Ethical Issues in Business: Lessons from Wells Fargo Scandal

RUNNING HEAD: ETHICAL ISSUES IN BUSINESS 1
ETHICAL ISSUES IN BUSINESS
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ETHICAL ISSUES IN BUSINESS 2
Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Summary of the article...............................................................................................................3
Key ethical issues.......................................................................................................................4
Has the most appropriate ethical decision been made? If so why? If not why not?..................4
Ethical decision-making process aligning the opinion by recognizing the most important of
the seven moral philosophies outlined.......................................................................................6
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8

ETHICAL ISSUES IN BUSINESS 3
Introduction
The report will discuss in detail about the recent surrounded scandal of Wells Fargo and the
important lesson it teaches about running an ethical business. The company was also trying to
function or run on an ethical business, despite the biggest mistake (Ayres and Ayres, 2012).
The company has completely side-lined the pitfalls and challenging investments that have
actually plagued many other banking institutions.
Discussion
Summary of the article
Many years ago, the company took a decision that it was not performing up to the mark in
operations like cross-selling. The process of cross-selling actually means getting more and
more potential consumers who use single service, like checking or using many other services
like savings or credit cards. The company worked to create a particular strategy to motivate
cross-selling which also involved the workforce in communicating the consumers about
many other services and products offered by the bank (Banaugh et al., 2012). To further
motivate the workforce to grow the program, the company hired the time-honoured strategy
of giving certain incentives to the workforce who got success at the time of cross-selling. The
problems started from this point for the bank. The workforce not just answered to the
incentive by the process of cross-selling but they also produced many fake accounts in the
name of current customers of the company. The problem went out of hand and in order to
handle the issue the first reaction of the bank is to fire more than five thousand employees
and further lost the CEO of the company. The bank here made a lot of errors consisting not
acknowledging the issue publicly enough and also not appointing proper control that can