DISCUSSION QUESTIONS: 1. According to Chapter 2 of our text, Business Law and The Legal Environment, What Levels of Corporate Social Responsibility did Wells Fargo breach? 2. According to the article, How Wells Fargo encouraged employees to commit fraud, Anthony Bolante/Reuters, "Social science research suggests that ethical behavior is not about who you are or the values you hold. Behavior is often a function of the situation in which you make the decision, even factors you barely notice. This makes cheating more likely to happen in some situations than others." Based on Chapter 2 of your text, what are the Consequential and Nonconsequential Ethical Principles at play when an employee is left in the type of situation that Wells Fargo put them in? Identify those principles that most closely fit this situation and explain why they most closely match this situation. 3. According to the same article, "In this case, the Wells Fargo employees probably focused on the respects in which their actions were harmless and ignored the downstream implications of what they were doing. Even Stumpf was guilty of this form of self-delusion, explaining to Congress that he initially believed the practices were harmless because empty accounts were "auto-closed" after a certain period of time." Based on Chapter 2 of your text, what Consequential and Nonconsequential Ethical Principles is at play when Stumpf is explaining his actions to Congress? 4. According to the article from the Fresno Bee, "some courts have sided with Wells Fargo", and California Bankers Association, the California Chamber of Commerce, and several other major business groups last week labeled the bill (Senate Bill 33) a "job killer". Their reasoning? "The bill, (Senate Bill 33), "will negatively impact 'financial institutions' with unnecessary and costly class action litigation that does not ultimately benefit the consumer". Is Egoism justifying their behavior, Why or why not? Are there other ethical principles at play? Are they correct in their thinking? Why or why not? Support your answer. 5. According to the article, Wells Fargo Says Sales Scandal Could Hurt Growth Permanently, "...the costs continue to pile up. Wells Fargo now expects that cleaning up after the accounts scandal will cost it $70 million to $80 million "for the next couple of quarters," according to the chief financial officer John Shrewsberry. That means the bank could spend as much as $240 million this year (2017), due to its transgressions, bringing its total bill for the fake accounts as high as $425 million." In light of that, should SB 33 be changed with the prescribed changes requested (See Research, Senate Bill 33), or should customers be blocked from filing personal lawsuits against Wells Fargo? 6. According to "Corporate Citizenship", corporations owe a debt to society to make it a better place. This duty arises because of the social power bestowed on corporations. Corporations have a social responsibility towards society. Obviously, Wells Fargo breaches their duty. What impact does Wells Fargo's behavior have on society? What negative blowback is created within society to their stockholders and stakeholders?

RESEARCH: Chapter 2 and PowerPoint of BA 18: Business Law and The Legal Environment, Online, Wolters Kluwer Wells Fargo fake account scandal may be bigger than thought - By Dawn Giel, Friday, 12 May 2017 | 3:46 PM ET http://www.cnbc.com/2017/05/12/wells-fargo-fake-account-scandal-may-bebigger-than-thought.html (http://www.cnbc.com/2017/05/12/wells-fargo-fake-accountscandal-may-be-bigger-than-thought.html) Wells Fargo customers in $110 million settlement over fake accounts - by Matt Egan @mattmegan5 March 29, 2017: 11:28 AM ET http://money.cnn.com/2017/03/29/investing/wells-fargo-settles-fake-accountlawsuit-110-million/index.html (http://money.cnn.com/2017/03/29/investing/wellsfargo-settles-fake-account-lawsuit-110-million/index.html) Wells Fargo still faces over a dozen probes tied to fake account scandal by Matt Egan @mattmegan5 March 31, 2017: 11:02 AM ET http://money.cnn.com/2017/03/31/investing/wells-fargo-investigations-fakeaccount-scandal/index.html (http://money.cnn.com/2017/03/31/investing/wells-fargoinvestigations-fake-account-scandal/index.html) Wells Fargo Says Sales Scandal Could Hurt Growth Permanently Lucinda Shen, Apr 13, 2017 http://fortune.com/2017/04/13/wells-fargo-report-earnings/ (http://fortune.com/2017/04/13/wells-fargo-report-earnings/) How Wells Fargo exploited a binding arbitration clause to deflect customers' fraud allegations http://www.latimes.com/business/hiltzik/la-fi-hiltzik-wells-arbitration-20160926snap-story.html (http://www.latimes.com/business/hiltzik/la-fi-hiltzik-wells-arbitration20160926-snap-story.html) Senate Bill 33 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB33 (https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB33) How Wells Fargo encouraged employees to commit fraud, by Anthony Bolante/Reuters October 6, 2016 9.13pm EDT http://theconversation.com/how-wells-fargo-encouraged-employees-to-commitfraud-66615 (http://theconversation.com/how-wells-fargo-encouraged-employees-tocommit-fraud-66615) Corporate Social Responsibility (CSR), By JASON FERNANDO (https://www.investopedia.com/contributors/53746/) , Updated September 04, 2021, Reviewed by GORDON SCOTT (https://www.investopedia.com/contributors/82594/) , Fact checked by KATRINA MUNICHIELLO (https://www.investopedia.com/katrinamunichiello-5078531) https://www.investopedia.com/terms/c/corp-social-responsibility.asp (https://www.investopedia.com/terms/c/corp-social-responsibility.asp) What is the basic difference between consequential and non-consequentialist ethical theories?, Numerous definitions and articles. (You are not expected to read all the links and articles from this website. This website has many links and articles to choose from and has ones for clarification and research for the purpose of this discussion. This is for review and research only.) https://psichologyanswers.com/library/lecture/read/381716-what-is-the-basicdifference-between-consequential-and-non-consequentialist-ethical-theories (https://psichologyanswers.com/library/lecture/read/381716-what-is-the-basic-differencebetween-consequential-and-non-consequentialist-ethical-theories)