Read pp$.26-36.$ In considering the importance of Formalism, which focuses on duty, we're confronted with a world view that challenges our modern$-$day assumptions about behavioral performance and balance. Against this background, it's also important to understand that ethics and law are interrelated in fundamental ways that create influence in both directions. In fact, most, if not all, laws have ethical principles underlying the legal framework.

I want us to turn to Table $2\mathrm{.}1$ on page $31.$ Read the fact$-$pattern about Wells Fargo Advisors and comment on how this case relates to the concept of Formalism. Related to this analysis, consider the views of Immanuel Kant or John Rawl's Social Contract theory in supporting your answer.are easier to ethical issues that surround nearly every heighten public attention and

als can co see than they once were. As a result of greater visificant business decision

tions, of bument on the fairness, justice, and values reflected visity, more individu$-$

ethical processes executives. Changes in the law and workplace can improve the

Refer now to sid affect us all in our economically interdependent world.

high$-$pressure work sidebar $2\mathrm{.}1.$ This recent case highlights the widespread impact of

ETHICS AND GOVERNMENT

These changes in society have been accompanied by changes in the role of govern$-$

ment. When business fails to make ethical decisions, when it fails to live up to soci$-$

ety's expectations for ethical behavior, government may step in$.$ As noted in a prior

sidebar $2\mathrm{.}1$

Wells Fargo Sham Accounts

A $2013$ Los Angeles Times investigative story helped

uncover a massive internal fraud at one of the United

States' oldest and most respected financial services insti$-$

tutions, Wells Fargo. The fraud apparently originated from

CEO John Stumpf's mantra for employees that "Eight is

Great." This mantra meant that Wells Fargo's employees

should sell each customer eight bank products. However,

Wells Fargo employees struggled to achieve the demand$-$

ing quota and, to artificially meet the quota, began open$-$

ing fake accounts without their customers' knowledge.

From $2011$ to $2016,$ employees created $1\mathrm{.}5$ million unau$-$

thorized deposit accounts and $500,000$ credit card appli$-$

cations. These products resulted in $$2\mathrm{.}6$ million in fees for

the bank.

On September $8,2016,$ regulators ordered Wells Fargo

to pay $$185$ million in fines. Wells Fargo also announced

that it had fired more than $5,300$ employees for creating

sham accounts. However, there was a public outcry that no

executives were terminated for failing to protect customers

and to properly supervise and incentivize employees. On

September $20,2016,$ the Senate Banking Committee called

for Stumpf's testimony. Despite his apologizing for the bank's

actions and abolishing all sales goals in the retail banking

business, Senator Elizabeth Warren, among others, called

on Stumpf to resign. Under increasing pressure, Stumpf

announced his resignation on October $12,2016.$

Source: Wasik, John, "The Wells Fargo Fake Account Scandal: A Timeline,"

Forbes, November $4,2016.$