“Wells Fargo Banking Scandal” Case Analysis

                              “Wells Fargo Banking Scandal”  Case Analysis

“Wells Fargo Banking Scandal”  case anlysis

Fargo Banking was a major player in the banking industry. The scandal brought the financial industry's sales procedures and morality under closer scrutiny and emphasized how crucial regulatory supervision is to stopping such wrongdoing. First of all, he touched on all the ethical aspects of business. This can serve as a good example for other companies in strengthening or creating their own strong corporate culture.

This situation has shown the importance of transparency in organizations and their honesty. Leaders must build the right relationships with employees and create a comfortable environment for the team. Because employees are guided by the attitude of management. It is also important to maintain an ethical attitude at all levels of the company. The second important thing that leaders need to know is trust. Customers are the main and main asset of any company. And their trust plays a key role in success or failure. Wells Fargo had a base of loyal and loyal customers. But because of the scandal, they lost not only her, but also the trust of everyone else. Because of this, the company lost the main driving force of its business and failed. Besides, he will never achieve the same success again. Therefore, business leaders should be aware of all the responsibility and importance in maintaining trusting and honest relationships with customers. This should be a top priority, especially in the financial sector. Another equally important lesson is the internal control of the company. Organization as a complex and multilevel mechanism.  If one part does not work, then the whole mechanism ceases to function. An employee is a link between the company and customers.  Managers need to be able to build a clear system that will guarantee strict compliance with ethical standards by employees, and quickly eliminate any conflicts and misunderstandings. Also critical is how the company reacts and solves problems. This can cause the loss of status, customers, ratings and money. Every manager should be prepared for risks and unforeseen situations. Therefore, you need to set realistic goals and not exhaust employees. Moreover, the company should have a customer-oriented approach. And one of the most important is to organize inspections of the entire internal part of the company. Check accounts and documents, talk to subordinates. It is also important to create an atmosphere of goodwill and encourage open communication. All this should be reflected in the values of the company. Because they set the mood and create an image and atmosphere for both employees and customers. Maybe the problems at Wells Fargo were just a matter of time. Because their culture makes them doubt their competence. One of the first is sales orientation. Making a profit is important for the life of any organization. But John Stumpf aggressively demanded to increase sales, which eventually led to pressure on employees and they were forced to use unethical methods. Because they set the mood and create an image and atmosphere for both employees and customers. Maybe the problems at Wells Fargo were just a matter of time. Because their culture makes them doubt their competence. One of the first is sales orientation. Making a profit is important for the life of any organization. But John Stumpf aggressively demanded to increase sales, which eventually led to pressure on employees and they were forced to use unethical methods. Concentration on quantitative indicators also contributed to this. Who will do more is the best, which is why it was more important for employees to make a profit now than to maintain relationships with customers.  Also, his motivational system could play a role. Competition among employees and accrual of bonuses could encourage unscrupulous people, thereby provoking others to the same methods. That is why properly formulated values have a critical impact on the company. Leaders who expect an ethical attitude from their subordinates should first of all become an example of honesty, decency and transparency for them. It is not enough just to promote the values of your company, you also need to adhere to them and demonstrate them to employees. It is also important to create a comfortable atmosphere for them so that no one feels pressure or fear of punishment. The team must trust each other, including the manager. Create meetings where everyone can express their own opinion without fear, offer ideas and ask for advice. This will not only strengthen the company from the inside, but will also allow you to quickly learn and have control over problems and solve them quickly. Timely staff training can also help in the formation of a stable corporate culture. Passing various programs aimed at the importance of ethical behavior will not only increase awareness of the importance of morality in the company, but also help employees to approach problems and their solutions more competently. It is managers who play a critical role in staff training and team building. They need to emphasize the primacy and advantage of long-term relationships with customers and their trust, rather than some short-term income. Give honest feedback and encourage ethical behavior, such as rewards, bonuses, or trips. Do not concentrate on individual income and do not create an atmosphere of competition and race. In general, Wells Fargo had tools with which they tried to eradicate unethical attitudes. For example, they organized a special hotline where any employee could notify about unethical behavior. But it has not gained much popularity. There are several explanations for this: