Ethics and Corporate Social Responsibility

Name

Institution/Affiliation

The banking industry has a few dominant figures, for example, Wells Fargo, an enterprise that has for long proven to be the bank of choice for many, its success has been depicted by the highest returns on equity as well as strong stock prices. However, in September 2016, the company was faced with a major corporate scandal where it had to pay fines totaling to over $180 million due to the creation of fake accounts that had no customer authorization (Conti-Brown, 2017). This revealed the tough organizational management structures that resulted in employees being pressured to meet unrealistic targets concerning the sales quotas. Further, employees were subjected to pressure by their supervisor to take part in unethical behavior, so that to earn various bonuses. The scandal that has encountered and hampered the business operation as Wells Fargo can be credited as a valuable lesson on corporates concerning the effects of running businesses unethically.

Stakeholder theory

            This theory suggests that stakeholders to a particular company are those individuals that are culpable and vulnerable to the company dealings and...