The concern is that Wells Fargo has been obsessed with a culture that has encouraged the accomplishment of sometimes high, elevated targets coupled with the high pressures.

The concern is that Wells Fargo has been obsessed with a culture that has encouraged the accomplishment of sometimes high, elevated targets coupled with the high pressures. Since the culture was based on inexperienced financial firms’ sales, this is generally a formula for failure that is a dynamic and aggressive enterprise. Consequently, when a “successful” inexperienced aggressive banker was elevated to a position of manager, he/she carried this same sense of right and wrong to their team that introduced them to fame, causing a chain reaction. The high-pressure environment and the public disappointment at poor performances can undermine employee ethics, such as when opening accounts that are not approved by customers who have created millions of fees for the bank. I blame the Community Bank head, Carrie Tolstedt, and Human Resources at Wells Fargo.

Although there seem to be various ethical standards compromising Wells Fargo, the underlying responsibility behind the controversy of Wells Fargo is the value of reputation and morals. Based on the current Reputation and Morale of Business Ethics by Josephson, Ethical managers are committed to preserving and building the reputation of their workers and their values by doing nothing that might damage their esteem and taking any appropriate step to redress or avoid the misbehaving of others. Wells Fargo staff and their allies are to come together to oppose the ally of predatory activities of the bank in Minneapolis – in particular, revenue limits placed on some of their employees.

By developing a concentrated promotional plan and suffocating the workers ( for example, bankers, sales staff) and relentless strain on the results, otherwise you will be destroyed publicly and losing your job leading to “do whatever it takes,” even dishonest actions.

The cultures and behaviors for all market sectors must be taken into account by businesses. Wells Fargo is, of course, an immense organization with multiple staff, divisions, and industry lines – it also has a commitment to maintaining a decent working atmosphere for its employees on all channels. That is why I think HR should actually be responsible for not offering the right technical preparation or encouraging it. A human resource specialist is responsible for motivating workers to engage in workforce development programs. Encourage everyone from time – to – time to update their current expertise to be important to the organization.

Even if it was quite late, I assume that the Board of Directors of Wells Fargo chose the necessary steps to combat this issue. Establishing whistleblowers and third-party advisors for staff to exchange insights and help them feel at risk. I think that businesses need to ensure appropriate preparation and instruction, including ethical training. Professionals in human resources play an important part in developing a business community in which the workforce is taking training and growth work seriously. Invite all the workers to a shared forum and stress the importance of preparation and how this will allow employees to develop both personally and professionally

Also, with training classes and counseling services, there are workers who are still empowered by financial gain which all they can to accomplish this without the company’s request – which threatens the reputation and integrity of the organization.

The Fall of the Fabulous Fab

Fabrice Tourre, a 28-year-old Goldman Sachs banker, expert in mortgage-backed assets, is a knowledgeable and hard-working man with a Stanford degree in engineering. Even so, during the subprime financial crisis of 2008 to 2009, he was also one of the few people from any large Wall Street firm kept accountable for securities fraud. Hence, some people claim that because investors wagered on the mortgage portfolio’s success to make money, Goldman behaved close to Casino. The gambling, however, is done. Goldman lost the game. As the product manager, Tourre was sued by the SEC for misleading investors, and Goldman resolved this lawsuit for $550 million.

As a Goldman staffer, because of the evolving mortgage market, Tourre has to face many stresses. He feels frustrating, as per his email, so there is a chance for him to build a “thing” to benefit his company and himself. The thing is “Abacus,” so for that, Tourre was mainly accountable. Because of two aspects of his actions, the SEC is particularly opposed to him: legal and moral. First of all, from the legal side, Tourre planned the promotional materials and conversed with value generated. He knew all about the unknown short interest of Paulson and his role in the counterparty recruitment process, but he still tricked ACA into making the choice. ACA claims that Paulson has capitalized about $200 million in ABACUS 2007-AC1 equity and that each of its interests has been aligned with each other, although this is not accurate.

In this situation, it seems that Goldman Sachs’ internal framework did not allow Tourre the opportunity to voice his concerns. Therefore, another option for Tourre might be to “blow the whistle” to an outside group, including the SEC. While this could cause him to lose the present work, he would not be arrested and excluded from the entire business for an era.

Furthermore, this situation is distinct from the case of Livedoor facing novice individual investors. Like Goldman, investment banks typically work with sophisticated institutional investors who have a massive capital involvement. Thus, when making decisions, these investors need to be more vigilant since the failure of their investment could lead to the entire business’s failure, even the entire industry

Tourre refused the settlement of a lifetime ban from the investment industry despite Goldman paying for Tourre’s protection. He agreed to battle the charges in court and quit the firm at the University of Chicago to begin his Ph.D. in ethics. This mb a courageous act, but in this case, he had done something wrong. Tourre acted alone, as per juror Dylan Maxwell, so he should be guilty, but what Tourre did was produced by the corporation. Dylan assumes that the organization’s framework allows its workers to behave alone so that when anything happens, the company will still find scapegoats for the wrong actions.

Fabrice Tourre’s case shows the intentional tension between seeing mistakes and behaving as an agent of change while someone is engulfed in this culture. Later, when we go to the actual office, we need to think that we should have done differently when faced with this ethical problem. To avoid such errors, Goldman must design individual control systems, as centralized controls may be inadequate. Young money managers, faced with ethical dilemmas, must build and introduce a better corporate culture following the values.

 

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