REGISTRATION FORM

1. Name of the student: Sanjay p

2. Name of the guide: Dr. Musaib Ahmad Shariff B.A

3. Proposed research area: Finance

4. Proposed research topic: A Study on Financial Analysis of TATA Group

5. Write a brief note on your topic: I was assigned to choose topic regarding a
company’s banking /fi /insurance etc. I selected the field finance. My topic is
regarding the research about the finance of leading companies of India , TATA
Group . I have done deep research on finance of , TATA Group collected data and
presented the ratios in the form of graphs. I have chosen , TATA Group because
leading organisation which was found by Jamsetji tata . In this research the history
and all the deta organisation and the members of managing committee are studied,
TATA Group have many units motora etc. this research report provides a brief
description of financial analysis of all the units of Group . All the data for this
research is a secondary data collected from various books, magazines, newspapers
etc… All the data collected are true.

Student’s Signature:
Guide’s Signature with date:

1
 PROJECT WORK
DIARY

Date of Topics Progress as Signature

Meeting Discussed on Date of Faculty

2
Signature of the student:

3
A STUDY ON FINANCIAL ANALYSIS OF

TATA GROUP
Mini Project work submitted in partial fulfilment for the
award of the Degree of

BACHELOR OF COMMERCE

of

CMR UNIVERSITY

By

Sanjay p
REG.No. 23DBCOM123

Under the guidance of

Dr. Musaib Ahmad Shariff B.A

Assistant Professor

SOEC,OMBR

CMR University

4
 2023-26 Batch

II Semester B.COM

DECLARATION

I hereby declare that “A Study on Financial Analysis of

Tata Group” is the result of the mini project work carried out by
me under the guidance of

5
 Dr. Musaib Ahmad Shariff B.A in partial fulfillment of the
award of Bachelor’s Degree in Commerce CMR University.

I also declare that this project is the outcome of my own

efforts and that it has not been submitted to a other universities or
institute for the award of any other degree certificate.

Place: Bengaluru Name: Sanjay p

Date: Reg.No.:
23DBCOM123

6
CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the Mini Project work titled “A

Study on Financial Analysis of tata group ” is an original
work of Mr. Sanjay p ; bearing University Registration
Number 23DBCOM165 and is being submitted in partial
fulfilment for the award of the Bachelor’s Degree in
Commerce of CMR University. The report has not been
submitted earlier either to this University for the fulfilment
of the requirement of a course of study.

7
 Signature of Guide: Signature of the

School Head:

DATE: DATE:

ACKNOWLEDGEMENT

It is difficult to acknowledge a precious debt as that of

learning as it is the only debt that is difficult to repay except
through gratitude.

First and foremost I wish to express my profound gratitude

to the almighty god for his grace and blessings.

8
 I would like to express my gratitude to my guide
Mr.BALAGOPAL P.K for providing valuable guidance throughout
this project. He has taught the methodology to carry out the
research and to present the research work as clearly as possible. It
was great privilege and honour to work under his guidance.

I am extremely grateful to CMR University for providing a

good environment and facilities to comple this project. Last but not

the least I would like to thank my family and friends for their

support and willingness to contribute to my project

EXECUTIVE SUMMARY
The project assigned to me was to study about banking / finance /
insurance etc. of any company. I decided to choose one of India’s
largest companies in a sector that has rapidly grown over the past
few years and a company where leaders like rathan tata were
working .

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 Through this report, I try and analyse the financial

environment in which tata group is operating.

Through my thorough financial analysis, my aim to

understand the financial factors is influencing the company and its
decision making. Later, I try and evaluate the various ratios to
appreciate their impac on company’s performance over last five
years.

The financial statements of last five years are identified,

studied and interpretated in light of company performance. Critical
decisions of distributing dividends, issue of bonus, debentures and
other current news are analysed and their impact on the bottom line
of company is assessed.

Finally, I studied ratio analysis, fund flow analysis and cash

flow analysis of the company to analyze t financial position of the

company.

10
 ABLE OF CONTENTS

Introduction
Professionalism and Ethics must be the center of every business. Every business

aims to be successful that others are even willing to do anything that what it takes in

order for them to stay on top and superior among others. Some people are even blinded

by money and other luxurious things to the point that they are willing to do anything just

to get what they want.

Business ethics is the written and unwritten principles and values that govern

decisions and actions within companies. Business ethics, also called corporate ethics, is

a form of applied ethics or professional ethics that examines the ethical and moral

principles and problems that arise in a business environment. It can also be defined as

the written and unwritten codes of principles and values, determined by an organization's

culture, that govern decisions and actions within that organization. It applies to all aspects

of business conduct on behalf of both individuals and the entire company. In the most

basic terms, a definition for business ethics boils down to knowing the difference

between right and wrong and choosing to do what is right.

Ethics are of critical importance to organizations, as they can potentially have

enormous impacts on their communities. Ethics are a central concern for businesses,

organizations, and individuals alike. Behaving in a way that adds value without

inappropriate conduct or negative consequences for any other group or individual,

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organizational leaders in particular must be completely aware of the consequences of

certain decisions and organizational trajectories and ensure alignment with societal

interests.

Banking is an industry that handles cash, credit, and other financial transactions.

Banks provide a safe place to store extra cash and credit. They offer savings accounts,

certificates of deposit, and checking accounts. Banks use these deposits to make loans.

These loans include home mortgages, business loans, and car loans. Banking is one of

the key drivers of the economy because it provides the liquidity needed for families and

businesses to invest for the future. Bank loans and credit mean families don't have to

save up before going to college or buying a house. Companies use loans to start hiring

immediately to build for future demand and expansion.

Wells Fargo is involved in banking business. Most of the people trusted this bank

with their moneys thinking that it would help them earn interest and grow their

investments. Baking business is very sensitive in economy since the money of the people

is involved and this kind of business highly contributes to the growth of the economy.

Wells Fargo has a fiduciary duty to treat its customers fairly. The bank offered

many different services to its customers. But before everything else, the corporation must

also know how to treat and compensate their employees properly in order to do their job

properly. It must always start with good corporate governance.

Methodology

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 The researchers chose a desk or secondary research design because it best served

to give the information needed by the researchers to complete or to achieve the purpose

of this case study.

Secondary research or desk research is a research method that involves using

already existing data. Existing data is summarized and collated to increase the overall

effectiveness of research. Secondary sources may be referred to as data that is not

originally gathered by the study and help in some way to arrive at a conclusion for the

study. Secondary data sources according to Sekaran (2003) are derived from data that is

already in existence. Secondary data for this study was acquired from different online

databases of journals, books, articles and news, year projects by past students and other

sources.

