According to Ghillyer, “Corporate governance is the process by which organizations are directed and controlled” (2014, p. 94). When Wells Fargo employees opened accounts for customers without their consent, their actions violated customer’s trust, shareholder’s standards, and employees’ loyalty. Moreover, the unethical behavior lay within the framework of Wells Fargo’s corporate culture, thus influencing employees’ behavior and leaderships’ incompetence. The reaction from leadership was to address unethical behavior by firing employees, some 5300 people, notwithstanding leadership’s fallacious performance expectations. Like all unethical practices, the light of justice reveals the truth. Consequently, Wells Fargo must repair the damage to their
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This conclusion arrives from the following statement from an employee:
Wells Fargo has strict quotas regulating the number of daily "solutions" that its bankers must reach; these "solutions" include the opening of all new banking and credit card accounts. Managers constantly hound, berate, demean and threaten employees to meet these unreachable quotas. Managers often tell employees to do whatever it takes to reach their quotas. Employees who do not reach their quotas are often required to work hours beyond their typical work schedule without being compensated for that extra work time, and/or are threatened with termination.
The quotas imposed by Wells Fargo on its employees are often not attainable because there simply are not enough customers who enter a branch on a daily basis for employees to meet their quotas through traditional means. (Levine, 2016, para. …show more content…
In addition, the toxic culture is caused by a breakdown in corporate governance. According to Ghillyer, “Having the right model in place will not take you far if that model is eventually overrun by a corporate culture of greed and success at all costs” (2014, p. 104). Indeed, Wells Fargo’s ambitions to increase revenue led to the firing of Julie Tishkoff and 5,300 other employees. Yet, a connection exists between market norms and the breakdown in corporate governance. Within the executive and board leadership, the focus on increasing the monetary value of Wells Fargo blinded leaderships’ ability to follow a strategy that increased the value of services for customers. The breakdown in governance is a direct result of market norms guiding the behaviors of bank
This conclusion arrives from the following statement from an employee:
Wells Fargo has strict quotas regulating the number of daily "solutions" that its bankers must reach; these "solutions" include the opening of all new banking and credit card accounts. Managers constantly hound, berate, demean and threaten employees to meet these unreachable quotas. Managers often tell employees to do whatever it takes to reach their quotas. Employees who do not reach their quotas are often required to work hours beyond their typical work schedule without being compensated for that extra work time, and/or are threatened with termination.
The quotas imposed by Wells Fargo on its employees are often not attainable because there simply are not enough customers who enter a branch on a daily basis for employees to meet their quotas through traditional means. (Levine, 2016, para. …show more content…
In addition, the toxic culture is caused by a breakdown in corporate governance. According to Ghillyer, “Having the right model in place will not take you far if that model is eventually overrun by a corporate culture of greed and success at all costs” (2014, p. 104). Indeed, Wells Fargo’s ambitions to increase revenue led to the firing of Julie Tishkoff and 5,300 other employees. Yet, a connection exists between market norms and the breakdown in corporate governance. Within the executive and board leadership, the focus on increasing the monetary value of Wells Fargo blinded leaderships’ ability to follow a strategy that increased the value of services for customers. The breakdown in governance is a direct result of market norms guiding the behaviors of bank