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What Are The Wells Fargo Ethical Challenges

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Learning Journal Unit 8: Managing Ethics University of the People BUS 3306 - Business and SocietyDr. Firdous Ahmad Maliki, Instructor August 10, 2023 Analysis of Wells Fargo's Ethical Challenges and Solutions Introduction Ethics play an important role in running a business, ensuring its long-term success, reputation, and stakeholder relationships. The Wells Fargo case study highlights the importance of ethics in business operations and examines the values demonstrated by former CEO John Stumpf, the impact they had on the company's culture, and why inadequacies in existing systems did not prevent unethical behavior. Issue 1: The Values Mr. Stumpf Demonstrated and Their Impact The aggressive sales goals and cross-selling emphasized by then-CEO John …show more content…

Stumpf's approach had a negative impact on Wells Fargo's organizational culture. The aggressive sales-centric culture eroded trust between employees and management and fostered an environment where ethical concerns overwhelmed performance metrics. Management placed its own position security above ethical considerations. And employees continued to make inappropriate sales under pressure from senior executives. They were even fired for reporting things that were unethical (Santa Clara University, 2017a). In the face of such cultural pressures, employees may be hesitant to raise ethical issues for fear of retaliation. Leadership and environmental arrangements to encourage ethical behavior -To foster ethical behavior within an organization, leaders must constantly demonstrate ethical behavior in their actions and decisions. Leaders should encourage a culture shift that prioritizes ethical values over performance indicators. - Promote awareness and understanding of the importance of ethics, values, and the potential impact of ethical behavior through transparent communication and regular learning sessions. - Reinforce employees' commitment to the organization's ethical behavior with appropriate

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