Mt4450 Discussion 07 Current Event

Discussion 07Wells Fargo ScandalWells Fargo cooperation is an American multinational banking and financial organization with head office in San Francisco. It is believed to be the second largest global bank about market capitalization and second runner's up in the U.S according to assets. In its endeavor to increase its ability to do cross-selling, Wells Fargo came up with a strategy that involved making employees persuade customers about other products and services offered by the company. The company employed the policy of giving incentives to employees who managed at cross-selling. However, the employees did not only cross-sell but created fake accounts using names of Wells Fargo customers. This made the customers pay for accounts they did not own. After some of the customers noticed and informed top managers of the organization, the company responded by firing approximately five thousand three hundred employees and lost its CEO, John Stumpf. The unethical issues practices by the employees at Wells Fargo included; creating unachievable targets, harming employees, ignoring complaints from customers and deceitful insurance selling.ReferenceVerschoor, C. C. (2017). WELLS FARGO SCANDAL CONTINUES: New disclosures increase the scope of fraud and raise issues of audit and disclosure failure. Strategic Finance, 99(5), 18-20.