Question

marketing

W wie brand. They believe that many customers prefer buying from firms that share their values and that if a company supports a cause the consumer ted with the implementa that share their values III 3. Are there ethical risks associated with their tion of Sseko's strategy? Strategic Case 2 Not So Well: The Case of Wells Fargo Wells Fargo, one of the largest banks in the United States, is in hot water. The Consumer Financial Protection Bureau fined the bank $185 million after it opened 2.1 million unauthorized client accounts and services that lowered customer's credit scores. About 5,300 employees were fired for falsely opening accounts and forging client signatures. Wells Fargo reached a $110 million settlement to resolve a civil class action complaint. The bank issued a statement that

Answer 1

Solution

1) Wells Fargo treated it primary stakeholders, especially the employees with a high degree of ethical misconduct. impossibly high sales target let employees to resort to cheating in their job to meet their sales targets. along with this the introduction of retail scorecard was an unnecessary addition which did nothing but add even more pressure to its employees. whistle blowers were faced with retaliation from the bank management. People who came forward reporting fraud where threatened and fired subsequently without any proper investigation into the matter. A well established bank like Wells Fargo need not resort to these extreme and risky conduct. Banks need to retain trust and confidence more than meeting sales target. Once the trust is lost it takes a long while to rebuild. Meanwhile acquiring a new customer only takes a short while. Sabotaging its own employees and laying them off due to genuine concerns and whistle  blowing for ethical misconduct can only do more harm than good to the organisation.

2) Often in an organisation the CEO sets the ethical tone for the entire marketing organisation. This is because sales is considered to be the generation department in most business. But incase of a bank like Wells Fargo. there are subtle differences. the CEO really should understand the business, its customers and its employees. here customer retention and loyality contributes a greater share of revenue than creating new low networth customers. the sales numbers only affect the book.

3) Wells Fargo needs to restructure its organisation and establish an organisation wide ethical code of conduct. doing so it should be indifferent to all departments. transparency and sincerety can gain the loyality of employees. Loyal employees can easily build more trust with the customers and help in retaining them and ultimately bringing in more business.