Wells Fargo's Ethical Ethics Of Wells Fargo Financial Corporation

While the organization blatantly made mediocre managerial decisions, such decisions merely reflect the competitive business environment the financial services industry has grown accustomed to. When it comes down to it, the employees of Wells Fargo did what most individuals would do when faced with the terrifying reality of potential unemployment. In the fast paced, money driven, cut throat environment that is known as twenty first century Corporate America, the lines often blur in terms of ethical decision making. Wells Fargo deserves to receive the blame in this situation in order to demonstrate that the big business taking advantage of the individual is intolerable and that the consumer demands a change. Modification of organizational behavior,

Why is Accountability so important in the health care industry? Even though a situation may be positive or negative, every aspect of health care needs to be credited to something or someone, with accountability, errors can be fixed and then prevented and helps keep costs down. An employee accountability is measured by customer satisfaction, results of performance, and the cost and impacts of the employee over time, and affects an organization’s working culture by their values, integrity and work ethics. A successful organization follows the checks and balance process, maintains a positive working culture, and stays clear from blame.

Unethical behaviors in business affect everyone since you either work in the field or are a consumer of its services. Unfortunately, almost every company usually has individuals who act unethically whether it is for their personal benefit or for the sake of the company they work for. Unethical behaviors in business might be as simple as using company property or funds for personal gain to inside trading and financial fraud. According to The Chartered Institute of Management Accountants, nearly one third of business professionals feel pressured to compromise their ethical standards and are increasingly pushed towards unethical behavior. Moreover, “misconduct is common and accepted by business services professionals, the integrity of entire economic systems is at risk”, states Jordan A. Thomas, partner and chair of the Whistleblower Representation Practice at Labaton Sucharow law firm. In fact, making money at any cost is all what matters, while doing what is right and abiding by the law is not. That said, as a corporate finance student and a business administration major, it is as interesting as important for me to learn about what is considered as unethical in business, in addition to who is enforcing the federal securities laws, proposing securities rules, and regulating the securities industry.

In the article Wells Fargo’s Reaction to Scandal Fails to Satisfy Angry Lawmakers it mentions how lower-level employees were mainly affected by this unethical behavior and that more than 5,300 employees had been fired due to the unethical practice. Some employees were fired that did not participate in the unethical practice during the scandal were affected as well as a result of not being able to attain the sale goals. Stated in the article, How The Wells Fargo Phony Account Scandal Sunk John Stumpf, “Two former employees filed a $2.6 billion class action suit, alleging branch workers were unfairly fired when they could not meet Wells' aggressive sales quotas.” Customers also suffered because they trusted this bank and its employees to do their job right and they were taken advantage of. Many customers closed their bank accounts and switched banks. I think that the upper-level employees got off pretty easy considering they were most likely the ones enforcing the company standard. Upper-level employee often put pressure on low-level employee, which to me is unethical. They should not have got off without

Recently Wells Fargo’s scandal of creating phony accounts has raised ethical concerns in the corporate world. Wells Fargo employees opened more than two million unauthorized bank and credit card accounts to meet sales projections. The company was charged with huge fines and earned a bad reputation that will take years to rebuild.

The descriptive model of ethical decision making comprises of the way people typically make ethical decisions (Copper, 2012). Every ethical decision is based on the social and cultural context in which it occurs, this is inclusive of the ethical decision to become whistle blowers, as seen in the Dryburgh case study on which this paper is grounded. This paper is focused on demonstrating proper case analysis using Cooper’s ethical decision-making model on the Dryburgh Case Study, the case of Corcoran State Prison.

In my opinion, the self-view of ethics fits the Wells Fargo’s case. In that case, self-interest was made clear from its top level down to its employees. Both, Well Fargo management and employees, had their agenda. For the Wells Fargo management, its agenda was to build the brand, improve organizational performance while making more money. Furthermore, the employees’ motivation was to keep their jobs, and if they could make extra money also, it would be a win-win situation.

