Wells Fargo: Former Employee Practices

The Wells Fargo scandal involved a variety of stakeholders who have stake in the issue; however, the main stakeholders include the consumers, the employees and their families, and stockholders of the organization. The affect these stakeholders suffer varies, but the ultimate affect the scandal has had is violation of trust by Wells Fargo and its leadership. When examining this situation, the main stakeholders who suffered the greatest harm from the scandal were the customers who fell victim to the fraud and had their privacy violated by an organization they trusted. In the course text, Trevino and Nelson spoke of the importance of trust and its importance in a service economy. Wells Fargo violation of the consumers’ trust has ultimately added

The problem with unethical practices is that a company itself is not the only one will suffer from the consequence of its illegal actions. Most of the time, there are customers who get victimized by these unethical practices as they put their trust and loyalty on businesses that they have patronized for so long. At the end of the day, all they can do is file their complaints and vent out their frustrations over the betrayal they experienced from their trusted businesses, but the damage remains permanent. The once excellent relationships are forever destroyed and victimized customers always carry with them the trauma and fear that they could be fooled again in the future.

* Inside Sales employees are high in skill variety, but lower in the other dimensions, which cause a lack of motivation. This causes them to have low experienced meaningfulness, experienced responsibility, and knowledge of results.

I responded to Wells Fargo in reference to a juvenile problem. Upon arrival, I made contact with Kimberly Bradley. Kimberly advised that her 10 year old daughter(Thomiya Bradley) ran down to Sunny Beauty Supply without her permission. Upon my arrival, Thomiya pulled back up with her sister. Thomiya was gicen advice about the consequence that could happen if she keeps being disobedient.

Wells Fargo was established in 1852 by Henry Wells and Williams Fargo who joined a group of other investors to form a transportation and banking company. In 1849, gold was discovered in California, which encouraged a huge demand for its cross country shipping and by 1852 Wells Fargo shipped its first consignment of gold. Wells Fargo also established merger deals with Pony expresses which made them one of the pioneers of pony transportation. This company later expanded to a company that offered not just pony and gold transportation services, but also offered banking services by purchasing gold and selling paper bank drafts as good as gold. In 1905, the banking branch of the company merged with the Nevada National Bank and established its new headquarters in San Francisco. ("Wells and Fargo start shipping and banking company", 2016).

As with much of Enron, their outward appearance did not match what was really going on inside the company. Enron ended up cultivating their own demise for bankruptcy by how they ran their company. This corrupt corporate culture was a place whose employees threw ethical responsibility to the wind if it meant financial gain. At Enron, the employees were motivated by a very “cut-throat” culture. If an employee didn’t perform well enough, they would simply be replaced by someone who could. “The company’s culture had profound effects on the ethics of its employees” (Sims, pg.243). Like a parent to their children, when the executives of a company pursue unethical financial means, it sets a certain tone for their employees and even the market of the company. As mentioned before, Enron had a very “cut-throat” attitude in regards to their employees. This also became one Enron’s main ethical falling points. According to the class text, “employees were rated every six months, with those ranked in the bottom 20 percent forced to leave” (Ferrell, 2017, pg. 287). This system which pits employees against each other rather than having them work together will create a workplace of dishonesty and a recipe of disaster for the company. This coupled with the objective of financial growth, creates a very dim opportunity for any ethical culture. “The entire cultural framework of Enron not only allowed unethical behavior to flourish,

The ethics of the bank requires that there is ethics of integrity. It is supposed to be created through a culture in the bank and it should be one of the banks priorities because this is a business and they gain the profits from the people they serve on daily basis. Even if the bank shall survive this wave of scandal is so difficult now to convince any client to join this Wells Fargo which shall cause them a lot of money. Also all the old customers may start withdrawing and looking for other banks which they feel are more secure when they are keeping the money for them. It is so hurting and distrustful for a banking instead of accruing money in the accounts of their customers what they wells was doing was that it was misusing their money and giving them extra fees.

Embezzlement is an act withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type of financial fraud. a lawyer might embezzle funds from the trust accounts of his or her clients; a financial advisor might embezzle the funds of investors; and a husband or a wife might embezzle funds from a bank account jointly held with the spouse.

