Citigroup, of which Solomon is one division, was found guilty of unethical behavior in 2003. The separate divisions of brokerage, investment banking, and insurance were coordinated for the benefit of the company, but to the detriment of external investors. This scandal followed the one in the 1990s. Discuss the issues of organization architecture that can lead to recurring corporate scandals like this. What possible changes in organizational architecture might reduce the temptation for managers to cheat in the process of wealth creation?
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