BE_CS_3_1

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Nov 24, 2024

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1 Introduction: According to the case study, the company's leadership refused to listen to the concerns of employees who had brought this to their attention through a hotline, which was established by the corporation. The CEO of the company issued a statement in which he blamed employees for their acts and acknowledged that they were inconsistent with the company's principles and workplace standards (Bento, 2019). General Discussion Questions Answer 1: Business leaders should take away from this scandal the lesson that ineffective incentives, poor leadership, lax control, lax audits, and other dishonest activities can cause a company's reputation to be tarnished or even destroyed entirely. This could result in customers leaving the company, and persuading those customers to change their minds could take a significant amount of time and money. Wells Fargo is focused on conducting business directly with its clients and rebuilding the public's trust in the financial services industry in general. When the administration develops a firm's trademark, it may include legally enforceable agreements that set the degree of cross-sell movement and the duty to engage in a specific level of cross-sell movement. When information is shared with a third party, it is used for the aim of cross-selling products and services. Client costs rise as a result of data sharing, regardless of whether or not external cross-sell techniques are employed (Tolga Akçura, 2016). Answer 2: First and foremost, as a result of the avaricious nature of senior corporate executives, employees were coerced into following a path that was not in their best interests in order to increase revenue for the company. To the contrary, if those objectives are reached at the expense of the organization's values, the achievement is more than merely cosmetic; it represents a

2 serious blemish on the company's public image and public trust. Values-based leadership indicates that values must be more than just words; they must be translated into actions, and these actions include the development and monitoring of goals and objectives, among other activities. The company should publish a code of conduct that explains what constitutes unacceptable behavior as well as the various disciplinary actions that can be taken if any of the employees fails to adhere to the code. This will establish expectations for both employees and managers in terms of the types of behavior that are considered appropriate. The company must also develop and document rules and procedures for defining and identifying ethical infractions when they occur, and for reporting such violations when they occur. Workers that are committed to their company put in long hours and believe in carrying out their responsibilities in an honest and ethical way. When employees show loyalty, it is important to acknowledge and promote them. This can also motivate employees who engage in unethical behavior to change their ways (Bento, 2019). Practice of Ethical Leadership Questions Answer 1: The ideals that Stumpf taught in Wells Fargo employees were immoral and unethical in their execution and implementation. Incentives and rewards will be given to employees who bring in and close more business and merchandise sales to clients, according to the corporation, because they were able to bring in more customers and business to the organization. The organization did not mention anything else about what a firm needed to accomplish, and it does not appear that any training was provided to the customer on how to conduct business in a variety of ways. Consequently, Wells Fargo's brand and reputation have been badly affected as a result of this unethical behavior (Tolga Akçura, 2016).

3 Answer 2: Managers should encourage their staff to bring unethical behavior to their attention as soon as it is observed. It is the leaders' responsibility to ensure that proper investigations are carried out and that effective repercussions are issued in accordance with reasonably recorded procedures and conclusions following the completion of the reporting process. The implementation of ethical programs should follow the formation of such programs in order to gain traction, ensure future acceptance, and serve as role models for others. The plans that have been offered are not ad hoc endeavors in the traditional sense. For the leader to be effective in deterring misconduct in this situation, the only option is to punish the bad behavior while rewarding the good behavior. Employees and managers should be provided with a collection of recognized standards that identify undesirable behavior as well as alternative actions that can be taken if any of the representatives fails to follow the rules. This will allow employees and managers to make educated guesses about the types of behaviors that are acceptable in the organization (Bento, 2019). Answer 3: A company's organizational culture that places a heavy focus on ethical behavior has a greater chance of preventing misbehavior. Despite the fact that Wells Fargo had a system in place, the system failed as a result of the complete and total stupidity of the company's top executives. This also implies that management was more concerned with earning a profit and generating income than with anything else, and that they wanted its people to accomplish so by any means necessary. A range of measures must be taken to halt this type of leadership. Employees' ethical behavior and workplace ethics must be taken seriously by employers as well, and employers must not ignore what other employees have to say through the hotline in order to do so (Tolga Akçura, 2016). References

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4 ANTONACOPOULOU, E., BENTO, R. F., and WHITE, L. F. (2019). Why Didn't the Watchdogs Bark? Inside Auditing and the Wells Fargo Scandal. Underpinning of Management Annual Meeting Proceedings, 2019(1), 939-944. https://doi.org/10.5465/AMBPP.2019.167 M. Tolga Akçura, and Kannan Srinivasan. (2016). Research Note: Customer Intimacy and Cross- Selling Strategy. The board Science, 51(6), 1007-1012. https://doi.org/10.1287/mnsc.1050.0390

BE_CS_3_1

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