Wells Fargo, the fourth largest bank in the United States at the time with $1.75 trillion in assets, had a lot of money to spend on its public relations department. With a persistent interest in preserving a positive public image among both consumers and stockholders, it's reasonable to anticipate that, in the event of a scandal, prompt and cautious action would be taken. Wells Fargo's reaction to the crisis was swift, methodical, and official. Regardless of how well a company prepares, it is impossible to forecast the breadth and consequences of a scandal of this magnitude. Wells Fargo performed and gathered information to better understand what needed to be done to restore their bank's function and reputation. An analytical survey by cg42 was the first of these research sources, and it would be used for the majority of statistics in the media. The poll was a quantitative analysis of public perceptions of the corporation before and after the crisis. It was carried out by evaluating 1,000 primary Wells Fargo clients and 500 consumers from other Top 10 U.S. Retail Banks online. Consumers' perceptions of the bank's reputation, trends in customers leaving the bank, expected financial loss, and how the scandal could benefit rival banks were all examined in the study. This survey would serve as a secondary research source for the bank, and it could have been compared to internal surveys to gain a better understanding of their consumer stakeholders. Another source that Wells Fargo looked into was their own stock market valuations during the financial crisis, as well as the valuations of competitors. Like the survey, this study would be a secondary source for their research teams to assess the company's overall worth in the eyes of their stockholders. CNN Money did a quantitative study of Wells Fargo's stock listing from the time of the financial crisis onward. This was a content analysis of the company's shares, which revealed that, in light of the crisis, Wells Fargo's stock price had dropped to a 31-month low. This price reduction reflected Wall Street stakeholders' concerns that the crisis would jeopardise the company's reputation and profit potential. Wells Fargo might use this data to track the impact of their activities on stockholders in real time. We are also providing Kraft Foods UK case study solution.
Wells Fargo began acting and planning to address the problem very immediately after the controversy was made public. As one of America's major banks, the corporation had a lot on the line, therefore acting correctly to address the flaws revealed by its research was a top priority. With a problem of this magnitude, it was evident that Wells Fargo would have to address difficulties on multiple fronts. The first step was to notify Wells Fargo's stakeholders and the general public that the matter was being addressed. They needed to make it clear that they were sharing the facts they had and that they would continue to be transparent about the situation. This would be considered Wells Fargo's campaign's informational goal. The next goal that Wells Fargo wanted to achieve was to restructure their company's rules and management. The purpose of such reorganisation would be to avoid anything like the current fraud from happening again. The behavioural purpose of their campaign would be to change Wells Fargo's business policies that led to the fraud and to resolve the accounts affected. This goal would overlap with their informative goal, as each step of Wells Fargo's restructuring would have to be entirely transparent and accessible to the general public. The last goal of Wells Fargo's public relations campaign would be to address the shift in public perception of the corporation as a result of the crisis. Dealing with this goal is undoubtedly the company's most challenging problem to solve. The problem stemmed from fraud produced by Wells Fargo's own rules, and it left the corporation with a highly poor image from which it would have to carefully recover. To recover public trust, Wells Fargo would have to show that it was capable of reforming its operations and righting the wrongs it had committed. Given the amount of unfavourable media coverage the crisis received, this attitudinal goal would most likely take the longest for the corporation to achieve. We are also providing Honda Europe case study solution.
Given the gravity of the situation, Wells Fargo was sensible to concentrate on these goals. Despite the scandal's depressing scope, it is clear that the corporation maintained a robust public relations department that was ready and prepared for such an incident. Though the activities that led to the crisis are concerning to say the least, Wells Fargo knew how to handle the matter to the best of their abilities. We are also providing Enron case study solution.
