Recently,scandals involving different companies have erupted. The gravity ofissues varies depending on the industry. The banking sector is adelicate issue concerning the human beings. Therefore, this paperwill look at the recent issues revolving around the Wells Fargo bank.
Inthe recent past, the banking industry has been tainted by the eventsof the Wells Fargo bank. Current reports show that Wells Fargo hasbeen involved in one of the most unprofessional bank malpractices. Ithas been linked to the opening of fake accounts and unauthorizedtransfer of customer money. Over 2 million illegal statements werecreated, transacting payments such as banking fees, unlawfulinterests, subscriptions fees, overdraft fees and other uncalled forcharges. The worst part is that customers were being charged forsomething neither knew nor given their consent. The bank presumablymade around $ 400,000 from these illegal payments. It is alsoproclaimed that 565,443 credit cards were being processed withoutduly contacting the responsible customers for consent. This alsohappened by charging the clients for the debit cards. It, therefore,made the company make significant profits and sales [CITATION Bob16 l 1033 ].
Thecompany had chosen to enroll on the worst ever plan to improve theirsales. However, the bank indulged in blame games to show the sourceof the directives. The top management team of Mr. Stompf claims itwas the undoing of junior employees. Even with the lack ofaccountability, it does not change the fact that the corporationwanted to enhance their sales and profits. However, it would be donewith the consultations among the existing clients or by rolling outany pilot initiative to test for a project. The source of the problememanates from the company`s choice to deal with wrong mechanisms toimplement their strategy. This move led to the investigations by theSecurities and Exchange Commission that culminated in fines of around$185 million. As if that is not all, investigations are stillongoing, and several lawsuits are being handled concurrently [CITATION Bob16 l 1033 ].
Thereare several ways the company could employ to solve the problem,prevent it from happening, and regain consumer confidence and publicreputation. The banking giant has already fired their Chief executiveofficer. The bank could reach out with these objectives to limit theproblems
To acknowledge responsibility and correct all in-house problems that led to that awful decision.
To Prevent mass exit of the customers and refund the customers all undue payments
To regain customer confidence in the banking giant by rolling out drastic measures of restitution
To roll out a plan and professional prevention scheme to prevent the problem from ever happening again.
Reportsarose that the company fired its CEO, Mr. John Stumpf. As the chiefof operations and manager in charge, there remains no choice sincethe occurrences happened under his jurisdiction. This remains to be agood move because it raises customer awareness that the bank hastaken significant steps to the prevention of such unprofessionaldecisions. Hence, the board made the right choice to protect thereputation of the banking company protected. This could help in therestoration of consumer confidence and the bank`s integrity. Severalnews outlets published and aired the frustrations of various users.CNBC reported of a client Kennedy, a 57-year-old customer whoreiterated that he would quit the bank and promised to warn otherfamily members and friends of the same [CITATION Che161 l 1033 ].
Thiscould be rolled out in different ways. Since the only solution to theexisting problem with the clients is to win back their confidence andsatisfy their needs. The bank should immediately plan to refund allaffected consumers. It ought to compensate the affected clientele,especially due to the unfair charges. The company should contact allthe customers with an apology and ensure that the payments are donewithout hesitation. Reaching out to the consumers should be led bybranch managers and the commercials put on television and theinternet [CITATION Rus161 l 1033 ].
Thenext aspect entails preventing the unsatisfied customers from a massexit. Recently a poll showed that approximately 14% of the bankingcustomers are willing to relocate their billions of dollars to othercompanies as a means of disapproval to the enterprise. The boardtogether with the public relations team and customer care departmentshould enroll plans suitable to prevent mass exit. The best way is toenroll a consumer-oriented banking system that takes care of theclient interests at heart. This should then be publicized as fast asPossible. It should also be done widely within the shortest period.Also, it ought to involve views from the consumers and ways they needtheir banking partner to improve service delivery [CITATION Che161 l 1033 ].
Leadingfrom the front, the public relations team should work closely withthe board of administration and the newly appointed management teamto roll out specific solutions and prevention schemes targetingvarious groups. The most important groups being the employees and thecustomers. The workers should be given a public and official apologybecause of the frustrations that Mr. John Stumpf put them. It isbelieved that the previous CEO and senior team of management hadfrustrated and put all the wrongdoings in the company to the fate of5300 employees who were fired. Other workers who whistle blew thescandal were also terminated. Several low and medium level earningpersons in the company had complained of the treatment from topmanagement. Furthermore, some were heard raising concerns that theadministration only cared about the pocketing money. It will have totake serious dedication to improving the plight of the workers aswell as their current demoralization [CITATION Mat161 l 1033 ].
Publicrelations and communications office should spearhead morale-boostingtechniques to drive out anxiety, stress, shame, oppression and gloomfrom their employees and restore a workforce that is proud of thebank despite the shortcomings. The company had issued a statement ofthe occurrences and an expression of displeasure by the board.However, this should be followed by an official apology to theemployees. The company senior management team together with thepublic relations and communications department should also ensurethat the employees are motivated to continue working hard and rebuildthe culture and integrity of the company. All those low earning (lessthan $15) employees ought to be motivated [CITATION Rus161 l 1033 ].
Secondly,the other very crucial group that should be taken care of is thecustomer fraternity. Like the employees, the company through thecommunications department should issue an acceptance andacknowledgment to the scandal. Moreover, it must be accountable andapologize to the clients. A team to assist the corporation fight theissued should be formed. This should include much-publicizedcommercials like the one rolled out called the scandal. Theadvertisements should display remorse and lead the public tounderstand the necessary and drastic solutions the company has put inplace to prevent the mistakes from happening again. Thecommunications team should set up a customer relations portal toengage the customers with questions, suggestions, interactions andanswers to what the company is constructing. It should alsoillustrate the progress. This interactive avenue should include topof the level public and customer relations team engaging thecustomers on the step by step processes the company has put in place[CITATION Che161 l 1033 ].
Itis also mandatory to address the shareholders as well as businesspartners. As such, the investors have to be involved in the board todevise mechanisms of restoring the company`s image. Other tradingpartners should be informed by the corporation’s communication unitof the various steps taken to restore the public confidence.Restoration of the public image also has significant issues. Forinstance, the bank the company will have to focus on keeping thetrust of the customers at all costs. This is because, the company,shareholders, business partners and investors would not like to seethe public shift their billions of money stored in the bank in theform of assets and cash go to their competitors. Selfish businesscould be like this, but it is the only chance of survival for thevery old institution. In addition to that, the new team of top levelmanagement would also love to preserve the $250 billion company asvaluable as it is [CITATION Che161 l 1033 ].
Inconclusion, the most appropriate choice would be to stick and investon the consumers. The clientele could include the public, currentaccount holders, and new customers. The clients’ needs andconfidence should be kept mostly close because they are the easiestto lose. The client care department should roll out variousinteractive solutions to ensure the clients` confidence is restoredat all costs.
Bryan, B. (2016, September 13). It Keeps getting worse for Wells Fargo.
Conner, C. S. (2016, September 10). PR Lessons From Wells Fargo`s Double Serving Of Crow.
Egan, M. (2016, November 3). Inside Wells Fargo, workers say the mood is grim.
Russell, W. (2016, September 12). Wells Fargo’s PR team juggling tandem crises. Retrieved from http://www.prdaily.com/Main/Articles/Wells_Fargos_PR_team_juggling_tandem_crises_21363.aspx