Today, Wells Fargo is widely recognized for its commitment to the Hispanic and Latino community. This commitment however, is not a recent phenomenon and dates back to before the turn of the century. Since its founding in 1852, Wells Fargo had encouraged team members to treat all customers with courtesy and respect. The once informal policy became company standard in 1888 when agents and managers were required to show “proper respect to all. Let them be men, women, children, rich or poor, white or black…”
December 23, 2017 Mr. Jaime Dimon Chairman of the Board and CEO J.P. Morgan Chase & Co. 270 Park Avenue, 48th Street New York, NY, 10017 Dear Mr. Jaime Dimon, I am writing to express my interest in the position of entry level Financial Analyst, advertised as being open with your company at this time. I am an experienced professional who is skilled with a background in financial operations, and summarizing information regarding security products, and industry trends. Through my research in this position, I know that J.P. Morgan Chase & Co. is one of the fortune 500 companies ranking in number #21 as the biggest American bank in terms of sales, stock market values and financial services for consumers and small businesses.
The Wells Fargo Fake Accounts Scandal: Implications for Business Environment and Financial Scandals Your Name Department of ABC, University of ABC – Whitewater ABC 101: Course Name Professor (or Dr.) Firstname Lastname Date Introduction Financial scandals have long-lasting effects on both individuals and the broader economy. This research paper explores the Wells Fargo fake accounts scandal as a recent example of a financial scandal and examines its implications within the current business environment. The paper also highlights the significance of financial scandals and the need for stringent regulations and oversight to prevent fraudulent activities.
early stages of the scandal, the San Francisco based financial institution was investigated by the local Los Angeles City’s Attorney and California state officials. Preliminary investigations revealed the extent of the fraud and malpractice predated as far back as 2011. As a result, on September 8, 2016, federal investigators followed suit and the Consumer Financial Protection Bureau Agency opened an investigation against Wells Fargo and handed a $185 million penalty to settle the dispute. This settlement would become the largest fine levied in the agency’s history. Of the $185 million, $100 million comprised of fines from the Consumer Financial Protection Bureau (CFPB), $50 million originated from the Los Angeles City Attorney’s Office, and
However, the quota placed on the employees was unrealistic and led to the unethical behavior. Wells Fargo asked employees to sell eight bank products per customer household. They were able to get to “6.32 products per customer household, twice the industry average” (EconMatters, 2016). The culture of profit over customer in addition to the pressures placed on employees led to employee’s creating
Organizational Strategy and Objectives The foundation of Wells Fargo’s strategy is its focus on customers. The company’s strategy tends to drive the choices they make and also enable them to prioritize its efforts, differential from peers, and build a lasting value for customers, employees, communities, and shareholders. The diversified business model tends to provide the company with the stability and the strength as it assures communities and customers that it exists to serve them and also the future generations. The objectives of the company are to be the leader in financial services in areas of team member engagement, customer services and advice, shareholder value, innovation, corporate citizenship, and risk management (Wells Fargo n.d).
Contracting ethical officers and on-going training would have educated employees on the proper decision making steps. This dilemma safeguarded that Wells Fargo will take a different approach with its management team, ensuring they are trustworthy and promoting the company values, as customer satisfaction and trust is the
As employees faced pressure to reach quotas, they found ways to cheat the system. If a customer came in to open an account, the employee would simply make it two or three. The intense pressure placed on employees created an environment that not only rewarded dishonesty and malpractice, but made it necessary to maintain employment. Many employees attempted to report these illegal practices to the Wells Fargo ethics line, but action was never taken and the problem escalated.
The use of mortification strategy can be seen when Mark Sloan, current CEO of Wells Fargo apologized to the customers and as well as employees of Wells Fargo on October 2016 who was affected by the 2 million fake bank account incident that had just happened (Shen, 2016). Although this apology came one month late, it shows that the organization is bearing responsibilities for the negative effects caused towards its internal audience – the employees of Wells Fargo and as well as external audience – customers of Wells
The art of Business Bluffing, as Carr would describe it is “simply as game strategy—much like bluffing in poker. ”(A. Carr) However, it could more aptly be described as lying, cheating, and bribing all in the name of achieving business objectives. An article published in 1968 entitled, “Is Business Bluffing Ethical?” Albert Carr maintained that Business Bluffing is ethical.
Under this approach, an action is considered morally bad because of some characteristic of the action itself, not just because the product of the action is bad. Wells Fargo unethical practices demonstrates unethical behavior, under deontological ethical theories as its employees duty to operate in an honest and fair fashion , in providing services to the public. Wells Fargo codes of conduct does not permit sales practices of these sort, therefore the employees who participated in these practices made unethical decisions. Unfortunately there was a wrong-doing on a massive scale. The acts of unethical behavior were conducted by both the employees and management.
Having an understanding to ethical consideration and accountability will improve customer satisfaction, employee performance, and the continuum for accountability ("Ethical Leadership: Fostering An Ethical Environment And Culture",
Introduction The key ethical issues that were presented in this case study were quality control, lack of customer care, responsiveness, and harming the customer. The Johnson and Johnson case may have been seen as a turning point due to many things the company did right. However, there were many ethical issues in this case which will be explored more throughout this paper.
Ethical issues in accounting and finance. Summary This task analysis the issue of ethics in accounting and finance as discussed in the International Journal of accounting and finance. Currently, ethics of any firm is an important topic due to the numerous scandals that have taken place in different countries which have resulted in damage to the economy and society.
One of those most challenging areas I have experience during my current placement is ethical decision-making. We studied many possible scenarios during our Values, Ethics and Professional Issues class, and discussed the various types of decision-making models to help guide us when having to make difficult decisions. While the class was invaluable, because it helped me identify my own biases, and also shed light on how I have made decisions in the past and how I can possibly make decisions in the future, I knew that having to make real-life decisions would not be so cut and dry. This placement has been challenging for me, because my ongoing assignment with one of my supervisors requires constant ethical decision-making, sometimes even in the
