Ethics Leadership and Decision Making Assignment (Doc)
Added on 2020-03-15
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Running head: DECISION-MAKING AND ETHICAL LEADERSHIPBusiness: Ethics Leadership and Decision MakingNameInstitution
DECISION-MAKING AND ETHICAL LEADERSHIP2Tables of ContentsIntroduction......................................................................................................................................3Brief overview of the Wells Fargo Company..................................................................................4Unethical dealings facing the company...........................................................................................4Theoretical perspectives of business ethics and decision-making...................................................6Utilitarian theory perspective of Business ethics.............................................................................6Criticism of the theory.....................................................................................................................7Personal evaluation of the theory and the unethical behaviors of the Wells Fargo Employees......8The stakeholder theory perspective of business ethics and decision-making..................................9Criticisms of the stakeholder theory..............................................................................................10Personal evaluation of the theory in relation to Wells Fargo Unethical behavior.........................11Conclusion and recommendations.................................................................................................12References......................................................................................................................................14
DECISION-MAKING AND ETHICAL LEADERSHIP3IntroductionBusiness ethics have always played a vital role in the growth and development of mostbusiness organizations by positively contributing to increased productivity by ensuring thatbusiness practices and operations are conducted by the organizational standards with the aim ofmeeting the organizational, individual and stakeholder’s expectations are met. Ethical standardsor factors are therefore important in decision making especially when an unethical behavioroccurs affecting the reputation of the organization as well as the stakeholders of the company(Burrell, 2017). Unethical dealing or behavior is acting outside of what an individual ororganization considers being morally right or proper. Workplace ethics are important as theyensure that there is transparency in business dealings and builds investor or customer trust withan organization. However, an organizational ethical culture is shaped by effective leadership.Organizational leadership has however been faced with ethical dilemmas in which they findthemselves in a situation to choose between two options neither of which resolves the situation inan ethically acceptable manner (Arnold, 2016).Various theoretical concepts or models have been developed to help in understanding thebasis of ethical decision-making and leadership in many organizations who may be facing oraccused of unethical dealings or experiencing ethical dilemmas. These theories include utilitariantheory, stakeholder approaches theory, the interrogative social contracts theory, the justiceapproach theory among others. This essay will therefore provide the theoretical framework of theunethical dealings of the Wells Fargo Company in which her employees were found to havecreated fake accounts in the name of their real customers. The creation of such accounts wasfound to be an unethical behavior or dealing and resulted to damaged reputation of the company
DECISION-MAKING AND ETHICAL LEADERSHIP4as well as loss of customers’ confidence and trust with the company (Fryer, 2016). The studywill also examine the application of the theoretical concepts, in this case, the utilitarian theoryand the stakeholder theory in understanding the company unethical dealings and how they couldbe solved as well as why ethical behavior is important for the future growth and development ofthe company.Brief overview of the Wells Fargo CompanyWells Fargo and Company is an international bank in America that works as a financialservices holding company. It is the 10th largest bank in the world and has its headquarters in SanFrancisco in the US. It was formed by William Fargo and Henry Wells and has total assets of $ 1930.12B. The company has been operating on three different segments including community andwholesale banking, wealth, and investment banking. It also offers retail, commercial services,and corporate banking to its customers through the internet and other distribution channels toindividuals and other distribution, businesses and institutions in over 50 states in the US as wellas in other countries (Cavico & Mujtaba, 2017).Unethical dealings facing the companyThe company has been faced with great ethical issues of concern since 2011 howeverthrough relevant investigations in the year2015 and 2016 it was found that the companyemployees were creating fake accounts in the name of real customers. According to theinvestigation by the Federal regulators, it was found that the company employees had secretlycreated millions of unauthorized bank and credit card accounts without the knowledge of theircustomers. This effect led to the accounts earning the banks unwarranted fees and allowed Wells
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