Wells Fargo Aulomated Tellers (AP Photo Eric Risberg) This case was updated in July of 2018 Wells Fargo was the darlisg of the banking industry, with some of the highest returns on equity in the sector and a soaring stock price. Top management routed the company's lead in "cross-elline": the sale of additional products to cxisting customers, "Eight is great," as in eight Wells Fargo prodocts for every customer, was CEO John Stumpf's mantra. In September 2016, Wells Fargo announced that it was puying 5185 miltion in fines for the creation of ever 2 million unauthorized customer accounts. It sood came to light that the pressare oe employees to hit sales quotas was immense hourly tracking, pressure from supervisons to en fage in unethical behavior, and a compensation system based heavily on bonusex. Wells Fargo alse confirmed that it had fired over 5, 300 employess over the past few years related to shady sales practices. CEO John Stampf claimed thar the ocandal was the result of a few bad apples who did not bonor the conpany's values and that there were no incentives to comimit enethical behavioc. The board initially stood behind the CEO but woon after received his resignation and "elawed back" millions of dollan in his compensation. Further reporting found mote troubling information, Many employees had quis under the immense pressure to engage in uncthical sales peictices, and some were even fired for reporting miscooduct through the company's ethics botline. Senior kadership was aware of these apgressive sales practices as far back as 2004, with incidents as far back as 2002 identified. The Board of Directors cotmmissioned an independent investipation that identified culiural, structural, and leadership issues as foot cauises of the improper sales practices. The report cites: the wayward sales culture and performance management sysiem; the decentralized corporate structure that gave too much autonony to the division's leaders; and the unwillingness of feadership to evaluate the sales model, given its longsime sueces for the company. READ THE QUESTION AND ANSWER AS PER REQUIRED Geacral Discussion Questiens - What should besiness leaders of other financial sectors take away from this scandal? ( 10 Points ) - What could Welle Farge have dooe differently to prevent this cultural disaster ( 10 Pounts ) - Acconding to Well Fargo's missioe stanencent, the conpany aims "to satisfy our customer's financiat needs and help them succeed financially. Based on the stake holders theory. Diveuss how this seandal has effeeted on the society ( 10 Points ) - The corporate govemance las been influenced and affected by imernal factors specifically by return oe asset (ROA). Discuss bow Wells Fargo decentraliced management that led to the crisis of the fitm ( 10 Points) Points to Be Noted: Note: - The answers should have some of your opinions and critical thinking There should be supporting studies or reviews from articles, projects. newspapers of mapazines If necessary, a model coold be also developed by relating to ethical theories There should be relevaat 10 points for each questions that can contribute information There should not be asy plagiarism. Prepare a power - point presentation
