For a considerably long time, Wells Fargo has managed to cultivate an excellent reputation as one of the most efficiently managed banking institutions in the United States. However, this immaculate reputation has been tarnished in the wake of the recent fake accounts scandal. Since the beginning of the decade, the employees of the bank have created millions of fake credit cards and bank accounts. From 2011 to 2016, this banking institution has managed to collect a staggering $2.6 million in consumer fees (Partnoy & Eisinger, 2016). The collection of this huge amount of money is a direct outcome of the trend of the employees to set up fake accounts. During this period, the employees set up around 1.5 million unsanctioned deposit accounts and
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However, these publicly proclaimed initiatives were largely insufficient to prevent the occurrence of both scandals. This aspect shows that having the Code of Ethics of the company is insufficient if the employees and the managers of the companies do not follow the guidelines of such Code. For instance, in the case of Wells Fargo, the objectives of the management overrode the requirement for the employees to adhere to ethical conduct (Leasure & Zhang, 2017). The requirement to achieve the objectives led the employees to ignore ethical conduct in the execution of their duties. In the case of IKEA, the objective of achieving profitability also led to the ignorance of quality control which would have ensured the elimination of the fundamental flaws in the …show more content…
The possibility is that the IKEA scandal only involved a selected number of a few people in various departments. These people may have had control over some key manufacturing stages, which they could manipulate to ensure a low-cost production process. However, in the Wells Fargo’s case, the unethical behavior was considerably widespread within the organization. Therefore, the Wells Fargo scandal was different in terms of the manner in which it involved a significant number of people (Leasure & Zhang, 2017). Thousands of the company’s employees in this context were engaged in the secret creation of new credit cards and bank accounts for the consumers without their knowledge. In this manner, they created overdrafts and a host of other fees. The extent of the Wells Fargo’s case is more notable since over five thousand employees lost their jobs because of their involvement in the
However, these publicly proclaimed initiatives were largely insufficient to prevent the occurrence of both scandals. This aspect shows that having the Code of Ethics of the company is insufficient if the employees and the managers of the companies do not follow the guidelines of such Code. For instance, in the case of Wells Fargo, the objectives of the management overrode the requirement for the employees to adhere to ethical conduct (Leasure & Zhang, 2017). The requirement to achieve the objectives led the employees to ignore ethical conduct in the execution of their duties. In the case of IKEA, the objective of achieving profitability also led to the ignorance of quality control which would have ensured the elimination of the fundamental flaws in the …show more content…
The possibility is that the IKEA scandal only involved a selected number of a few people in various departments. These people may have had control over some key manufacturing stages, which they could manipulate to ensure a low-cost production process. However, in the Wells Fargo’s case, the unethical behavior was considerably widespread within the organization. Therefore, the Wells Fargo scandal was different in terms of the manner in which it involved a significant number of people (Leasure & Zhang, 2017). Thousands of the company’s employees in this context were engaged in the secret creation of new credit cards and bank accounts for the consumers without their knowledge. In this manner, they created overdrafts and a host of other fees. The extent of the Wells Fargo’s case is more notable since over five thousand employees lost their jobs because of their involvement in the