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What should business leaders take away from this scandal?

From the well Fargo’s scandals, there are various lesson which can be obtained from these

incidences. It can be noted that the management of the Well Fargo implemented ways such as

ethics hotlines to mitigate its employees from misconducts but they still involve in misconducts.

This incidence implies its employees have no moral value and thus it should be noted that the

employees should be trained how to be ethical rather than placing mitigation methods.

What could Wells Fargo have done differently to avert this cultural meltdown?

Well Fargo made some effort to deal with the employees who have involved in misconducts by

placing the ethic hotline to report the workers who engage in misconducts. The company fired

those who were involved with those who were involved in the act but there was no change. Thus,

its recommendable for compare to sue those people involved in the act and also, they should

train the its employee ethics and codes of conduct so as to shun ill manners and embrace good

conducts

Modeling Character and Values: What values did Stumpf model to Wells Fargo

employees? What impact might that have on the culture of Wells Fargo?

Stumpf implemented two method to model the character of the employees, they implemented the

whistleblowers tool that the ethic hotline to help the stakeholder to report the suspicious acts of

the employees. They were able to select and retain ethical workers for the sustainability of the

firm’s performance. These acts are essential to the culture of the company establishing good

conducts among the employees.

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Encouraging Ethical Conduct: What behaviors can leaders’ model in order to encourage

ethical behavior in their organization?

Well Fargo management to establish ethical conduct are supposed model the desired behavior,

the chief officer should act as a role model in the establishment of code conducts. The

organization leaders should be mindful of what they are doing since they are being watched by

their juniors. The organization should develop skill building program to help the workers to

demonstrate good conducts.

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?

The system failed to work because the company invested more in punishing the workers and they

placed less efforts in preventive measures. The preventive measures include the training the

employees are given so as to avoid workers engage in misconducts. The leader in Well Fargo

were supposed to implement legal compliance program to have the workers to face consequences

of over their actions also work to shape individuals behavior.

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References

https://www.scu.edu/ethics/focus-areas/business-ethics/resources/wells-fargo-banking-scandal/

How Managers Can Encourage Ethical Behavior | Principles of Management. (2019). Retrieved

from https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/how-managers-

can-encourage-ethical-behavior/