identify, support and cultivate the widest range of people to prepare the next generation of leadership at Goldman Sachs. Our commitment to diversity and inclusion is therefore unconditional it is what.

11 2006 Goldman, Sachs & Co. All rights reserved.