There are numerous elements that ensure a business establishes and acquires success throughout its existence. Besides meeting the demands of consumers, business are thriving through the development of long lasting relationships with both potential and their customers, partners, and suppliers among other stakeholders. For this reason among other vital ones, businesses are now focusing on creating a stable social impact through the use of Corporate Social Responsibility. According to Sammi Caramela (2018), Corporate Social Responsibility is ideally the processes or activities in which organizations use to analyze, regulate and self-evaluate the models of their operations primarily to enhance social accountability and impact. Also referred to as corporate citizenship, Corporate Social Responsibility impacts not only the social relationship with their clients but facilitates a platform in positively affecting other business aspects like the economy and the environment. In the current era, consumers of various services and products are prioritizing the Corporate Social Responsibility of companies over their brands. As a result, the accountability of companies towards various social responsibilities like environmental and societal issues is a key determinant of sales a company will make considering the priorities consumers have.
Being a global financial services company, Wells Fargo is among the renowned companies that are expected to practice Corporate Social Responsibility in order to impact the relationship with its stakeholders. It is evident that CSR is a fundamental element for companies since it is identified as a driving force in the change of social and environmental elements even without the aid of government regulations. With the influence that Wells Fargo has in the global market as a financial service company, it is making use of various social activities to impact the lives of communities, develop immense organizations, and sustain economies. The company’s vision, goals, and values trickle down to their need of staying true in order to have a guide meant to stay successful even in future. Wells Fargo’s vision is to satisfy their customer’s financial needs ensuring that they thrive financially. Through the visions clients are served efficiently uniting them with the company. The impact of CSR through their vision outlines the company’s priorities that include diversity and social inclusion, economic empowerment, and environmental sustainability (Business Wire 2018). The company prioritizes the welfare of clients by ensuring that they are respected and have a standard and equal access to all the allocated resources, opportunities, and services designed for their success.
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Financial sustainability among individuals of various communities promotes their ability to fight poverty and increase their wealth. The practice of CSR has ensured that Wells Fargo promote economic empowerment of its stakeholders. Economic empowerment is enacted through the provision of opportunities and strengthening financial self-sufficiency in communities that have not been fully explored. The society as a result is in a position to cater for innovative developments that in return elevates their economy. Under this priority, Wells Fargo is helping individuals globally to own homes. The company is ensuring that potential persons are fully supported to attain homes and elevate neighborhoods. Qualified individuals have access to this service through allocation of grants of down payment and the provision of relevant education. Besides sustainable homeownership, Wells Fargo makes use of CSR to provide Hands on banking services which include management of finances, budget creation, savings, investments, credits, and business establishment.
An essential priority of the company that has enhanced its use of CSR is the values that include consideration of customer rights, leadership, ethics, and people as a competitive advantage is the environmental sustainability. Wells Fargo is playing an essential role in ensuring that the climate change impacts are tremendously reduced. Being a time when climate change and global warming is affecting every aspect of human life, both public and private agencies are collaborating to ensure that measures are put in place to reduce the negative effects. Wells Fargo is dedicated to lowering-carbon emission into the atmosphere and this is done through the advancement of clean technology and energy innovation. Furthermore, the company is collaborating with other like-minded companies to implement environmental solutions that will meet the climate concerns. While the company is participating in the climate change campaigns, Wells Fargo is leading the pace by being an example through the use of clean and renewable energy. Water conservation is another strategy that the company is using to participate in the environmental sustainability and conservation (Wells Fargo, 2018). Their personnel are also engaged in environmental activities ensuring that are in the frontline in climate change conservation by leveraging the skills in which they possess. Wells Fargo support in the environmental conservation is also focused in supporting communities and their customers through the provision of resources and enabling them to adapt to climate change, impart conservation of resources, and reduction of energy prices among others.
Philanthropy is another form of CSR that Wells Fargo makes use of, to reaching millions worldwide and impacting lives. The most common activities of philanthropy include provision of grants that may be used for business investment, catering for educational costs, or other essential needs identified in specific communities. Philanthropic practices of the company to the society also include volunteering in needy institutes like hospitals, children’s and adult homes among others. Compared to other financial services companies like J.P Morgan Chase Company, Wells Fargo is focused to their customers who are key determinants of the sales and revenue earned. Despite having a upper hand in the economy compared to Wells Fargo, J.P Morgan Chase lags behind when it comes to the numerous ways of using corporate social responsibility. A brand of a company grows and becomes respected in the society whenever they meet other essential needs of their customers even when they are not a part of their sales of products or provision of services. It is through the confidences earned by consumers over a particular company that contributes to their ability to improve their sales and make bigger revenues. On the other hand, the relationship between a company and its stakeholders, gives it a better position to handle their weaknesses and improve on their strengths while maximizing on every opportunity bestowed to them. Wells Fargo has ensured that its association with its stakeholders has improved the brand making it known to different communities mostly due to the other environmental services they offer.
Conclusion
The use of Corporate Social Responsibility ensures that a company is accountable to the societal elements that matter to consumers. While for several year the demand of certain services and products determined the earnings of a company, CSR has proved that consumers are targeting institutes that not only offer quality brands but engage in improving their lives in one or the other way. As a result it is clear that corporate social responsibility has a greater impact to the company exercising it and it relevant stakeholders. Wells Fargo has portrayed strategic ways that are still in line with their vision, goals and values to build the relationship with its stakeholders, consumers being top in the list. Improving the livelihoods of individuals has been a number one priority of Wells Fargo; hence the efforts of ensuring that individual’ needs are met fully. Environmental sustainability, economic empowerment, diversity and social inclusion, are some of the significant tactics used in exercising corporate social responsibility in Wells Fargo.
References
Business Wire. (2018, May 30). Wells Fargo Releases 2017 CSR Report, Reinforces Commitment to Donate More Than $400 Million to Non-Profits in 2018 . Retrieved November 10, 2018, from Business Wire: https://www.businesswire.com/news/home/20180530005931/en/Wells-Fargo-Releases-2017-CSR-Report-Reinforces
Caramela, S. (2018). What is Corporate Social Responsibility? Retrieved November 10, 2018, from Business News Daily: https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
Wells Fargo. (2018). Corporate Social Responsibility . Retrieved November 10, 2018, from Wells Fargo: https://www.wellsfargo.com/about/corporate-responsibility/
