Banks’ primary objective is to make money, but they also have a duty to manage their customers’ assets, but Well Fargo’s actions were both unethical and criminal. Fair customer treatment was required of it by fiduciary obligation. The bank provided a wide range of services to its clients, but its mission, which led managers to set unreasonably high sales targets for their staff, encouraged many employees to game the system, was the primary ethical problem that the bank faced. Employees were encouraged to cross-sell a number of additional services to customers who purchased one service. Employees at Wells Fargo were forced to create accounts that clients had not requested in order to reach their unreasonable sales targets and keep their jobs (Ferrell et al., 2019). Millions of bogus accounts were created by employees in an effort to satisfy their employers and keep their jobs. A typical conflict of interest existed here. This instance demonstrates how an ethical issue with the organization’s objective led Wells Fargo to exchange its well-earned reputation for immediate financial gain, harming countless thousands of consumers in the process.
Well Fargo also had a weak ethical culture, which was fostered by the organization’s senior management, which was another ethical issue. Lying was seen as acceptable in this culture. They utilized the notion of assumed concept and issued credit cards without the consent of the clients, which is a blatant example of how unethical the company’s mentality was (Ferrell et al., 2019). Individuals who were hurt by the establishment of false accounts, as well as stockholders and workers who were found guilty of fraud were the ultimate injured parties. Overall, Well Fargo owed it to its clients to conduct itself ethically, but the business permitted its aspirational objectives to trump ethical codes.
Reference
Ferrell, O. C., Fraedrich, J., & Linda. (2019). Business ethics. Ethical Decision Making and Cases, 12.