In this study, different relevant and reliable articles were acquired, compiled and

summarized by the researchers from different online sources and were combined to get

the final output of this study. The goal of this study is to analyze the Wells Fargo and

company as a whole. Starting from how it came into existence, its management, and

especially if how it conducts its business. The involvement of the firm from several

minor and major scandals was also discussed and evaluated. This study aims to show

how the corporate governance and social responsibility in Wells Fargo are exercised.

Company Profile
Company Description

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 Wells Fargo Co. is a
diversified, community-based financial services
company. It is engaged in the

FARGO
mortgage, and consumer and commercial finance. The

WELLS provision of banking, insurance, investments,

firm operates through community banking, wholesale banking, wealth

investment management, and other.

The Community Banking segment offers complete line of diversified financial products

and services for consumers and small businesses including checking and savings

accounts, credit and debit cards, and automobile, student, and small business lending.

The Wholesale Banking segment provides financial solutions to businesses across the

United States and globally. The Wealth and Investment Management segment includes

personalized wealth management, investment and retirement products and services to

clients across the United States based businesses. The other segment refers to the

products of WIM customers served through community banking distribution channels.

It is the world's fourth-largest bank by market capitalization and the fourth largest

bank in the US by total assets. Wells Fargo is ranked number 26 on the 2018 Fortune 500

rankings of the largest US corporations by total revenue. In July 2015, Wells Fargo

became the world's largest bank by market capitalization, edging past ICBC, before

14
slipping behind JPMorgan Chase in September 2016, in the wake of a scandal involving

the creation of over 2 million fake bank accounts by Wells Fargo employees. Wells Fargo

fell behind Bank of America to third by bank deposits in 2017 and behind Citigroup to

fourth by total assets in 2018. Wells Fargo is incorporated in DE.

The firm's primary operating subsidiary is national bank Wells Fargo Bank, N.A.,

which designates its main otT1ce as Sioux Falls, South Dakota. Wells Fargo in its present

form is a result of a merger between San Francisco—based Wells Fargo Company and

Minneapolis-based Norwest Corporation in 1998 and the subsequent 2008 acquisition of

Charlotte-based Wachovia. Following the mergers, the company transferred its

headquarters to Wells Fargo's headquarters in San Francisco and merged its operating

subsidiary with Wells Fargo's operating subsidiary in Sioux Falls. Along with JPMorgan

Chase, Bank of America, and Citigroup, Wells Fargo is one of the "Big Four Banks" of

the United States. As of June 2018, it had 8,050 branches and 13,000 ATMs. In 2018 the

company had operations in 35 countries with over 70 million customers globally.

In February 2014, Wells Fargo was named the world's most valuable bank brand

for the second consecutive year in The Banker and Brand Finance study of the top 500

banking brands. In 2016, Wells Fargo ranked 7th on the Forbes Magazine Global 2000

list of largest public companies in the world and ranked 27th on the Fortune 500 list of

the largest companies in the US. In 2015, the company was ranked the 22nd most

admired company in the world, and the 7th most respected company in the world. As of

December 2018, the company had a Standard Poors credit rating of A—. However, for

a brief period in 2007, the company was the only AAA-rated bank, reflecting the highest

credit rating from two firms.

On February 2, 2018, the US Federal Reserve Bank barred Wells Fargo from

growing its nearly USS2 trillion-asset base any further, based upon years of misconduct,

15
until Wells Fargo fixes its internal problems to the satisfaction of the Federal Reserve. In

April 2018, The Wall Street Journal reported that the US Department of Labor had

launched a probe into whether Wells Fargo was pushing its customers into more

expensive retirement plans as well as into retirement funds managed by Wells Fargo

itself. Subsequently in May 2018, The Wall Street Journal reported that Wells Fargo's

business banking group had improperly altered documents about business clients in 2017

and early 2018. In June 2018, Wells Fargo began retreating from retail banking in the

Midwestern United States by announcing the sale of all its physical bank branch

locations in Indiana, Michigan, and Ohio to Flagstar Bank.

The company operates 12 museums, most known as a Wells Fargo History

Museum, in its corporate buildings in Charlotte, North Carolina, Denver, Colorado, Des

Moines, Iowa, Los Angeles, California, Minneapolis, Minnesota, Philadelphia,

Pennsylvania, Phoenix, Arizona, Portland, Oregon, Sacramento, California and San

Francisco, California. Displays include original stagecoaches, photographs, gold nuggets

and mining artifacts, the Pony Express, telegraph equipment and historic bank artifacts.

The company also operates a museum about company history in the Pony Express

Terminal in Old Sacramento State Historic Park in Sacramento, California, which was

the company's second office, and the Wells Fargo History Museum in Old Town San

Diego

State Historic Park in San Diego, California.

Historical Background

Wells Fargo, multinational financial services company with headquarters in San

Francisco, California. The founders of the original company were Henry Wells (1805—

78) and William George Fargo (1818—81), who had earlier helped establish the

American

16
Express Company. They and other investors established Wells, Fargo Company in

March 1852 to handle the banking and express business prompted by the California Gold

Rush. In California the company handled the purchase, sale, and transport of gold dust,

bullion, and specie and other goods that moved from the West to the East Coast by ship,

crossing overland via the Isthmus of Panama.

In the decade following 1855, Wells Fargo expanded into the staging business

with overland routes from Missouri and the Midwest to the Rockies and the Far West. It

operated the western portion of the Pony Express route, from Salt Lake City to San

Francisco, during the last six months of that venture's operation, in 1861. In 1866 a grand

consolidation brought almost all Western stagecoach lines under the Wells Fargo name,

leaving the company with the largest empire of stagecoaches in the world. Although the

days of stage coaching gradually declined after completion of the first transcontinental

railroad in 1869, Wells Fargo coaches continued to serve areas where the railroads did

not operate, in some places even into the early 20th century.

But during the heyday of stage coaching, few names were more well-known than

Wells Fargo. Its agents and messengers gained a national reputation for their derringdo—

for getting the express through regardless of obstacles—as well as for their

professionalism. Henry Wells demanded that courtesy dominate all transactions, and the

company served all, regardless of creed, color, or gender. Tales of the express, not the

bank, made the name Wells Fargo famous, and its transcontinental delivery operations

gave rise to the company's most-enduring symbol, the horse-drawn nine-passenger

Concord (New Hampshire) stagecoach, and a fleet of which the company operated for

public events into the 21st century. Of keen interest to highway robbers of the day was

the company's heavy green treasure box stowed under the driver's seat, where gold bars,

coins, financial papers, and the passengers' valuables were stored. These boxes were

17
 fiercely guarded by an armed company agent, as many stagecoach bandits discovered to

their detriment; the legendary gunslinger Wyatt Earp was one such guard. To showcase

this colorful past, the company later established museums in cities across the United

States.

