Last week of the blog our mandatory reading is only articles. It is about case that happened in American bank Wells Fargo with some illegal and unethical activities. I will first go through the articles one by one and then end with reflection of my on trying to process this case.
I wanted first to get some background information, so the fist article I chose was the first one on the list. ''Workers tell Wells Fargo horror stories'' written by Matt Egan in CNN Money. It's very well described on behalf of the workers, that the company had unrealistic selling goals and targets for customers. They were even forced to create fake accounts in order to meet the very aggressive demand of their managers. Managers did not care if they crossed lines, ethically or even legally. They opened accounts for customers unauthorized, meaning they had never agreed to open an account like that with the bank. When customer contacted, they just apologized for the mistake and let it be. This all ended up for Wells Fargo firing 5300 employees and got fined by $185 million (Egan, M. 2016).
Next up, as probably someone would have guessed, was the managers on the line. According to BBC- article written eleven days after (20.9.16) the CNN one Wells Fargo boss was fired due to the scandal. Banks had opened more than two million credit and debit card accounts without customers' agreement. The chief executive John Stump kept apologizing, but he was accused by the senator for squeezing the workers into a situation where is no other choice (CNN, 2016).
When there is a scandal going on, it's easier to bring up other issues as well. The CNN article handles a case tied to the account scandal, where Wells Fargo made workers to work extra ''call nights'' where they would call customers trying to sell them extra credit cards or other additional products. With no extra pay, these extra hours were usually happened if the target sales had not been met. Wells Fargo sort of pushed the problem back to the workers saying, that it's employees responsibility to report all the hours. Employees replied that they were not allowed to report hours after 5:30pm, which is very problematic. It caused major issues for workers who have families. They could not leave their job and later on when they got fired, they faced major financial issues for someone else's mistakes (Egan, M. 2016).
The fourth article comes back well to the second one, where the Wells Fargo CEO John Stumpf were wanted down from his position. Ten days later from the article, 30th of September 2016 it was announced that he has been released from his duties. He claims that he has been working for the best of the company, but still decided to step down. It's a bit questionable, most likely was not his own choice (BBC, 2016).
The series written by Matt Egan for CNN continues, when he wrote an article about a letter from an employee that warned Wells Fargo already in 2007. He was warned for illegal and unethical activities, but later on the board told press that he never saw them. All in all this proves that the whole scandal and its practices were going on a long time before 2011- when it was brought public (Egan, M. 2016)
All this was very new to me. I haven't heard of this scandal before while more than 5 000 people were laid off and it had impacted so many lives. I can only think of the situations the workers were in, also some managers were most likely pushed to the situations with no options. It must have been major crisis at Wells Fargo HR department as well, when so many people are suddenly leaving the company, none of them probably with a large exit package as the CEO John Stumpf, $130 million (Egan, M. 2016). I am sure their HR department had hands full of work for unhappy workers due to the fact that thousands of people without a choice, friends of the employees left in the company, have been laid off and are struggling with their lives. Now this man responsible for all of it walks out with more than enough money for the rest of his life. Even the senator wanted him to return the money he earned during this scam (Egan, M. 2016).
Wells Fargo seemed also to have an HR policy to just fire everyone possible. If an employee should have started working 8:30, but showed up 8:32, they were gone. Even former HR official from the company confirms this information (Egan, M. 2016). And from all the problems these kind of situation could lead, it's probably no surprise that the talent out there are not wanting to join Wells Fargo (Allocca, S. Welsch, A. 2018).
Allocca, S. Welsch, A. 2018. FinancialPlanning OWC. Latest Wells Fargo scandal threatens recruiting efforts https://onwallstreet.financial-planning.com/news/latest-wells-fargo-scandal-threatens-recruiting-efforts accessed on 15.4.2019
BBC. 2016. Wells Fargo boss John Stumpf steps down. https://www.bbc.com/news/business-37639648 accessed on 15.4.2019
BBC. 2016 Wells Fargo boss urged to resign over accounts scandal. https://www.bbc.com/news/business-37419968 accessed on 15.4.2019
Egan, M. 2016. CNN. I called the ethics line and was fired https://money.cnn.com/2016/09/21/investing/wells-fargo-fired-workers-retaliation-fake-accounts/index.html?iid=EL accessed on 15.4.2019
Egan, M. 2016 CNN. Letter warned Wells Fargo of 'widespread' fraud in 2007 - exclusive https://money.cnn.com/2016/10/18/investing/wells-fargo-warned-fake-accounts-2007/index.html accessed on 15.4.2019
Egan, M. 2016 CNN. Wells Fargo made me work overtime - without extra pay. https://money.cnn.com/2016/09/30/investing/wells-fargo-workers-wage-theft-overtime/index.html accessed on 15.4.2019
Egan, M. 2016. CNN. Wells Fargo CEO walks with $130 million. https://money.cnn.com/2016/10/13/investing/wells-fargo-ceo-resigns-compensation/index.html?iid=EL accessed on 15.4.2019
Egan, M. 2016. CNN. Workers tell Wells Fargo horror stories. https://money.cnn.com/2016/09/09/investing/wells-fargo-phony-accounts-culture/index.html accessed on 15.4.2019