Well Fargo Bank Research Paper

Table of Contents

Abstract        2

I.        Introduction        3

II.        Literature Review        3

1.        Crisis process from Internal and external Perspectives        3

2.        Crisis management        4

III.        Case Analysis of the crisis        5

IV.        Recommendation        8

V.        Conclusion        8

REFERENCES        9

Abstract

It has been widely said that the financial crisis that has currently engulfed the world is the first one in a truly globalized world. Things that occur in one country cannot be hermetically sealed in an era that there is a great mutual dependence  and connection among individuals. The ripples are impossible to be hold and people and places that have nothing to do with finance and markets are feeling the effects. One of the magnificient things originating from an analysis of what occured is that it appears all the cautious signs there, but there was a refusal by leaders in governments and in organizations to accept them and to act on them.

This report selected a typical crisis in financial business to provide a through analysis regarding reputation management. It is the case of WB (Well Fargo). The crises faced by WF, one of the largest and most trusted financial institutions in the world suggest that even the world’s biggest and most respected organizations have yet to crack crisis, issues and reputation management. All experienced a great suffer in term of serious reputation damage and its knock-on effects: all saw Fitch Ratings downgraded Wells' credit rating to negative; all were restructured in some way; all saw real financial, commercial and strategic damage.

1. Introduction

An organizational crisis, a critical event perceived by managers and stakeholders as highly pivotal, unexpected, and potentially disruptive, can threaten an organization’s goals and have profound implications for its relationships with stakeholders. For example, WB’s scandal harmed its financial performance and reputation, and it reconsidered and define again its relationship with customers, employees, local communities, and governments. Likewise, target’s consumer information breach caused financial and reputational damage to the company, and the crisis stimulated large-scale changes in the way electronic records are now processed and stored. These implications has evoked considerable attention to crises and crisis management from a variety of disciplines. Organizational research has been working to understand how and why crises occur. Some academic work regarding this issue can be listed as work of Albaslan et al (2009) and Clair & Waddlock (2007). Besides, some other papers also focus on how organizations can manage crises to reduce harm (Claey et al, 2014; Bechky et al, 2011; Kahn et al, 2013). Within this consideration, identifying crisis outcomes in terms of stakeholders’ perceptions of organizational reputation, trust, and legitimacy is also considered as a siginicant aspect of crisis management (Brown et el, 2016; Gillespie & Dietz, 2009; Pfarrer, DeCelles, Smith, & Taylor, 2008), organizational learning and adaptation (Lampel, Shamsie, & Shapira, 2009; Veil, 2011)