A business that demonstrates good ethical practices earns the customer’s loyalty and trust and also strengthens the firm’s reputation. When business leaders develop a certain code of ethics, the business builds and develops an ethical selling culture. The concept of business ethics not only enhances a corporation’s image but also plays a vital role in building the foundation of an organization’s success. Initially, the company’s managers blamed the employees – evident in the firing of the 5,300 employees- while they themselves holding themselves blameless. The business executives could have done much more but rather than devising ways to solve the issue, they spun the situation with claims of being customer-oriented in the absence of effective plans and measures to get their employees on board the overall mission.
Regarding ethical values, the company strived for the highest level of ethical standards with team members, customers, communities, and shareholders. Honesty, trust, and integrity were considered by Stumpf as the key pillars for corporate governance’s highest standards. Ethical practices are everyone’s responsibility and not merely reserved for senior leaders and executives. The organization’s mission strategy includes a summary of how the organization views its role and function and the beliefs applied in achieving its overall goals and objectives. This is because the business culture is one of the most essential driving force in how the organization conducts business and for this reason, it has a substantial impact on the formulation and development of a business strategy. Business culture also dictates other business factors such as employee retention, business focus, and risk management.
Also, it is ultimately crucial for one to note that employees normally follow the examples set forth by the management. Business leaders and managers ought to be held to a higher ethical standard. This is important since it enhances their credibility in the event when they express their expectations to their employees to maintain the same practice. Management staff should be challenged to hold discussions with staff to solve likely ethical issues that may arise in addition to devising brainstorming techniques among them as one unit. The management has to analyze the present methods of operation in the organization. The management should not only talk about the essence of business ethics in the workplace, but it should seek to treat its employees in a fair manner that promotes ethical behavior.
Despite Wells Fargo putting in place systems to report unethical behavior, the firm still fell victim to employees’ unethical practices. While many researchers have followed similar cases to the Wells Fargo scandal, they affirm that most similar cases are predictable hence raising the question of why the managers failed to prevent the scandal. One of the main possibilities on why the systems did not work leans on the management not caring enough despite knowing the extent of damage that such scandals can cause in the event they take place. Another possible reason may be because the business leaders did not have sufficient and adequate knowledge of how strong ethical cultures can be created to create an environment where such scandals are much less likely to take place. Maybe it is a little of both possibilities. More often than not, the latter can be tackled but there is not much that can be done about the former. It is necessary to consider the set of scenarios that lead to such scandals.
Markkula Center for Applied Ethics (n.d). Wells Fargo Banking Scandal. Retrieved from https://www.scu.edu/ethics/focus-areas/business-ethics/resources/wells-fargo-banking-scandal/. Retrieved on 12 November 2019.
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