Guaranty Trust Bank PLC Nigeria (A)

Essay by joey1225University, Bachelor'sA+, January 2007

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Fola Adeola and Tayo Aderinokun estabilished Guaranty Trust Bank of Nigeria (GTB) with the ambition of providing outstanding service based on professionalism and ethical transparency in spite of overall incompetence and widespread irregularities and corruptions in Nigerian society. Their approach with building intimacy among the employees and integrity and professional services based on their "different" culture to investors/depositors and customers turned out to be successful so far, although the visions and the corporate culture were opposite to the prevailing conventions. However there came out several problematic issues including the employees' underpaying income taxes, diluted core values among the employees while focusing on expansion and reorganization for the future competition. To resolve these inconsistencies, Adeola and GTB should take care of both maintaining the corporate culture in the growing and changing organization and convincing investors and employees that certain changes like the temporary slowdown of the growth rate of EPS and being moral in personal level are inevitable for better future.

Q1. On what principles is GTB founded? How does the organizational culture fit with the national culture?

At the time of preparing for the establishment of GTB, various kinds vices were full blown in Nigeria. The society almost did not have any clue of unity and was fragmented into interest groups and cohorts of religion, ethnicity, tribe, and so forth. Democracy was far from Nigerians and political favoritism prevailed in various level, especially in business. Irregularities and corruptions were virtually everywhere. Although Nigeria was an oil-producing country, only putrid politicians reaped the benefit. Consequently, Nigerian economy languished in poor performance and high inflation. Moreover, Nigeria was internationally loathed with the human right issues and low level of public security. As a result, the dominant ambience of Nigerian society was pessimism with distrust and immorality.

In this background, the...