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Running head: WELLS FARGO 1 Wells Fargo Case Student's Name Institution Affiliations

WELLS FARGO 2 Introduction Wells Fargo experienced a loss of confidence from its customers due to a series of scandals. The most recent scandal was falsifying and accessing 2.1 million deposit and credit card accounts without authorization. The management of Wells Fargo encouraged its employees to use dishonest methods while dealing with customers to realize set targets. This was the biggest scandal that stained the bank's reputation for the 165 years it has been operating. Nonetheless, Wells Fargo has done several things to repair its damaged reputation. Repairing the Damaged Reputation First, Wells Fargo tried to institute good management to win back the trust that its clients had. The bank started the Omni-channel effort in marketing intending to use long-standing records to gain consumers' trust. The campaign started with a one-minute video that was highly popularized countrywide, followed by social media campaigns and website adverts (Chappell, 2016). The campaign was focused on redefining the image of Well Fargo, introducing new corporate goals, improving the organization's culture, and simplifying its business activities. Secondly, the bank made an important decision to maintain its founding goals rather than renewing its image as a new bank with particular standards. Wells Fargo used this public relations challenge to focus the public concentration on its celebrated history while underscoring its future prospects. Thirdly, in fostering climate change, Wells Fargo pledged to invest about $200 billion. Half of the amount was supposed to go to renewable energy, investing in clean technologies, and sustainable transport system (Wells Fargo, 2019). The management promised that the bank would take a leading role in support of a low-carbon economy. Finally, to build a good citizenship image, the bank promised to increase its contribution to volunteer groups. Wells Fargo focused on taking a leadership position in corporate social responsibility. Nonetheless, the institution should still improve workers' relationships with the organization to ensure that they are not compromised again. Besides, there is a need to repair its

WELLS FARGO 3 reputation, improve its corporate culture and ethical practices, and prove to FED that the Company will be honest and ethical (Wells Fargo, 2019). In this case, Wells Fargo should integrate or change its culture in making decisions. Responsibility of Top leaders Decision making in organizations should incorporate top leaders and low-level employees for the effective running of operations. Ordinarily, the disruption of organizational norms results in a reduction of bonuses and ultimate job losses. However, upholding organization values leads to advancements and profitability. Therefore, top leaders should be responsible for their customer-facing employees' behaviors because the responsibility of the leaders is to serve its employees so that they can serve the customers better. When leaders fail to serve the low-level employees well, it will be reciprocated through poor customer service. Top leaders should enforce significant changes and encourage workers to embrace explicit practices to improve customer service and create successful customer experience (Sinek, 2018). Most importantly, Wells Fargo leaders need to be transparent, communicate roles and responsibilities to every employee, and create an organizational culture that values every worker. Reason Wells Fargo is in an ethical dilemma In my judgment, Wells Fargo is in an ethical dilemma because there is an existing conflict between two or more competing principles or claims in the organization. Employees in the Company were lying to their customers and creating false accounts to receive high incentives. However, Wells Fargo had a duty to treat its customers in the right way. The company employees were in the dilemma of making high sales to realize the set goals and giving customers good services. The only way that employees could meet the unrealistic goals was through cross-selling and making up accounts that had not been requested by their customers (Kouchaki, 2016). The

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WELLS FARGO 4 management was in an ethical dilemma of laying-off employees involved in fraudulent deals to meet the Company's unrealistic targets and ultimately please the managers. Philosophy (or philosophies) learned in the Module From the Module, the philosophy of individualistic behavior has been noted through Wells Fargo employees' actions towards the customers. Therefore, these employees acted unethically because of their individualism. From an individualistic perspective, Wells Fargo is unethical due to the influence of the top management that sets high goals to increase the organization's cash flow but failed to consider its customers (Agassi, 2017). Thus, employees made illegal accounts and transactions in California and Minnesota to meet unrealistic targets. Still, the philosophy of utilitarianism has been learned, and it shows that an action is good if it maximizes individuals' satisfaction in business (Mill, 2016). In this situation, Wells Fargo failed to adhere to utilitarianism because customers and employees were handled inappropriately. For instance, employees were required to meet high targets or risk losing their jobs. Therefore, they had to use unscrupulous ways of opening accounts without customers' requests to meet the quotas (Wells Fargo, 2019). The actions of the Company irritated their customers because their money was stolen, thus affecting their investments, and eventually had to leave the Company. Conclusion Wells Fargo scandal that involved creating false accounts with their real customers was one of the worst scandals that the Company experienced since its establishment. The scandal occurred due to employees' pressure to meet sales goals and get high incentives. However, the Company implemented processes to repair the damaged reputation by establishing new management, new public relations methods and improving its corporate social responsibility.

WELLS FARGO 5 References Agassi, J. (2017). Methodological individualism. The Wiley‐Blackwell Encyclopedia of Social Theory , 1-2. Chappell, B. (2016, September 20). 'You should resign Watch sen. Elizabeth Warren grill Wells Fargo CEO John Stumpf . NPR.org. https://www.npr.org/sections/thetwo- way/2016/09/20/494738797/you-should-resign-watch-sen-elizabeth-warren-grill-wells- fargo-ceo-john-stumpf Kouchaki, M. (2016). How Wells Fargo's fake accounts scandal got so bad. Retrieved April 21 , 2017. Mill, J. S. (2016). Utilitarianism. In Seven masterpieces of philosophy (pp. 337-383). Routledge. Wells Fargo. (2019). Wells Fargo Launches New Brand Campaign, 'This is Wells Fargo,' Focused on Customer Experience. Retrieved from: https://newsroom.wf.com/press- release/marketing-and-sponsorships/wells-fargo-launches-new-brand-campaign-wells- fargo Sinek, S. (2018, August 21). In a single tweet, Simon Sinek shared the best leadership advice You'll read today . Inc.com. https://www.inc.com/marcel-schwantes/simon-sinek-says-if- leaders-fail-to-do-this-customers-companies-will-suffer.html

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