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Corporate Social Responsibility at Wells Fargo

Wells Fargo is one of the biggest and oldest banks in the USA. Apart from excelling in its
core business of providing financial services and products across the globe, the company has also
distinguished itself for its extensive and well supported corporate social responsibility (CSR)
initiatives. These initiatives are aligned with its corporate social responsibility mission. The
mission is “Creating solutions for stronger, more resilient communities” (Wells Fargo, 2019).

Explanation of Wells Fargo’s CSR Mission Statement

Wells Fargo’s CSR mission guides all its CSR programs and plans. What this mission
reveals is a recognition by the company that the problems of communities and customers that it
serves are the company’s problems as well. Problems such as low education attainment,
environmental degradation, discrimination, and poor management of personal finances
negatively affect Wells Fargo’s long term success. For the company to succeed, it needs
communities that are economically strong and stable. For instance, if effects of climate change
and environmental degradation are not controlled, whole communities may be forced to relocate
to other places. Such relocation has a negative effect on Wells Fargo’s business because it leaves
the company with fewer customers to serve. Wells Fargo also succeeds when small businesses
succeed. This is because they form the core of its customers. Thus, Wells Fargo’s CSR mission
is all about creating successful communities because only with successful communities can the
company guarantee its long term success.

Analysis of Wells Fargo’s Current CSR Plans and Activities

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Wells Fargo’s view that its corporate social responsibility initiatives have a direct impact
on its long term success is behind its recent CSR activities and plans. As its CSR report for 2017
shows, the company committed to spend $400 million on not-for-profit organizations in 2018
(Pasek, 2018). It also committed to spend $200 billion by 2030 in supporting sustainable
businesses (Pasek, 2018). A further $50 million has been earmarked for various initiatives
among Alaska natives and American Indians (Pasek, 2018). These initiatives include community
outreach programs, multiple philanthropic activities, and development of financial services and
products that best meet their needs as tribal communities. Other initiatives include support of
small business using a $10 million fund to be used between 2018 and 2020 and supporting
increased home ownership among minority groups through a ten-year $125 billion and $60
billion lending commitment for Hispanic Americans and African Americans respectively. The
company has also established a $20 million fund to support start up companies involved in clean
energy technologies and another $10 million to help in protecting natural habitats of animals
across the United States. Part of the company’s strategy of funding these initiatives is committing
2% of its after-tax revenues to CSR (Pasek, 2018). These plans are a continuation of the
company’s past CSR initiatives that have focused on reducing carbon emissions, creating
economic opportunities by strengthening local economies, and advancing social inclusion and
diversity (Pasek, 2018).

Effect of CSR Plans and Activities on Wells Fargo

Wells Fargo’s ambitious CSR Plans and activities are going to have a major effect on the
company. This effect is going to be both internal and external. Internally, the plans are likely to
lead to more employee satisfaction. Studies have shown that employees who feel that they are
working for the greater good of the society have more work satisfaction than those who believe

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that they are merely working to grow a company’s profits (Ni & van Wart, 2015). With more
employee satisfaction the company is likely to have fewer employee turnover problems.

Externally, the company will benefit by improving its brand image. Such improvement may lead
to better financial performance through attraction of talent and customers. Studies have shown
that millennials are particularly attracted to companies that invest in programs that better the
society such as environmental protection initiatives, tackling problem of homelessness problem,
and advancing causes that support minority groups (Ni & van Wart, 2015). They support such
companies either by doing business with them or through choosing to work for them. By
supporting minority groups such as Alaskan natives, American Indians, Hispanics and African
Americans, the company also gets a lot of goodwill from these groups. Thanks to the goodwill,
many members of these groups may become customers of Wells Fargo thus enhancing its long
term success.

CSR Idea for Wells Fargo

A good CSR idea should align itself with the mission and vision of a company. Wells
Fargo’s mission is to help its customers achieve financial success and meet their financial needs.
Its vision is to be a trusted provider of financial services to customers. Thus, a good CSR idea for
Wells Fargo should be one that helps customers achieve financial success and better meet their
financial needs. To this end, my CSR idea involves establishing programs that teach financial
literacy skills to members of communities that the company operates in. Studies have shown that
people with financial literacy skills often make more effective financial decisions than people
who lack financial literacy skills. Thus, as a way of helping its customers achieve financial

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success and better meet their financial needs, Wells Fargo’s financial literacy program will be
very helpful. Moreover, it is aligned with the company’s mission and vision.

Conclusion

As this analysis of Wells Fargo’s CSR plans and activities shows, CSR investments are
driven by both moral and financial motives. At the heart of CSR is an understanding that society
and business are not two separate and unrelated entities. They are deeply interwoven. Through
CSR, a business such as Wells Fargo is able to create a deep bond with members of the society
which often translates to business success.

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References

Ni, A., & Van Wart, M. (2015). Corporate Social Responsibility: Doing Well and Doing Good.
In Building Business-Government Relations (pp. 175-196). Routledge.

Pasek, J. (2018). $400 million — and more — for our communities. Wells Fargo. Retrieved from
https://googleweblight.com/i?u=https://stories.wf.com/400-million-communities&hl=en-
KE&tg=107&pt=9.

Wells Fargo (2019). Corporate Social Responsibility. Retrieved from
https://googleweblight.com/i?u=https://www.wellsfargo.com/about/corporate-
responsibility/&hl=en-KE.