Results showed that before the scandals, negative perceptions were 15 percent. Despite Wells Fargo’s public statements that the scandal was confined to the retail sales group and that the majority of the company “does the right thing,” there was plenty of evidence that the ethical fading ran wide and deep throughout the company. Despite a mission statement and vision indicating that they are a “trusted provider”, Wells Fargo has had years of scandal. OSHA has since ordered Wells Fargo to reinstate the whistleblower’s position, awarded $577,500 in back pay, damages and attorney fees(CNN). Wells Fargo & Co. is a financial services company and the “fourth largest bank in the United States by assets” (Dixon, 2020). “Axios and the Harris Poll released a ranking of the 100 most visible companies in America by their reputations. Once Stumpf did ultimately step down, Chief Operating Officer Tim Sloan took over. The scandal that recently enveloped Wells Fargo teaches an important lesson about running an ethical business. It's been a year since Wells Fargo admitted to creating unauthorized accounts for customers, and problems continue to mount. Retaliating against whistleblowers is a major breach of trust. Wells Fargo & Co. is a financial services company and the “fourth largest bank in the United States by assets” (Dixon, 2020). This is not an example of the work written by professional essay writers. Such corporate scandals raise issues associated with ethics, as well as outcomes of unethical practices. (2019, March 30). Wells Fargo and Moral Emotions. How a business responds and resolves the issue can turn into detrimental to the bottom line of success and development. 2021 © gradesfixer.com. The company used its financial strength to purchase Wachovia during the height of the financial crisis—forming what is now the third largest bank in the country by assets—and emerged from the ensuing recession largely unscathed, with operating and stock price performance among the top of its peer group (Exhibit 1). New CEO At Wells Fargo Faces A Heavy Lift. The scandals have also “raised their legal expenses and drawn the ire of regulators” (Egan, 2018). 5 OUR CODE OF ETHICS AND BUSINESS CONDUCT People As team members and representatives of Wells Fargo, we always value and support one another. Incorrect decision making issues chosen and followed through by employees and not the consumers lead to lowered reputation and moral of Wells Fargo. More so, when Wells Fargo executives discovered that there was an issue with fake accounts they needed to stop the program, announce the issue, and resolve before it got worse. In the following text we will discuss a recent Wells Fargo scandal, the ethical issues and how or if the scandal could have been prevented. Different ethical issues can be addressed using different ethical platforms depending on the sensitivity of the matter. Retrieved February 3, 2020, from https://www.bankrate.com/banking/biggest-banks-in-america/, Egan, M. (2016, October 24). The philosophy of ethics and the corporate conscience. Incorrect decision making issues chosen and followed through by employees and not the consumers lead to lowered reputation and moral of Wells Fargo. People witnessed the downfall and bankruptcy of huge financial institutions like Lehman Brothers, Merrill Lynch and several other key members of the fraternity. Are you interested in getting a customized paper? this essay is not unique. Change ), You are commenting using your Facebook account. A similar surveyin Britain resulted in just 52% of respondents saying they felt businesses behave ethically. “In 2016, a survey was done of 1500 bank customers. The loss of honesty for a personal incentive had an effect on the corporation as a whole. We provide you with original essay samples, perfect formatting and styling. ‘My own unconscious bias’ – Wells Fargo CEO issues apology. ( Log Out /  Having been on the inside, this didn’t help establish trust and the sense of fresh beginnings (Walsh, 2019). Californian and federal regulators took three additional years to take action against Wells Fargo. Wells Fargo’s reputation is tanking, survey finds. Wells Fargo could have done so much more immediately in the wake of the scandals. The higher powered employee has the ability to trickle down to all employees the ethical business values necessary to run in a truthful way. It is also a brand that has faced many ethical and legal issues. Survey respondents ranked the companies according to criteria that included good culture, vision, and ethics. Those “free” accounts promised by employees to customers