Three years ago, Jane Fraser broke historical barriers as she was named the CEO of Citigroup, the first woman to lead a prominent US bank. Under Fraser’s leadership, the organization has demonstrated a steady commitment to diversity and gender equality, resulting in notable advances towards a balanced workplace.
Nevertheless, a darker side of Citigroup’s corporate culture has emerged, marked by allegations of unethical conduct. A reported case from May 2018 highlighted a supervisor’s inappropriate advances towards a female employee. This incident drew deep-seated issues into the limelight, forcing Citigroup to amplify its commitment to ethical conduct and harassment prevention.
Importantly, this wasn’t a singular occurrence. Feedback obtained from 22 stakeholders, closely linked to the equities department, exposed a pattern of pervasive harassment and bias. Over 65% of stakeholders detailed episodes of unprofessionalism from senior staff, suggestive of a corrosive work environment.
Addressing Citigroup’s ethical and harassment issues
Such reporting accentuated the urgent need for comprehensive reform and stringent compliance training.
Consistent displays of disrespect and inappropriate behaviour, coupled with unresolved complaints, led to legitimate concerns regarding Citigroup’s reporting mechanisms and highlighted the dire need for an ethical overhaul. Recurring discussions around illicit drug-use further underscored this.
Citigroup spokesman, Mark Costiglio, reassured employees that the company was committed to creating an inclusive and respectful work culture. He affirmed that Citigroup values its employees and treats allegations of misconduct seriously. If any inappropriate behavior were uncovered, swift action would be taken to enforce the company’s core principles, Costiglio said.
Despite these assurances, the equities division continues to underperform, both in terms of workplace culture and trading revenues. Leadership shake-ups and the implementation of strict guidelines seem to have done little to rectify ongoing unethical behavior.
Concerns persist about Citigroup’s ability to initiate meaningful reform and improve its operational ethos. As the future of the bank’s equities division hangs in the balance, the anticipation among employees for a substantial overhaul in the culture grows.
The story of a female derivatives trader, who endured both an uncomfortable experience with a colleague at a client dinner and a lackluster reaction from management and HR, underscores the systemic issues that are prevalent. Highlighting the need for companies to adequately address such incidents, and take decisive steps to eliminate gender bias, thus fostering a respectful and equal work environment for all.
