They lied by omission. .
Goldman Sachs claims a responsibility to its clients, its shareholders, its employees and its communities to facilitate growth, but their actions repeatedly show that it puts its own interests and profits ahead of its clients (Levin 2010). Its actions cost their clients and Timberwolf millions of dollars, leading it to go bankrupt. Levin says that "when [a company sells] something to a client, they have a right to believe that you want that security to work for them " (Reuters 2010). The clients put their faith in the company that it won't deceive them and will tell their clients the truth, especially if the company is "betting against the thing [it's] selling, without disclosing that to that client " (Reuters 2010). Goldman Sachs lied to their clients by not telling them that the prices of Timberwolf stocks were expected to drop because they wanted to make more money, but what they did is considered fraud and deception. Clients are supposed to trust the company and the good service that they provide, and expect them to be honest with them. Their actions came at the expense and damage of their stockholders and ultimately cost Timberwolf to go bankrupt. This not only hurt their clients, but also those who worked for companies that were short-sold and eventually lost their jobs. A social responsibility of companies, especially an impactful one like Goldman Sachs, is to tell the entire truth to its clients, because clients need to know what they are expecting and because their actions affect many people. Businesses have a social responsibility to tell the truth to their clients to avoid deception. This deception was done to earn money for the company, but this is hurting more people (clients and their dependents, workers of other companies and their dependents) than it is helping (investors and their dependents). Goldman Sachs' actions "blew up the financial markets and cost millions of Americans their jobs, homes, and livelihoods " (Levin 2010).
