Wells Fargo Fake Account Crisis
A crisis is defined as the perception of an unprecedented event/incident that threatens shareholders’ valuable expectations in relation to economic, health, environmental, and safety issues (Coombs, 2014). Since organizations operate in a challenging and highly competitive environment, they are likely to undergo crises. An example of an organization that has experienced a crisis in the recent past is Wells Fargo. The company recently experienced a scandal relating to fake accounts, which has plagued its operations for approximately a year. Given that the crisis is still ongoing, Wells Fargo needs to develop a suitable crisis management plan that will help resolve the issue. This paper focuses on examining the crisis using the three-stage approach articulated by W. Timothy Coombs.
Factual Summary
Wells Fargo fake account crisis is an ongoing scandal regarding the creation of millions of fake savings and checking accounts on behalf of its clients, but without their…...

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References

Conti-Brown, P. (2017, August 31). Why Wells Fargo Might Not Survive Its Fake Accounts Scandal. Fortune. Retrieved October 9, 2017, from  

Coombs, W.T. (2014). Ongoing crisis communication: Planning, managing and responding (4th ed.). Thousand Oaks, CA: Sage Publications Inc.

Corkery, M. (2016, September 9). Wells Fargo Offers Regrets, but Doesn’t Admit Misconduct. The New York Times. Retrieved October 9, 2017, from  https://www.nytimes.com/2016/09/10/business/dealbook/wells-fargo-apologizes-but-doesnt-admit-misconduct.html 

Dugan, K. (2017, August 31). Wells Fargo is Still Holding Back on its Fake-accounts Data. New York Post. Retrieved October 9, 2017, from  http://nypost.com/2017/08/31/wells-fargos-fake-accounts-scandal-just-got-worse/ 

Morrell, A. (2017, January 6). ‘Without Fraud, the Math Didn’t Work’: Wells Fargo’s Cutthroat Culture Was Reportedly Simmering for Decades. Business Insider. Retrieved October 9, 2017, from  http://www.pulselive.co.ke/bi/finance/finance-without-fraud-the-math-didnt-work-wells-fargos-cutthroat-culture-was-reportedly-simmering-for-decades-id6765571.html 

 

http://fortune.com/2017/08/31/wells-fargo-fake-accounts-scandal-2017-tim-sloan/ 

Wells Fargo Scandal The Wells Fargo Collateral Protection Insurance (CPI) Scandal occurred as a result of the banking firm placing CPI on accounts even though the account holders did not ask for it or want it. It resulted in customers paying unnecessary and higher fees over a period of time. Wells Fargo was sued and agreed to settle the case out of court for approximately $400 million without admitting fault (Top Class Actions, 2019). The scandal, however, caused Wells Fargo to lose a great deal of reputation: customers began leaving the bank in droves and the firm suddenly found itself wondering how it had fallen and what it could do to shore up trust among customers once more. For years, the bank seemed happy to dupe customers with excessive fees, believing no customer would be sophisticated enough to realize just how he was being overcharged—but customers did catch on and the…...

Safeway and Wells Fargo
Company analysis

Safeway Company remains a private company, which is listed on the New York stock Exchange being an American food and drug retailer. The firm is among the biggest supermarket chain retailers found in North America. The company has a solid supply chain of network partners, which facilitates manufacturing as well as distribution facilities. Presently the company seems to be operating under almost 13 unique brands found in the market. The company is listed as number 52 in the list with 1000 fortune companies. On the other hand, Wells Fargo is a company traded public and established by Henry Wells, William G. Fargo together with other associates. The founding of the company in that era was because of increased cases of stagecoach robberies. They concentrated on safely transportation of money from Nebraska all the way to California (Lorrayne, 2006). Currently, the company makes usage of the stagecoach…...

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References

Estrella, Joe. "Wells Fargo dedicates new Nampa branch to Hispanics: Most loan products will be available with a review of credit history. " Knight Ridder

Tribune Business News 7 September 2006 1. ABI/INFORM Dateline. ProQuest. Retrieved November 30, 2013 from  http://www.proquest.com/ >

Liedtke, Michael. "Wells Fargo to counsel mortgage borrowers with poor credit: [Final Edition]. " Beaumont Enterprise [Beaumont, Tex.] 5 Dec. 2006,B5. ProQuest Newsstand. ProQuest. Retrieved November 30, 2013 from http:/ / www.proquest.com/>

Lorrayne, Anthony. "Young fogies' searching for higher quality:," Times Colonist (Victoria,

Write a -4-page academic paper in which you describe a business situation, apply a critical thinking framework to the situation, and recommend evidence-based solutions to the situation. Explain how the concepts of VUCA (volatility, uncertainty, complexity, and ambiguity) could affect both the situation and the solutionIntroductionThe banking business is currently undergoing fundamental change. Since the financial crisis, a litany of new rules, regulations, and procedures have been imposed on the banking sector. These rules were primarily designed to mitigate risks associated with a financial collapse that could potentially plunge the economy back into another prolonged recession. These rules, ultimately placed heavy restrictions on banks as it relates to assets, loans, deposits, and risk taking. To alleviate these concerns banks looked to focus heavily on cross selling and other forms of additional revenue. The pioneer, as it relates to cross selling was Wells Fargo. During the period immediately after the financial…...

