Business Proposal - Organizational Ethics

Revised

YEAR ('AS AT 12/21/20**)	TTM Net income (billion dollars)	Increase	Decrease	Start	End		From the quantitative data collected on Wells Fargo Net Income from 2009 to 2019, we are able to graph a waterfall chart. This chart shows the effect of the cross-selling scandal that cost Wells Fargo $185 million dollars for fines relating to the scandal. Another $2.7 billion (approximately) is to be lost in relation to other criminal and civil suits were files by 2018. Blame was placed on the bank's marketing incentive plan that set extremely high goals to employees to cross-sell additional banking products to existing customers whether they needed them or not and sometimes without their knowledge.
START				2.37
2009	7.99	5.62
2010	11.63	3.64
2011	15.03	3.40
2012	18.00	2.97
2013	20.89	2.89
2014	21.82	0.93
2015	21.47		0.35
2016	20.37		1.10				To solve the cross-selling problem, policies know as the Interagency Guidance on Sound Incentive Compensation Policies (IGSICP) were issued in 2010 by the New York Department of Financial Services which were to be supported by effective corporate governance.
2017	20.55	0.18
2018	20.69	0.14
2019	17.94		2.75
END					17.94
To identify significant bottlenecks in Wells Fargo's pipeline, qualitative data was collected comparing surveys on customer complaints in 2012 and 2019 and comparisons made. Significantly, the total number of customer complaints were more signifying the effects of customers having more products sold to them compared to 2019. The number of distracted staff in 2012 was also higher showing that their focus was on meeting targets set by the ambitious 'Going for Gr-Eight' initiative that required staff to sell at least 8 products per customer.
Qualitative dat collected from customer surveys and questionnaires in 2012 and 2019
Complaints in 2019						Complaints in 2012 (cross-selling fraud year)
Customer complaint	Count	Cum. Count				Customer complaint	Count	Cum. Count
Distracted staff	204	204				Distracted staff	354	354
Fewer tellers	162	366				Mobile/internet banking faults	219	573
Slow customer services	127	493				Slow Customer service	207	780
Slow staff	102	595				Few tellers	175	955
Mobile/internet banking faults	67	662				Slow staff	146	1101
Slow account opening	22	684				Loan complaints	109	1210
Loan complaints	19	703				Slow account opening	37	1247
	703						1247
Solving the cross-selling issue within banks
1) Banks should revise their metrics for performance measurement of employees so as to ensure that they do not involve in unethical practices to meet their set performance targets
2) Banks should also share best practices to meet their targets rather than leaving them to meet them at any expense. This should be done from the branch level to ensure enagagement by all staff especially those who handle customer products.
3) Banks should improve on cross-selling communication process so that employee-customer engagement are recorded and quality of products offered gauged according to customer satisfaction. This will ensure the customer is involved in every product they acquire.
4) Banks should define cross-selling and have a way to measure it to identify potential fraud with spikes in numbers of products sold by various employees. Other methods of reaching targest should also be implemented and measures placed on them as well. This should include both qualitative and quantitative measurements
5) Regulatory bodies of financial institutions should set detailed policies that govern unethical practices in these institution with applicable fines on breaching them and have these policies shared with staff to reduce instances of such malpractices.

Wells Fargo net income movement from 2009 to 2019

TTM Net income (billion dollars) START 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 END 7.99 11.63 15.03 18 20.89 21.82 21.47 20.37 20.55 20.69 17.940000000000001 Increase START 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 END 5.62 3.6400000000000006 3.3999999999999986 2.9700000000000006 2.8900000000000006 0.92999999999999972 0.17999999999999972 0.140000000 00000057 Decrease START 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 END 0.35000000000000142 1.0999999999999979 2.75 Start START 20 09 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 END 2.37 End START 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 END 17.940000000000001

Net income in billion dollars

Customer complaints in the 2019 year

Count Distracted staff Fewer tellers Slow customer services Slow staff Mobile/internet banking faults Slow account opening Loan complaints 204 162 127 102 67 22 19 Cum. Count Distracted staff Fewer tellers Slow customer services Slow staff Mobile/internet banking faults Slow account opening Loan complaints 204 366 493 595 662 684 703

Customer complaints in the 2012 year

Count Distracted staff Mobile/internet banking faults Slow Customer service Few tellers Slow staff Loan complaints Slow account opening 354 219 207 175 146 109 37 Cum. Count Distracted staff Mobile/internet banking faults Slow Customer service Few tellers Slow staff Loan complaints Slow account opening 354 573 780 955 1101 1210 1247