Decision-making model

In a 1,500-word paper (excluding references and title page), based on the scenario
below, discuss how you would apply systematic steps toward a resolution of the
dilemma as a consultant hired by Wells Fargo. Discuss the specific steps of the decisionmaking model you would take in making an ethical decision. How might you include the
client in making your decisions? In what way or ways is accounting for the ethics code
important for decision-making? To support your responses, in addition to the required
readings, cite at least two scholarly references.
Scenario
Wells Fargo was the darling of the banking industry, with some of the highest returns on
equity in the sector and a soaring stock price. Top management touted the company’s
lead in “cross-selling”: the sale of additional products to existing customers. “Eight is
great,” as in eight Wells Fargo products for every customer, was CEO John Stumpf’s
mantra.
In September 2016, Wells Fargo announced that it was paying $185 million in fines for
the creation of over 2 million unauthorized customer accounts. It soon came to light that
the pressure on employees to hit sales quotas was immense: hourly tracking, pressure
from supervisors to engage in unethical behavior, and a compensation system based
heavily on bonuses.
Wells Fargo also confirmed that it had fired over 5,300 employees over the past few
years related to shady sales practices. CEO John Stumpf claimed that the scandal was
the result of a few bad apples who did not honor the company’s values and that there
were no incentives to commit unethical behavior. The board initially stood behind the
CEO, but soon after received his resignation and “clawed back” millions of dollars in his
compensation.
Further reporting found more troubling information. Many employees had quit under the
immense pressure to engage in unethical sales practices, and some were even fired for
reporting misconduct through the company’s ethics hotline. Senior leadership was aware
of these aggressive sales practices as far back as 2004, with incidents as far back as
2002 identified.
The Board of Directors commissioned an independent investigation that identified
cultural, structural, and leadership issues as root causes of the improper sales practices.
The report cites the wayward sales culture and performance management system; the
decentralized corporate structure that gave too much autonomy to the division’s leaders;
and the unwillingness of leadership to evaluate the sales model, given its longtime
success for the company.

Sample Solution

In this scenario, I would apply systematic steps toward a resolution of the dilemma as a consultant hired by Wells Fargo by using a decision-making model. The first step in this process is to address the problem. In this case, the problem is that Wells Fargo has been engaging in unethical sales practices, including creating unauthorized customer accounts and pressuring employees to hit quotas for bonuses. Once the problem has been identified, it is important to identify all of the potential ethical concerns involved with each action taken by Wells Fargo and its employees. This includes considering how people are being treated, how customers are affected, and any other potential impact on stakeholders such as shareholders or regulators.

The second step in my decision-making model would be to examine all of these ethical considerations from various perspectives. This includes looking at what is legally required versus ethically desired; examining any relevant organizational policies or codes of ethics; assessing different cultural norms; evaluating different options available according to their likely consequences; and considering any personal values that should be upheld during the decision-making process

The third step in my decision-making model would be to develop a course of action based on these ethical considerations. This will involve making specific decisions about how best to address the unethical sales practices conducted by Wells Fargo while taking into account all relevant legal requirements and organizational policies or codes of ethics. It may also involve further investigation into past conduct related to this issue if needed before deciding upon an appropriate resolution plan for addressing current business practices going forward. Depending on what actions are determined necessary, this could include changes in leadership roles, alteration of financial incentives for employee performance goals, implementation of more rigorous monitoring systems for customer accounts/activity reports across divisions/branches etc., enhanced training programs focused on ethical guidelines within sales departments etc..

Finally, once a course of action has been developed based on these ethical considerations it is important then consider how best to communicate those decisions effectively with all relevant stakeholders (e.,g., customers/shareholders/regulators) so as not only gain buy-in but also secure long term collaboration towards successful resolution efforts aimed at preventing future similar incidents from occurring again down the line . Additionally , involvement from clients must also be included throughout each stage as part of ensuring transparent communication regarding processes undertaken towards resolving such dilemmas .

Accounting for ethics code becomes very important when making decisions because one needs to ensure that their actions comply with applicable laws / regulations , company policies , professional codes , societal standards etc . All organizations have their own set off internal rules / guidelines which should dictate appropriate behavior & hence need compliance when making decisions . Failing which can result not only severe fines & penalties but even tarnish corporate reputations leading potentially disastrous outcomes affecting both short & long terms objectives alike .

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