Read, very briefly summarize the article, and then relate the concepts below to
ID: 386578 • Letter: R
Question
Read, very briefly summarize the article, and then relate the concepts below to the article (not all concepts have to be used, at least one or two but please reference which one you are using in your response). How would you implement change, provide some rules that you would establish if you ran the company.
1. Organizations and Organization Theory 2. Strategy, Organization Design, and Effectiveness 3. Fundamentals of Organization Structure 4. The External Environment 5. Interorganizational Relationships 6. Designing Organizations for the International Environment 7. Manufacturing and Service Technologies 8. Using Information Technology for Control and Coordination 9. Organization Size, Life Cycle, and Decline 10. Organization Culture and Ethical Values 11. Innovation and Change 12. Decision-Making Processes 13. Conflict, Power, and Politic
Wells Fargo Is Investigating Bankers' Alleged Expense Violations
Wells Fargo & Co. is investigating employees in its investment bank for alleged violations of its expense policy after they tried to get the company to pay for ineligible evening meals. The lender has already fired or suspended more than a dozen staff members for allegedly doctoring receipts to allow them to expense the meals, the Wall Street Journal reported earlier Thursday, citing people familiar with the matter it didn’t identify. “We became aware that certain Wells Fargo Securities team members were not complying with the after-hours meals reimbursement policies after they were brought to the attention of our leaders by concerned team members,” Jessica Ong, a spokeswoman for Wells Fargo, said in an email to Bloomberg. “We took action to address the issue and we continue to investigate the matter.” Investment bankers allegedly doctored the time of emailed receipts to qualify the purchases for reimbursement from the bank, the Journal reported. The latest revelation of misconduct at Wells Fargo comes as the San Francisco-based bank tries to overhaul its internal culture after two years of lawsuits, investigations and fines that have taken a toll on the firm’s reputation, business and relations with regulators. Scandals began erupting in 2016 when regulators said the bank had opened millions of accounts without customers’ permission. Chief Executive Officer Tim Sloan has said the company is committed to making the changes necessary to shore up operational and compliance risk. Earlier this year, Wells Fargo launched an ad campaign, “Re-Established,” with the aim of assuring the public that it’s committed to fixing its problems and righting the ship. Wells Fargo has been dealing with a Federal Reserve-imposed growth ban requiring it to clean up its act to the regulator’s satisfaction before the bank can increase assets beyond their end-of-2017 level. Since the order -- Janet Yellen’s final act as the Fed’s chair -- took effect, the list of the bank’s lapses has grown to include unnecessary foreclosures and a U.S. inquiry into its purchase of low-income housing tax credits.
Explanation / Answer
Answer: Summary: Wells Fargo & co is attempting to reduce its compliance and operational risks by overhauling its organizational culture because of some recent incidences of ethical, operational and compliance based miscount inside the organization. This article narrates that how the bank is facing negative publicity because of the news of misconduct by its employees. Some of its employees are under investigation for making false reimbursement claims. Similarly the organization is also under scrutiny from the regulators because of alleged misconducts by its employees like opening up of accounts without the permission from the customers. The bank is now trying to improve its reputation by bringing cultural changes inside the organization.
There are two concepts evident in this case namely the organizational culture and ethics and the external environment. The concept of organizational culture and ethics is evident from the ethical misconducts like using forged bills mentioned in the case and the attempt by the company to use improvement in the organizational culture as a tool for creating compliance. The concept of external environment is evident from the fact that the reputation and the business of the organization has suffered because of bad reputation in public and bad relations with regulators that resulted from the misconduct inside the organization as public and regulator form the external environment of the firm.
I will implement change in the organization by first developing a code of ethics. Secondly I will attempt to develop a top to bottom commitment towards ethics inside the organization. I will make it a rule that the managers will discuss the code of ethics with their subordinates on daily basis. Regular communication about ethical behaviour and compliance will made and the employees will be trained in it. I will also form an ethical compliance committee inside the organization.
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