Wells Fargo deals with one of the most sensitive items in the society: money. A Brief Wells Fargo 's Fraudulent Accounts Issue 1202 Words | 5 Pages. Wells Fargo gets poor reputation ranking to start 2020. How this came about begins with: Wells Fargo company … Wells Fargo’s reputation is tanking, survey finds. For example, Well Fargo avoided many of the pitfalls and risky investments that plagued other big banks in 2008/2009. “New credit card applications were down 43 percent in the fourth quarter of 2016 from 2015, and new checking account openings fell 40 percent” (Corkery, 2017). This could have shown the establishment of a culture of compliance within the organization ­­– attributes that are “established by top management, characterized by senior management example, embedded in activities such as education, reinforced by incentive systems, given force through the treatment of transgressors, integral to information systems and their use and management, and inseparable from the organization’s structure, processes, and management style”(LeGrand, 2005). Wells Fargo Scandal: Ethical Issues And Possible Prevention Measures In today’s society the scandals that hit huge corporations are found and discussed speedily due to the use of the media. However, more than one person or department is responsible for how an organization is run and becoming or being socially responsible leads to better end results, great profits and attraction of more consumers for business growth. Wells Fargo could have done so much more immediately in the wake of the scandals. Despite a mission statement and vision indicating that they are a “trusted provider”, Wells Fargo has had years of scandal. After the scandal, negative perceptions rose to 52 percent” (Egan, 2016). Attention! Retrieved February 8, 2020, from https://www.barrons.com/articles/wells-fargo-makes-a-clean-break-51553908012. Asked then to opine on the statement that businesses focus on their own agenda, rather than considering wider society, 75% agreed. People witnessed the downfall and bankruptcy of huge financial institutions like Lehman Brothers, Merrill Lynch and several other key members of the fraternity. Wells Fargo’s scandals are hurting its bottom line. 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By continuing we’ll assume you board with our cookie policy. 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. In an attempt to correct the situation, Wells Fargo fired 5,300 participating employees, which amounts to about 1 percent of the 300,000 total company employees. 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. Wells Fargo Makes a Clean Break. The bank admitted that … Retrieved February 3, 2018, from https://www.latimes.com/business/la-fi-wells-fargo-ad-campaign-20180509-story.html, Shen, L. (2018, August 1). Want us to write one just for you? (2019, March 30). Here is what happened. Home — Essay Samples — Entertainment — Fargo — Wells Fargo Scandal: Ethical Issues And Possible Prevention Measures. Wells Fargo Ethical Issues Lead to Class Action Suit November 13, 2017 by Beck Law P.C. Change ), You are commenting using your Google account. Wells Fargo has a fiduciary duty to treat its customers fairly. The philosophy of ethics and the corporate conscience. (2014). 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). 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. It is also a brand that has faced many ethical and legal issues. We provide you with original essay samples, perfect formatting and styling. ( Log Out /  We can custom edit this essay into an original, 100% plagiarism free essay. This was the case for Wells Fargo Bank, the growth of the company led to added pressure on employees and less emphasis on company honesty. Wells Fargo Struggling in Aftermath of Fraud Scandal. https://doi-org.ezproxy.snhu.edu/10.1362/204440814X14103454934258, Charles W. Scharf. Piazza & Jourdan (2018) recognized that when a member of an organization are tied to it, and have to deal with the consequences, the less they are to react to a 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. “deceived the Federal Housing Administration into insuring risky mortgages that were ineligible for federal support between 2001 and 2008” (Shen, 2018). Several regulatory bodies opened investigations into Wells Fargo following the article. The choices made were companywide in order for all who participated to benefit. But the bank’s management set unrealistically high sales goals for its employees, encouraging many employees to game the system. This is not an example of the work written by professional essay writers. Wells Fargo & Co. is a financial services company and the “fourth largest bank in the United States by assets” (Dixon, 2020). Building a Culture of Compliance. First of all, by not offering an incentive for quota purposes. The report stated Wells Fargo had an unhealthy “pressure-cooker” sales culture. Still, in 2020, Wells Fargo has “considerable work to do in rehabilitating its reputation with federal lawmakers and consumers” (Craver, 2019). “In 2016, a survey was done of 1500 bank customers. I am writing to you regarding recent Wells Fargo’s fraudulent accounts issue. Did you catch that? Wells Fargo and Moral Emotions. Wells Fargo fired the Pomona, California branch manager for using the very protections the government put in place to protect Americans from this egregious behavior: the Wells Fargo’s Whistleblower Hotline. Note: This piece was updated to include the connection to the ethical failures at Wells Fargo as a strong illustration of the article's focus Follow … The entire account opening scandal of Wells Fargo was systemic in the sense that it was companywide, and not caused by one individual. Investment products and services are offered through Wells Fargo Advisors. Those “free” accounts promised by employees to customers were actually premium accounts, Wells Fargo premium accounts are associated to large fees. “Axios and the Harris Poll released a ranking of the 100 most visible companies in America by their reputations. 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). Retrieved February 8, 2020, from https://www.wellsfargo.com/about/corporate/governance/scharf/, Corkery, M. (2017, January 13). There is need to ensure that there is an ethical culture that keeps a tab on the business ethics practiced by the organization globally. 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 15 Largest Banks In America. (2020, January 2). Despite its reputation issues, Wells Fargo is still recruiting new customers. Investigators discovered the “pressure-cooker” sales culture led … A similar surveyin Britain resulted in just 52% of respondents saying they felt businesses behave ethically. Are you interested in getting a customized paper? In addition, “just over half of non-Wells Fargo customers surveyed said they were unlikely to join the bank, compared with 22 percent previously” (Egan, 2016). Californian and federal regulators took three additional years to take action against Wells Fargo. The bank offered many different services to its customers. "The only thing that is constant is change.". CEO Charles Scharf apologises for comments blaming ‘limited pool of Black talent’ for lack of diversity in recruiting. Social Business, 4(3), 245–253. GradesFixer.com uses cookies. This was the case at Wells Fargo where employees had to participate in unethical business processes in order to meet their expectations. 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