In 1905 Wells Fargo's banking operations (in California) were separated from its

express operations and merged with the Nevada National Bank (founded 1875) to form the

Wells Fargo Nevada National Bank. In 1923 this bank merged with the Union Trust

Company (founded 1893) to form the Wells Fargo Bank Union Trust Co., a name that

was shortened to Wells Fargo Bank in 1954. In 1960 it merged again, this time with the

giant American Trust Company (dating to 1854), to form the Wells Fargo Bank American

Trust Company. In 1969 the holding company Wells Fargo Company came into being; it

owned all shares of Wells Fargo Bank, NA, as the bank was renamed. By the early 21st

century, Wells Fargo Bank had thousands of retail branches in the United States and had

become one of the country's largest banks, providing services including banking,

mortgages, insurance, and financial management. It also established a global presence

through subsidiaries, affiliates, and retail branches.

Location and Layout

18
 Wells Fargo and company is based in San

Francisco California with the sub quarters throughout the

United States. This industry does their business worldwide

since they offer a financial service which will help all the

business who needs an extra capital for the continues

operation in the industry. The firm's primary operating

subsidiary is national bank Wells Fargo Bank,

N.A., which designates its main office as Sioux Falls,

South Dakota. Wells Fargo in its present form is a result of

a merger between San Francisco—based Wells Fargo Company and Minneapolis-based

Norwest Corporation in 1998 and the subsequent 2008 acquisition of Charlotte-based

Wachovia. Following the mergers, the company transferred its headquarters to Wells Fargo's

headquarters in San Francisco and merged its operating subsidiary with Wells Fargo's

operating subsidiary in Sioux Falls. Along with JPMorgan Chase, Bank of America, and

Citigroup, Wells Fargo is one of the "Big Four Banks" of the United States. As of June 2018,

it had 8,050 branches and 13,000 ATMs. In 2018 the company had operations in 35 countries

with over 70 million customers globally. On February 2, 2018, the US Federal Reserve Bank

barred Wells Fargo from growing its nearly US$2 trillion-asset base any further, based upon

years of misconduct, until Wells Fargo fixes its internal problems to the satisfaction of the

Federal Reserve. In April 2018, The Wall Street Journal reported that the US Department of

Labor had launched a probe into whether Wells Fargo was pushing its customers into more

expensive retirement plans as well as into retirement funds managed by Wells Fargo itself.

Subsequently in May 2018, The Wall Street Journal reported that Wells Fargo's business

banking group had improperly altered documents about business clients in 2017 and early

2018. In June 2018, Wells Fargo began retreating from retail banking in the Midwestern

19
United States by announcing the sale of all its physical bank branch locations in Indiana,

Michigan, and Ohio to Flagstar Bank. There are several subsidiaries the Wells Fargo Advisors,

Wells Fargo Bank, N.A., Wells Fargo Rail and

Wells Fargo Securities

Office Area Consultation Area

Customer Receiving Area Front view of the bank Organizational Management

Wells Fargo's reputation as one of the world's great companies for integrity and

principled performance depends on our doing the right thing, in the right way, and

complying with the laws, rules and regulations that govern our business. We earn trust

by behaving ethically and holding all team members and directors accountable for the

decisions we make and the actions we take. The Code of Ethics and Business Conduct

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serves to guide the actions and decisions of our team members, including executive

officers, and directors consistent with our company vision, values, and goals.

Right managerial decision is important for the performance of an organization.

The intention of management information system is to improve the quality of such

decisions by analyzing strategic questions. Access to information system should be open

to all- including managers to be effective. However, there might be a director of

information system to control the input, output of information. Input data should be about

both internal affairs like marketing, finance, production, and external matters like social,

cultural, demographic, economic, political etc. To get appropriate strategic information,

data must be updated regularly. An effective information system collects, categorizes,

and fills data to be used by managers from all functional areas. There are a variety of

strategic planning computer applications. However, the program should be easy-to-use

so that everyone in the organization can participate. CheckMATE is such software that

features state-of-the-art strategic planning technique. It is a database where the user is

asked to input answers of particular questions and the responses are recorded, analyzed,

and the results are printed.

Wells Fargo's Organizational Chart Key

Officers

21
 Board and Advisors

Functional Areas

Production

22
 It can be intimidating to entrust a banking institution to store, grow and invest

your money. Many of these banks have been around forever, offer countless wideranging

services and can be found in the headlines for questionable practices, to say the least.

Wells Fargo is one such bank that's been helping its customers and businesses through

banking accounts, lines of credit, investing services for more than 160 years. Serving

more communities than any other US bank, Wells Fargo is a banking institution known

for its classic stagecoach logo. It's the largest mortgage and auto lender in the United

States, and an estimated 10% of all small businesses use this bank's financial services.

Banking. Wells Fargo makes growing your savings easy with a full range of

banking services.Like Checking accounts, Savings accounts and CDs, Credit cards,

Debit and prepaid cards, Foreign exchange services, and Global remittances

Loans and credit. Finance your new home or car, your education, your small

business and everyday needs with flexibility and ease. Like Mortgages, Home equity

lines, Personal lines of credit and loans, Student loans and Auto loans.

Insurance. Since 1903, Wells Fargo has helped protect the things you love. Like

Auto insurance, Specialty vehicle insurance, Homeowners insurance and Umbrella

liability insurance.

Investing and retirement. Wells Fargo's investing solutions can help you prioritize

for your short- and long-term goals, IRAs and rollovers, Investment services and

Investing for education

Wealth management. Let Wells Fargo's expert advice empower better investment

decisions for a stronger financial future.

Business services. Customized financial services and products get your business

up and running with convenience. Like Business checking, Business savings and CDs,

23
Business credit and debit cards, Business lines of credit, Business loans, Merchant

services, Insurance and Payroll services.

Commercial services. Work with a Wells Fargo relationship manager or banker

to keep your business moving forward like the Commercial financing, Commercial

insurance and Institutional investing and savings.

Despite of the services provided by the company there are many complaints about

their services. Wells Fargo is not accredited with the Better Business Bureau (BBB), and

currently has a letter grade of NR (No Rating) as it responds to previously closed

customer complaints. Of the 357 total customer reviews on the BBB site, 96% of them

are Negative. Most reviews focus on dissatisfaction around customer service and

products.

Marketing
Marketing Mix of Wells Fargo analyses the brand/company which covers 4Ps

(Product, Price, Place, Promotion) and explains the Wells Fargo marketing strategy. This

part of the case study will elaborate the pricing, advertising distribution strategies used

by the company.

