Business Ethics: Wells Fargo's Ethical Issues and Handling

BUSINESS ETHICS

Table of Contents
INTRODUCTION.....................................................................................................................................3
PART 1.......................................................................................................................................................3
Briefly justify ethical issues that company had........................................................................................3
Briefly discuss how organization handled ethical problem......................................................................4
Defining CSR concept with reference to chosen case..............................................................................4
PART 2.......................................................................................................................................................6
Applying appropriate normative & descriptive concepts of business ethics in the context of Wells
Fargo’s Woes continue as chosen case....................................................................................................6
PART 3.......................................................................................................................................................7
Analyzing consideration of varied stakeholder perspectives...................................................................7
CONCLUSION..........................................................................................................................................8
RECOMMENDATIONS-.........................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Business ethics is considered as contemporary organizational principles, set of standards
and values that govern behavior and actions of an individual person within a company. Each
candidate or stakeholder by following organizational principle obtain varied benefits in
unexpected manner. The current assignment will be based on specific scandal case and that is
Wells Fargo’s Woes Continue. The study will explain ethical problems organization had and
how it handled each. It will justify the concept of corporate social responsibility and will also
define relevant descriptive & normative theories related to case. Furthermore, the report will
clarify consideration of varied stakeholder’s perspectives.
PART 1
Briefly justify ethical issues that company had
Each ethical issue put negative impact on success and progress of a company in term of
damaging their brand image in market or entire sector, where it has performing from longer or
may be short term period. By referring to Wells Fargo’s Woes case, organization face legal
challenges due to having trust issue as its employees has opened millions of face credit card and
bank accounts in order to meet wildly unexpected sales aim, which considered in list of unethical
business practices. It has admitted that candidates’ forces thousands of borrowers to pay for auto
insurance, which they do not need to pay. In term of ethical issue, firm has losses faith of its
customers upon management that is not appropriate for its bank image in market as it losses may
profitable projects. This scandal occurs in 2016, which leads to decrease sales and productivity
as well as customer base of the most trustable American multinational financial services
organization. It can be said that without taking approval or permission from individual, no one
may use resources either intangible or tangle of other person, as it unethical practice that affect
negatively upon person who conduct it just like chosen company staff’s members do as they
create fake accounts without taking approval of their customers (The 10 Biggest Business
Scandals, 2017).
Along with discrimination and harassment in the workplace, fake accounting practice
were also recognized and included in category of ethical problems that firm had. For face
accounts its employees has utilized the name of the most trustable consumers, who had strong

relationship with brand from longer. Wells Fargo’s Woes case is covered in the list of the top 10
biggest business scandals in the world at year 2017.
Briefly discuss how organization handled ethical problem
After the allegations and facing legal issues due to conducting unethical practice, bank
may handle its ethical problem in effective manner, by following legal process in term of paying
criminal charges and terminating workers that has opened face accounts and receive unnecessary
amount of money from their loyal customers that they did not need to pay. It is quite essential for
company to take better action regarding current ethical issue, because it has affected its brand
reputation and position in banking sector, where number of rivals are existing and capable to
replace it in effective manner, which is one of the biggest threats for Wells Fargo. In term of
strategic decision, it may also change its compensation format to place less emphasis on sales
objectives. Along with these attempts it may do more that require to handle ethical issue which
firm had, just because of workers.
It may take legal action upon those who do so, along with firing them over fraudulent
accounts, as it impacted the whole business in negative manner, and decreases number of
customer base, which is not good for any company in the world of corporate (The Wells Fargo
Fake Accounts Scandal Just Got a Lot Worse, 2017). Organization may teach a good lesion to
people who attempts to create many face accounts and pressure approx. 570,000 customers to
auto insurance. Furthermore, for purpose of consumer safety, management may take initiative to
close the fake accounts as soon as possible that had been created without permission of people.
The biggest allegation put upon brand that it had charged 500,000 potential clients for
unnecessary insurance, because of unexpected unethical actions from its workers, who after face
many issues as firm taken legal actions against their practices, which is actually important. Just
because of above issues, bank still facing challenges in term of congressional investigations.
Defining CSR concept with reference to chosen case
Overview of concept-
Corporate social responsibility is the most beneficial and useful management concept in
the world of business that has been utilized by many companies, whether it is small or large. It
used in term of businesses self-regulation with purpose of being socially and ethically
accountable for varied things like customer privacy, environmental sustainability, worker’s