Wils-Fargo Case Summary

WELLS-FARGO CASE—DISCUSSION QUESTIONS---MCH

1) What do you think were the management mistakes in this case?

The management team mistakes were setting up unreachable goals for the employees, as a consequence they started conducting unethical decisions and transactions, such as opening “false accounts” and requesting friends and family members open accounts. , therefore employees could keep their jobs.

The management team did not revise the goals with employees and did not request feedback from employees.

The management team sent mixed messages, and they didn't reinforce ethics.

2) What steps might be taken within this organization to prevent these mistakes from re-occurring?

The organization should request feedback from employees, re-define

goals, monitor external quality control, and regulation enforcement.

3) What guidelines can promote the effectiveness of Ethics Education and Training?
Receiving ongoing trainings and professional development would benefit employees and the management team to make appropriate and ethical judgments, and with the execution of their responsibilities.

4) What are the critical elements of effective communications with employees?
Integrity, honesty, and open communication (without threat or retaliation) enable effective communication with employees.

5) What do you think is the role of “goal-setting” in management?
Management goals should address employees and organization priorities. Also, goals should be specific, measurable, attainable, relevant and timely.

6) Do you see any problems with asking friends or “local business owners whom they knew well to open additional accounts as favors”?
Yes, it is unethical. Opening a bank account should be a voluntary action, without pressures or any type of retaliation.

7) Who do you think are the major stake-holders in this incident?
I think the three parties are affected. The bank gets affected because of bad reputation; consumers are closing their back accounts and not opening new ones. Employees are losing their jobs, and consumers lost their faith on this institution and probably don’t trusts other bank either.