business ethics project

RM
by Rebecca Mires2 views·Updated Apr 12, 2021
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  1. All right.
  2. Um this is my presentation for the Wells Fargo scandal.
  3. Um it is for my business ethics project.
  4. Um I picked Wells Fargo because I was very unaware
  5. about all of the things that were happening around 2016
  6. To about 2018.
  7. So I picked this as my topic Um as we
  8. go in.
  9. Um who as Wells Fargo?
  10. Wells Fargo was founded in 1852 by Henry Wells and
  11. William Fargo.
  12. It was one of the first things to create banking
  13. on the go.
  14. So they were very into a lot of new technology
  15. ever since their stage coach age.
  16. Um that's what they're known for for their stage coach
  17. page. Um They really followed the gold mine, um and
  18. the Gold Rush, so they were providing banking services for
  19. a lot of the places along the transcontinental railroad.
  20. Um Now, nowadays 2010 to about 2020.
  21. Um Currently they're doing a lot of nonprofits pitching in
  22. to help with like neighborhood programs for homeless and a
  23. lot of giving back to the community.
  24. Um as we go on, um, we're gonna go ahead
  25. and I'm gonna go ahead and explain like the Wells
  26. Fargo scandal and how it became um why it was
  27. beginning of all of their unethical practices, many of their
  28. unethical practices were just focusing on speed and online banking.
  29. They weren't really focusing on the customers.
  30. John john Stumpf was the ceo at the time and
  31. had plenty to do with the unauthorized actions as we
  32. go on.
  33. We'll see that he knew about a lot of the
  34. unauthorized accounts and he very much emphasized half of it
  35. with many of his public speaking and public meetings Each
  36. year. Cross selling was one of the ways that they
  37. would do um customer um interactions.
  38. They would cross sell to get more of their accounts
  39. up so that way they can open more.
  40. Um Cross selling wasn't working, so there was much of
  41. an unacceptable pressure to their employees to sell multiple accounts.
  42. Um Their goal was around eight accounts per household, so
  43. many of the employees were very pressured.
  44. Um These branches were focusing on many meeting quotas and
  45. not meeting their community guidelines.
  46. So um just from the beginning of the company, they
  47. were already starting to be unethical with many of their
  48. practices. Yeah.
  49. As we go into how they were doing that, um
  50. They were putting pressures pressure on their employees as well,
  51. not making the culture of the company positive, They're making
  52. it very negative and not a place that people wanted
  53. to work at.
  54. The company was opening up many accounts to customers that
  55. never asked for the service and said that it was
  56. a technical glitch, unauthorized credit cards and loans on behalf
  57. of customers names that never asked for it as well.
  58. Um same concept.
  59. They were creating um new adult accounts for maybe like
  60. a savings account or checking account that was never authorized
  61. in August of 2017 loss.
  62. Fargo admitted to open up 3.5 million fraud accounts and
  63. this was not including, this was including um their customers
  64. and random people that weren't even opening an account.
  65. These were just preapproved people for their credit cards.
  66. Um They were opening up the account we go into
  67. after this is how they were punished after the company
  68. openly admitted to all the counts being fraudulent many of
  69. their customers chose of the banks.
  70. Um As we see in the graph bank of America
  71. was mostly the go to account or go to bank
  72. whenever people found out about Wells Fargo, I'm a drop
  73. to 7.7%.
  74. Even in this broad statement that the ceo john Stumpf
  75. made, um he was definitely just pointing out that they
  76. had goals to reach and I'm not the community to
  77. serve. So this is very unethical to not only the
  78. company but to the culture of the company and all
  79. of their employees.
  80. Um The prosecution was not taken lightly as we see
  81. on the right hand side, September 2016 8 8, 185
  82. million was missing from multiple sources.
  83. 142 million was in fraud accounts and so on and
  84. so forth.
  85. As we go on to my next side.
  86. The effects on the scandal.
  87. These are the business effects of the ethics that were
  88. vandalised in Um definitely abused.
  89. Um employees took effect by not having honest customers satisfied
  90. long term not being employed anymore because they did fire
  91. 5000 employees investors by giving money into a company that
  92. not only was abusing their funds, but the quality of
  93. their banking, um their customers who trusted, along with many
  94. homeless people that were charged with these open accounts long
  95. term. They were not having um anymore banking customers with
  96. them anymore.
  97. They definitely dropped.
  98. So that concludes my project for the business ethics.
  99. I definitely saw many of the ethics that they went
  100. ahead and vandalised during this time, and I saw how
  101. they fixed it and how they didn't, and I saw
  102. how it really affects their customer quotas in customer goals
  103. now, um knowing that they are still trying to catch
  104. up. So thank you.