Question

read about the wells fargo account fraud scandel then discuss the ethical theories: utilitarinsim , kantian ethics, and virtue ethics and apply them to wells fargos behavior.

also, explain whether this story falls under the friedman theory or the freeman theory.

Answer 1

INTRODUCTION OF WELLS FARGO ACCOUNT FRAUD:-

A. Under pressure to meet steep sales goals and incentives, Wells Fargo employees created over a million fraudulent account in Thier customers names.

B. During financial crisis in 2008 the bank acquired wachoria to become the third largest bank by assets in united states.

C. A few years letter it's growing revenue soaring stock brought the company's value to nearly $ 300 billion. But behind this success was a company culture that drove employees to open fraudulent accounts in attempt to reach sales goals.

Ethical Theories:- Ethics are a process that is both an art and science. An engineer with ethics is a person who is expected to posses the moral integrity with rich ethical values. In fact for centuries philosopher have came up with theoretical ways of telling right from wrong and giving guidelines about how to act ethically. Here are few ethical Theories :-

A. Utilitarinsim:- This perspective founded by Jeremy Benthomy focussed on consequences and results and the pursuit of common good. A central goal is to maximize happiness and minimize suffering for most people.

B. Kantian ethics:- Emphasize the principles behind action rather than an action results. Acting rightly thus requires being motivated by proper universal principles that treat every one with respect.

C. Virtue Ethics:- This perspective is focused on virtue and practicing good. We became good by practising good not by following external rules.

Apply of above ethics:-

A. Normal theory is mechanism assessing whether a particular action or rule is ethically justified.

B. More precisely a moral vision it helps us to determine whether an action or a rule is ethically right, wrong or permissible.

C. Moral theory range from utilitarianism which bases what is morally right on the consequence of an action to deontological theories which base concept of what is considered morally right on universal law that exists outside of specific situation.

D. While these approach differs significantly all moral theories have two things common.

E. For moral theories to be helpful it should provide us with source of moral value and it should provide us with a framework or strategy for ranking moral norms when we confront a dilemma.

Friedman Theory:-

A. Friedman developed in his ideas about monetarism he came to oppose many of the policy proposals espoused by Keynesian economist in post war period.

B. Friedman argued for free trade ,smaller government, and slow , steady increasing of the money supply in growing economy.

C. The following are important points that can be taken from Friedman theory:-

I. One of the greatest mistake is to judge policies and programs by their intention rather than their results.

II. Economics can be communicated to the mass

III. Increase monetary growth increase price but doesn't really affect output.

IV. Technocrats must not control the economy.

V. Government failure can be as bad as than market failure.