Goldman Sachs had intended to attend a fund-raising dinner for the Lower East Side People's Federal Credit Union, a small organization that lends to the poor. But when the invitations went out, they listed "Occupy Wall Street" as one of the honorees. Goldman, identified as an event sponsor, pulled its $5,000 funding pledge and declined the invitation. (The company continues to fund the Credit Union's financial education program.)
According to event organizers, Goldman didn't want to be associated with the Occupy Wall Street movement, whose members carry signs such as, "Goldman Sachs is the work of the devil." The company has been a target of some of the demonstrations, such as this one in Boston.
"Their money was welcome, but not at the price of giving up what we believe in," said a Credit Union representative. "We lost their $5,000, but we have our principles."
Apparently, the discussion about the decision was interesting. According to one source affiliated with the event, "It was one of those email exchanges that you talk about the next day at the office." I hope the emails make the Internet rounds soon!
- What do the Occupy Wall Street demonstrators stand for, and how does this affect companies such as Goldman Sachs?
- Do you agree with Goldman's decision about the dinner? Why or why not?
- What are the potential consequences of the company's decision?