The Case Of Wells Fargo

The case of Calibuso et al. v. Bank of America Corp. et al. began in 2010, when female financial analysts (FAs) filed charges in in several states and with the Equal Employment Opportunity Commission (EEOC) claiming that the Bank of America (BoA) used discriminatory pay practices against them in violation of state laws and the U.S. Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 (DiMarco, 2014; Calibuso, 2012). These laws forbid inequalities in pay (Schrimsher & Fretwell, 2012) and discriminating employment practices based on gender and other protected classes (42 U.S.C.A in Webber, 2015). The case was settled in favor of the plaintiffs (DiMarco, 2014). However, legal and scholarly advice suggests that these kinds of cases can be avoided through organizational efforts in training in diversity (Bendick, Egan & Lofhjelm, 2001) and legal understanding along with professional validation of practices, and managerial accountability (Arthur & Doverspike in Malos, 2015). This writer agrees; the case of Calibuso et al. v. Bank of America Corp. et al, which involved discriminatory practices related to compensation and other employment-related acts may have been avoided by observing the advice aimed at organizational efforts in anti-discrimination in the workplace.

It wasn't until the 90s did Wells Fargo's luck seem to turn around then in 1995 Wells Fargo became the second largest bank in California and the seventh largest bank in the United States with $51 billion in assets. Later on Wells Fargo faced another huge failure when they merged with First Interstate Bancorp. Both companies were considerably different with Wells Fargo being mite technically inclined than the other and inner disputes over how they would ruin things came to light. After this Wells Fargo entered into a friendly merger with Norwest Corporation taking us into the more modern era of Wells

The questionable issue really close by kind of is Wells Fargo essentially has discovered generally phony records that definitely were made without buyers having any information that the records for the most part were being made in a kind of big way. The underlying examination led uncovered that out of nighty-three point five million records audited around two point one million basically were resolved to definitely be sort of phony (McCoy, 2017), which definitely is fairly noteworthy. The initial examination uncovered that out of one hundred sixty-five million records inspected near three point five million of them were found to be unapproved accounts, or so they particularly thought. The organization really has chosen to literally organize its picture fiscally to the world as opposed to literally remain consistent with what it particularly was established for, sort of contrary to popular

The article,”To Disclose or Not to Disclose? Wells Fargo Woes Shine Light on a Knotty Problem

The ethical culture of a Wells Fargo can be seen to be a piece of the culture of an organization. Thus, if the culture of the organization represents how things are done, the ethical culture is a reflection of the way things are conducted in the context of ethics and ethical attitude in a company. The ethical culture represents the ethics personality of the organization. Assessing the culture of a company is one way that can be applied in managing business ethics in a business entity. By evaluating the culture of the firm, one can be sure to identify the strengths and weaknesses of a company and also determine the areas that need to be revised and amended for the better company in future.

Strong intro: Advocate is addressing necessary points during into- appreciation, disclosure, intro, name, concern. (adjusting tone appropriately)

Mr. Chen came to our office just now to deliver a document. He wanted to make an appointment with you on Monday afternoon. He said he would like to discuss with you whether we should send an attorney letter to BOA and Wells Fargo regarding his case.

In my opinion, this scandal is much deeper then it appears. It looks like we have a case were the company is corrupt at the very top, where these unreasonable expectations came from. Employees of the company felt like they had to go to extreme measures and do illegal things simply to keep their jobs. This is not fair nor should it be allowed. The main underlying problem in this situation is that Wells Fargo is not being ethical towards their employees. These employees have responsibilities, such as feeding themselves and their families, so of course they will go to extreme measures to keep their job. The more I read into this case the more I felt like the heads and directors of Wells Fargo were in the wrong more then the people that were actually

On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

The first stated values, states that Wells Fargo’s value open, honest and two communication, which did open a hotline dealing after the scandal and handle the customer service. Though, I would not consider that company honest, but maybe openness after the fact. The second state values is based on accountable and proud of their conduct and decision dealing with Wells Fargo’s. Though, Wells Fargo is unethical in it business practices still used well known business practices and process to motivate salespeople open multiple accounts without the customer permission. Such as training employee in techniques into frauding customers and a system of rewarding for such behavior. Which shows a totally disregard for the customer financial well being

Neither Wells Fargo employees nor board followed many of the stated ethical values. The compensation plan was a large promoter of the unethical behavior. Wells Fargo rewarded employees for providing unknown services the customer did not know about nor needed. These actions were in direct conflict with the ethical values of “Value and reward open, honest, two-way communication”, “Avoid any actual or perceived conflict of interest” and “Comply with the letter and the spirit of the law” (Ferrell, et al, 2013, p.184). Wells Fargo over the last few months has been in the news for deceiving their stakeholders.

In 2016, federal regulators caught Wells Fargo creating millions of fake bank and credit card accounts; over 1.5 million bank accounts were created. Furthermore, federal regulators also said that 565,443 credit cards were created, and 1400 of those accounts had been charged over 400,000 dollars in fees. Wells Fargo employees broke many ethical and legal boundaries and engaged in counterproductive work behavior.

There was a dismissal of 5,300 employees and $185 million in fines against Wells Fargo (Stewart, 2017). The bank’s pressure-cooker sales environment made a toxic sales culture. Wells Fargo held unrealistic sale quotas to its employees and held policies that drove employees to participate in illegal behaviors to meet unreachable goals. Employees opened millions of unauthorized credit cards and deposit accounts, fees and other charges were racked up, money was transferred from customers’ accounts without their knowledge and their permission, they also created phony email addresses to enroll customers in online banking services, all to hit sale targets and receive bonuses. Employees who called attention to the abusive, fraudulent behaviors were ignored and wrongfully terminated and retaliated

Wells Fargo is facing moral challenges in its 164-year history. Crisis experts identified that the unethical issue conducted by the company’s employees might be the sign of poisonous business culture. Apparently, any ethical misconduct must be solved and the company must restore its integrity to gain back their customers’ trust. The recommendations that result from observation based on the million phony accounts created by Wells Fargo’s employees are:

Wells Fargo founded in 1852 is known for being a financial services company. Wells Fargo provides banking, insurance, investment, mortgage, and consumer and commercial financial services through more than 8,600 locations, 13,000 ATM’s, online, and mobile devices. Wells Fargo is headquartered in San Francisco, California but has a vision of being decentralized from that location. Being decentralized allows each location to act as a headquarters to provide their customers with specific financial services. Wells Fargo employs approximately 268,000 employees to serve 70 million customers.