Living in a world where every single action is scrutinized, having a system to guide employees through complex situations with clarity and purpose is crucial to maintaining transparency and ethical conduct within the workplace. To promote a transparent and accountable corporate culture that values ethical behavior as a core performance metric, an effective leadership approach is essential. Unfortunately, Wells Fargo’s leadership had a system that didn’t prioritize open communication or lead by example, resulting in the Wells Fargo scandal. How would have the CEO John Stumpf and division supervisors stopped this from happening? CEOs are privileged to work from a position that makes them ideal to set standards for excellence or drive a business forward. Wells Fargo's leadership failed in its approach to excellence. Stumpf’s mantra of “Eight is great” inadvertently encouraged employees to prioritize sales over ethical considerations, leading to a culture where “the ends justify the means”. The “Eight is great” mantra had a profound negative impact on the company’s culture given …show more content…
Wells Fargo’s establishment of an ethics hotline was a positive move. However, its effectiveness might have been compromised possibly due to certain factors such as unrealistic sales goals and financial incentives. For an ethics hotline to encourage ethical behavior, leaders must ensure they are backed by a culture of transparency and accountability. This includes protecting whistleblowers, acting on reports promptly, and communicating the outcomes back to the whistleblowers/employees to reinforce trust in the system. Additionally, integrating ethical behavior in reward and performance systems, then aligning them with the company’s values and long-term objectives, would greatly aid in fostering a culture where ethical conduct is standard practice, promoting a more morally sound work