Wells Fargo Failure

Wells Fargo is a very aggressive company that focused on maintaining a high goal for the sales of its products. Cross-selling is a favorite tool used to build upon customer’s accounts. The tool encourages customer’s loyalty by offering a saving, checking and credit card accounts (Levine, 2016). The usage of cross-selling is said to help the customer to keep their accounts under one financial institution while offering online banking for convenience. This focus was the root of its current issues.

Many of Wells Fargo’s locations do not have the customer base large enough to expand its sales past the usual customer’s account (Levine, 2016). In this case, Wells Fargo managers pushed an unrealistic and unobtainable sales goal upon its employees

This incentive would inspire the manager to ignore the illegal actions and push the employees to do whatever it took to reach the sales goal (Parnell, 2014). That tactic worked. The self-interest view of ethics drove both Wells Fargo managers and employees to accomplish this failure due to both parties benefited from their actions (Parnell, 2014). Although, the fake bank and credit card accounts did not profit the company much, both manager and employee received bonuses for their accomplished sales goals at the cost of the company’s customers and ultimately the employee and manager position (Levine,

For years, Wells Fargo employed consulting firms to investigate and audit its locations for unethical behaviors (Glazer, 2016). This process was supposed to encourage and motivate its managers to do the right thing; that did not happen (Glazer, 2016). Instead, managers mistreated and harassed the employees to meet their sales goals. They also gave incentives to the employees that reach that impossible goal (Glazer, 2016). To keep their jobs, escape the abuse while receiving a bonus, the employees resulted to using the most assessable information that they could monopolize upon, its customers.

As a leader in the banking industry, Well Fargo must endeavor to regain the trust of its customers and the respect of the banking industry (Parnell, 2014). Its social responsibility to its customers and the community is great. The company should have used its influence and resources to advance the community, not take advantage of it (Parnell, 2014). Wells Fargo is indebted to its customers for its status as one of world’s leader in banking (Parnell, 2014). It is only fair and in goodwill that Wells Fargo repairs the damage that it caused its customer and community (Parnell,