The "Commitment" campaign was Wells Fargo's response to their bogus account scandal. This programme included a variety of social media initiatives, primarily on Twitter and Facebook, as well as television commercials and press releases. Wells Fargo's tweets and Facebook posts about the issue, as well as their targeted advertising on television and in magazines, would all be considered controlled media. While the specific remarks and discussion on their social media profiles, as well as their commercial endeavours, would be uncontrolled media. The Wells Fargo public relations team handled these media sources quite well at first; all team members' replies to uncontrolled media opinion were cool and informative. Another important feature of the campaign was that many of the media outlets developed by Wells Fargo directed consumers to the campaign's website, which included a hotline number and a list of the campaign's objectives. Despite the hurry with which it was put together, this interconnection made the entire "Commitment" programme appear highly unified and well planned. The campaign's objectives were to assist affected customers by providing alerts, verifications, and refunds. Briefly inform the public about the situation, avoiding any exact statistical details. And laying out the reorganisation of the corporate processes that contributed to the problem. We are also providing Exxonmobil case study solution.
The main goals of Wells Fargo's "Commitment" campaign were to be educational, behavioural, and attitudinal. To evaluate the overall outcome of their programme, they must link the programme functions back to the original objectives. The campaign's educational purpose was to make information about the issue available to the public in a clear and timely manner. Along with the added goals of ensuring that the campaign's procedures were followed, properly described, and that efforts were made to prevent misinformation from spreading. The organization's measures to attain this goal were mostly successful; new information and modifications to deadlines and objectives were uploaded to the company's social media accounts and made public briefly and consistently once the company confirmed the information. Wells Fargo was able to fix their mistakes from the crisis and uphold one of the PRSA Codes of Provision that they had previously failed to uphold. Wells Fargo was able to follow the disclosure of information code once again in achieving this goal, enabling informed decision-making through its open communication. The company's behavioural aim was the next task it had to do. This goal necessitated a reorganisation of the company's policies and management in order to avoid a repeat of the catastrophe. Wells Fargo met this goal admirably, just as it did with its informational goal, and was able to reorganise their sales goal programme as intended, as well as replace many of the managerial personnel who were rigorous enforcers of these problematic programmes. The bogus accounts were at the heart of Wells Fargo's crisis, and they were also a violation of the PRSA Code of Provisions; the fraud was a breach of client security, and the corporation couldn't claim to be participating in the safeguarding of confidences. Wells Fargo was able to resolve this flaw and restore some trust in their stakeholders by achieving this goal in their campaign. The final aim that Wells Fargo set for themselves was the most objective and difficult to grasp. The goal is to change one's attitude. It's difficult to determine whether the corporation fulfilled this goal because the situation is still being debated by some. However, for the purposes of providing a concrete assessment, the organisation achieved over half of its desired attitude modification goal. The incident severely damaged public perception of Wells Fargo, and recovering from the loss was not an easy task for any corporation. The corporation could have handled the situation better if they had listened to the people and promptly fired their CEO while sticking to their campaign promise of not paying him. They could have regained greater faith in their brand if they had kept their word and listened to their stakeholders, demonstrating that they were willing to sacrifice personal benefit for the sake of the firm and the public good. On September 8th, 2016, the Wells Fargo fake account situation surfaced. Choose Assignmenthelp.us for case study help.
The Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the Los Angeles City Attorney have all charged the corporation. Wells Fargo allegedly opened more bogus bank accounts for pre-existing customers between 2011 and mid-2016, according to the organisations. Over 2 million clients were signed up for new credit cards with fees they were unaware of. Wells Fargo was fined $185 million at first, and the bank sacked 5,300 employees as a result. The fraud allegedly resulted from the company’s sales program created by CEO John Stumpf. With the mantra “eight is great” Stumpf’s 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”. Employees were pushed to cut corners, open new deposit accounts without clients' permission, and target minorities who spoke limited English as a result of these stringent requirements. As more inquiries into the company's operations were conducted, 565,443 unsolicited credit card accounts were discovered. Due to these occurrences, as well as constant pressure from the media, the House of Representatives, and the Senate, their CEO, John Stumpf, resigned in mid-October. His departure, however, was not without criticism, as he walked away with a $133.1 million retirement deal.