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References

1. Corkery, Michael. “Wells Fargo Fined $185 Million for Fraudulently Opening Accounts.” The New York Times, The New York Times, 8 Sept. 2016, www.nytimes.com/2016/09/09/business/dealbook/wells-fargo-fined-for-years-of-harmto-customers.html.

2. Premachandra, B. and Filabi, A., 2018. WELLS FARGO, MISCONDUCT, LEADERSHIP AND CULTURE. [ebook] Available at:

3. Reckard, E., 2013. Wells Fargo\\\\\\'s pressure-cooker sales culture comes at a cost. [online] Los Angeles Times. Available at: .

4. Tayan, B., 2019. The wells fargo cross-selling scandal. [ebook] Available at:  https://www.gsb.stanford.edu/sites/gsb/files/publication-pdf/cgri-closer-look-62-wells-fargo-cross-selling-scandal.pdf

Business Ethics and Positive Social Change at Wells FargoIn early 2016, Wells Fargo was formally implicated in a corporate scandal which reflected the failure of its officers and directors to fulfill their duties and responsibilities. The purpose of this paper is to provide an analysis of a case study concerning this ethical scandal involving Wells Fargo to evaluate its business ethics within the context of positive social change. To this end, the paper presents the essential details of the event, its proximate causes and its negative impact on society. In addition, an examination of the causes of the crisis and a discussion concerning what steps might have prevented this scandal are followed by a description concerning what this writer would have done differently to effect positive social change instead of bilking innocent clients. Finally, the paper provides a summary of the research and important findings concerning these issues in the…...

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References

About Wells Fargo. (2021). Wells Fargo. Retrieved from   corporate/history/.https://www.wellsfargo.com/about/ 

Chapter 13: Corporate governance and ethics.

Haugh, T. (2018). The Power Few of Corporate Compliance. Georgia Law Review, 53(1), 129–195.

Porter’s Five Forces model of analyzing any industry marketplace first assesses the overall level of competition of the industry actors, the threat of substitutes, the bargaining power of consumers, the bargaining power of suppliers, and the threat of new entrants into the marketplace (Maverick, 2020). Clearly, the banking industry at present is intensely competitive. Even the most casual observer of a typical city, suburban, or even rural area will see many banks making offers to potential customers, spanning from free checking accounts, to low interest rates on refinancing mortgages, or higher rates on CDs (Maverick, 2020). There are many small and regional banks. Wells Fargo is one of four major banks in the United States—JPMorgan, Citibank, Bank of America are the others—with a national presence (Maverick, 2020). For these four banks, competition is intensive, and there is also the threat of some substitute products, including credit unions and other investment firms…...

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Reference

Maverick, J.B. (2020). Analyzing Porter’s Five Forces on JPMorgan. Investopedia. Retrieved from:  

https://www.investopedia.com/articles/markets/020916/analyzing-porters-five-forces-jpmorgan-chase-jpm.asp 

Organizational Transformation
Identify, characterize the roles of incentives, training, and education in promoting innovation

Wells Fargo & Company is an American multinational company involved in the provision of financial and banking services to its clients across the U.S. The company provides incentives, training, and education to ensure the realization of its desired organizational objectives and innovation. Providing these incentives promotes organizational performance in various ways. Incentives are useful in stimulating the interest of the employees towards learning and innovation. Incentives act as an indirect method of recognizing the contribution of the employees towards the performance of the organization. As such, incentives make the employees have shared objectives. Providing training to the organizational employees ensures their learning. It imparts them with the required knowledge and skills required for executing organizational activities. Similarly, providing them with training ensures that the organization meets personal and professional needs of the organization (Kemerer, 1997).

In addition, training and…...

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References

Chandler, R.J. (2006). Wells Fargo. Charleston, S.C: Arcadia Pub.

Kemerer, C.L. (1997). Information technology and industrial competitiveness: How IT shapes competition. Boston: Kluwer Academic Publishers.

Scotchmer, S. (2006). Innovation and incentives. Cambridge, Mass: MIT Press.

