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Wells fargo research paper on the scandal
Intoduction of wells fargo scandal
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Wells fargo research paper on the scandal
Intoduction of wells fargo scandal
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Recommended: Wells fargo research paper on the scandal
Wells Fargo is the largest leaders the country. If people give up on them they might be in a big trouble. This could lead them to go out of business no customers equal no money. Banks need money from their customer so they could use that money to give out loans and use it as investment for the bank
Wells Fargo has been in business for over 160 years and was founded on March 18, 1852, by Henry Wells and William Fargo. The company opened its first office, in San Francisco, on July 1852. Wells Fargo served the West with banking needs, which included gold and paper bank drafts, and offered quick delivery of gold or other valuables. In1855, the first of many financial dilemmas took place when a drought made it impossible to mine for gold, and this caused almost 200 businesses in San Francisco to fail, but Wells Fargo didn’t fail, they prospered. In the early1860s, Wells Fargo acquired almost all the stage lines from the Missouri River to California, giving them a monopoly on transcontinental delivery services.
Ms. Yates has argued that punishing individuals is one of the most effective ways of actually causing a corporation to rethink their actions, but this is also difficult to do. When a corporation is investigated, the Justice Department requires them to hand over any documents related to the case and the individuals who were involved in specific crimes. Obviously, the individuals involved are less inclined for this to happen and are often in management roles at the company. In the average case, the corporation and the individuals at fault admit to wrongdoing—as Credit Suisse and five other global banks did in May of 2014--, but they do not disclose the names of the individual people responsible. At this point in the game, the Justice Department faces a dilemma.
According to Fortune, “Executives sought to drive growth by putting undue pressure on its employees to hit sales quotas, and many employees responded by fraudulently opening customer accounts. In most cases these accounts were closed before customers noticed, but in other cases consumers were hit with associated fees or took hits to their credit ratings. The bank was forced to return $2.6 million in ill-gotten fees and pay $186 million in fines to the government. But the biggest hit Wells Fargo will take is to its reputation, as the media and government officials spent much of the year slamming the bank for its fraud,” (Mathews). The victims being the unknowing customers who saw their credit ratings plummet and faced steep financial fees, that were brought about through no fault of their own.
Fines against banks and other corporate firms for unethical practices are tallying up but their deterrent value seems to be negligible. Simply prosecuting the institution alone for not operating morally is not going to ‘fix’ the problem. According to logic, you have to get to the root of the problem and the root of financial fraud problems are not the institutions themselves but actually the person committing the heinous acts. The first question to ask is why do individuals (executives in this case) engage in unethical behaviour? Many inquiries show that the incentives for executives to engage in unethical transactions which are not in the interest of the company outweigh the cons in the end.
JPMorgan Chase Bank has faced several lawsuits in recent years. They have been hit with cases concerning fraudulent misrepresentation, bribery, and many things in between. By studying the accusations the company has faced, one receives a better understanding of who is really handling their money. An act of fraudulent misrepresentation cost JPMorgan the fine of a lifetime.
• There is a distinctive competitive advantage offered to a company making responsible and morally ethical decisions such as signing The Code. Carlson Company has stepped up where there are bound to be many agencies that have not done so, and this alone puts them head and shoulders above the competition. Child sex tourism with hopefully gain more awareness and abiding by a set of codes to prevent it will optimistically be more so a requirement to practice travel fulfillment rather than an ethical choice. The Carlson Company can lay claim in that situation that it did the right thing by stepping up ahead of the game and doing its part to stop the crime in its tracks. • The Code offers a network that the company can use as a resource for its
Karim ElGuindi Professor Rachel Gambol Accounting 203 6th October 2016 Ethics Assignment 1. In this case out of the ethical standards; competence, confidentiality, integrity and credibility, the standard that is violated is credibility but there are violations to competence and integrity as well. McDale believes she must calculate operating income to be in excess of $200,000 in order for her and many other employees to receive their bonuses.
Wells Fargo is vigilant in the detection and reporting of suspicious or potential fraudulent activity undertaken by customers and perpetrators. The ongoing advancement of technology continue to introduce new risks and opportunities for fraud. Dr. Tarisa Watanagase (2008) note "the pace and complexity of these advances have vastly accelerated beyond the risk associated with traditional credit and market risk activities. One of those emerging risks in financial institutions is fraud risk, which needs to be effectively controlled through effective governance and sound operational risk management processes" (Dr. Watanagase, 2008). Fraud risks occurs in multiple methods.
When it comes to the Ethical Decision Model, it does not just pertain to the employees who opened these accounts but also leadership who either failed to realize what was going on or decided to sweep it under the rug by just covertly firing some employees. Wells Fargo did take the first step in recognizing the problem but failed to define it, which explains why these unethical behaviors continued for so many years. When the corporation was initially aware of what was going on, they should have acted immediately and strategized a solution that would dilute the possibility of it occurring again. Instead of defining the problem, which would have foster, a proper solution but company decided to just terminate
Whilst Shakespeare explores the negative connotations of unresponsiveness to discovery, Wells explores the corruption of an individual’s ethical values ensuing from an individual’s response to provocative discovery. Prendrick, upon initially arriving on Dr Moreau’s fictitious island, adopts a firm stance against vivisection accentuated in the dialogue “Where is your justification for inflicting all this pain?” to Moreau. However, Prendrick ironically empathises with Moreau’s unethical valuing of scientific progress over life through one of the monsters, Montgomery, who rhetorically questions “We can't massacre the lot, can we? I suppose that's what your humanity would suggest?” before repeating “The creatures are sure to change.
Assessment 2-Case synthesis: Morgan Stanley 1.Basic empirical facts of the problem Financial industry, the most scrutinized sector owing to the oceans of information involved and dynamic trades conducted, has generated a heated debate regarding ethical and legal issues where loopholes can be utilized by self-interest driven individuals to achieve illicit gain. As a result of the characteristic that large amounts of material and nonpublic information is contained in daily trade, it is not rare that interest-motivated insiders may make use of the access to the formation to conduct insider trading. Insider trading is defined as trading of securities in possession of relevant material, nonpublic information, in breach of fiduciary duty (U.S.
1. If you were Monsanto’s CEO, how would you best balance the conflicting needs of the variety of stakeholder groups that Monsanto must successfully engage? Monsanto has improved in terms of its corporate responsibility; however it does not maintain the most ethical culture possible. Monsanto is in a difficult position, as it produces products that many people do not understand or trust. The corporation also does much business in very poor countries where it is very easy for critics to accuse Monsanto of taking advantage of people who do not know any better.
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.
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.