Chapter 4 of our textbook is entitled External and Internal Organizational Environments and Corporate Culture. It covers the environment in which organizations operate, organizational structure, and organizational culture. All of these aspects are involved in the Wells Fargo case. Please read Chapter 4. The Critical Thinking Case at the end of chapter 4 on pages 116 - 8 is entitled Wells Fargo, Crisis and Scandal, and it is the basis for this project. Please read the Wells Fargo Critical Thinking Case, study the other resources included herein, and answer the questions below. (Note: For even more information on the Well Fargo scandal, there are links to additional resources at the end of the case on pages 117-18. The Critical Thinking Case at the end of chapter 5 also involves Wells Fargo. It is on pages 154 - 5 of our textbook, and there are links to additional resources there.)

The Wells Fargo Cross-Selling Scandal by Brian Tayan of Stanford University and posted on the Harvard Law School Forum on Corporate Governance on February 6, 2019, is an excellent summary of the Wells Fargo scandal. (Note: The summary is adapted from a longer research paper by Mr. Tayan for the Stanford University Graduate School of Business.) Access the summary here:

The Wells Fargo Cross-Selling Scandal (Links to an external site.)

Wells Fargo has an official website with information about the settlement of this case. Access the site's home page here:

wfsettlement (Links to an external site.)

Questions (30 points total, 6 points each):

1. Which of Wells Fargo's past activities and practices helped create the conditions necessary for this scandal to happen? Specifically identify the relevant practices and activities.

2. How did Wells Fargo's organizational structure contribute to the problems that occurred? Specifically identify any relevant structural deficiencies.

3. Using relevant concepts and ideas from the chapter and the resources, analyze and diagnose the scandal. How could such a scandal have occurred in the first place? Specifically identify and explain who, and what, were at fault.

4. How might Wells Fargo prevent such a scandal from reoccurring? Specifically explain what actions you think Wells Fargo could take to avoid similar situations in the future, and why you think the actions would be helpful.

5. What was the total amount paid by Wells Fargo to settle this case? Considering the circumstances, do you think this amount is fair to all parties. Why? Explain.