SWOT Analysis: Its Uses for Wells Fargo As noted by Giesen (et al., 2010), one of the most difficult things for any business to know is when and how to alter its core business model. Technology businesses such as IBM have been forced to do this, as the physical product lines on which they based their successes have become obsolete. The consequences of failing to innovate are dire, as seen when the physical video rental company Blockbuster failed to enter the digital age. One popular tool to use in reconfiguring a business model or simply improving a business is that of SWOT, or the strengths, weaknesses, opportunities and threats model.
SWOT is a method of analyzing both internal and external threats. Strengths and weaknesses are particular to the organization, while opportunities and threats refer to the external environment. SWOT can be useful to help a business understand what it does well, and…...

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References

Giesen, E., Riddleberger, E., Christener, R., & Bell, R. (2010). When and how to innovate your business model. Strategy & Leadership, 38(4), 17-26.

Streeter, B. (2019). What banking’s future looks like to Wells Fargo’s innovation chief. The Financial Brand. Retrieved from:  

https://thefinancialbrand.com/89994/banking-future-wells-fargo-innovation-digital-ai-platform-blockchain/ 

Successful and Unsuccessful Leaders
Coach K. and John Stumpf are leaders that have used differing styles of leadership. On one hand, Coach K. uses a transformational leadership style whilst Stumpf uses an authoritative style of leadership. Stumpf employed a controlling and intimidating technique whilst Coach K. uses a more interactive and relational approach. Coach K. has been a successful mentor and coach over the years by having good and healthy relation with his subordinates. Employees in Wells Fargo had a poor relation to John Stumpf as he failed to consider the perspectives of the employees. John Stumpf utilized his power and influence within Wells Fargo to change the behavior of personnel to conform to his controlling and authoritative culture. Coach K. uses his influence to not only be a leadership teacher and also coach, but also in people development. Taking these aspects into consideration, Mr. Stumpf is considered to be…...

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References

Bass, B. M., & Bass, R. (2009). The Bass handbook of leadership: Theory, research, and managerial applications. Simon and Schuster.

Davis, S. (2015). How did Mike Krzyzewski reach 1,000 wins? With a million small steps. Sports Illustrated. Retrieved from:  http://www.si.com/college-basketball/2015/01/25/mike-krzyzewski-duke-blue-devils-1000-wins 

Duran, D. (2015). Lessons from Duke's Coach K: 3 keys to leading an exceptional team. Investment News. Retrieved from:  http://www.investmentnews.com/article/20150513/BLOG16/150519966/lessons-from-dukes-coach-k-3-keys-to-leading-an-exceptional-team 

Egan, M. (2016). 5,300 Wells Fargo employees fired over 2 million phony accounts. CNN Money. Retrieved from:  http://money.cnn.com/2016/09/08/investing/wells-fargo-created-phony-accounts-bank-fees/

Leadership Using the Hedgehog Concept
Collins was not incorrect in the way he described the leadership at Wells Fargo. When Collins and his research team were carrying out the research, the relied on interviews and newspaper articles plus the performance of the company on the stock market. All this combined resulted in their assumption that the leadership and change in strategy by Wells Fargo was resulting in the increase in stock price. It is true that for a company to become a great company it needs to identify the three things pointed out by Collins (2001) namely what is the company good at, what drives the company, and what are employees passionate about? Wells Fargo managed to identify all these three things and discovered that in order for it to increase investor profits it needs to change its business strategy. Changing the business strategy did have the expected results, and the…...

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References

Collins, J. (2001). Good to Great (illustrated ed.). Bishopbriggs, GLASGOW: HarperCollins.

Ortmeier, P., & Meese, E. (2010). Leadership, ethics, and policing: Challenges for the 21st century: Prentice Hall.

Schafer, L. (April 11, 2017). Schafer: Wells Fargo CEO didn't take 'run it like you own it' mantra to heart. Star Tribune. Retrieved from  http://www.startribune.com/wells-fargo-ceo-didn-t-take-run-it-like-you-own-it-mantra-to-heart/419098944/ 

Staff Report. (April 21, 2017). Wells Fargo admits account scandal dates back to 2002. New York Post. Retrieved from  http://nypost.com/2017/04/21/wells-fargo-admits-account-scandal-dates-back-to-2002/

Fargo & Co. In detail. It puts light on the financial performance of the organization. The core products and competitive advantage of the organization have also been analyzed by the preceding paper. In addition to that this paper also highlights the SWOT analysis and the Porter's five forces model of Wells Fargo & Co.
Wells Fargo & Co.

Wells Fargo & Co. is a stable and renowned name in the banking industry. This organization has a commendable history of growth and success. Its mission and vision has enabled it to navigate successfully through the complicated and critical times of recession and economic downturn. It has been in the business since last many years and has gained a stable and prominent share in the financial and banking industry of the United States of America. (Amundson, 2011)

Company Background

Wells Fargo & Co. started operating officially in the year 1852. They opened their first office…...

