Wells Fargo Business Ethics Discussions
Consider the readings and lecture material from this weeks classes, as well as this quote from Bethany McLean’s recommended reading about Wells Fargo:
[Yesenia] Guitron soon discovered there was no shortage of internal publications that advised Wells employees on how to conduct themselves, including the Wells Fargo Code of Ethics and the Wells Fargo Team Member Handbook, which warned if an employee engaged in manipulating or misrepresenting sales [gaming] in an attempt to meet sales goals or receive compensation immediate termination could result.
But soon after she was hired, Guitron saw a different reality. I realized why all the other bankers had left, she says. The pressure was intense. There were morning huddle meetings to discuss Daily Solutions, or sales goals for the day, and a manager would do hourly check-ins to see if each banker was making progress toward his or her quota, which in 2008 was eight products per day. (The number was increased in 2010 to 8.5.) Call nights were scheduled after the branch closed to help bankers who were having trouble meeting their sales goals, which were challenging in St. Helena. According to an analysis that was done for a lawsuit Guitron later filed, there were only about 11,500 potential customers in the area, and 11 other financial institutions. The quotas for the bankers at Guitrons branch totaled 12,000 Daily Solutions each year, including almost 3,000 new checking accounts. Without fraud, the math didnt work.
Prompt (clearly label each part):
In 4-6 sentences for each (clearly labeled) part:
(A) What would Milton Friedman say about Wells Fargos actions at the branch at which Yesenia Guitron worked? Justify your answer.
(B) What do you think? Justify your answer.
For initial posts and replies, students will be graded based on the following criteria and values. Review this carefully. See the attached rubric by clicking on the top right corner of this assignment.
Quality of Discussion Board Posting
Below are desired attributes for a posting.
- Ability to synthesize the main concepts from instructor, course content, external resources, and class community.
- Responses fully answer each part of the question(s) posed (read directions carefully!).
- Use of proper grammar.
- Ideas are organized, persuasive, and elevate the overall dialogue.
- Opinions are substantiated by offering reasons and evidence.
- Current Events posts must contain a link to source material.
- Demonstration of critical or creative thinking.
- Evidence of preparation.
