Wells Fargo Agency Problem

Knowledge is considered as one of the most important and competitive resource for sustenance of the organisation (Zack, 1999). It can be compared to the strategic resource that can be used and applied in various frames of the organisation. Experienced managers in the organisations believe that company can receive strategic advantage through knowledge and not the strategies or actions implemented by competitors. Knowledge can be regarded as a strong approach that opens numerous ways of success. It is that weapon that help organisation to evaluate solutions in financial and other professional difficulties.

The Wells Fargo scandal involved a variety of stakeholders who have stake in the issue; however, the main stakeholders include the consumers, the employees and their families, and stockholders of the organization. The affect these stakeholders suffer varies, but the ultimate affect the scandal has had is violation of trust by Wells Fargo and its leadership. When examining this situation, the main stakeholders who suffered the greatest harm from the scandal were the customers who fell victim to the fraud and had their privacy violated by an organization they trusted. In the course text, Trevino and Nelson spoke of the importance of trust and its importance in a service economy. Wells Fargo violation of the consumers’ trust has ultimately added

In 1852, Henry Wells and William Fargo founded Wells Fargo & Co. to serve the West during the American Gold Rush. There was a panic crisis where many business owners saw their doors closing in 1855. Following the survival of Wells Fargo, they were given two advantages. The first advantage being virtually no competition in California, and the second being Wells Fargo had already made a name for itself being reputable and dependable in their work. From 1855 to 1866 Wells Fargo saw exponential growth.

In the year eighteen fifty-two, two men by the names of Henry Wells and William Fargo chose to establish a monetary administrations organization that we particularly know today to be Wells Fargo (Wells Fargo, 2017), which actually is quite significant. Before establishing the organization, Mr. Wells and Mr. Fargo chose to ground their organization in five standards which generally turned into their five very essential esteems. Their first standard being "individuals as an aggressive esteem" which implies an association with a colleague will literally prompt a definitely superior association with the clients, or so they particularly thought. Second "morals" Wells Fargo prides its self on being a straightforward organization and

The article,”To Disclose or Not to Disclose? Wells Fargo Woes Shine Light on a Knotty Problem

The Sarbanes-Oxley Act of 2002 was put in place to prevent corporations from committing accounting fraud or corruption. When a corporation manages somehow to get passed all the laws they do anything to keep the corruption going by covering up everything. With this going on the company’s main focus is keep the lies going and firing whoever is in the way. Wells Fargo has stated that they have fire over a hundred thousand people throughout the nation for being a part of the illegal activity in the company. Unfortunately for Wells Fargo employees are coming out from hiding telling their side of the story.

Is regulation really doing its job efficiently? Is it an accomplice and involved in such kind of malpractices? I feel that there are a possibility and a fragment of truth to such allegations. It is implausible that Wells Fargo had mastered the art of manipulating the system without regulators getting a hint about it. No deception plan can be a full-proof plan if there are people involved in it.

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About 2009, Wells Fargo came up with a plan to dump unwanted bank products on their depositers.They set "sales quotas" on their employees, and if these quota were not met, employees were fired. The bank set up over a half million credit card accounts to unsupecting costomers of their bank. Extra debit cards were issued and costumers money was moved from one account to bogus account that the bank set up. All the time, Wells Fargo collected a fee for these bogous transactions, from their depositors. Wells Fargo CEO John Stumpf assured Senator's that he and other top bosses knew nothing about this mass breach of the bank's code of ethics. He then went on to blame low-level employees. CEO John Stumpf kept blaming his $12-an-hour employees for this bank-run swindle of depositors money. Stumpf had a bunch of $12 dollar an hour and mid-level managers fired to back up his claim. Some of the fired employees aked, "what about all those calls that we made to your "ethics hotline" telling you about this fraud. Elizabeth WARREN has chastised WELLS FARGO'S CEO, saying "You should be criminally investigated". She continues with the following statements during Senate hearings into the matter, here are some

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

The ethics of the bank requires that there is ethics of integrity. It is supposed to be created through a culture in the bank and it should be one of the banks priorities because this is a business and they gain the profits from the people they serve on daily basis. Even if the bank shall survive this wave of scandal is so difficult now to convince any client to join this Wells Fargo which shall cause them a lot of money. Also all the old customers may start withdrawing and looking for other banks which they feel are more secure when they are keeping the money for them. It is so hurting and distrustful for a banking instead of accruing money in the accounts of their customers what they wells was doing was that it was misusing their money and giving them extra fees.

Embezzlement is an act withholding assets for the purpose of conversion of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type of financial fraud. a lawyer might embezzle funds from the trust accounts of his or her clients; a financial advisor might embezzle the funds of investors; and a husband or a wife might embezzle funds from a bank account jointly held with the spouse.

In September of 2016, it was revealed that there was alleged misconduct at one of the largest and safest banking institutions in the United States. Wells Fargo Bank was ranked among the nation’s safest financial institutions according to an analysis done by Global Financial, (Inside Tucson Business, 2009). Alleging that between May 2011 and July 2015, there were more than 2 million bank accounts or credit cards opened for customers without their knowledge or permission (Blake, 2016). Clients started complaining the they were receiving debit/credit cards from the bank that they had not ordered. Wells Fargo employees also started complaining that about the unethical behaviors they witnessed or were asked to participate in to the Human Resource Departments, the bank’s internal ethics hotline, branch’s individual managers and supervisors. All which led to the discovery of the fraud scandal.

In the same time, Wells Fargo recruited talented people into the company without any specific job, because the CEO believed that these smart people could help company to face and deal with the future changes and difficulties (Collins, 2001, p.42). Well Fargo is easy to adapt to a changing world when banking deregulation arrived. Moreover, Wells Fargo went three times higher than general stock market which the banking fell 59 percent behind. CEO of Wells Fargo, Dick Cooley a level 5 leader, understand three simple truths. First, if you begin with "who," rather than "what," you can more easily adapt to a changing world. Second, if you have the right people on the bus, there are no problem to motivate and manage people goes. Right people are self-motivated by the inner drive to produce the best results, and right people don't need to be tightly managed, they know what they should or should not do. Third, if you have the wrong people on the bus, you won't get to the place where you want to go, whatever how hard to motivate and manage them. Right people are the most important asset in the company. Right people can turn a nearly bankruptcy company to Fortune 500 company.

The reason why Well Fargo Bank is an ethical quandary would be how they have gotten a fine for 185 Million dollars and have fired over 5,300 which were employee and manager.