final go

Wells Fargo Domestic Ethics

Jian Gao

MGT535-01W-1

( Running head: WELLS FARGO DOMESTIC ETHICS ) ( 1 )

Wells Fargo Domestic Ethics

Wells Fargo & Company (domestic ethical issues) Intervention to Create and Sustain a highly Ethically run Organization Including Motivations within this Ethical Structures

Introduction

Wells Fargo, a financial institution based in the United States, was bucking the trend in a recession. It acquired Wachovia during the 2008 financial crisis and is now the third-largest US bank by assets. After a few years, the company's revenue had grown and its stock had soared, bringing its value to about $300 billion. Employees were encouraged to open phony accounts in order to meet unrealistic sales targets because of the company culture. More than 1.5 million bank accounts and more than 565,000 credit cards were opened and applied for by firm personnel in the names of consumers who may not have been approved between 2011 and 2015 (Coleman, 2019). Customers and employees are the primary goals of businesses. They also want a place to work. Employees are also provided with a pleasant working environment by the firms. Wells Fargo and Co. is one of the companies that has come under fire for enforcing severe working conditions on its employees. Without their knowledge, the personnel were compelled to open accounts in the names of their customers. As a result of these sanctions, the company was forced to take a large financial loss. There is also a leadership issue at Wells Fargo and the organization as a whole.

Ethical Issue

Wells Fargo conducted fraudulent activities by their employees and management in the approach of achieving unrealistic financial goals that led organization being fined $185 million. A high rate of fraud is detrimental to an organization's growth and development. The victim's

( WELLS FARGO DOMESTIC ETHICS ) ( 2 )

organization suffers, and the nation's progress is halted as a result. Using the organizational development items in handling the problem.

Entering into OD Relationship: CH 4 (76) Diagnosis

Clarify Organization Issue

Diagnostic and problem solving skills of behavioral scientists are used formally in partnership with the management of the company to solve organizational difficulties and increase effectiveness in organizational development. Change can be introduced in an organization in a way that is as painless as possible using this strategy. Development of the Organization It is defined in a variety of ways by theorists and practitioners. The problem highlighted is fraudulent activity that is opening fake accounts just to meet their sales and remain relevant in the market. Wells Fargo unethical strategy led to firing of many employees and also the company fined $185 million. The problem requires diagnosis because it cannot be just assumed to be a way of making more sales but there are other issues that affects employees (P.76).

Determine Relevant Client

During this process of diagnosis the chosen OD practitioner has the mandate of choosing the clients and in this case are mainly the employees through their union leader representatives where an interview is conducted to source the primary information. The diagnosis process targets on getting the root cause of the problem to guide in getting the right decisions. In the process of bringing change, the employees acts as the relevant client and need involvement in order to get the best feedback p.77.

Select Practitioner

Wells Fargo should consider looking for an OD practitioner and enter into a contract with the CEO to come and help in solving the problem in the company (p.79). Before entering into agreement, there should be a thorough search on the background information about the OD practitioner making sure that he/she has the ethical skills and responsibility of settling the problem (p.78).

Designing and Development OD Intervention Strategy (p158) CH 7

The intervention design for Wells Fargo is created as soon as the root cause of the fraudulent activity at the bank has been identified. The phase is significant for the ethical dilemma since it helps to provide the groundwork for preventing future instances of unethical behavior that may develop in the future. Because the diagnosis procedure was so critical, the information gathered should be put to good use in developing solutions that address the primary problem. An OB intervention that highlights ways in which employees are motivated to conduct their work ethically as a way of discouraging unethical values is required in the case of the ethical challenge of developing fake accounts as a result of pressure from management to meet unrealistic plans in the case of the ethical challenge of developing fake accounts.

Employees are encouraged to engage in immoral behavior by promising them large sums of money that are impossible to achieve. A plan for meeting goals can be developed during the design stage, which allows the OB practitioner to guarantee that all motivation and reward systems take the likelihood of unethical behavior into account in order to achieve goals. The design blueprint that was created during the initial stage is then subjected to further refinement and improvement. Making a decision on an organization's intervention program allows for better

planning of the resources that will be required to implement the necessary strategy because there is a requirement for preparation. The unethical activities of Wells Fargo necessitate an intervention, and in this case, the most appropriate technique is the planning and goal-setting strategy, in which realistic goals must be established.

Putting in place the mechanisms that will be followed in the process of ensuring that the strategy works for Wells Fargo is a vital step. Additionally, the activities of planning and goal- setting are a necessary shift in the organization, and they necessitate the support and intervention of both management and employees. Because the approach was designed to involve all employees and management from the beginning, it will be easier and more feasible to adopt in Wells Fargo.

Implementation of OD Intervention Strategy (p.160) (CH 7)

Employees and management are subjected to training, education, and coaching processes as part of the implementation of the planning and goal-setting strategy. These processes assist them in learning about the most effective ways to achieve their objectives without the use of fraudulent means. When it comes to complying with government rules, the method would be advantageous to the firm in every way. Create awareness about how improper the types of activities that Wells Fargo demonstrates that there is a need to avoid similar types of acts in the future by organizing the organization to achieve realistic goals.

For the management team to understand that while it is not certain that the company would make excessive profits, if the income created is done in the proper manner, the company will be successful. Promoting ethical methods of meeting company objectives helps to protect customers and clients from having their information misused. According to previous employees, there was a

time when they had to lie to other people in order to obtain information about helping to open accounts in order to increase their sales, which was unethical.

Evaluation (166) CH7

The implementation of an OB strategy require an evaluation that helps ascertain if the implemented strategy is working towards bringing change needed to the organization. There is the need of conducting an evaluation to determine if the adopted strategy is working in bringing change and transformation to Wells Fargo. The planning and goal-setting strategy is important and is measured by looking at the organization incentives and rewards that are placed in their sales and look on their history and also the current market. The moment the goals looks realistic and practical shows that the employees would work and attain them without applying the dubious means.

References

Coleman, A. (2019). New brand, same culture: Wells Fargo workers say the company is still toxic. Vox. Retrieved 11 February 2022, from https://www.vox.com/2019/3/9/18257863/wells-fargo-

bank-employees-customer-practices .

Cummings, G.T., & Worley, G.C., (2015). Organization Development and Change. Cengage Learning.

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