Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Wells Fargo's Scandals
132
Wells Fargo's Scandals
Presented By - Group 2
Introduction
4 Major Scandals
Scandals over the past years
Lack of Corporate Social Responsibility
Affected Stakeholders
What made Wells Fargo employees to behave Unethically
Why do Good people do Bad things
Ethical Issues Raised
Ethical Issues Related
Wells Fargo's Scandals
FDA Mortgage Certification Scandal: Wells Fargo passes off its Mortgages as "qualified" for FDA insurance to Department of Housing and Urban Development.
Repercussions: Fined $1.2 Billion by the Justice Department in April, 2016.
Fake accounts Scandal: Wells Fargo opens over 2 million fake accounts in clients in an act to solicit account fees without client knowledge.
Repercussions: Fined over $185 million in total by the Justice Department In September, 2016.
Car Insurance Scandal: Over 80,0,000 Clients that received car loans through Wells Fargo were being charged auto insurance fees, even when they didn't require it.
Repercussions: No fines during the time being as the company reported it to the Office of the Comptroller of Currency in July, 2017.
Forged Documents Scandal: Employees of Wells Fargo were caught altering client documents on a broad scale,in the Business Banking Unit.
Repercussions: Similar to the last situation, fines were not implemented due to the fact that the company reported the issue to the Comptroller of Currency in May, 2018.
CSR
Caroll's CSR Model
Purpose Of Being
- Keep money safe for customers
- Offer customers interest on deposits, helping to protect against money losing value against inflation.
- Lending money to firms, customers .
- Offering financial advice and related financial services, such as insurance
Corporate Social Responsibility
ECONOMIC RESPONSIBILITIES
- The core motive a of an organization is to maximize profits.
- Focusing on profitability is what keeps the company competitive.
LEGAL RESPONSIBILITIES
- To stay legitimate and follow laws and regulations.
E.g. Employment, Competition, Health & Safety, Workplace Hazards.
ETHICAL RESPONSIBILITIES
- Being ethical, fair and acting morally is the key.
- businesses should go the extra mile for their employees and not just follow narrow requirements of the law
E.g. Treatment of suppliers & employees
PHILANTHROPIC RESPONSIBILITIES
- This is the responsibility to give back to society
- The responsibility is discretionary, but still important
E.g. charitable donations, staff time on projects
Stakeholders
Stakeholders
- Customers
- Employees
- Shareholders and Investors
- Non-Governmental Organizations (NGOs)
- Government
- Suppliers
- Industry Associations
- Educational Institutions
- Communities
Why Good People Do Bad Things ?
Why Good People
Do Bad Things ?
- Tunnel vision
Single-minded focus on a goal can blind people to ethical concerns.
-The compensation effect
Doing good things to balance out bad things, or alternately .
- Time pressure
Attempting to achieve a goal in a very short time can lead to unethical decisions.
- Losing the job
Employees may do unethical actions if they feel that they are going to lose their jobs.
Ethics of Business Management and Leadership
- Code of conduct vs code of ethics
- Conflict of interest
- Ethical Leadership
Ethics of Business Management and leadership
Conclusion
Conclusion
What has Wells Fargo done so far?
What can Wells Fargo can do to prevent such scandals in future?