Wells Fargo provides a wide range of financial services and products for personal,

small scale and large business. Wells Fargo provide banking, Insurance, loan and credit,

Investing and Retirement, Wealth Management, Rewards and Benefit, Merchant

Services, Payroll, and Industry expertise to government, auto industry etc. in their

marketing mix product strategy. Community Banking deals with financial products and

services for individuals and small-scale business include auto and student loans, debit

and credit cards, saving accounts and small loans. Wholesale Banking provides solution

24
 to business by offering business banking, corporate banking, treasury management,

insurance, and real estate services is also provided by Wells Fargo.

The company focuses on their customer by using customer value-based pricing

in their marketing mix. They offer services which are convenient, highly secure and

flexible. In addition to this company's services are Federal Deposit Insurance

Corporation (FDIC) approved which benefit customer to succeed financially. Wells

Fargo also offers some very competitive pricing for different products and services.

Pricing strategy is the same in the United States as it is globally.

Wells Fargo is a US based financial holding company which serves more than 70

million customers globally. The company serves worldwide clients by offering products

and services like retail services, treasury services, foreign exchange, commercial loans,

wealth and retire. Wells Fargo has a global presence across 35 countries. It has a wide

network of 8700 retail branches and 13000 ATMs. Wells Fargo's registered office is

located at San Francisco, United States. The company's website has all details about the

service offerings given by the bank. The offices, ATM machines, cheque deposit boxes

etc. are all a part of the physical evidence of Wells Fargo. This concludes the marketing

mix of Wells Fargo. Wells Fargo functions and deliver its product and services with a

vision to satisfy customers financial needs and help them succeed financially. 2,00,()00+

employees work for the company.

They use social media platforms like Facebook, Twitter, Websites. Other than

these, the company uses Television ads, Billboards and print media to reach the potential

customer. Recently, company has using integrated marketing campaigns featuring stories

which resonates with customer by connecting at an emotional level. Wells Fargo invited

social media fans by using hashtags #WhyIWork to share their motivational drive. Wells

25
Fargo is building a customer experience through technology to make customer life easy

with smooth processes.

Finance
A veteran of the banking sector for nearly two decades, John Shrewsberry, senior

executive vice president and CFO of Wells Fargo Company since 2014, has helped steer

the bank's growth. In addition to overseeing Wells Fargo's financial management

functions, he is responsible for corporate development, IT, corporate strategy, and

corporate properties and security.He discusses how the finance department works with,

and supports, business units with an emphasis on strategy, the impact of regulation on

Wells Fargo's approach to risk management and how finance talent needs are changing.

In an interview, he revealed that one of the biggest areas of investments at Wells

Fargo is in the technology. The company and the CFO himself believes that it is an

advantage, especially for them, for a firm or company to put an investment in technology

because this industry is proved to have a big impact in every one's life. With technology,

everything can be made possible. He said that they've made major investments in product

capability and customer experience by investing in technologies that smaller banks might

have a harder time keeping up with. Technology can be a big help for security purposes

so Shrewsberry also brags about their plan to have using eye prints or eye scanner to verify

security for our corporate clients.

Wells Fargo also is flexible to cope up well in changes Of regulations and

standards for large and international banks. When he was asked about how those changes

influenced their strategy-setting and competitive views of their company, he answered

that the company are careful to focus on growth, complexity and other things that keeps

26
them within the bands of where they are currently operating from a capital surcharge

perspective. That turns out to be a huge benefit in their relative return compared to the

other G-SIBs because they are at the lower end of the capital surcharge spectrum.

Aside from investing in technology, Wells Fargo is also engaged in other different

investments, like investing on a gun industry, pipelines, and even private prisons where

they faced several issues. But this fact is an evidence that the company is doing

everything, may it be legal or illegal, to maximize their company's wealth.

To assure their shareholders with regards to their investment in the company,

Wells Fargo have brought on board members with specific expertise, including a former

Federal Reserve governor and an expert in cybersecurity from the Air Force. Everyone

brings different perspectives and experience, so it is very useful to engage with the board

about their strategy. And to enhance board communications, the company are revamping

their board materials to pull to the top key takeaways and action items that they are

expecting from the committee or from the full board from each interaction.

John Shrewsberry also emphasized that Wells Fargo are using the centralization

of finance as a development tool, which entails combining workstreams that belong

together and then reimagining how a large organization can most efficiently execute on

that work, whether through automation, technology or people. By centralizing the

finance organization, his sense is there will be a lot more possibilities to help people

move around seamlessly, get a range of experiences, learn the different businesses that

they are supporting, and see how the whole bank works as it has been changing. That is

a real opportunity that was harder for people to get at previously.

201 7 88.39

27
 20 1 G 88.27
201 5 86.06

86.09

85.21
2009 88.69

Financial Performance of Wells Fargo Company for the past 10 years

Human Resource Management

In recent years, more attention has been paid to corporate culture and "tone at the

top," and the impact that these have on organizational outcomes. While corporate leaders

and outside observers contend that culture is a critical contributor to employee

engagement, motivation, and performance, the nature of this relationship and the

mechanisms for instilling the desired values in employee conduct is not well understood.

Wells Fargo value and support their employee as a competitive advantage. They

strive to attract, develop, engage, and retain the best team members and collaborate

across businesses and functions to serve their customers. They regard their employees as

team members. The company provides all eligible regular and part-time team members

with a comprehensive set of benefits designed to protect their physical and financial

health and to help them make the most of their financial culture. Their team members

may also participate in a stock purchase plan and take advantage of discounts on financial

products, home mortgages and more.

The researchers cited some employee benefits that Wells Fargo offers. First is

their health plans and paid leaves and time off, where they offer comprehensive and

28
competitive medical, dental, and vision benefits. Their medical plans offer preventive

care services covered at 100%, prescription drug benefits, mental health and substance

abuse coverage and a network of doctors and hospitals to help their employees maintain

their health. The company also provides up to 16 weeks of paid parental leave for a

primary caregiver and up to 4 weeks for a parent who's not the primary caregiver to care

for a new child following birth or adoption. They also understand that their team

members have busy lives and diverse needs and when they had opportunity, they will

take time relax an rejuvenate their selves. As a full-time team member, they are given 18

days of paid time off in their first year, and they can also expect that the period will

increase as time goes by. They also observe 12 paid holidays, including personal holidays

that can be used for religious, family, cultural, patriotic, community, or diversity

observances.

Wells Fargo also offers educational benefits where they are willing to reimburse

up to $5,000 annually their team member's tuition to support and encourage the

professional development of their people and to give scholarships, every year, for their

team member's children. The children can apply to receive awards ranging from $1,000

to $3,000.

