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Wells Fargo Scandle Case Study

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Wells Fargo Case Study
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June 13, 2020

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Wells Fargo Case Study
1. What should business leaders take away from this scandal?
Wells Fargo Scandal case study paints a firm built from short-run rewards regardless of
its effects on customers. It can teach so many lessons to business leaders. First, they can learn
that business is not all about making profits (Tayan, 2019). Secondly, they can learn that a
company should align its operations to good business ethics. Lastly, a business leader should
lean that ethical misconducts (such as poor leadership, inadequate auditing, improper incentives,
etc.) that exploit customers affect not only the brand reputation but also their career profiles as
well.
2. What could Wells Fargo have done differently to avert this cultural meltdown?
Wells Fargo did not get to the BIG SIX in the industry through overnight success. The
prior strategies that the company had implemented had paid off and put the company in a
significant position. The company rot from the top where the CEO John Stumpf pressured
employees through his philosophy, "eight is great." John Stumpf wanted the company to grow at
an unrealistic pace and built a workforce reliant on rewards and bonuses (Francis et al., 2018).
The bank should have done the following to prevent the cultural meltdown in the organization.
The bank should have set a realistic goal on sales. The employees had to use cross selling
to reach their targets. Cross selling, on the other hand, bypassed the ethical standards and
involved creating multiple unauthorized accounts without the customers’ consent. If the bank set
an achievable goal, employees would not have a reason to violate the code of conduct. Secondly,
the bank should have reacted to the employee’s complaint and suggestions. On the contrary,
CEO John Stumpf fired those that tried to report the misconduct. If the bank had responded to

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1 Wells Fargo Case Study Author’s Name Department, Institution Affiliation Course Number: Course Name Professor’s Name June 13, 2020 2 Wells Fargo Case Study 1. What should business leaders take away from this scandal? Wells Fargo Scandal case study paints a firm built from short-run rewards regardless of its effects on customers. It can teach so many lessons to business leaders. First, they can learn that business is not all about making profits (Tayan, 2019). Secondly, they can learn that a company should align its operations to good business ethics. Lastly, a business leader should lean that ethical misconducts (such as poor leadership, inadequate auditing, improper incentives, etc.) that exploit customers affect not only the brand reputation but also their career profiles as well. 2. What could Wells Fargo have done differently to avert this cultural meltdown? Wells Fargo did not get to the BIG SIX in the industry through overnight success. The prior strategies that the company had implemented had paid off and put the company in a significant position. The company rot from the top where the CEO John Stumpf pressured employees through his philosophy, "eight is great." J ...
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