Jim Cramer was definitely not making it an easy interview for John Stumpf, the CEO of Wells Fargo. Right when Stumpf sat down, Cramer was ready with multiple questions to throw at him. I thought when John Stumpf apologized and came clear with the fake accounts being made and fraud that has happened at the Wells Fargo right in the beginning was a smart idea. Stumpf mentioned what his goals were directly after he apologized. He said, “My goal is to make it right with every customer 100% of the time and if we do not, I will feel accountable for the mistakes.” Cramer came out right after talking about Wells Fargo code of ethics. The code of ethics states that Wells Fargo will act with responsibility such as honesty and integrity and that they
hold themselves accountable for actions and decisions. Cramer mentioned how people say Stumpf needs to retire. There was no pause after that question. Stumpf came out saying, “I need to lead this company, especially since we have just announced they will be taking away product sales.” I believe John Stumpf is truly trying to make a change in Wells Fargo in the near future. In my opinion, the reason to why Stumpf is attempting to make a change now is because Wells Fargo got caught with making fake accounts. From 2011-2015, the company hired an independent third-party to check all the products customers have opened. There were 93 million accounts opened, but 2 million accounts were considered debatable. 2.6 million dollars of fees were found and returned. Stumpf said,” We do not want one dime of income if we do not know if the account is authorized or unauthorized that we do not hear.” I think this is a very responsible decision for a CEO to make. Over 5,300 employees terminated because they did not meet requirements or have done something bad. Bankers and managers or managers were in this category of termination. Stumpf will be very effective in reaching out his goal in the clip. His goal is to regrowth the company and make it right with every customer, which he will be working on in the near future. If I was Stumpf, I could have made my message more persuasive by using the credibility I have left and knowing the audience I am talking to. I would have also used a more concrete language, such as not using buzzwords. Other than that, Stumpf came out strong with positive information after he had apologized and tried to keep the positivity up about the company.
Lowe’s and Home Depot introduce each other in a message that clarifies their own explanation of Code of Ethics. Both encourage doing the right thing while performing a job that may not always cover all situations. However, employees’ are provided a strategic map that may...
Moncrief Company agreed to pay Jim Lester 20% of the gross profit made from the 2013 sales of the Zelenex. Between January 1, 2013 and December 28, 2013, Moncrief’s total available units for sale were, 50,000 units of Zelenex for $30.00 per unit ($1,500,000). Also in addition to the former activities, Moncrief sold 35,000 units for $60.00 per unit ($2,100,000). Moncrief Company uses periodic LIFO inventory method as a result, Jim Lester was to receive $210,000. (Textbook pg.469)
By proactively addressing ethical issues with a code of conduct, Raiders Inc. can set the standard regarding how they want employees to behave. Employee can be trained on the company code of ethics so they understand how their company expects them to respond. They can also train them on the biases of decision making, to make sure they are aware of the pitfalls that exist. (Robbins & Coulter, 2012)
Based on the contingency continuum theory the bank was on the pure accommodation side by doing full apology, by being honest and communicating it to the public. " Stumpf, who will testify at the Sept. 20 hearing, said he was sorry about the scandal. “We deeply regret any situation where a customer got a product they didn’t request,” Stumpf said during an appearance on CNBC’s “Mad Money” on Tuesday." (Puzzanghera, 2016). Then, always following the apology and restitution strategy Wells Fargo put his public first by doing paying full compensation to them. According to Egan, Wells Fargo has reached a $110 million preliminary settlement to compensate all customers who claim the scandal-ridden bank opened fake accounts and other products in their name. Furthermore, they also did some corrective actions by eliminations retail sales goals. “The elimination of product sales goals represents another step to reinforce our service culture, helps ensure that nothing gets in the way of our ability to achieve our mission and is consistent with our commitment to providing a great place to work,” he said. The sales goals will be eliminated starting Jan. 1, Wells Fargo said." According to Puzzanghera, 2016. Concerning, the corrective action the bank went beyond the elimination of retail sale goals they also fired some employees, paid their fined toward the regulatory bodies including the Consumer Financial Protection Bureau(CFPB) and the
Stewart unleashed a fury of intense and condemning questions upon Cramer. However, unfortunately for Cramer he functioned as a stand-in for the entire CNBC company and our entire corporatized news media. Stewart used multiple video clips of Cramer in 2006 to prove Cramer was well aware of the “shenanigans” that allowed investment returns to roll in at 30 percent per year, and major institutions leveraging at 35-to-1 for most of the 2000s. This leveraging, in effect, is the one thing that caused the fall of Wall Street and the decline of our retirement portfolios' value. Stewart made that point to Cramer and Cramer could not disagree. The crucial question Stewart asks and we will attempt to answer is, do shows like Cramer’s Mad Money and other CNBC reporters have an ethical responsibility to be critical, investigative journalists? We must first understand the actions taken by each party involved in the housing and banking collapse of 2009 in order to fully comprehend the ethical situation that unfolded. One must first understand the actions taken by each party prior to 2009. Bankers backed by investors, started lending mountains of excess cap...