Problems of the Company

Wells Fargo has a fiduciary duty to treat its customers fairly. The company's

vision is to "satisfy our customers' needs and help them succeed financially." The bank

offered many different services to its customers. But the bank's management set

unrealistically high sales goals for its employees, encouraging many employees to game

the system. If a customer bought one service, employees were urged to "cross-sell"

several more. "Eight is great" was the company mantra. The only way that Wells Fargo

employees could meet their unrealistic sales targets, and thereby keep their jobs, was to

29
make up accounts that customers had not requested and often didn't even know they were

being charged for. Employees fabricated millions of fraudulent accounts in order to keep

their bosses happy and remain employed. It was a classic conflict of interest.

Many former employees reported that company sales goals were impossible to

meet, and incentives for compensation and ongoing employment encouraged gaming the

system. Wells Fargo pressured employees to cross-sell, offering customers with one type

of product, such as checking or savings accounts, to also buy other types of products,

such as credit cards and loans. One former employee described it as a "grind-house,"

with co-workers "cracking under pressure." Another former employee reported, "If you

don't meet your solutions you're not a team player. If you're bringing down the team then

you will be fired, and it will be on your permanent record.'

One former employee described his brief time at Wells Fargo as "the lowest point

of my life." He encouraged an elderly woman to sign up for a credit card she did not

want by telling her "it was confirmation that she stopped by to update her address." This

made him sick to his stomach. He reported, "But it was a tough economy, and I was

worried, if I lost this job, I would be in a tough financial situation." Deceptive practices

such as this were widespread across the company, and many former employees reported

that their managers knew about them. Jonathan Delshad, a lawyer working on behalf of

former employees, said, "The better they did at sales, the more they advanced, so it got

spread across the company. An entire generation of managers thrived in the culture, got

rewarded for it, and are now in positions of power." One former employee said she could

not meet sales goals in any ethical way and called the Wells Fargo's ethics hotline. She

was eventually fired.

30
 Wells Fargo had multiple controls in place to prevent abuse. Employee

handbooks explicitly stated that "splitting a customer deposit and opening multiple

accounts for the purpose of increasing potential incentive compensation is considered a

sales integrity violation." The company maintained an ethics program to instruct bank

employees on spotting and addressing conflicts of interest. It also maintained a

whistleblower hotline to notify senior management of violations. But these protections

were not sufficient to stem a problem that proved to be more systemic and intractable

than senior management realized.

The bank announced a number of actions and remedies, several of which had

been put in place in preceding years. The company hired an independent consulting firm

to review all account openings since 201 1 to identify potentially unauthorized accounts.

$2.6 million was refunded to customers for fees associated with those accounts and they

were fined a combined total $185 million. 5,300 employees were terminated over a

fiveyear period. Carrie Tolstedt, who led the retail banking division, retired and the CEO,

John Stumpf, resigned. Wells Fargo eliminated product sales goals and reconfigured

branch-level incentives to emphasize customer service rather than cross-sell metrics. The

company also developed new procedures for verifying account openings and introduced

additional training and control mechanisms to prevent violations.

Following the discovery of this fraudulent activity, another anomaly was

discovered relating to auto-insurance issue. Wells Fargo Co will pay customers at least

S386 million to settle class-action claims that the bank signed them up for auto insurance

they did not want or need when they took out car loans. The proposed settlement was

disclosed in filings on with the U.S. District Court in Santa Ana, California, and requires

a judge's approval.

31
 National General Insurance Co, an underwriter, will pay an additional $7.5

million, making the total customer payout at least $393.5 million, according to the

filings.WeIIs Fargo denied wrongdoing but said it settled to avoid the risks, cost and

distraction of litigation, and has set aside enough money for the payout. The defendants

will also pay up to S36.5 million for the customers' legal costs, court papers showed.ln

an email, Wells Fargo called the settlement "an important step in making things right for

customers."" We will continue sending individualized letters to customers that clearly

set out the remediation amount due to them, as well as a check for that amount, " they

added.

In April 2018, Wells Fargo agreed to pay $1 billion to the Consumer Financial

Protection Bureau and Office of the Comptroller of the Currency to settle U.S. probes of

the San Francisco-based bank's auto insurance and mortgage practices.Wells Fargo

remains unable to expand under restrictions imposed in February 2018 by the Federal

Reserve until the bank, the nation's fourth-largest by assets, cleans up its culture and

oversight. The complaint said Wells Fargo's wrongful practices caused nearly 275,000

customers to become delinquent and nearly 25,000 vehicles to be illegally repossessed.

Plans of company

Wells Fargo revealed its new plan for compensating branch employees, the latest

step in the San Francisco company's efforts to overhaul its practices in the wake of a

sales scandal. Under the new incentive-pay system affecting tellers, branch managers

and other branch employees, compensation will be based on customer growth, service

and usage of products, according to a description Wells provided the Observer. The

revamped program comes after Wells Fargo in October threw out product sales goals for

retail bankers amid growing fallout from the scandal.

32
 "It's not the answer to everything that Wells Fargo is doing to restore trust," Mary

Mack, Charlotte-based head of community banking for Wells, told the Observer on

Tuesday. But it's a "really important step," Mack said, "as we begin to chart this path

around restoring trust."

The new plan affects 70,000 employees nationwide, including more than 1,000

branch employees in Charlotte, according to the bank. It adds to efforts by Wells to fix

its culture after agreeing in September to $185 million in fines, to settle claims that

employees opened millions of accounts potentially without customer approval in order

to meet high-pressure sales targets and avoid being fired.

Wells also said that under its prior incentive system, primary oversight of

incentive plans fell to local management. The new approach will rely on local, regional

and corporate oversight, as well as mystery shopping and other means to monitor bad

behavior. Wells' new plan comes before the bank reports its fourth-quarter earnings

Friday, which will give investors their first view of the scandal's impact over a full

quarter.

SWOT Analysis

Strengths in the SWOT analysis of Wells Fargo

Segment-specific offerings: The company caters to three key segments namely

personal, commercial, and small industries and has specific services to offer to

each of them. For their retail customers falling under a personal category, the

Company list of services includes banking, loans and credit, insurance, investing

and retirement, wealth management, and rewards and benefits. Under the

commercial segment, Wells Fargo offers loans, insurance for the owner as well

33
as assets, credit facilities, merchant services, Online banking services, round the

clock customer service etc. Under the small industries segment, their line of

services includes banking, loans and credit, merchant services, insurance, and

payroll and other services.

Business Philosophy: The business philosophy of the company Wells Fargo is

centered around five core values which are the basis for everything that the

financial services company does. These values are string customer focus,

consideration of people is the biggest source of competitive advantage, highest

standards of ethics and transparency, diversity and inclusion and leadership.

Acquisitions: One of the core strengths of Wells Fargo is the series of regional

acquisitions that it has made. Some of these include the 1998 merger between

Wells Fargo and the Norwest Corp., headquartered in Minneapolis, the buyout of

East Coast giant Wachovia in 2008 etc. These acquisitions increased their

customer base in the US to almost 70 million.

