preview

Business Analysis: The Wells Fargo Scandal

Good Essays
Wells Fargo’s scandal of involving the sales of credit and debit cards, and traditional banking services which have led to the payment of million fines to the U.S. Consumer Finance Protection Board in 2016. The fiasco was caused by the fraudulent cross-selling of employees which have violated consumers' trust. Valuable lessons to be learned from the scandal including taking employees seriously and designing incentives with care are also offered for the future.
For every company, the clear message is that if a problem arises, no matter how small or how localized, it must be dealt with before it rages out of control and consumes an organization. Wells Fargo also demonstrates that employees at all levels have a responsibility to keep the ship
…show more content…
It is not simply tone at the top but also tone in the middle and at the bottom that drive culture. I believe the word of the automaker Henry Ford sum up and conclude this paper to the point at hand. He said, “Money does not change men, it merely unmasks them. If a man is naturally selfish or arrogant or greedy, the money bring that out, that is all.”
The impact of the Wells Fargo scandal will continue for some time. It should be studied by every manager and compliance professional going forward for important lessons about ethics and compliance.
CRITIQUE
My personal take on this issue is not so much the practice of cross-selling accounts. But I believe Wells Fargo should be working on soon is the revamping of the company structure and most importantly, the renewal or public implementation of their core values. The five primary Wells Fargo core values are: (1) People as a competitive advantage, (2) Ethics, (3) What’s right for customers (4) Diversity and inclusion (5)
…show more content…
They say that “It’s not the strongest or most intelligent companies that survive in our industry but those that best adapt to change and take full advantage of the knowledge and experience of the whole team.” To me it seems that they never adapted to positive change, instead they took a shortcut to meet their numbers.
In the words of John Maxwell “the longest road to success is by taking shortcuts.” This phrase synthesize all aspects of life – personal, professional, ministerial, etc. a person simply cannot live life making intentional mistakes without expecting a repercussion.
On the other hand there is also a responsibility that we, as Christians, ought to act upon – forgive as we also have been forgiven. The Bible teaches us that nobody is perfect and that we must never point out someone’s fault without taking a good look introspectively. So the best thing that I would do is try to learn from somebody else’s mistakes and pray to our Lord, that his Holy Spirit may guide us always to act not just ethical, but in the same way that Jesus would have done it–a Bible-based
Get Access