CSR can be defined as the continuing commitment by businesses to contribute to economic development while improving the quality of life of the workplace as well as the community and society at large. Examples of CSR include environmental practices, philanthropy work, and ethical labor practices. Wells Fargo has identified nineteen key goals, some of which include environmental finance, community development, foreclosure prevention, supplier diversity, and community service. The company also focuses on environmental sustainability, community investment, product and service responsibility and ethical business practices.
The two main focuses of this paper are environmental sustainability and community investment. Environmental Sustainability In 2010, Wells Fargo set up a journey to improve the company’s CSR. The area Wells Fargo began with was environmental affairs, starting with five missions for their team members to meet and embed sustainability into their day-to-day operations. In an interview, Vice President of environmental affairs; Krista Van Tassel explained their goals and how they began to achieve them. We allocated three percent of our greenhouse gas goals to team member behavior changes. Around that, we produced a campaign that encourages people to conserve energy and equipped each of our teams with a suite of communications materials to provided on-the-ground education. ” (Dfleisher). Carbon Footprints One of the first steps Wells Fargo proceeded with was a recycling campaign.
The goal included that team members start reducing their carbon footprint, they worked on recycling more items and waste reduction. This included using a composite pile or items that would allow them to break down to absorb into the earth to grow new vegetation. Another method stressed by Wells Fargo to reduce carbon footprint was carpooling. The reduction of people driving would reduce carbon being emitted into the air. Wells Fargo also reduced their paper consumption as well as defaulting their printers to print double sided papers and having paper bins available throughout offices for easily accessible recycling. Poster Campaign Once Wells Fargo decided that their carbon footprint campaign was running well they started poster campaigns.
Wells Fargo sent out posters and pamphlets to all of the offices to prepare their team members on Wells Fargo’s energy reductions campaign. All team members were encouraged to attend a conference on Wells Fargo’s greenhouse gas emissions and for tips on everyday action. All of the posters and pamphlets that the team members received went along with the conference. Most of the posters were hung in break rooms in the offices, allowing team members to view them when they were in the break room. All managers in the offices gave talking points to bring into their meetings with team members.
Wells Fargo did this to make sure that their employees were always conscious on their living habits and how it would affect the planet. Recognizing Achievement Wells Fargo also recognized the idea to reward their team members for all the work they were doing with their environmental sustainability campaign. A French American visual artist Suzanne Husky was hired to design a trophy made from recycled goods. Wells Fargo had each office keep track of how they were doing with each individual campaign.
The office that did the best in each individual campaign would be given the opportunity to have the trophy for a period of time before it would move to the next office. Wells Fargo wanted to reward their employees for doing well in everything they had asked of them. Volunteerism Wells Fargo is also enthusiastic on volunteerism. They give their employees two days off a year for volunteerism. Along with two days off their green teams would go out and clean the environment around them. These teams go out to beaches, playgrounds, islands (the patches of grass in-between lanes of traffic), and parking lots.
Wells Fargo linked volunteerism and environmental sustainability to motivate their team members to go out into the community and make it a better place to live. Engaging the Consumer Wells Fargo also started to put Sustainability Agents into some of their branches. This gave customers the option to speak to Sustainability Agents on ways to reduce carbon footprint while waiting to speak to a representative. The agents were picked by the branch manager and received training from the corporate office of Wells Fargo on the issues they were addressing in their environmental sustainability campaign.
Agents were trained on of the individual campaigns that were being run in the office and what to mention to customers. They were also available to answer any questions the customers may have had about the campaign. Community Investment The second part of Wells Fargo’s CSR is community investment. According to their website, “At Wells Fargo, we embrace our responsibility to be a leading corporate citizen and the opportunity to create more resilient, sustainable communities through our operations and actions.
We look for diverse perspectives to inform our business strategy, strive to strengthen financial knowledge and opportunities for our customers and communities, and are proactive in caring for and improving the environment” (Wells Fargo). Wells Fargo’s community investment happens in several forms. Wells Fargo does philanthropy work, community developments, lends to small businesses, assist new homeowners, and help deliver free financial education. Philanthropy Work According to Forbes Magazine, Wells Fargo, is one of the country’s most generous companies when it comes to philanthropy work.
In 2011, Wells Fargo gave away 1. 3% of its pre-tax profits, also know has $315,845,766. The money went to over 19,500 non-profits and schools nationwide. A 48% surge compared to the amount of money the company gave out the year before. Wells Fargo also gives 6. 7 million dollars a year to Opportunity Finance Network, which is a non-profit organization that recognizes banking in the low-income communities. Community Developments Wells Fargo obtains different community development acts which allow them to come out into the community to contribute with developing the community.
Community Development Venture Capital (CDVC) allows them to give meaningful economic and social support out to the community without financial loss at the bank, such as non-profit work and educational work. They are also able to help with disaster relief efforts to restore communities back to working order. Homeowners Wells Fargo donates 77 million dollars a year to help NeighborWorks America, a company that helps first time homebuyers most affected by the housing crisis.
Wells Fargo includes a program that helps homeowners who are having trouble making their monthly mortgage payments. They work with homeowners, providing them with a solution that works well for them and the bank. Conclusion Even though only two of the four CSR that Wells Fargo is working to improve on were mentioned in this paper, the company is working daily to improve itself in the eyes of the public and their workers. Wells Fargo is a company with a long and rich history, but they are forever changing.
By 2020, Wells Fargo hopes to achieve some of the best CSR practices in the country. They are doing their best to make sure that they are doing well for the environment as well as their community outreach program. Wells Fargo believes in community ethic of giving and assisting. They are also proactive with encouragement and action to reduce their carbon footprint on the world. The company believes in creating a better world than how they found it. Although not all ideas will be embraced by the public and even rejected, Wells Fargo is an ever-changing company, as is the world.
