Introduction
Mistrust is the main ethical issue in the Wells Fargo scandal. The loss of trust between customers and the bank outlines the main ethical problem that affects the organization’s portfolio and performance in the competitive banking industry. Teo and Kimes (2019) isolate the losses made by the organization to have originated from the unlawful opening of saving and credit accounts for customers through the cross-selling policy. Incorporating the ethical theories of utilitarianism, John Rawl’s theory of justice and Aristotle’s virtue-based approach supports the stand of mistrust as the primary ethical problem in the Company’s financial fraud case.
Application of Ethical Theory
Utilitarianism
According to Komu (2020), the ethics of utilitarianism explain dilemmas based on the harm and pleasures initiated by the choices of an individual’s action. Mistrust destroys customer loyalty and affects consumers’ overall pleasures in purchasing products and services. At the same time, the theory of utilitarianism advocates for actions that result in happiness and pleasure for the majority. For the case study, the fiscal regulatory bodies had the mandate of identifying the flaws at Wells Fargo by exposing the corruption in the firm’s management. Charging Wells Fargo with fraudulent acts portrays the relationships between the theory of utilitarianism and how it could prevent the outbreak of the scandal. In this case, the false accounts harmed the data privacy of clients. Reviewing every client’s personal information and assuring them of safety would solve the bank challenge and offer more business transaction opportunities.
Aristotle’s Virtue Based Approach Theory
The problem at Wells Fargo can be analyzed through the lens of morality, as stated by Aristotle in the virtue approach of ethics. Mistrust appears as the primary ethical challenge encountered by the firm, and leaving the issue unresolved can encourage conmanship in the future setting of businesses. Aristotle stresses the benefits of community contours in shaping morals, and according to him, people develop moral and honorable characters by practicing generous and honest personalities (Papouli, 2018). Therefore, the issue at Wells Fargo could be resolved by eliminating the few characters associated with the plotting of the scam. The flourishing actions of trust can be gained in the firm if the virtue of integrity is instilled in the internal leadership of Wells Fargo. Retrenching the top officials linked to the cross-selling policy would prepare later management to acquire the virtue of trust through practice. John Stuart and Jeremy Bentham agreed with Aristotle’s virtue of ethics because the concept weighs the code of ethics in determining pleasure (Komu, 2022).
The Virtue of Justice
The virtue of justice theory identifies the social virtues of mistrust from the internal leadership hierarchy of Wells Fargo. John Rawls suggested that the basic structure of a society leans on fair opportunities and equal chances provided for everyone to the best of their natural abilities (Behbahani, 2019). The organization faced mistrust as an ethical dilemma among its employees based on the abuse of the specific principle of justice. The problem persisted due to the lack of equal liberty principles among employees. Workers engaged in the scam to protect their jobs irrespective of the outcomes of the selected action. The compliance risks and unethical problems in organizations can be reduced by building an integrity culture that conserves the values of honesty (Ruggiero, 2019). The organization can only serve customers’ interests if it acknowledges the factors that promote the purpose of a good life. One such issue is integrity and trustworthiness in business management. Every customer should be compensated for the losses earned for attaining a solution at Wells Fargo.
Conclusion
I believe utilitarianism theory would sort the mistrust ethical issue at the bank more effectively than the other two theories. Utilitarianism is better because it promotes actions that empower happiness and pleasure in the more significant population. Customers were the most affected individuals in the financial fraud; thus, engaging their interests first best suited the alternatives of creating an ideal society yearned by Benjamin Bentham.
References
Behbahani, H., Nazari, S., Partovifar, H., & Kang, M. J. (2019). Designing a road network using John Rawls’s social justice approach. Journal of Urban Planning and Development, 145(2). Web.
Komu, S. S. C. (2020). Pleasure versus virtue ethics in the light of Aristotelians and the utilitarianism of John Stuart Mills and Jeremy Bentham. Al-Milla: Journal of Religion and Thought, 2(1), 37–56. Web.
Papouli, E. (2018). Aristotle’s virtue ethics as a conceptual framework for the study and practice of social work in modern times. European Journal of Social Work, 22(6), 921–934. Web.
Ruggiero, V. (2019). Thinking critically about ethical issues (10th ed.). McGraw Hill Education.
Teo, T., & Kimes, S. (2019). Wells Fargo Bank: The fake accounts scandal. SAGE Publications: SAGE Business Cases Originals.