MBA 635 Discussion 2-2 Stakeholder Management PDF

Preview

Summary

discussion...

Description

1) Discuss the role of culture in the fake-account scandal Wells Fargo had a toxic high-pressure sales culture that lead to employees to deceive their customers and open nearly 2 million unauthorized credit cards and bank accounts (Arnold, 2016). Wells Fargo stated that they fired 5,300 employees due to the scandal and that “they were bad apples who have been fired and who are not representative of the broader culture and practices of the company (Arnold, 2016). A former employee of Wells Fargo spoke up against this comment stating that “that’s the whole foundation of Wells Fargo is cross-sell, cross-sell, cross-sell” (Anderson, 2016). According to this employee as well, Wells Fargo pushed the cross-selling beyond a reasonable point. This culture that was in the banks goes against Wells Fargo’s vision which states, “we aspire to create deep and enduring relationships with out customers by providing them with an exceptional experience and by discovering their needs and delivering the most relevant products, services, advice, and -guidance” (Gujarathi, 2017). The toxic high-pressure sales culture that the employees were feeling pushed them to make the fake accounts and go against the vision that the company was supposed to be acting on. 2) Identify the affected stakeholders The affected stakeholders from this scandal would be consumers, employees, and stockholders of the organization. The main stakeholder affected by this scandal though are the consumers that bank with Wells Fargo. With such a large scandal, customers will be looking to move their accounts to a more trustworthy financial institution which will have an affect on the overall performance of the bank and can have a trickling affect on the banks bottom line.

3) Reflect how, as an organizational leader, the stakeholder management approach promotes ethical and legal decision making. “Stakeholder management is the process by which you organize, monitor and improve your relationships with your stakeholders” (What is, 2021). Stakeholder management is important as you want to get an “in-depth understanding of your stakeholders supported by a sound engagement plan that is strategic, clear and prioritized” (What is, 2021) and this will help to keep a lasting relationship with the stakeholders. Having a stakeholder management approach is also beneficial to help decrease risks and to have it align with the organizations business goals (What is, 2021). References: Arnold, C. (2016, October 4). Former Wells Fargo Employees Describe toxic sales culture, even AT HQ. NPR. https://www.npr.org/2016/10/04/496508361/former-wells-fargo-employeesdescribe-toxic-sales-culture-even-at-hq.

Gujarathi, M. (2017). Wells Fargo: Setting the Stagecoach Thundering Again. Volume 37, Issue 2. Case Study. Harvard Business Publishing. What is Stakeholder management? Darzin Stakeholder Management App. (2021, June 17). https://www.darzin.com/stakeholder-management-ultimate-guide/....