Ethical Failure in Wells Fargo Bank (Essay Sample)

Instructions:

Business Ethics is more than just the study of theory—it is the recognition that the day to day actions of business leaders have consequences. Identify a major corporation that was in the news over the past twelve months for a major ethical failure. Read several articles about both the rise and the fall of this company before undertaking the assignment below. The steps your group must take are listed below. See your textbook for additional ideas and thoughts on this topic: 1. Identify a company that has had a recent ethical failure. What intrigues you about this specific company? What was the company known for before the problem? How would you describe its culture? Was it generally well regarded? Example: Enron was known for hiring the “best and brightest” before it collapsed under systemic financial fraud. It had a culture of aggressive risk taking and was considered a complicated company with a difficult to understand financial model. It was envied by most of its competitors. Procedure: Decide on a topic you all find interesting. Product: You must write 1 page explaining the company you chose, its culture and how it was regarded before it had its ethical failure. 2. Review the literature. Read 1 -2 articles written before the scandal to give you a sense of how difficult it can be at times to see a cultural failure before it is exposed publically. Then read 2-3 articles written after the scandal to give you a sense of the full arc of the company’s rise and fall. Example: For example, there were several laudatory articles written about Enron right up until it collapsed. Many of these authors admitted that they did not exactly understand how Enron made money but they applauded the company nonetheless. The articles written after the company failed tried to identify why the company failed. Could an astute reader have picked up on any of these signals before the collapse 3. Using your textbook and considering your discussion of the corporate culture of your subject company, describe 3-4 types of cultures or companies that currently exist which have the potential to have a major ethical problems in the future. Using the concepts learned in Chapters 1-5 from your book, identify potential future issues. Example: Companies which are very secretive about how they make money and create their products could have the potential to be the next Enron. Secretive upper management could be signaling that all is not as it seems. Product: You must submit up to one page of your findings.

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Content:

Ethical Failure in Wells Fargo Bank
Name
Institutional Affiliation
Ethical Failure in Wells Fargo Bank
Business ethics is a significant factor that most businesses consider while setting up operations in different environments. Business ethics entails the study of the theory regarding operational failures and the recognition of the day-to-day business actions arising from organizational leadership and the consequences attached to the preferences of such leaders in leading the organization in solving business problems. Often, businesses engage in activities that abuse customers' rights despite the commitment of leaders in such environments in engaging organizational cultures and business goals in meeting the organization's interests alongside those of workers. In 2019, Wells Fargo was in the news for a major ethical failure that exposed the firm to business challenges. The company was published in magazines and aired in media streams over a cross-selling scandal. The Harvard Law School Forum documented a corporate governance article regarding the cross-selling Wells Fargo scandal.
The Scandal
Wells Fargo company was exposed for exhibiting ethical failures in its business operations. According to Larcker (), the organization's scandal was titled "gaming the system: three red flags of potential 10b5-1 abuse.” Wells Fargo company was published following its failures in meeting ethical goals in interacting with its customers. The evidence provided by Tayan (2019) indicates that some executives used 10b5-1 trading plans in engaging in large-scale selling of company shares. The corporation's executive members were opportunistic based on the malice depicted in their actions of selling company shares to outsiders; the major concern does not involve the sales of the shares, but it focuses on gaining personal interests with its budget. Loveland et al. (2019) state that it is unethical for employees to use company names for self-satisfaction without the domain company's concern. Wells Fargo failed ethically based on the regulations set aside to manage executive boards among different organizations by the Federal Securities law (FSL). The agency (FSL) prohibits corporate executives from trading company securities based on the awareness regarding material nonpublic information presented to all corporations.
How the company Intrigues me
Wells Fargo intrigues me based on its diversity of operations across the globe and its business operations choices. I am curious how well the company manages home loan shipping resources. Besides, I am intrigued with how the company makes home loan shopping resources ready for trading. Nevertheless, the scandal linked to Wells Fargo answers my concern because the executive board members control who, where, and when to sell goods and other property to individuals. It is fascinating that the exchange currency rates in international banks are lower for Wells Fargo than other organizations; as such, I am curious to understand how the company works to meet its goals and objectives based on the low exchange currency rates attached to the

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Ethical Failure in Wells Fargo Bank (Essay Sample)

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