The Importance Of Communication In Businesses

COMMUNICATION IN BUSINESS By Course Name Professor’s Name University City, State Date of Submission Introduction Effective communication is important in every business. Through effective communication, businesses are able to deliver their messages to the client when marketing their products, or to other businesses when negotiating mergers and so on. Proper communication methods are vital in different circumstances. Similarly, communication within the business is also necessary since it helps create good relationships among the workers and the managers (Guffey and Almonte 2009, pg. 5). There are a variety of communication methods which organizations can use to effectively deliver their message. These methods include written, nonverbal and verbal communication (Sehgal 2008, pg. 38). Choosing the method of communication depends on the audience, type of message and the effectiveness of the method. Verbal communication requires individuals to be well experienced in delivering messages. Over the years, organizations have employed professional communicators to effectively deliver their message to the public. Such communicators develop such skills either through experience or practice. Effective communication has proven useful in businesses by helping companies to resolve issues and market their products. On the other hand, the lack of effective communication can also prove to be devastating for organizations. This essay aims at discussing the importance of communication in businesses and the Wells Fargo scandal. Wells Fargo Fraud Scandal On the 8th of September 2016, Wells Fargo was on the accused of creating fraudulent accounts by the Los Angeles City Attorney, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau. The case rose from the fraudulent bank accounts created by the company’s employees under the names of pre-existing customers. In fact, the employees created new credit cards for over two million customers without the consent of the customers. As a result, Wells Fargo was fined $185 million which triggered the firing of more than five thousand employees (Blake 2016). The sales program that had initially been started by the company was believed to have led to the scandal. The program was initiated by the company’s CEO John Stumpf. The program required every employee to ensure that they convince at least one customer to acquire eight products offered by Wells Fargo. The strictness of the program forced employees to open up fake accounts and sign up new credit cards so as to achieve the targets demanded. The bank has a large reputation in the United States with current assets summing up to $1.75 trillion. Wells Fargo’s reputation depended upon its actions after the discovery of the scandal since it greatly valued its customers and shareholders. The first action taken by the bank was to communicate to their stakeholders and the public informing them that the company was addressing the situation. This action assured the customers and the general public that the company had control over the situation and that they were willing to be transparent about it. The second action taken by the bank was to fire 5300 employees who were suspected to be involved in the fraud. The third action was to r...