Decisionmaking 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

As a consultant hired by Wells Fargo, I would take systematic steps towards a resolution of the dilemma. The first step would be to assess the current situation and identify any potential ethical issues that need to be addressed. This could include reviewing company policies and procedures, interviewing key stakeholders such as employees, customers, and management, as well as examining internal documents such as emails or reports. Once the scope of the problem has been established, I will then develop an action plan for addressing it. This plan should include specific strategies for resolving existing issues and preventing similar ones from occurring in the future.

The next step is to create an ethical decision-making model that takes into account all relevant considerations including legal requirements, organizational values and goals, stakeholder interests, social responsibility standards, etc. This model should also consider how different parties (e.g., management versus employees) are affected by decisions being made and provide guidance on how best to handle conflicts between them while still taking into account overall ethics code principles. For example, when making decisions related to employee sales incentives or quotas their compliance with Wells Fargo’s Code of Ethics should always be taken into consideration in order ensure fairness across all areas of operations while preventing unethical behavior from occurring within the organization again in the future.

The following step involves actually implementing this ethical decision-making model throughout both Wells Fargo’s culture and corporate structure which can help ensure continued adherence to its Code of Ethics moving forward. As part of this process I would recommend establishing clear processes for reporting misconduct through its ethics hotline so that potential violations are quickly identified and dealt with promptly before they become larger problems down the line; creating meaningful incentives for proper behavior such as rewards programs or recognition events; developing a unified structure that allows senior leadership oversight over all divisions rather than allowing too much autonomy; holding regular training sessions concerning relevant topics like customer rights/privileges; instituting actual consequences for misconduct rather than just letting those responsible off with warnings only; incentivizing good performance without relying heavily on bonuses; etc.. All these measures can help promote ethical behavior at every level within Wells Fargo while simultaneously curtailing improper practices both now and going forward thus restoring public trust in their company brand name once again

Including clients (or customers) in these decisions is also important since it helps build positive relationships built on trust between companies and their consumers – something especially crucial during times like these when consumer confidence about certain organizations has been shaken due to scandals such as this one involving Wells Fargo . Possible ways that clients can be included include giving them more control over their accounts (allowing users access/control over data analysis tools), opportunities to participate in surveys/ focus groups aimed at getting feedback about products/services offered , having conversations via online discussion boards whereby they can voice any concerns they may have regarding company operations directly with upper management , providing feedback loops where customer complaints are responded to quickly & appropriately , offering loyalty rewards programs & other various promotions targeted towards building long-lasting relationships -all initiatives which show customers respect by acknowledging their opinions & listening actively instead of simply pushing sales numbers & profits as was done previously .

Accounting for ethics codes when making decisions is absolutely essential because it provides a framework through which individuals involved know what expectations must met depending on particular situations . With regards specifically dealing with cases like this one involving Wells Fargo – adhering strictly to guidelines set forth by governing bodies such as Sarbanes Oxley Act will go along way helping organizations remain compliant & avoid penalties associated lucrative fines & jail time thereby greatly minimizing chances unethical practices ever happening gain especially egregious proportions again . Additionally , emphasizing importance staying honest throughout operations further reinforces value integrity which ultimately make easier instill morals among staff members deliver quality services secure knowledge anything untoward won’t tolerated regardless circumstances .

In conclusion , successfully addressing situation presented above requires utilizing several steps starting base level assessing current state affairs moving onto formulating action plans strategizing implementation proper protocols responding efficiently client needs honoring codes set forth higher authorities ; doing so enable wells fargo bring back faith people put into institution years past despite recent scandalous activities occurred within environment lead brighter future ahead everyone involved .

References:

1) Bourgeois III F L “Managing Conflict Ethically” Journal Of Business Ethics 11 (1992): 939-946 Web 21 Mar 2021 2) Spector B “Why Companies Should Embrace Transparency” Harvard Business Review Nov 2014 Web 31 Mar 2021

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