Customers across income groups: Wells Fargo has customers from all income

groups. While the economy customers avail services such as credit cards, bank

accounts, loans etc. the higher income segment looks at services such as wealth,

brokerage, and retirement services. Wells Fargo also offers services such as

financial support services, taxation services, and underwriting services.

Wholesale and retail banking: The financial services provider Wells Frago takes

up wholesale banking services like equipment financing, crop insurance, energy

syndicated loans, commercial real estate etc. The company also takes care of

retail banking function like bank loans, credit, and debit cards,

34
 Community Banking Services: Wells Fargo has community banking services like

credit cards, bank accounts, debit cards, account management, loans etc. Though

it may seem regular community banking constitutes one of the most profitable

divisions of the bank.

Weaknesses in the SWOT analysis of Wells Fargo

Customer Relationships: There have been allegations that Wells Fargo though

claims to be customer-centric, treats higher income customers differently from

lower incomes customers.The lower income group often suffers because of this

reason.

Bank Scandal: Wells Fargo is still facing the aftermath of the scandal of fake

accounts and fraudulent transactions. Following the scandal, many long-standing

customers shifted to other banks and the bank suffers the loss of face primarily

because of loss of trust.

Higher costs: Wells Fargo had expanded a lot in the last decade and this expansion

was a costly affair. The bank also faced a lot of costs in its operations across

various financial domains. In addition to this, there was also a lot of legal charges

and other related costs related to the scandal and its management.

Opportunities in the SWOT analysis of Wells Fargo

Growth in smaller towns: Wells Fargo is primarily in cities and most of its

operations are in the USA especially in banking. The company should look at a

market outside the US like China or India which are registering steep economic

growth as well as taking huge strides in financial reforms.

35
Il. Significant Issues and Management
A. Issues

Issues and crises are inevitable in every business, but what happened to Wells
Fargo was surely as alarming and devastating because the issues have tarnished their
reputation as a dependable bank. In September 2016, Wells Fargo has announced that
there are "improper sales practices" that happened in the previous years. Wells Fargo
has admitted that they have committed a grave mistake particularly the issue with the
unauthorized opened customer accounts that reached up to millions, records of the
bank that were falsified by agents, signatures of customers that were forged, and the
manipulation and transfer of assets between accounts that resulted to the charging
overdraft fees. These malpractices are done without any knowledge and consents
from the customers. (Premachandra Filabi,
2018)

Another issue that Wells Fargo faced was the issue of auto insurance practices. In
between the years 2012 and 2016, it was declared that Wells Fargo also had charged
customers an superfluous auto insurance that reached up to 800,000 accounts of
people who were loaners. This incident led 274,000 clients to delinquency that also
brought another issue which was the illegal vehicle repossessions of approximately
20,000 accounts. Some of Wells Fargo's customers also suffered from different
inappropriate charges like, credit damage that has something to do with unauthorized
insurance policies that were added to customers' accounts, incurred insufficient funds
charges and many more. The revelation of these issues was an indication that the
scandal was not a one-time, big-time happening in the bank's practice but perhaps, it
indicates that these practices were more of a systemic and has been embedded in the
company's organizational culture. (Premachandra Filabi, 2018)

The brand of Wells Fargo has been supported by 3 major objectives:

• Relationships that lasts a lifetime;
 • Expertise and Guidance to help customers make confident
decisions; and

• Going the extra mile to do what is right.

The three pillars are securely designed to deliver the best services for the bank 's
customers, however the said objectives have not become successful. The issues that
Wells Fargo faced had become an avenue for researches particularly in
Organizational Culture. The scandals, the management and the issue management
are the factors that has to be researched upon and analyze to promote necessary
changes in the said company. Wells Fargo has to address these aspects for them to
prevent substantial reputation damage and to avoid further struggles in the years to
come.
Premachandra Filabi (2018), mentioned in their study that the structural,
procedural and behavioral practices of Wells Fargo is a fitting case study from which
organizations from the same field and other fields can learn lessons on how to
proactively prevent such large-scale lapses. (Premachandra Filabi, 2018)
Hence, this study focuses on how Wells Fargo manages to apply remedy in these
issues, the manner of implementation and an analysis of these elements to further
discuss different factors that affects the organizational culture of a well founded
company.
B. Issue Management
The issues stated above were addressed by Wells Fargo in their Sales Practices
Investigation Report that was published in April 2017. This report was conducted by
independent counsel Sherman Sterling LLP on which they have analyzed the
practices of the bank including sales and other transactions that were reasons behind
the "ethical failures" and de meaning issues of the company. Independent counsel
Sherman and Sterling LLP conducted a research, and the results were found based
on over 100 consultations and document reviews that were not going down 35
million apiece. With the findings that they managed to brought out, they were able
to determine the causes of violations and were able to provide counteractive
 measures to secure the banks future and to address problems that may cause the total
demise of the company. (Sales Practices Investigation Report,
2017)

According to the report, Wells Fargo has also publicly announced through their
website that they have ensured progress into making steps for the better management
of the company. Since October 2017, Wells Fargo has done rapid changes in the
structure of the company. They have started restructuring their company by
announcing on October 12, 2017 that they are employing Mr. Mike Roemer as the
Chief Compliance Officer (A 27-year financial services veteran). He is a former
Group Head of Compliance for Barclays, and has proven his worth while staying in
the said company. Roemer has assumed position by the month of January

2018. (Wells Fargo staff, 2018)

In November 2017, they have announced that they have adjusted the positions of
some people in the company and given them new roles that will suffice the needs of
the company. One of them is Mr. Joe Rice, who by that time served as the head of
the Recovery and Resolution Program Office within Wells Fargo's Enterprise
Finance Information Technology group and was given the task to be the head of
the Commitment to Customer Center of Excellence. This new assignment for Rise
will focus on the company's Community Banking, Lending and Payments, Virtual
Resolutions Innovation businesses. (Wells Fargo Staff, 2018)