In September of 2016, it was revealed that there was alleged misconduct at one of the largest and safest banking institutions in the United States. Wells Fargo Bank was ranked among the nation’s safest financial institutions according to an analysis done by Global Financial, (Inside Tucson Business, 2009). Alleging that between May 2011 and July 2015, there were more than 2 million bank accounts or credit cards opened for customers without their knowledge or permission (Blake, 2016). Clients started complaining the they were receiving debit/credit cards from the bank that they had not ordered. Wells Fargo employees also started complaining that about the unethical behaviors they witnessed or were asked to participate in to the Human Resource Departments, the bank’s internal ethics hotline, branch’s individual managers and supervisors. All which led to the discovery of the fraud scandal.

Nice post Lettie. As Parnell explains that managerial ethics includes the ability to make legal, honest, moral and fair decisions (Parnell, 2014), I wonder if the employees knew that their decision to open accounts without the consumer’s consent was wrong. If the instances were being reported to the front-line managers and those managers where reporting the information up the chain to top executives, why wasn’t this behavior stopped sooner rather than later. Why were so many great incentives being offered? I would classify this behavior as an organizational moral hazard. This type of hazard is described as hazard with the parties do not share equal risks and benefits (Parnell, 2014).

The employer focuses on satisfying the needs of the employees while the employees work complete their various task in a manner in which to reduce cost for the employer. This is a win-win situation in which employees and employer are both satisfied. Employee satisfaction in turn reduces the likelihood of employee turnover. Mountain Bank would need to implement this strategy to ensure that not only its employees but its frontline employees, the tellers, are satisfied with their job. If they are satisfied then they have a higher chance of building a stronger bond becoming loyal longtime employees which reduces the cost to Mountain Bank in the long run.

Instead of jumping to different achievement goals as problems arise, the visions and beliefs should have been determined first and that would help shape the overall goal of the company. While working towards goals such as profitability and growth, the visions and beliefs help keep employees in line and to some extent control the minimum expectations of the development of products, thus possibly lessen or avoid problems that did arise. The incentive scheme were not properly designed to take into account effects of employee actions and the impact it would have on the company as a whole and other stakeholders. It should some what reflect and reiterate these visions instead of promoting and motivating employees to be self interested in their own affairs and achieving the targets at “all costs”. All in all, there were minimal controls and checks in place, it was more of a one way push towards the goals and not looking back

If there is a problem in any products from HR, marketing or any other department they blame the sales employees that they make the right product but sales employees have not sell right. They started blaming the sales employees, which is unethical practice. Although the senior managers blame the sales employees. In this company sales is made the important factor for selling the product. The management have to focus on other factors as well rather than sales only. So it is unethical to blame only the sales person because every time the sales person is not

Finding the perfect motivator is a hard task to accomplish, but when that perfect one is found it can create the results any manager or company would have wanted. Hooters, is no different. Using their incentive program to increase the beer sales for the wait staff, increases profits and could end up winning them a Toyota car, or so they thought. When Jodee Berry heard the news, she was nothing but excited, a new car, it is what she worked so hard to get, until she took the blindfold off and realized it was nothing close to a car, it was a humiliating Yoda doll (Aamodt, 2015), she was shattered, and demotivated to say the least. Though legal ramifications were involved did the manager act in an unethical manner, is lying to your staff acceptable and are there any negative consequences to using such motivating tools to achieve the desired results?

The second individual, Michael Jackson, however, is a different situation. Although he does not like sales work, he is glad to have his job. He is an example of a Theory X worker as he dislikes work, has lack ambition and is irresponsible. His low satisfaction reports are evidence that he is lacking of motivation to do well in his job. He has a single-track, negative mind-set and believes that employees who have made it all the way up the cooperate ladder is due to their close relationship with others who have power and authority in the company. Due to this, he thinks that he is not being treated fairly and thus, does not perform well in his job. In the case study, he claims that employees are successful are because of “who they know” and not because they are capable in doing jobs. So, he believes that no matter how much effort he has put into his job, he will still not be promoted or rewarded. In the long run and if his perception does not change, he will put in less effort in his work regardless of the number of coaching sessions he will be sent to. Besides that, he would be a bad influence on newcomers to not cooperate with the managers as they will not receive any incentives despite their hard work.