Ethical Issues Facing Wells Fargo

Wells Fargo is a large banking and financial services company in American. Warren Buffett has invested it for 27 years. It became the world largest bank in 2015. However, there is a large scandal in marking activity in 2016. It influences the ethicality of Wells Fargo.

In order to achieve the sales targets and obtain the performance awards. Wells Fargo’s employees created over 1.4 million fake bank accounts and issued more than 56.5 thousand credit cards without the authorization from the customers (Egan,2017). They had the transaction without any permission to create more values in the market. A former employee said that the sales pressure from manager is unbearable. They had no choices so they need to execute the marketing activity to achieve the goals. It harms the marketing operation and the customer relationship.

Although Wells Fargo has fired around 5300 related employees and returned the unnecessary expenditure to customers because of the fake accounts and credit cards, it produces ethical problems. From the customer perspective, the behavior is cheating and illegal. They lost trust about the bank. They would be more careful if they use their services. According to statement of ethic, the companies should not do any harmful actions. They should enhance trust and fairness in the marketing system and build

For example, Wells Fargo can maximize the unique resources. They can try to have the cross-selling process. It is a process that customize the product to customers and fulfill their needs in order to maintain the healthy finance (Kamakura, Ramaswami & Srivastava,1991). It is a permanent part for their operational strategy. Wells Fargo can attract new customers and determine their needs. They can recommend appropriate products to customers. It leads to increase customer intensity. The customers would use more services and the customer loyalty would