Another announcement was made in November 2017 as part of the restructuring

program of Wells Fargo. This pertains to the Three New Independent Directors that
assumed the position on the very first day of 2018. These people are; Celeste A. Clark,
, Theodore F. Craver, Jr., and, Maria R. Morris, The new faces have different functions
in the company particularly the following according to the article that Wells Fargo has
posted on their website. " Clark will serve as a member of the Corporate Responsibility
Committee, while Craver will join the Audit and Examination Committee, and Morris
will serve as a member of the Risk Committee." These changes had a huge impact in
their succession planning and refreshment process. (Wells Fargo Staff, 2018)
Another Press Release was made by Wells Fargo on December 2017, stating that
they have launched a new council that the sole purpose is to "provide insight and
feedback to the Board of Directors and senior management from the perspectives of
their customers, team members, shareholders, and others." The aim of this move by
Wells Fargo is to broaden and to deepen their perspective and to understand
important and current concerns focusing on its relevance not just for the company
but to its shareholders. Elizabeth "Betsy" Duke (Chairman of the Board) stated, "The
formation of the Stakeholder Advisory Council is part of our commitment to
continued engagement with our stakehol ders to obtain their feedback."... "The
council consists of representatives of stakeholder groups especially important to the
company, including groups focused on consumer rights, fair lending, the
environment, human rights, civil rights, and governance. It is important that the top
leadership of our company hears directly from our stakeholders, and we look forward
to benefiting from the council's diverse perspectives and experiences, particularly
with respect to our commitment to our customers and communitie s." (Wells Fargo
staff, 2018)

As the year gone by, Wells Fargo has continued its way to reshape its company
and to regain its reputation. On January 2018, they have announced that Sarah
Dahlgren will join the company effective on March 12, 2018. Dahlgren was a partner
of Wells Fargo in the Risk Practice at McKinsey Company. Dahlgren assumed the
position of risk officer who will directly report to Mike Loughlin (Chief Risk
Officer). Since then Wells Fargo has been consistent with their reforms employing
different people with diverse knowledge in finance and risk management. They also
keep their customers updated with the use of their website and other forums. Since
 then, Wells Fargo has become more transparent with all of their efforts and
movements so people could keep track of their actions. One example is when Wells
Fargo had announced on April 20, 2018 about the consent order agreements with the
Office of the Comptroller of the Currency (OCC) and the Consumer Financial
Protection Bureau (CFPB) to address issues that were released regarding the "interest
ratelock extensions on home mortgages and collateral protection insurance (CPI) "
that were placed on certain auto loans. (Wells Fargo Staff, 2018)

Wells Fargo has not become all-talk with their promises to their consumers. As
part of the movement to correct all damages, Wells Fargo had announced on June 14,
2018 the $142 million class-action settlement, also known as Jabbari v. Wells Fargo
Bank, N.A. that was approved by the U.S. District Court for the Northern District of
California for all customers who claimed that "Wells Fargo had opened, without their
consent, a consumer or small business checking or savings account or unsecured
credit card or line of credit, or enrolled them, under certain circumstances, in Identity
Theft Protection services, in each case between May 1,
2002, and April 20, 2017." (Wells Fargo staff, 2018)

With the help of the government and the continuous actions of the new
management of Wells Fargo, the company has been moving forward making strong
progress. Wells Fargo has claimed that since 2016 they have made significant
changes with regards to their management and sales practices and was able to settle
amendments for the issues and crises they have faced. (Wells Fargo Progress
Report, 2018)

Ill. Critique on Issue Management

This analysis will focus on two major factors: Leadership and Organizational
Culture. To define the factors, this study used the Ethical Culture Model (ECM) designed
and conceptualized by Trevino and Nelson to provide an in depth analysis and discussion
on the different aspects of Organizational Culture and how Leadership take effect on
managing crisis.

A company's Vision and Values statement are often times being challenged by the
reality that surrounds the organization. (Premachandra Filabi, 2018) In achieving
harmony in an organization, all members including the executives must live upon the
own vision and values statements of the company. It is an ongoing process and there is
no shortcut or and easy method for it. It takes a lot of collective effort to achieve success
and achieving it is just the start of every organization's ethical journey. The real deal is
on how to make it stable and to maintain it so the reputation of the organization will be
as steady as the culture of the company. The ethical culture of an organization is
determined by how perceptions are formed coming in both customers and employees.
With the culture being embedded in the system of an organization, it becomes the drive
that helps an individual and a group come up with ethical decision making and behavior
depending on the circumstances they are exposed in. However, maintaining new sets
values are challenging for big organizations such as Wells Fargo for it has to undergo a
long series of processes. Ethical behavior and decision making involves dynamic and
complex sets of elements which can lead an individual or a group to perform the right
thing in any given circumstances. (Premachandra Filabi, 2018)

The Ethical Culture Model of Trevino and Nelson describes such complexities. It
encompasses complex systems that considers both the "formal" and "informal systems"
of an organization. This model postulates different levels and series of connections
between the said elements the "formal" and "informal systems". By doing so it
determines the organization's strengths and weaknesses appertaining to its ethical
culture. This theory states that in any given circumstance, if ethical integrity is
prioritized and being performed by all members of the organization making it prominent
at the formal level, the messages can be passed through informal levels with clarity and
precision, thereby influencing people to function as set by their daily norms within the
workplace of the organization. The implementation of such ethical climate must be
sustained by active engagement of the managers and senior leaders at all times.

Premachandra Filabi's research (2018) illustrates the allignment of the formal and
informal structures that lies within Wells Fargo to provide an explanation on what
happened with the issues.

ETHICAL ETHICAL
ETHICAL
JUDGMENT ACTION
AWARENESS

ETHICAL CULTURE

FORMAL SYSTEMS INFORMAL SYSTEMS

POLICIES,'CODES
RITUALS
ORIENTATION/TRAININ
MYTHS/STORIES
PERFORMANCE
LANGUAGE
AUTHORITY STRUCTURE

DECISION PROCESSES
 Wells Fargo's rankings in Fortune and Barron's list as of 2015 was quite high.
Fortune recognized the bank as its 22 nd most admired company on that particular year,
while Barron's put it as the 7th in terms of its reputation as one of the most esteemed
company globally (Colvin, 2017). However the damage in the reputation

of Wells Fargo was huge and sudden. The Harris Poll recognized Wells Fargo's
corporate reputation based on a survey conducted in 2017 and was ranked 70 th going
to the 99 th position having the highest drop ever measured by the said poll.
Speculations have been made and many observers viewed the incident negatively,
tagging Wells Fargo as "Morally Bankrupt". (Geoff Colvin, 2017)

The Investigative report made by Wells Fargo had indicated the following:

• A misalignment of the Vision and Mission Statements and the

actions being done by the members and leaders of the
organization.

• A high pressure in getting high quantity of sales, leading people to

aggressive sales behavior compromising the quality performance
management systems.

• A decentralized mrporate structure compromising accountability of

individuals who work in the organization.

• A lack of leadership not recognizing the duties and responsibilities

of a leader.

• A vague transactional approach in problem solving.

These problems were conceived in the ECM model by Trevino and Nelson
showing the problems in the culture of the organization.

The reforms and remedial that Wells Fargo had implemented are the following:
 • Reorganization of Leadership, replacing people from the old system
with new ones with high potential and vast number of experiences.

• Reestablishing sales goals.

• Revamping incentives for employees and improving the

performance management systems.

