Business Ethics: Wells Gogo

777 Words 4 Pages
Wells Fargo has long had a "going for gr-eight" initiative where they encouraged customers to carry at least eight different Wells Fargo products (Whitehouse, 2015). Many speculate that this initiative is the reason Wells Fargo has been under heightened scrutiny and accused of fraudulent practices that resulted in a 2013 Times Investigation (Koren, 2015). At that time, employees and customers began to complain and file legal actions against the company related to the company’s reportedly aggressive sales culture. Regulators are estimating that Wells Fargo opened an estimated 2 million deposit and credit card accounts without customer’s knowledge (Koren, 2016). Former employees are now filing claims against the company because they claim that …show more content…
The text states that managerial ethics is "an individual’s responsibility to make business decisions that is legal, honest, moral, and fair" (Parnell, 2014). Based on research the case and reading the text; I believe that Wells Fargo was affected by both an ethical problem and an agency problem. Parnell (2014), states that "managerial ethics pertains to individuals, not corporate behavior" and "organizations can foster ethic decision making in a number of ways". I am of the opinion that the organization failed to foster ethical decision making because of the fact that they were pushing their employees to meet sales quotas that were unattainable. While this is true, the management failed to act in the best interest of the stakeholder as evidenced by reports of firing employees who refused to create the fake accounts and retaliation for failing to meet the over-exaggerated goals. The employees that felt it was ok to engage in the opening of accounts, forging of signatures, and ruining of the lives of unsuspecting customers suffered from a lack of ethics. The management knew what was going on but failed to act on the wrong doing. For that reason, I believe that both agency problems and ethical problems were both prevalent in this …show more content…
They will have to take a strong ethical stance and they will have to ensure that they have management in place that will encourage and uphold their ethical principles and beliefs. Training will be a key component for the employees. Wells Fargo will need to ensure that they keep ethics at the forefront of all employees’ minds. It will be important that they look at their culture and ensure that at no time in the future are employees or executive management are incentivized to meet overinflated goals which may lead to unethical means of

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