Not long ago the CEO of Citi announced by famous email that the group was profitable again. It was one of the turning point factors in the financial market crash.

“… the locally incorporated consumer arm of the US banking giant, reported record profits of $ 703.6 million … The bank said its diversified business model managed to maintain ‘stable and constant’ growth in its operations …” (narrow)

There is no doubt that Citigroup valued profitability. But what inherent corporate value of Citigroup got it into trouble, like many other banks: profitability at any cost?

One of the advantages of using this value is that it is honest and straightforward:

“We are in business to make a profit, as profit is the means by which we maintain growth, provide superior service to our customers and provide long-term opportunities for our employees.”

But doesn’t this apply to any business?

Essential for (any) business

Being profitable is a requirement … and essential for several reasons (Friesens Corporation):

– Ensures our long-term prosperity and growth.

– It allows us to track and keep the best people to work with us.

– Allows individual staff members to grow in their careers within the Organization.

– It allows us to contribute to the well-being of the community in which we operate.

One way to shade the statement is as follows; Justice. But isn’t equity a separate corporate security?

Fair benefits

… Our first responsibility is with our clients … who trust us to provide their services. To meet your needs, everything we do must be of high quality. So … We must constantly strive to reduce our costs to maintain reasonable prices and profits. Our suppliers must have the opportunity to make a fair profit.

Another problem is the dilemma of approach, short-term versus long-term in a “balanced” way:

Sustainable profitability

Our business is based on a balanced perspective between short and long term vision. Our goal is to grow … through profitable investments.

Our goals are:

… provide a dynamic and responsive organization that ensures a rapid response to opportunities and competition. Invest in a balanced portfolio of short, medium, and long-term measured risk business opportunities

Not in the first place.

We will establish a reputation for excellence with every business relationship. Our customer relationships will come before profits.

Not at any cost … The example of where it went wrong:

Enron’s relentless emphasis on profit growth at any cost without a system of checks and balances resulted in ethical failures that ultimately led to the company’s downfall. Jeffrey Skilling, former CEO of Enron, communicated his priorities to employees: “benefits at all costs” (Tracinski, 2002 – allbusiness.com/management/corporate-culture/8944612-1.html)

But is it a corporate value? Are employees profitable on their own or is it the way they operate as a team, how do they learn, are they passionate, professional or responsible?

Profitability is often part of the business value statement, but always in the context of the preceding or similar examples.