Assignment
Instruction:
QUESTION(s):
What ethical issues surfaced in 2016 at Wells Fargo Bank? Why do you think it/they happened? If you were an employee at WF, what would you do now based on these ethical issues and actions from 2016?
Your initial answer needs to be posted by Thursday 2355 and then you need to comment on and discuss 3 others' answers, this is where you either agree, disagree, challenge what others say and defend yours or theirs.
Your initial post should be 2-3 paragraphs, OK to use additional references other than the text and your 3 peer posts should be 1-2 paragraphs each.
NOTE:
This is an example of one my classmates done it
In 2016, Wells Fargo put tremendous pressure on their branches to sell more accounts. Their employees were expected to reach extreme sales goals that were unreasonable in a short period of time. Many employees created fake bank accounts for unsuspecting customers to make more money and meet their goals. On top of this, whistleblowers were fired for sharing this information to the ethics hotline and their bosses. Since the scandal occurred, Wells Fargo has had to pay back millions of dollars to customers and through various fines.
I think this happened because of a lack of creativity in upper management. Many companies find ways to grow their company without resulting to stealing from customers. Wells Fargo must have felt the pressure from other banks that were more successful and placed that pressure on their employees. There is no excuse for being unethical, especially when people are so dependent on their bank. They have broken trust with their customers, as well as many other potential customers.
If I was an employee during this scandal, I would have quit immediately. I would not want to be associated with Wells Fargo. These ethical issues go deeply into the company and if I cannot trust my employer, I do not want to work for them.
Response:
Here are my three classmates discussions that I want you to response to with at least 150 words
1) Ethics are something, as a consumer, we hope a company holds in high regard. In 2016 Wells Fargo was busted for opening up millions of fake accounts. Employees opened these accounts and added unwanted services to existing accounts without the knowledge of their customers. These unethical tactics were used to meet new sales quotas brought about by the "Gr-eight" initiative. The initiative was to increase the average number of financial products customers held from six to eight. This added pressure led employees to par take in these unethical decisions.
Around 5,300 employees lost their jobs due to the scandal. Some employees have come out and stated they were fired for reporting the unethical behavior to ethical hotlines or their HR representative. It seems as if most employees didn't have much of a choice, but to participate in creating fake accounts and fake pins. If I was an employee after the climax of the scandal, I would do what I can to improve the branch I work at and continue to educate my clients on the importance of monitoring their account.
2) In 2016, Wells Fargo put tremendous pressure on their branches to sell more accounts. Their employees were expected to reach extreme sales goals that were unreasonable in a short period of time. Many employees created fake bank accounts for unsuspecting customers to make more money and meet their goals. On top of this, whistleblowers were fired for sharing this information to the ethics hotline and their bosses. Since the scandal occurred, Wells Fargo has had to pay back millions of dollars to customers and through various fines.
I think this happened because of a lack of creativity in upper management. Many companies find ways to grow their company without resulting to stealing from customers. Wells Fargo must have felt the pressure from other banks that were more successful and placed that pressure on their employees. There is no excuse for being unethical, especially when people are so dependent on their bank. They have broken trust with their customers, as well as many other potential customers.
If I was an employee during this scandal, I would have quit immediately. I would not want to be associated with Wells Fargo. These ethical issues go deeply into the company and if I cannot trust my employer, I do not want to work for them.
3) In 2016 Wells Fargo had a huge issue with workers opened 1.5 million unwanted accounts for customers who had no clue about these unwanted accounts. The workers were making the accounts for the customers and transferring in money from the customer original accounts. They also were not putting any money in some accounts, which would cause fees for the customer on the accounts. The ethics that are wrong here are obvious the workers were stealing from customers and making them open accounts and pay fees they shouldn't have had to pay all for a little more money on their pay checks.
Why I think it happened is because Wells Fargo puts sales goals and commission on products and service, which includes opening accounts, credit lines, and savings accounts and they get paid commission for when they open a new account or credit card. Usually with banks people go in there because they already have a bank account with the bank and do not want a new account or credit card because they already have one. So when people don't come in and open new accounts every month the workers there can't make the quota and then get in trouble by their bosses. Which causes pressure on the workers and makes them do drastic things.
If I were an employee at Wells Fargo I would probably stay there and try to make it better. I don't think this was an ethical issue on Wells Fargo's part it was more of an ethical issue with the workers. But maybe if Wells Fargo didn't have such high sales goals would help workers would not have to worry about meeting the high goals on opening accounts.
NOTE: please let me know there is any thing not clear about the assignment.