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References

Amundson, C. (2011). Wells Fargo. Rochester: Minnesota School of Business. pp. 4-27.  http://cassieamundson.efoliomn.com/Uploads/Wells%20Fargo%20Strategic%20Plan.docx .

United States Securities and Exchange Commission (2013). WELLS FARGO & COMPANY. [report] Washington, D.C.: United States Securities and Exchange Commission, pp. 59-64.  http://www.sec.gov/Archives/edgar/data/72971/000119312513206363/d529054d10q.htm#tx529054_2 

Unknown. (2007). SMIF Investment Research Wells Fargo & Company (WFC). New York: St. John's University. pp. 9-28.  http://www.stjohns.edu/media/3/8143403cafaf4580b4993f601761d895.pdf .

The liabilities are subject to reserve requirements, however. This means that the bank cannot have more financial assets than it has liabilities. So debt utilization is an entirely different animal in the banking industry than it is in conventional industries.
Therefore, typical debt utilization ratios are of little relevance. Interest coverage is tied to liquidity, and is therefore not measured for banks. The debt-to-equity ratio is measured, however. For ells Fargo, this is 3.01. For Bank of America it is 3.97. The industry average is 3.28. The significance of this metric in the banking business is that the higher the ratio, the riskier the business. Another measure is the leverage ratio. This is at ells Fargo 12.0, versus 9.7 at Bank of America and 14.7 overall. Thus, both of these companies are less highly leveraged than the industry as a whole. ells Fargo has a lower debt-to-equity ratio indicating lower…...

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Works Cited:

Company overview and some financials from MSN Moneycentral. Retrieved May 15, 2009 from  http://moneycentral.msn.com/companyreport?Symbol=WFC 

2008 Wells Fargo Annual Report. Retrieved May 15, 2009 from

Fargo Diversity ithin and Outside the Firm
ells Fargo's latest press release announces the appointment of Jimmie alton Paschall to the post of Executive Vice President for Enterprise Diversity & Inclusion ("ells Fargo names" 2011). This job oversees all aspects of the firm's and the firm's subsidiaries' employment and product diversity under ells' "Social Responsibility Group" as well as other Management Committee duties ("ells Fargo names" 2011). Chairman and CEO John Stumpf claims diversity is a "core value" for ells Fargo, which Ms. Paschall will promote and expand with her award-winning experience ("ells Fargo names" 2011). The March 2011 ruling that ells Fargo discriminated against minority homebuyers in Los Angeles, and pending suits in other jurisdictions, indicate Ms. Paschall will need all the experience she can draw on defending the bank against perceptions to the contrary.

hy is this important? Firms generally exist for the purpose of creating equity value for…...

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Works Cited

Golobay, Diana. "Illinois AG Sues Wells on Alleged Reverse Redlining." Housingwire.com,

31 July 2009. 10 Dec. 2011.

Haughwout, Andrew, Mayer, Christopher and Tracy, Joseph. Subprime Mortgage Pricing: The

Impact of Race, Ethnicity, and Gender on the Cost of Borrowing. Federal Reserve Bank of New York Staff Report no. 368. 2009. 10 Dec. 2011.

There is no mention of any higher level ethical ideals and is composed primarily of transactional or procedural items.
One item of interest found in the employees ethical code published by Wells Fargo, is that they have established what they call EthicsLine. This allows employees to contact an investigator (employed by Wells Fargo) to report any violations of the ethics code. The line is anonymous under most circumstances; only reports that involve criminal activity are require that the caller states any personal information. This allows employees an avenue to report any unethical behavior safely. This is extraordinarily efficient way to promote ethical behavior. However, Wells Fargo did not implement this item by choice; it is now required by corporations by comply with the Sarbanes-Oxley Act of 2006. Therefore, it is unclear if Wells Fargo would have this option if it was not required of them.

Ethical Violations

Wells Fargo has been accused…...

Care of Vulnerable Populations
COMMUNITY ASSESSMENT, ANALYSIS, and NURSING INTERVENTION

• Week 1: Windshield Survey and Key Informant Interviews. Complete the First Section of the course template and submit. (Keep this section attached to Weeks 2 and 3 assignments.)

• Week 2: Statistical Analysis of Community Health Problem. Complete the Second Section of the course template and submit. (Keep this section attached to Weeks 1 and 3 assignments.)

• Week 3: Community Health Nursing Intervention. Complete the Third Section of the course template and submit. By now, you should have Sections 1-3 as one whole document.

• Each section of the course template is submitted on a WEEKLY basis, depending on which week you are working on. DO NOT wait to submit all three sections at the end of the third week.

• Please note that students are not to make any changes to the content of the course template, for example, removal of questions or…...