The principles are related to the wrong and right conduct within individuals or groups. Ethics helps people in developing principles and rules that acts as guide to meaningful decision-making.
It is a form of professional ethics in a business environment(Ferrell et al., 2018). Business ethics examines the moral and ethical problems and principles arising within a business firm or organization.
The codes are determined by the culture of organization that govern actions and decisions within that particular corporate.
They include personal, corporate and professional. The personal ethics applies to micro scale firms, corporate ethics applies to macro scale businesses and professional ethics applies to the intermediate scale companies.
For it to attain its operational goals it has to improve on its organizational ethics to help in making decisions and improve its customer relations hence preventing occurrence of frequent frauds.
Wells Fargo Organizational Ethics and Policy Prevention Plan in Terms of Costs and Benefits
The business ethics and policies that can be used by Wells Fargo include accountability, inclusiveness and accountability, appropriate leadership, avoiding retaliation, professional relations, upholding trust and taking responsibility.
In accountability, employees are to comply with code, policies, regulations and rules regarding an organization. Every person should be accountable for their actions and decisions mostly when managing risks essential to their roles and appropriately intensify violations and issues they know (Ferrell et al., 2018). Incase a mistake is done, it should be acknowledged and acted upon to correct them. When everyone is accountable of their responsibilities in a firm, it is easy to prevent regular frauds hence protecting the firm from high amounts of fines as a result of the frauds.
Leaders in an organization should be responsible for maintaining firm’s reputation and ensure the employees act with integrity and honesty (Ferrell et al., 2018). Organizational leaders always make sure that everyone pays attention to the policies regarding their job responsibilities. They also act as role models for ethical leadership and provide support to employees when they raise an ethical concern or consult about something. Leaders are not entitled to pressure workers or any third-party service provider to do something on their behalf which is outside the range of usual business practice(Ferrell et al., 2018). Through practicing good leadership in an organization, employees will be comfortable to raise any fraud act that can affect the operation of the business in future hence maintain the profitability of the corporate.
Trust can be built either by employer to employee, employee to employer or by clients to the organization. To ensure trust is upheld, employees should always provide standard work and on time as the employer fulfills any promises to the employee. Customers trust are built through keeping their confidential information secure and safe. This will help to prevent the customers from being frauded by third party and increase firms effectiveness
This involves establishing effective relationship with coworkers and other outside professionals. Good relationship in an organization fosters teamwork amongst the employees and also helps in personal career development for workers (Ferrell et al., 2018). Extending professional relations outside will improve corporate’s productivity and also sharing of ideas will aid in coming up with strategies for preventing occurrence of scams.
Employees are liable in taking responsibility for any decisions made by team or individually. For example, a corporate team comes up with a marketing strategy to prevent fraud and it fails. The members are to unitedly take responsibility for that certain failure but individually. Through this, the company is able to prevent future reoccurrence of that problem hence improve its productivity.
Inclusiveness and collaboration are the key strategies on how individuals work since they provide solution a to certain problem as there is bringing together of diverse perspectives and ideas (Ferrell et al., 2018). They both help a corporate to earn and also serve from a broad selection of stakeholders and communities. Inclusiveness and collaboration helps in creating a surrounding where all the employees can develop, contribute and fully use their professional skills. This helps in keeping an open mind to new ideas and attend to diverse points of view from workers regarding a certain problem.
Retaliation is the action taken in return for an offense. Corporates are not to engage in any form of retaliation against an individual for giving information in noble faith about a suspected unethical conduct. The unethical conduct include fraud, policy violations, regulatory or securities law violations, concerns regarding accounting or auditing matters and any inappropriate workplace behavior (Ferrell et al., 2018). This will help improve company’s response toward certain problems and prevent imposing of fines to the corporate due to actions taken after a certain unethical issue.
The bond is between the employees, employers and the customers. They help in establishing trust between the three groups hence ensuring protection against fraud and ensures productive operation of a corporate.
This can be achieved in an organization through employees’ inclusiveness and collaboration. This improves employee’s job satisfaction and performance since they can collaborate with each other in solving corporate weaknesses and also individual work glitches.
The prevention is attained through limiting unethical activities occurring in an organization as employees are able to send complaint or feedback to their superior in case of any irregularity within the business.
Ferrell, O. C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2018). Business Ethics, Corporate Social Responsibility, and brand attitudes: An exploratory study. Journal of Business Research. Web.