Case Analysis: Ethical Failures and Stakeholder Duties at Wells Fargo
Case Summary:
Wells Fargo, once one of the worlds largest banks, faced a major scandal involving over two million fake customer accounts created under intense sales pressure. Employees acted unethically to meet unrealistic quotas, while senior management failed to act despite receiving early warnings. The scandal led to lawsuits, regulatory fines, reputational damage, and internal cultural collapse.
Required: Using the above case study, analyse how Wells Fargos aggressive pursuit of short-term profitability violated its ethical obligations to the following key stakeholder groups:
- Consumers(e.g., consent, transparency, trust),
- Regulators(e.g., compliance, honesty, cooperation),
- Employees(e.g., fair treatment, ethical working conditions, whistleblower protection).
For each group:
- Clearly define the duty owed,
- Explain how the duty was breached,
- Discuss the consequences of these breaches for the organisation and stakeholder trust.
Your response should demonstrate structured analysis and understanding of business ethics principles.
ANSWER
Question 2(10 marks)
Evaluating Ethical Leadership and Governance in the Wake of the Wells Fargo Scandal
Case Continuation:
Following the revelations in the Wells Fargo scandal, it became clear that the failure was not just due to unethical employee conduct but also a breakdown in leadership. Senior executives set aggressive sales targets but failed to ensure these goals were pursued ethically. Ethical leadership plays a critical role in shaping corporate culture and ensuring accountability.
Required: Evaluate how ethical leadership could have prevented the unethical practices that occurred at Wells Fargo. In your answer:
- Explain the core principles of ethical leadership (e.g., accountability, integrity, transparency),
- Analyse how the absence of these principles contributed to the scandal,
- Propose two practicalgovernance mechanismsthat leaders could implement to ensure organisational goals are pursued ethically (e.g., independent ethics committees, whistleblower protection programs),
- Support your evaluation with examples and clear justification.
Your response should demonstrate critical thinking and structured evaluation.
ANSWER
Question 3(10 marks)
Understanding and Analysing Ethical Dilemmas in Business
In todays complex and globalised business environment, decision-makers are frequently challenged by situations where ethical, legal, and stakeholder interests do not align. These situationscommonly referred to asethical dilemmasdo not offer clear right or wrong solutions. Rather, they involve difficult trade-offs where any chosen course of action may result in negative consequences for some parties. Managers are expected not only to recognise these dilemmas but to navigate them thoughtfully and justify their decisions using ethical reasoning.
Required: Identify and analysethree major sources of ethical dilemmasthat business professionals commonly encounter. These should include:
- Conflicts betweenpersonal valuesand professional responsibilities,
- Conflicts betweenorganisational objectivesand ethical conduct,
- Conflicts betweencorporate practicesandsocietal expectations.
For each source:
- Clearly define the ethical issue involved,
- Provide one realistic business example, and
- Explain how the competing interests of stakeholders complicate the ethical decision-making process.
Your response should be approximately 300 words and must demonstrate clear reasoning and structured analysis.
ANSWER (box will enlarge as you enter your response)
Question 4(10 marks)
Evaluating Moral Philosophies in Business Decision-Making
Business professionals often rely on ethical frameworks to guide their decisions, especially when those decisions have wide-reaching implications for stakeholders, reputation, and organisational integrity. Two foundational approaches to ethical reasoningTeleologyandDeontologyoffer contrasting ways to evaluate what is right or just in a business context. Understanding these philosophies helps in critically assessing corporate actions and making decisions that go beyond compliance to reflect ethical responsibility.
Required: Critically compare the ethical theories ofTeleologyandDeontologyin the context of business decision-making. In your response:
- Define both theories and explain their core principles,
- Identify how each theory would approach business ethics differently,
- Provide one real-world or hypothetical example for each theory to illustrate its application,
- Evaluate which theory is more effective in ensuring ethical outcomes in global business today and justify your position.
Your response should be approximately 300 words and must demonstrate critical thinking and logical structure.
ANSWER
Question 5(10 marks)
Evaluating Organisational Culture: People vs. Performance Orientation
An organisations culture shapes employee behaviour, motivation, and ethical climate. Cultures vary significantlysome emphasiseconcern for people, prioritising employee well-being and development, while others focus onconcern for performance, stressing results, targets, and productivity. Understanding and evaluating these cultural orientations is essential to determining long-term sustainability and ethical business practices.
Required: Using a workplace you are familiar with (or a well-known organisation), analyse its prevailing organisational culture. In your response:
- Defineorganisational culture and explain its significance in business ethics,
- Identify whether the culture prioritises concern for people or concern for performance,
- Assess this culture by comparing key attributes such asapathy,caring,exacting standards, andintegration,
- Evaluate which cultural orientationpeople-focused or performance-focusedis more sustainable in the long term, and justify your opinion with reasoning and, where possible, examples.
Your response should be approximately 300 words and demonstrate clear reasoning and structured evaluation.
ANSWER
END OF FINAL INDIVIDUAL ASSESSMENT