a) Return on investment relative to industry The J.P Morgan Chase and Co. Investment banking division provides a variety of investment banking services and products such as security's underwriting in debt and equity markets, structure advisory services and corporate strategy, risk management, trading platforms for institutional clients in cash securities (Behery and Tarek 131). Its client base includes governments, corporations, institutional investors and financial institutions. b) Board issues The company Board provides experience, judgment, independence and accountability for its shareholders. Director independence is upheld in several ways, including restraining the number of officers sitting on the Board. Ten of 12 directors are independent, outside directors. The Board also usually meets without its administration directors at the end of regular meetings. Because the Board's main responsibility is to seek long-term value of shareholders, it is critical that this governing body is responsible for and associated with shareholders. The Board and its committees concentrate on the areas that are significant to governance Audit, Compensation and Management Development, Corporate Governance and Nominating, Public Responsibility and Risk Policy (Behery and Tarek 127). c) Shareholder relation and proposal Given the scope, size and complexity of J.P Morgan Chase and Co., the firm understands the importance of shareholder communication to help its investors understand the performance and strategies. The firm strives to reach out to stakeholders in many different ways, including SEC filings, web communications, through quarterly earnings presentations and investor meetings. In 2007, the company engaged its shareholders on a variety of governance issues, from management compensation to human rights proposals that enhanced understanding of these issues. d) Executive compensation J.P Morgan Chase and Co. believe that compensation reflects performance; the higher the executive's level, the more directly his or her compensation should be tied to how the firm is doing. To achieve this, the members of the firm's senior executive team receive at least 50 percent of their incentive compensation in limited stock units and must hold about 75% of shares received through such option exercises until they leave the firm (Uradnik 217).
a) Customer satisfaction J.P Morgan Chase customers receive a reaction within ten business days and the firm is doing the best to resolve the grievance to the customer's satisfaction within this period. Complex grievances, which require time for examination of issues involved, take a longer time to resolve. However, in such cases, customers are informed about their complaint status within this period. The focus of the firm remains on the completeness and quality of the response, with speed of delivery being a significant but not overriding factor. b) Lawsuit and complaint J.P Morgan $13 Billion Mortgage deal has been seen as Lawsuit Shield. On February 10, 2014, a lawsuit was filed in the U.S District Court for the District of Columbia challenging the unprecedented $13 billion settlement agreement between the JP Morgan Chase and U.S. Department of Justice. Better Markets claims in its complaint that the DOJ violated the laws and constitution of the United States by use of a mere votive agreement to resolve claims of historic significance without subjecting the Contract to independent legal review
a) Regulation Regulatory bodies and government need advice, input and analysis. J.P Morgan Chase and Co. has continued working closely with government officials and regulators to improve both corporate and public policies. The firm is extensively seen as a well-managed bank, however, it faces big regulatory difficulties and its legal bills are increasing. b) Lobbying Public policy, decisions frequently affect businesses, employees and communities, the company lobby on issues to benefit the firm and its constituents. It also makes prudent political contributions, as permitted by law and as described in its Board approved policy, to help support political parties or committees and candidates whose positions are good for the long-term benefit of J.P Morgan and the communities it serves. The J.P Morgan Legal Department is accountable for providing legal services to the firm. The department encourages businesses, legal teams and staff areas to discuss regulatory, legal and business developments efficiently and in a timely manner.
a) Benefits and compensation J.P Morgan Chase recognizes and reward performance with competitive compensation and benefit plans that support business goals. Compensation system is performance and market-based, and take a long-term view in the way the company assesses performance and compensation structure. Recently the firm recognized the hard work of employees by paying $400 in stock to the 401(k) accounts of qualified United States employees and making cash awards to similar staffs outside the U.S. (Uradnik 217). b) Training The firm helps people become self-sufficient by providing job training that allows them to enter and remain in the workforce. During 2007, J.P Morgan Chase offered grants to support workforce training and development in high-need urban areas (Behery, and Tarek 149). The programs benefited the chronically unemployed; women, minorities, and job seekers who had released from prison while complementing the efforts to create jobs in the communities it serves. The firm launched a formal training program for bankers globally in 2005, which focused on expanding the capacity and raising awareness to executing its environmental policies. c) Diversity J.P Morgan Chase and Co. has worked hard to build an inclusive and diverse work environment that permits talented people to contribute and grow. The firm holds that handling people fairly, promoting and recruiting from a diverse group of candidates and helping each other succeed is great for its business and the right thing to do. The firm continues to build upon diversity in many ways, including linking management rewards to its diversity goals, constructing development strategies for top talent, seeking diverse applicants for key jobs and recruiting graduate and undergraduate minority candidates (Worthington et al. 321). d) Affinity groups More than 20,000 employees of the firm around the world are involved in employee networking groups that are powerful ways for colleagues at J.P Morgan Chase to make networks across the organization, help others, develop and gain experience professionally. The firm welcomes all employees to join any of the firm networking groups. This practice reflects and enhances inclusive environment as employees of different backgrounds have a chance to learn about other values and challenges other groups face. e) Level of unionization J.P Morgan Chase collaborates with community-based organizations and nonprofit to assist minorities, inner-city youth, immigrants, women, low-income candidates and older adults in enhancing job-search skills and recognizing employment opportunities (Worthington et al. 323). The firm also contributes in a number of internship programs, such as the INROADS, Smart Start program and Sponsors for Educational Opportunity, in expectations that many of its interns will choose full-time employment with the firm upon graduation. f) Overall satisfaction Every two years, J.P Morgan Chase, conducts a firm wide survey, in which all employees have the opportunity to express their views about the firm's goals, culture and management. This information helps the firm to track its progress, make decisions and identify areas that need improvement. The firm recent results showed improvement in several areas, particularly management and leadership. For instance, 82 percent of employees stated that they understand the affiliation between work group goals and objectives. In addition, 80 percent stated their managers are sensitive to work-life balance. The firm is committed to making progress in areas that still need improvement.
