Business Analysis: "JP Morgan Chase" Company Culture

During the late 19th century, a period when the U.S. railroad industry experienced rapid overexpansion and heated competition, Morgan was heavily involved in reorganizing and combining a number of financially troubled railroads. In the process, he gained control of larger portions of these railroads stock and eventually controlled one sixth of America’s rail lines.

JP Morgan Chase is one of the oldest financial institutions in the United States. Having a history of over 200 years of service. Today, they are leading in global financial services firm with assets of 2.6 trillion, They own banks in over 100 markets, They employ over 250,000 citizens, they serve millions of consumers, small businesses and many of the worlds most prominent corporate, institutional and government clients.

They also lead in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Finally, their stock is a component of the Dow Jones Industrial Average. The firm is built on the foundation of more than 1,200 predecessor institutions that have come together through the years to become the company it is today. JP Morgan Chase &Co. can trace their history beginning 1799 in New York City, and their many well-known heritage firms.

The difference between JP Morgan and other investment banks is that they managed to merge commercial banking and investment banking in a way that blended the cultural influences of commercial banking, such as focus on risk, big infrastructure systems, and a heavily emphasis on process. The other difference is that with JP Morgan Chase, you have a vast amount of corporate cultures mixing and personal types. “Their operational risk management is probably the best in the industry.” Says former employee Jason Bailey. “It is like what the air industry do, once someone make a mistake they all make sure it doesn’t happen again. Their focus on control is outstanding. Mistakes are allowed as long as you never hide them. People are actually allowed to commit mistakes, and most of the time they wont let that people go. Their philosophy is that the person who already made a mistake and costed money, learned the lesson better than anyone, anyway they already paid their training (cost of the mistake), They are always there for their clients. They are very costumer-centric and that includes internal clients.” (indeed.com)

The JP Morgan mission is to enable more people to contribute to and share in the rewards of a growing economy. They believe that reducing inequality and creating widely-shared prosperity requires collaboration of business, government, nonprofit and other civic organizations, particularly in the cities and metropolitan regions that power economic growth. I do believe JP

Morgan follows their mission statement trough actions such as Financing the building of the Brooklyn Bridge The Brooklyn Trust Company, one of JPMorgan Chase’s predecessors, provided a majority of the nearly $15 million needed to finance the construction of the Brooklyn Bridge, the longest suspension bridge in the world. The historic bridge, opened in 1883, was the first to connect Manhattan and Brooklyn.

Advancing Women in Finance: In 1924, Chase National Bank appointed Mary Andress Assistant Cashier. Chase was the first large New York City bank to hire a female officer in its main office. Andress also actively promoted banking as a viable career choice for women. Pioneering the ATM: The United States’ first prototype cash dispensing machine, a developer of the ATM, was launched by Chemical Bank in 1969 at a Rockville Centre branch on Long Island. The first US bank to offer cash on demand, 24-hour banking was on its way to becoming a convenience all could enjoy. Lastly, Funding the Revitalization of Detroits Economy: In 2014, JPMorgan Chase & Co. pledged $100 million over five years to support, accelerate, and scale some of the most innovative efforts underway to transform Detroit’s economy. Not only Detroit, but creating opportunity for resident in many other cities. The book defines a good mission statement as a brief expression of why the company exists. JP Morgan defines the scope of the company’s activities and its priorities in serving its target customers.

They are looking to advance cities financially through leading a cooperating, planning for inclusive growth, investing in data, activating community support and engaging anchor institutions. These are some steps they plan to use in order for their mission, vision and values to take place.

JP Morgan’s Code of Ethics states “The purpose of the Code of Ethics for Finance Professionals is to promote honest and ethical conduct and adherence with the law, particularly as related to the maintenance of JPMorgan Chase & Co. financial books and records and the preparation of its financial statements. Noncompliance with applicable ethics laws and regulations can result in significant legal and regulatory exposure to the firm, as well as cause serious reputational harm. The obligations outlined by this Code of Ethics are a supplement to, and do not replace employee responsibilities and obligations listed in the firm's Code of Conduct.” Those who do not comply with the Code of Ethics will result in immediate dismissal. Violations of the Code of Ethics are violations of law, which may expose both employees and the firm to criminal or civil penalties. The Code of Conduct states “At JPMorgan Chase & Co. (“JPMC”), preserving our strong ethical culture is a top priority; we must continue to embed the values of integrity, fairness, and accountability in all that we do. We all share a responsibility to build on this proud heritage, and to maintain exceptional relationships with our customers, shareholders, each other, and the neighborhoods and communities in which we operate.”

Despite the details of both Ethics policies, JP Morgan has been accused on unethical behavior since the global financial crisis of 2008.However, I do believe they are working towards becoming a more ethical and law abiding financial system.

When it comes to Corporate Social Responsibility, JP Morgan has a Corporate Responsibility Report. In the report, there is a Model for Impact which focuses on four strategies (Jobs and skills, Small Business Expansion, Financial Health, and Neighborhood Revitalization) of inclusive growth and creating necessary actions to insure lasting communal and economic growth. In agreeance, the company has stakeholders which include Shareholders, Employees, Communities, Retail Customers, Policymakers and regulators and Nongovernmental Organizations.

“We believe we need to listen to, and understand the needs of, all these different groups – and that if we fail at anyone, the whole enterprise suffers. We have a wide range of mechanisms to engage and communicate with our diverse constituencies. Our goal is to understand their perspectives and the issues that matter to them, and to ensure they understand our strategy and performance. We take stakeholders’ points of view seriously and use their feedback to inform our strategy and how we operate our business. We regularly engage with our customers, consumer groups and other stakeholders with a goal of developing products, services and policies that are responsive to their needs and address the issues that matter most to them. We have established forums at local, regional and national levels through which stakeholders can share their perspectives with us, both formally and informally” (jpmorganchase.com). On the JP Morgan’s cite, they have information based on Diversity and Inclusion in which they state their views and how they use Diversity and Inclusion to further their growth in the company.

When it comes to Diversity and Inclusion, I was not able to find a policy on that. However, I believe their Corporate Responsibility Report covers Diversity as well. They target communities around the world who need financial stability and need to be out of a financial crisis no matter the race. Diversity and Inclusion is also an aspect of their hiring process.

There are ways to advance a career at JP Morgan Chase. They offer positions at their corporate location as well as Chase Bank Branch locations. In order to be considered for employment as a Chase bank teller, candidates must possess the following: High school diploma or equivalent. At least six months experience handling cash or Post-high school degree (either completed or in progress). For other higher financial positions, a college degree is required. Based on the reviews of Indeed.com employees have rated the job culture as great, other employees have been described as great to work with. Customer service skills are required, as well as the ability to properly and efficiently count money, work under pressure and catch onto a fast work environment.