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Ethical Issues In Wells Fargo

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1. Background
The recent scandal of two million fraud accounts opened by employees in Wells Fargo not only had cost the bank a large amount of fine, it had also led to layoffs of over 5000 employees and customer outrage (Kate, 2016). The scandal has revealed the company’s inappropriate corporate social responsibility (CSR) practices on its customers and employees.
2. Key issues in Wells Fargo’s CSR policies
2.1 Deprivation of existing customer’s financial interest
Wells Fargo’s cross-selling strategy demonstrates violation of customer’s financial well-being and acts against the company’s CSR practices on the economic dimension. Under the use of cross-selling strategy, existing customers became the primary target of the company’s product retailing. …show more content…

The committee should be led by senior managers from different sectors of company to collect low-level employees’ opinions from the company’s diverse departments and deliver them to the committee. The committee should also possess the right to express opinions in the company’s decision-making process for important ethical issues and be empowered to examine the company's investigation on the reported issues, review dismissal reports and seek compensations for employees. Possibility of excessive power of the Employee Ethical committee can be minimized through adopting departmentalization to insert power separation among the committee. Similar organizational structure has been using by Wells Fargo’s Team Member Network, which is composed of different organizations formed by employees from common background and nations (Wells Fargo, 2017). The harmonious relations and balance of employer-employee power after the establishment of Team Member Network are indicated by members’ positive feedback and the improvements of their work performance (Wells Fargo, 2017). The Employee Ethical Committee is recommended to follow such departmentalization by organizing departments such as survey department, negotiation department and monitoring department, which will be respectively responsible for opinion collection, employee-employer communicating, and remedial action monitoring, to employer to separate the power among the union. Accordingly, Wells Fargo should constitute an Employee Ethical Union formed by different departments to balance the bargaining power between employees and

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