a) Environment In 2004, J.P Morgan Chase established an Office of Environmental Affairs to upsurge the firm's focus on the environment. Enhancing and preserving the environment have far-reaching benefits for customers, shareholders, community, employees and future generations. The office facilitates the incorporation of social and environmental concerns into the risk management process, business model, and the management of the firm's resources. The firm implemented a comprehensive Environmental and Social Risk Management policy in 2005 that helps in improving social and environmental performance through better risk management (Worthington et al. 329). The firm conducts environmental and social risk analysis on prospective transactions, focusing on areas that are mainly prone to these kinds of threats such as mining, oil and gas, heavy manufacturing, forestry, agriculture and power. The firm works with customers to help develop strong pragmatic solutions, promoting socially and environmentally responsible behavior. b) Community support J.P Morgan has invested approximately $338 billion in low and moderate-income communities across the U.S. since the 2004 announcement of 10 years, $800 billion commitment to community development (Worthington et al. 124). J.P Morgan Chase is dedicated to improving access to safe, affordable housing, decent, economic development and supporting workforce fostering the commercial renewal of neighborhoods and helping low-income adults join the economic mainstream through education. The businesses, foundation and employees, are committed to providing not only immediate relief, but also longer-term recovery efforts, in communities with scarce resources and poor infrastructure. c) Philanthropy J.P Morgan invested $ 144 million in more than 2,400 nonprofit organizations worldwide in nearly 500 cities across 33 countries, in 2007. J.P Morgan Chase's Philanthropic goal strives to be a catalyst for positive, meaningful and sustainable change in its highest-need communities across the globe. The firm contributed more than $200 million to nonprofit organizations across 28 domestic markets in United States and more than 25 states in 2011. The firm also strongly believes in harnessing the power of its more than 260,000 employees and their engagement in community and philanthropy. The firm's philanthropic investments are directed to three centers of excellence: academic achievement, economic opportunity, and arts and culture.
Special Interest Groups:
J.P Morgan collaborates with appropriate private and public organizations to leverage their advocacy and expertise for positive change. The firm seeks partnerships with effective and well-governed nonprofit enterprises that deliver high quality, innovative services and programs to residents who are vested in their own sustainable revitalization in their communities (Behery, and Tarek 147). Federal deposit Insurance Corporation has sued J.P Morgan Chase and Co. accusing the firm of conspiring to keep the rate low to improve themselves. The FDIC is pursuing to recover losses suffered from the rated operation by 10 U.S. banks including J.P Morgan that failed in the fiscal crisis and were taken over by the agency.
Transparency of the company
J.P Morgan currently is facing increased demands for transparency that they measure, report, and unceasingly improve their environmental, social and economic performance (Behery and Tarek 125). The firm is likely to provide access to information on influences of their operations, to engage shareholders in meaningful dialogue about matters of concern that are pertinent to either party and to be responsive to certain concerns not covered in communication practice and standard reporting. The firm is also investigating numerous types of verification and audit as a further means of increasing the credibility of their reporting efforts and transparency.
Ethical violations, lawsuits, government actions
Slavery was one of the most unethical problems that ever occurred in the U.S., and one of those various circumstances pointed out to the biggest bank in the U.S., J. P Morgan Chase that had two predecessors in Louisiana that had customers that seem to have used enslaved persons. Although the law already tenacious the slavery case evidently with the adoption of the Thirteen Amendment to the U.S. Constitution in 1865, J.P Morgan Chase prolonged loans to slave-owners using slaves as security for the loans, merged lawsuit alleges. J.P Morgan Chase found that its predecessors had about 13,000 enslaved individuals as collateral on loans and took ownership of about 1,250 of them when the plantation proprietors defaulted on the loans. Because of the subprime mortgage crisis, a variety of government bailouts was executed to stabilize the financial system during 2007 and 2008 (Uradnik 217). Government intervened in the United Kingdom, United States and several other Western European states, such as Luxembourg, Belgium, Ireland, France, Germany, and the Netherlands. Furthermore, global reform of the banking industry has been reflected, to reduce speculation. Measures comprise a super tax on bonuses, and a transaction tax.
The firm annual CSR reports can build trust with shareholders and boost internal efforts to comply with firm's CSR goals. The best reports demonstrate senior leadership support; offer verified performance data against environmental, social and economic performance indicators; set goals for improvement; share good and bad news and include shareholder feedback. Social responsibility is a significant component of the firm success. It is a part of what the firm do and who the firm are. J.P Morgan social initiatives draw upon the strong combination of its employee outreach, business expertise and philanthropic commitments to have the broadest influence on the community. The firm investments have assisted inner-city young adults find jobs, supported organizations serving the base of the economic pyramid, funded education programs, and raised money for relief in nations plagued by natural disasters such as Japan, Indonesia and the United States.
Behery, Mohamed H., and Tarek Ibrahim Eldomiaty. "Stakeholders-oriented banks and bank performance: Perspectives from international business management." International Journal of Commerce and Management 20.2 (2010): 120-150.
Uradnik, Kathleen. "Executive Compensation." Battleground: Government and Politics: Government and Politics (2011): 217.
Worthington, Ian, et al. "Researching the drivers of socially responsible purchasing: a cross- national study of supplier diversity initiatives." Journal of Business Ethics 79.3 (2008): 319-331.