Question

1. Modeling Character and Values: What values did Stumpf model to Wells Fargo employees? What impact might that have on the culture of Wells Fargo?
2. Encouraging Ethical Conduct: What behaviors can leaders model in order to encourage ethical behavior in their organization?
3. Designing Ethical Systems: Wells Fargo did have some systems in place, like the ethics hotline, to report unethical behavior, but it didn’t work. Why do you think that is? What steps can leaders take to design systems that encourage ethical behavior rather than unethical behavior?

Answer 1

- Organizations set targets without being aware of how those targets may inspire unintended unethical behaviors behaviors that are conflicting with their core values.

- Wells Fargo CEO, John Stumpf, states on the organization site, All that we do is based on trust. It doesn't occur with one exchange, in one day at work or in one quarter. It's earned relationship by relationship.

- Well, it seems like Wells Fargo ignored its relationship with a huge number of its clients.

- Regulators are reprimanding the bank for not having more tight controls and oversight on workers' conduct.

- Yet, I truly question if free controls were the guilty party. It appears as though what was missing was values-based administration

- Values-based initiative implies that values are words as well as are converted into activities activities including how targets are set and checked.

- Targets are intended to be won or accomplished. In any case, in this circumstance, everybody included – workers, the organization, the clients, the banking business – is a washout.