• Centralizing corporate structure and increasing accountability of

each individuals in the organization.

• New sets of Values, Mssion, Vision, Goals and Objectives.

In the scope of ECM model, the reforms will now be examined by looking deeper
into the concepts being presented in the model particularly the Formal Systems and
Leadership.

A. Formal Systems
According to the bank's investigative report the primary reasons of
the organization's issues in ethical business handling are the harsh sales
incentive programs and the tough performance management methods. The
competitive atmosphere created by the company among individuals
became the huge problem for it creates a significant amount of pressure
that resulted to outperforming colleagues and shaming of those who fell
short. Goal setting is not a bad thing in a company, especially when the aim
is to motivate employees, however research shows limitations in this kind
of management.
'Goals Gone Wild", a paper by Ordöfiez et al's in 2009 discussed
some disadvantages of goal setting in an organization. The research
exposed that this way of managing people could lead to an unharmonious
relationship among peers and can result to risky and unethical behavior.

Ordonez et al stated in their study that goal-setting, "narrow focus that

 neglects non-goal areas, a rise in unethical behavior, distorted risk
preferences, corrosion of organizational culture, and reduced intrinsic
motivation". The researchers also highlight the importance of surveillance
in order to achieve success. In Wells Fargo 's case, the unattainable goals
were the cause of risky behaviors by the individuals, thinking the
individualistic financial benefits and job security. Imposing a high focus on
sales also destabilized the mission of Wells Fargo, which is customer
centricity.

Another factor is the reward system in Wells Fargo, an individual

employee would be more motivated if he/she was being assessed not just
by measuring the quantity of work but also the quality of it. An example
would be complementing monetary goals that can be measured by
different indicators such as ethics, behavior, camaraderie and compliance.
Quantifying customer needs through customer satisfaction surveys and
loyalty awards are a must for clients. In line with it rewarding employees
with better customer relations must also be done to create harmonious
relationships amongst members of the organization. Evaluations of every
employees must also be done to ensure that ethical working behaviors are
present within the premises of the company. Eliminating competition and
focusing in one goal must also be practiced by all members of the
organization.

B Leadership
Ethical leadership must also be observed in the company.
Leadership has an impeccable role in both "formal" and "informal
systems". Brown et al. (2015) state that leaders are the key components
in
an organization. They must provide guidance and serve as a role model
amongst their subordinates. As per Brown et al. (2015, pg. 120) ethical
leadership is defined as 'the demonstration of normatively appropriate
conduct through personal actions and interpersonal relationships, and the

promotion of such conduct to followers through two-way communication,

reinforcement, and decision-making".

Wells Fargo's leaders must learn how to take full responsibility

and to take actions once issues have arisen. They must know how to
manage
issues and be confident in claiming mistakes so the company would
survive. Strict regulations of accountability must be imposed correctly so
everyone is accounted for every move that an individual has taken. It is
good that the company has taken its actions to a much bigger scale but
the implementations are just the start of their new endeavor. Monitoring

and Evaluating must be firmly established and maintained to ensure the

rebuilding of the reputation of the company.
Threats in the SWOT analysis of Wells Fargo

Competition: The main competitors of Wells Fargo are Citibank, Novo Scotia

Bank and Bank of America

Financial unrest: The world over is facing critical financial crunch and there has been

major ups and downs in the financial services market. This will affect the operations of

the bank in the long run.

 Summary
The Wells Fargo fraudulent account case arose on September 8th of 2016. The

company was accused by the Consumer Financial Protection Bureau, the Office of the

Comptroller of the Currency and the Los Angeles City Attorney. The organizations

claimed that Wells Fargo, between 201 1 and mid-2016, created additional fraudulent bank

accounts for pre-existing customers. Signing up over 2 million customers for new credit

cards and fees that they were unaware of. Wells Fargo was fined an initial $185 million

and the bank in response fired 5,300 involved employees (Blake 2016). The fraud

allegedly resulted from the company's sales program created by CEO John Stumpf. With

the mantra "eight is great" Stumpfs program set strict sales goals for Wells Fargo

employees. Sales associates and managers were urged to "get eight Wells Fargo products

into the hands of each customer" (McGrath 2017). These demanding quotas resulted in

employees being urged to cut corners, opening new deposit accounts without consent

from customers and targeting minorities who spoke little English. These events along

with consistent pressure from the media, The House of Representatives and The Senate

lead to the resignation of their CEO, John Stumpf in mid-October.

Conclusion
 The researchers have already discussed about the scandal andancillary issues of

Wells Fargoand how the organization responded and solved those scandals to which the

Bank responded by professing a commitment to regaining the lost trust with the

implementation of remedial measures.

However, Wells Fargo continues to deal with new revelations of misconduct, as

recently as July 2017 an issue about unauthorized auto insurance policies issued to Bank

customers was revealed. This brings into question whether Wells Fargo is addressing the

systemic issues at the Bank. It is critical that the Bank avoid a transactional approach to

the crisis with merely a checklist of corrective actions — it should instead focus on

making ethical integrity ubiquitously salient throughout the organization, top to bottom,

through a cultural and leadership shift.

The longer a company's operations are misaligned with its ethos, the higher the

chances of an even larger ethical breach. Hence, Wells Fargo's remedial measures need

to be integrated into the bank's culture and viewed through a systems lens, addressing

the alignment of formal and informal systems. Otherwise, any short-term fix will likely

lead to further long-term repercussions.

The advocacy of the bank is not in line with their actual application. The bank

was once recognized as one of the top corporations, but it was revealed that a lot of

irregularities was happening inside the company. This only proves that not everything

that we see is real and should be trusted. The company must stick with its mission and

vision and exercise a good corporate governance and social responsibility,

Recommendation

In today's society, the scandals about businesses and large corporations are

discovered and easily spread to the public by the help of social media. How the company
will respond and resolve the issues are very critical in protecting the reputation of the

company.

Wells Fargo and company became prone to issues and scandals throughout the

past years to the point that if you are going to search its company name in online search

engines, its involvement from different scandals and unethical practices would first come

up in the recommendations list. Few minor issues were mentioned in the research but

only the major ones that created a big effect to the company were emphasized and further

discussed by the researchers which is about the incentives given to the employees if they

reach a certain quota. The quotas mandated by the corporation were too high to attain

that led to the employees' misconduct and falsification of customer records. It is normal

for a company to set several standards to reach its goals and objectives; but no matter

how high those standards are, the organization must still follow the proper business

ethics. Giving incentives but not monitoring the employees' actions is like providing

them an opportunity to engage in unethical business practices.

Wells Fargo should have established a stronger internal control in the company.

An organization will never be a successful one or will not maintain its position on the

top if it failed to properly manage its employees and subordinates. The success a

company depends on its well-established roots.