were actually premium accounts, Wells Fargo premium accounts are associated to large fees. Social Business, 4(3), 245–253. Ethics | Wells Fargo Scandal Continues By Curtis C. Verschoor, CMA, CPA ... New disclosures increase the scope of fraud and raise issues of audit and disclosure failure. That’s … Wells Fargo and Its Ethical Platform Essay, Adam Bernstein's Fargo: A Movie Review Essay, Color and Light in Fargo and No Country for Old Men Essay, Models of political rebellion as displayed in 1984 and V for Vendetta Essay, Analysis of Underlying Themes in Twelve Angry Men Essay, Guilt Or not Guilty: the Delicate Balance of Seeking for Justice Essay, From Villain to victim as highlighted in A clockwork Orange Essay, How Opposing Forces Are Interconnected, Interdependent and Complementary Essay. When misconduct becomes the central focus of attention, an organization has the opportunity to show that they have better ethical norms or they become perceived as non-strict enforcers to ethical practices. Not everyone is buying it. In a recent Deloitte survey, respondents were asked to agree or disagree with the proposition that businesses behave in an ethical manner. Wells Fargo has a fiduciary duty to treat its customers fairly. In addition to 5,300 employees being fired, if a change from an internal to an external CEO had happened earlier, consumers would have been given the signal that corporate cultural change was happening (Egan, 2016). It turns out that management and employees were not so trustworthy after all. Several regulatory bodies opened investigations into Wells Fargo following the article. ( Log Out /  Wells Fargo Just Got Hit With a $2.1 Billion Penalty For the Financial Crisis. Here is what happened. With the combination of personal and business ethics, organizational controls and governmental regulation, a company to creation of an unethical corporate culture becomes less. The entire account opening scandal of Wells Fargo was systemic in the sense that it was companywide, and not caused by one individual. Remember: This is just a sample from a fellow student. 48% disagreed. • We treat one another with fairness and dignity; we do not tolerate dis crimination, harassment, or intimidation. 5,300 Wells Fargo employees were forced to resign or were fired amid a huge scandal involving hundreds of thousands of customers and millions of dollars. A Brief Wells Fargo 's Fraudulent Accounts Issue 1202 Words | 5 Pages. WELLS FARGO ETHICAL ISSUES Wells Fargo Bank Fake Account Scandal: As company’s grow and expand more throughout the years, the founding values and initial ethics can tend to be forgotten. Did you catch that? Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. If you fit this description, you can use our free essay samples to generate ideas, get inspired and figure out a title or outline for your paper. "The only thing that is constant is change.". You can order Unique paper and our professionals Rewrite it for you. The virtue theory is made up of four characteristics. Retrieved February 8, 2020, from https://money.cnn.com/2018/07/13/news/companies/wells-fargo-earnings-stock/index.html, Kouchaki, M. (2016, September 15). We can custom edit this essay into an original, 100% plagiarism free essay. These characteristics must be met in this order to be considered ethical; courage, honesty, temperance/self-control, and justice/fairness. As penalty, “they agreed to pay $2.09 billion for actions that allegedly contributed to the 2008 Financial Crisis” (Shen, 2018), and a $1.2 billion fine paid in April 2016” (Shen, 2018). Those large fees lead to over drafted accounts and those over drafted accounts lead to larger issues such as ruining a customer’s lines of credit. Wells Fargo does not endorse and is not responsible for their content, links, privacy, or security policies. On September 8, 2016 they finally fined the bank $185 million US. Fargo CEO issues apology report stated Wells Fargo was trying to run in a truthful way lesson. An icon to Log in: you are commenting using your Google account by. To creating unauthorized accounts for customers and is not an example of the media the only thing is! The fraternity thing that is constant is Change. `` not the consumers lead to Class Action Suit November,. Lehman Brothers, Merrill Lynch and several other key members of the matter done of 1500 bank.! Bank admitted that … the virtue theory is made up of four characteristics and styling Los Angeles.. The issue can become detrimental to the economic downturn all over the world example well... 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