Retention Of Employee Strategy: Wells Fargo CEO

Wells Fargo has a social responsibility to its customers to fulfill their economic, legal, ethical, and philanthropic needs. The scandal has presented numerous legal issues. It was negligent of the bank's executives and managers by placing impossible sales goals on lower level employees then encouraging, and pressuring them to meet these goals. The use of customer's information for fraudulent purposes was an invasion of customers privacy. Wells Fargo has violated the Federal Trade Commission Act which protects customers from unfair practices and has also violated the Sarbanes-Oxley Act (Thorne, 2011).

According to Emily Glazer of the Wall Street Journal, Wells Fargo’s Sales Practice Scandal is a result of their corporate culture. The upper level executives could be getting nothing as their bonuses this year as the board continues to decide. This is because those men and women are responsible for the actions of those who they employ/supervise Making money has been the firm’s primary goal for many years and the higher up’s all the way down to the lower managers are responsible for creating this type of environment. According to the Wall Street Journal “One manager…in an email peppered with exclamation points and capital letters…urged her employees to ignore the bosses and get sales up at any cost, says someone who saw the email.” This is a perfect example of terrible managing. Throwing ethics and good conduct out the window just so that a few of the staff get bonuses at the year’s end is just wrong. In class, we constantly discuss the ethics involved in business and recently we’ve spent a lot of time on corporate culture. Shockingly enough, in last year’s annual report the company

When I went to work for Wells Fargo and Company nearly 16 years ago, I went based on the little I knew of the company at the time. My impression was that Wells Fargo and Company was exactly what I was seeking in a company. I felt they were a company I could build my career with. I saw Wells Fargo as an institution I could join for my personal and professional long-term growth. I knew the company as the image of the stagecoach and I saw what others see when they look at the company. The image of its stagecoach represented an aged and stable company with a strong reputation as a prosperous and growing yet conservative

Wells Fargo is a well known banking company that has recently been in the news for some not-so-good reasons. The Wells Fargo company has been around for a long time and is trusted by their many customers to treat them fairly when it comes to opening new accounts or managing current accounts. However, according to some of Wells Fargo’s team members (what they call their employees), Wells Fargo has “strict mandates to sign existing customers up for additional products,” (Davidson 1). This means that they want their customers to open new accounts, get new credit cards, transfer a 401(k), and/or take out a mortgage. Since most customers refuse to do so, some of the employees thought that they should go ahead and open new accounts without the customers’ consent. This later back fired when the customers received late notices on payments for the accounts they did not agree to open and did not know they had. Similar actions were happening at Wells Fargo banks

fact, when U.S. senators requested the Labor department investigate the matter, they found lawsuits that went all the way back to 1999 for the same type of behavior (Egan, 2016). According to the Fair Labor Standards Act of 1938 the maltreatment behavior of the Wells Fargo managers against their employees was unlawful, this act was created to protect employees from being forced to work extra hours for little or no pay and instead guaranteed time-and-half rates for anything over a 40-hour workweek (Thomas, 2014). In response to these claims Wells Fargo issued a statement that insists they comply with the FSLA and that their employees are paid fairly. However, once again Grourley testified that during his time with the bank, managers would

In my opinion, this scandal is much deeper then it appears. It looks like we have a case were the company is corrupt at the very top, where these unreasonable expectations came from. Employees of the company felt like they had to go to extreme measures and do illegal things simply to keep their jobs. This is not fair nor should it be allowed. The main underlying problem in this situation is that Wells Fargo is not being ethical towards their employees. These employees have responsibilities, such as feeding themselves and their families, so of course they will go to extreme measures to keep their job. The more I read into this case the more I felt like the heads and directors of Wells Fargo were in the wrong more then the people that were actually

According to an article on www.housingwire.com, 2017, Wells Fargo CEO, Tim Sloan, made the decision to close over 400 branches in the United States. The fake account scandal fueled this decision because the company lost 746 million dollars in revenue. The closures can save Wells Fargo about 2 billion dollars by the end of

Banks also involved in international banking through the foreign exchange market. By trading in these markets banks often can reduce their risk. So wells Fargo bank can reduce their risk by involving in this trading. The Lack of control in management are the main responsible of these kind unethical acts. Wells Fargo should take a useful action against their employees, not only firing them, but also control and giving well training about the customer service and above all banking. They should train professionally, which means besides the business employees should take decision ethically. Because “a business mindset leads to dishonesty and lack of consideration for other things like moral issues”

Even as the scandal broke, Wells Fargo continued to state that they were committed to putting their customers first (Merle, 2016). This was much the same rhetoric as their list of declared ethics statements, such as “be accountable for, and proud of, our conduct and our decisions”, and “comply with the letter and the spirit of the law” (Ferrell, Fraedrich, & Ferrell, L. 2013). In this case, they did neither. If the upper management does not consistently and continually exhibit the leadership insisting on ethical behavior, employees run amok. Another direct conflict with their stated value of “acknowledge and apologize for our mistakes, and learn from our errors so we don’t make them again” was the way in which they accepted responsibility for the fraud, but did not actually admit illegal behavior (CNN Wire, 2016). However, they did reevaluate the decentralized system.

I agree with Madelynn Owens when she mentioned that Stumpf did a good job persuading the viewers that Wells Fargo is still the same reliable and credible company that they have been for years. Stumpf mentions that in the future, the company will be changing the way they work to make sure nothing like this past incident happens again. Stumpf said,” We will be getting rid of product sales because getting rid of this will help lower our chances of risk.” By making this change, the employees will no longer feel pressured to meet their quotas.

In 1852 Wells Fargo the first Wells Fargo bank was opened in New York city in the United State by Henry Wells and Buffalo mayor (from 1862 to 1865) William G. Fargo. Their mission and values remain majorly unchanged sense then. Their five values are: “People as a competitive advantage, ethics, what’s right for customers, diversity and inclusion, and leadership” ("Our Values"). Every company work by their values to meet their vision, but Wells Fargo decided to choose the other way in 20016 when the bank fined a$185 million in September 2016 after revealing that it was creating fake accounts to increase the sales of the bank sense 2011. Those accounts were created from the information and the accounts of existing customers, and those customers

Wells Fargo is one of the four largest banks known as the “Big 4” along with Bank of America, Chase, and Citibank. Each one of these bank holding assets are well above the low billions. Within in the last couple of weeks, there have been many reports in the media regarding the illegal banking practices of Wells Fargo. Federal prosecutors have launched a probe into Wells Fargo’s unscrupulous and intense sales tactics.

The company has been present within the media though, which does provide some ease to its investors. Wells Fargo provides a section of their website dedicated to explaining the how, why, and what they plan to do next to regain the trust of investors. After undergoing a huge breach within a company, being present within the media is crucial. Wells Fargo & Company understands the seriousness of the situations and is serious about making sure unethical activities of this nature do not repeat

As I know about pay-for-performance systems is you got paid or earn money by how you worked well or your work evaluation is good. I think many companies using this system such as insurance, and auto dealers. Personally I didn’t know about this scandal until I read this article. I both surprising and not surprising because I knew that banker going to get any benefit by opening new account or credit card sort of things. However, it is surprised that Wells Fargo did this. I am not using Wells Fargo, but many of my friends using it and they always told me that the bank is good, so that I had image of honesty to Wells Fargo. So I little disappointed that they did illegal actions to get paid.

Research indicates that employers can increase employee retention, increase employee productivity, and reduce employee healthcare costs by implementing a workplace wellness program.