However, as we discussed in class, there are so many situations where ethical decision-making occurs, and there are so many factors that influence why we do what we do. Because we work with a multitude people with interesting and diverse lives and backgrounds, and because we come in with our own baggage and experiences that influence how we act and react, we make split-second decisions all the time that can have profound effects on our work and our consumers. Having so many opportunities to look at my own actions, this particular assignment has been so rewarding and interesting for me. This is the first time in any of my assignments where I have been forced to look at how ethics is involved in our

Being an ethical business captivate and keep employees, stakeholders, and employees as they consider knowing

Liedka (1991) suggested that many managers find themselves forced to choose between preserving their relationship with the firm and following their own values. Tetlock (1992) showed that individuals confronted with complex problems view a justifiable decision as the most socially rational, demonstrating the power of perceived organizational norms. Beu and Buckley (2004) argued that organizations can affect the rules of the game in favour of ethical behaviour by implementing ethics programs. In this study two types of ethics programs are described, Codes of ethics and Values based organizations. In line with this paper, under Codes of ethics the employee is accountable for the organization. Members of the organization know what is expected of them, they know to whom they might justify their behaviour and they understand the sanctions and the benefits associated with their behaviour (formal type). By contrast, Value based organizations focus on defining organizational values and encouraging employee commitment to ethical aspiration through personal self-governance. (informal type). Concerning influential types of management/leadership in ethical behaviour, findings contain mainly the following types- as they were described by Trevino & Brown (2004): Transformational leadership: these relationships entail future obligations that are unspecified and are enforced by norms of reciprocity. Without the protection of contractually specified obligations, the perceived trust-worthiness of the partners and the fairness of the exchange become important for developing and maintaining lasting relationships. The obligation is voluntary and the benefits may be non-monetary, hence the loss of reputation plays an important role here. Leaders, in this category raise followers’ level of moral development and focus followers

This task analysis the issue of ethics in accounting and finance as discussed in the International Journal of accounting and finance. Currently, ethics of any firm is an important topic due to the numerous scandals that have taken place in different countries which have resulted in damage to the economy and society. These scandals have made the morality of accountants and businesspeople. The main contributors of business ethical standards are the accountants. The accounting profession has a duty to play so as to reduce the corporate scandals. They should make sure that there is proper financial management, quality audit, ethical standards improvement and that the governance regimes are strengthened

Wells Fargo responded to the scandal by firing 5,300 low-level employees. However, the problem was much bigger than that. After numerous reports to the ethics line, it is almost certain that Wells Fargo officials had some knowledge of the scandal. Additionally, the inaccurate U5 forms “...confirm that Wells Fargo had ample information about the scope of fraudulent sales practices” (Cowley). Senator Elizabeth Warren “…publicly condemned [CEO John Stumpf] for his ‘gutless leadership’” in preventing and handling corruption within his company (Egan, Wattles, and

Ethics play a huge role in the global business field, since considerations have to be made on moral practices, values, and judgments that govern the direction and overall success of the company. Consequently, over the progression of history, managers, entrepreneurs, and stakeholders at the helm of organizations have always had the mandate of making moral resolves on matters of ethics. According to Hunter (2003), such an approach to ethical behavior prompts a substantial growth in the organizational corporation, as well as maximizing business profits, and creating a reputable company image (Cutler, 2004). Notably, the overall performances of organizations that take part in unethical

Ethics in business and in corporate culture has become a critical issue for many companies. There is need to pay more attention to an analysis of unethical behavior in leadership and its relation to corporate culture. Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility. The behavior and the individual values of the leader provide the direction to the business. Leader’s actions in term of ethical behavior and unethical behavior gives ideas to the employee and other stakeholders that what need to follow and what values are aspired in an organization. The position of the leader with moral and ethical values is most important to provide the solutions to ethical issues in a workplace. This also evident from above discussion that ethical leadership is also crucial in developing the ethical culture within an organization. The employee performance can also incredibly increased by ethical and moral behavior in a workplace that practice good ethics. Finally, the overall performance of an organization in term of its financial outcomes is also benefited from the ethic practice. The case study of L’Oreal also provides a good example of all

Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible.