With the above considered, it is no surprise that Wells Fargo is struggling to keep customers.

Despite taking credit for the scandal, having the CEO step down, and implementing marketing campaigns targeted at rebuilding consumer trust, Wells Fargo’s business practices have been compromised in the eyes of consumers. In addition to government investigations, former Wells Fargo employees have filed lawsuits against the firm. Thus far, one whistle-blower has already won a lawsuit. Former CEO Stumpf was forced to pay back millions in compensation for allegedly turning a “blind eye” to the misconduct. The level of misconduct is so great that regulators are even considering holding the board of directors accountable, something which is rarely done unless it can be proved that the board of directors neglected their duties and was aware (or should have been aware) of the massive fraud taking place.

Ultimately, the stakeholders injured in this situation were the individuals who were victims of the creation of fake accounts, the stockholders, and the employees convicted of fraud. Wells Fargo chose to adopt a short-term perspective and abandoned a deontological approach for the temporary gains that came with committing fraud. Deontology focuses on the means used to achieve an end rather than the end itself. According to deontological moral theory, the means of attaining a certain outcome are just as important morally as the outcome itself. If Wells Fargo executives and managers had prioritized how employees were making their sales goals, then they would have detected the fraud sooner and taken steps to correct it. With the above considered, it is no surprise that Wells Fargo is struggling to keep customers.

Despite taking credit for the scandal, having the CEO step down, and implementing marketing campaigns targeted at rebuilding consumer trust, Wells Fargo’s business practices have been compromised in the eyes of consumers. In addition to government investigations, former Wells Fargo employees have filed lawsuits against the firm. Thus far, one whistle-blower has already won a lawsuit. Former CEO Stumpf was forced to pay back millions in compensation for allegedly turning a “blind eye” to the misconduct. The level of misconduct is so great that regulators are even considering holding the board of directors accountable, something which is rarely done unless it can be proved that the board of directors neglected their duties and was aware (or should have been aware) of the massive fraud taking place.

Ultimately, the stakeholders injured in this situation were the individuals who were victims of the creation of fake accounts, the stockholders, and the employees convicted of fraud. Wells Fargo chose to adopt a short-term perspective and abandoned a deontological approach for the temporary gains that came with committing fraud. Deontology focuses on the means used to achieve an end rather than the end itself. According to deontological moral theory, the means of attaining a certain outcome are just as important morally as the outcome itself. If Wells Fargo executives and managers had prioritized how employees were making their sales goals, then they would have detected the fraud sooner and taken steps to correct it.

Wells Fargo had a duty to its customers and employees to operate in an ethical manner, but the company allowed lofty sales goals to get in the way of ethical business practices......

Questions:-

1. How did Wells Fargo’s focus on short-term gains violate the duties they owed to consumers, regulators, and employees?
2. Describe how the Wells Fargo scandal demonstrates that organizational leaders must not only establish goals but ensure that those goals are being acted upon appropriately.
3. Why are ethical values useless unless they are continually reinforced within the company?