When thinking about a business one may ponder the several aspects of how a business functions. One of the most important aspects to a company are their ethical obligations. Many businesses have these obligations but not all recognize them, which can create an issue between the consumers and the suppliers. Petco is an animal supplies company that deals in the sales of all animal related products (food, leashes, and so much more). It is reasonable to question what ethical obligations Petco has and if they are acting on these responsibilities. One must outline the different actions that Petco has as an animal supplies company to keep the animals in their possession healthy and well-cared for. For many businesses dealing with
Many counselors enter into the profession because they are interested in helping individuals and have the desire to enhance human development. Though counselors are guided in culture from their own values and beliefs they have about living, ethics supersedes morality. Ethics are rooted in philosophy and are created by professional associations in order to govern those members of the profession. In the field of counseling there are two individual agencies, American Counseling Association (ACA) and the American Association for Marriage and Family Therapy (AAMFT), that both have several similarities and differences within each specific codes of ethics.
A code of ethics is a formal document in which is used to assist members of an organization, to know what’s ‘right’ and what is ‘wrong’ in the work place and applying it to their decisions. A code of ethics is a written set of rules or guidelines to help the workers and management ‘conduct’ or direct their actions with its primary values and ethical standards. A code of ethics is important because without it, employees and management wouldn’t have guidelines and the establishment would resemble a crazy house. Consider the establishment, Dunkin Donuts. Dunkin Donuts is a food establishment well-known for their famous donuts, coffee and their slogan “America runs on Dunkin”. Without a code of ethics, the industry would most likely be extremely hard to control.
The AICPA Code of Professional Conduct defines independence as consisting of independence of mind and independence in appearance. According to the AICPA Code of Conduct, Section 55 Article IV, An accountant member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. Moreover, a member who practices their accounting work in a public firm should be independent in fact and appearance when providing auditing and other attestation services (aicpa.org). According to the case study What Lies Beneath, I think that Betty did not show her professional skepticism since she built trust on her client, which she could not have as an auditor. As an auditor,
Marco “Marlo Kaitlin,” a former Wells Fargo employee, claims she was harassed and mocked to the point that brought her near to suicide. Her lawsuit against Wells Fargo was filed with Los Angeles Superior Court last July 14th. She alleged wrongful termination, discrimination, harassment, hostile work environment, retaliation, and intentional and negligent infliction of emotional distress on the part of Wells Fargo. She claims it all started with her decision to transition from a man to a woman.
Mackay, Tim. "The Ethics Of The Wolf Of Wall Street." Charter 85.2 (2014): 67.Web. 23 Mar. 2014.
This concern of integrity and organizations like Wells Fargo to do what is right stems from our personal ethical framework. We all have one which helps us decide what is right and what is wrong. It is this decision that is a concern for organizations that must be managed on a day to day basis. Company’s such as Wells Fargo are so big that bad ethical behavior may be overlooked and not dealt with until the damage has already been done. Other organizations need to learn from Wells Fargo and start addressing their own organization ethical framework. This would include the organizational culture, business strategies, employee ethics concerns and the overall ethics and decision-making
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
The Board of Directors for The Ford Motor Company has implemented an additional Code of Business Conduct and Ethics for their directors. It was created in order to help them access ethical risk factors, provide guidance and support when dealing with ethical issues, and uphold the integrity of the company (Ford Motor Company pg. 1). With these guiding principles set forth, all directors must comply and adhere to the codes, as well as promptly report any questionable situations and/or circumstances directly to the Chairman of the Board of Directors, the Chair of the Nominating and Governance Committee or the Presiding Director who will take the necessary steps to deal with any issues (Ford Motor Company pg. 1). Directors must steer clear of any situations that would create a conflict of interest between a director and the Company (Ford Motor Company pg. 1). Certain instances in which to abstain from include any relationship of the Company with any third – parties, compensation from non-Company sources, Gifts, and personal use of Company assets (Ford Motor Company pg. 2). Ford Motor Com...
Ethical Banking: an oxymoron or a change in banking practices required in the twenty first century? In the modern world, financial institutions are being held to strict regulation in a post Global Financial Crisis era yet financial institutions are still outlining their message of strong social responsibility. Is this all a façade or are financial institutions truly holding themselves to the strong message their claim? The pursuit of becoming a good corporate citizen and maintaining an ethical stance is becoming increasingly expensive for businesses worldwide, through issues such as sweatshops, child labour and environmental destruction. As one of Australia’s largest and most powerful financial institutions, the Australian New Zealand Bank (ANZ) stated its “committed to achieving outstanding performance and results to provide value to our shareholders, while considering the interests of employees, customers, the community and others with whom we do business” in Code of Conduct & Ethics(2013, pg. 10). ANZ’s focus on Corporate Social Responsibility (CSR) has come under fire of late due to issues relating to unethical loans and interest rate manipulation in Singapore (Yeates 2013). Banking institutions, much like many global companies, use CSR for many differing reason as a strategic ploy. From this institutions aim to create an equilibrium between the level of resources used in CSR and returns for shareholders .This paper aims to investigate and compare the level of corporate social responsibility and internal ethics in which ANZ claims it holds in high regard with its actual performance, as well look at the wider banking industry choices in relation to the application of CSR and exploring the link and benefit associated with CSR...