Organizational crises are situations where the company has significantly wronged its consumers or employees. Rather than creating mutually beneficial relationships, these businesses use their customers as a means of benefiting the company, or abuse their employees to “save face.”
Examples of Organisational Crisis
Examples of an Organizational Crisis
In late 2020, Google faced allegations of spying on employees and discouraging unionized organization. The firm “illegally surveilled” employees’ discussions when they aired their workplace grievances.
Google made a public statement to saying, “We’re proud of [our] culture and are committed to defending it against attempts by individuals to deliberately undermine it. […] Such actions are a serious violation of our policies and an unacceptable breach of a trusted responsibility, and we will be defending our position.”
To meet sales quotas, Wells Fargo’s employees illegally opened millions of fake customer accounts without the customers’ consent. Employees falsified signatures and created fake records that resulted in billions of dollars in revenue. In 2020, Wells Fargo paid a settlement of $3 billion to cover the corporate penalties incurred.
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