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The ethics about wells fargo
Ethical challenges faced by wells fargo
The ethics about wells fargo
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More handpicked essays just for you.
The ethics about wells fargo
Ethical challenges faced by wells fargo
The ethics about wells fargo
Don’t take our word for it - see why 10 million students trust us with their essay needs.
The FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The FDIC was a provision of the Glass-Steagall Act. During the nine year period from 1921-1929 more than 600 banks failed each year. The failed banks were small banks operating in the rural suburban areas and held the deposits of mostly farmers and blue collar folks. When banks fold and continue to do so, people will start to worry about their money in any bank.
FDIC, which stands for Federal Deposit Insurance Corporation, was formed in 1933 after the bank failures during the 20’s. The FDIC provides insurance for deposits at banks. The FDIC can provide up to $250,000 in insurance for deposits per bank. SSA, Social Security Administration, was created in 1935 and provides social security benefits like retirement and disability benefits. TVA, Tennessee Valley Authority, was created to provide electricity, flood control, and economic development to the region known as the Tennessee Valley.
To make sure employees stay familiar with the Code, they should have annual training for employees to read over the Code, understand any changes, and sign that they understand. To ensure employees are following the Code, is also where the Chipotle Confidential comes into place. Employees understanding the confidential know that they can report violations or complaints confidentially and with anonymity and the company will look into the issue to see if there was a violation of the Code. With people knowing the Code and knowing there is a place to report violations, to help ensure people follow the Code, employees need to understand the consequences. According to Frigendaum (n.d.), sadly for a company enforcing a code of ethics, means setting example of a person that violates the Code by being disciplined or terminated from the job, (Feigenbaum).
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…”
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.
What was The Second Bank of America? Why was it such a huge deal in American history? Who supported it, and who did not? Why did it fail? This essay will help explain the answer to each of these questions about the Second Bank of America, or how it was more commonly called, The Bank of the United States, and will inform you of what is used for today.
CHANGES TO THE CODE OF PROFESSIONAL CONDUCT The proposition of the restructuring of the AICPA so that its members can easily and effectively follow the rules and regulations. The body that is responsible for this restructuring is called the Professional Ethics Executive Committee. This body is going to achieve this by modifying the AICPA code into many parts.
“The most polite and gentlemanly treatment of all customers, however insignificant in their business, is insisted upon. Proper respect must be shown to all- let them be men, women, or children, rich or poor, white or black- it must not be forgotten that the company is dependant on these same people for its business.” When Henry Wells was alive, there were 8,000 workers at Wells Fargo. Today, there are 150,000 or more employees at Wells Fargo. There are 6,000 branches and from 1990-1998, their stock went up 1,197% (Smith).
Lastly, the SEC will scrutinize any securities fraud that may have been committed as a result of withholding private information (insider trading) to investors due to possible accounting malpractice. Currently, the SEC and Department of Justice results are still pending the ongoing investigation. Tomi Kilgore of MarketWatch reported “Wells Fargo investigation into sales practices should be completed before the April 2017 shareholder meeting.” Likewise, Wells Fargo responded following the mandates of the Office of the Comptroller of the Currency by opening
By the virtue of acquisition of Merrill Lynch as of 2008, BAC is the world’s largest wealth management worldwide. Although, it is not the top dominator when it comes to market cap, BAC weighs in at a mere $171 billion while its toughest competitor, Wells Fargo, weighs in at a cool $277 billion. Only the big four, JP Morgan, Bank of America, Wells Fargo, and Citigroup, have retail branches in all fifty states. In 2010, Forbes ranked BAC as the third largest corporation in the world. Lately, most of the for the Big Four’s stocks prices have been swooning because of high interest rates starting in 2015, this makes it difficult to sell loans.
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).
Wells Fargo’s “Gutless Leadership” Wells Fargo is one of the largest banks in the United States, with “…more than 8,600 locations [and] 13,000 ATMs” (Wells Fargo Today). Millions of Americans trust them with their finances. However, after a federal investigation, Wells Fargo has admitted to opening up to two million accounts without customers’ permission. While this had financial implications for many customers, this scandal most heavily affected Wells Fargo’s low-level employees.
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.
Its code of ethics can be found in the Appendix. A Code of Ethics describes standards of conduct of an organization 's
I would frame the banking as an industry that is built on trust. Trust that is reaffirmed by the governments, and regulators. Banks have an imperative role in our economic growth, and development. Correspondingly, without the bank industry, there is no industry to replace them as the conduit for social and economic policy. Equally important, there is no industry to replace them as the key performer in creating our economies multiplier effect.