{"id":2781,"date":"2023-02-19T16:10:48","date_gmt":"2023-02-19T16:10:48","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-1-4-external-forces-affecting-businesses\/"},"modified":"2025-05-12T11:55:43","modified_gmt":"2025-05-12T11:55:43","slug":"apply-it-1-4-external-forces-affecting-businesses","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/chapter\/apply-it-1-4-external-forces-affecting-businesses\/","title":{"raw":"Apply It 1.4: External Forces Affecting Businesses","rendered":"Apply It 1.4: External Forces Affecting Businesses"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li>Identify external forces that affect businesses<\/li>\r\n\t<li>Understand how external forces affect businesses<\/li>\r\n<\/ul>\r\n<\/section>\r\n<section class=\"textbox seeExample\">\r\n<h2>Wells Fargo Fined -- Again!<\/h2>\r\n<p>The Consumer Financial Protection Bureau fined Wells Fargo $1.7 billion in 2022 for illegal activity that included inaccurately recording loan payments made by customers, wrongfully [pb_glossary id=\"9167\"]foreclosing[\/pb_glossary] on homes, illegally repossessing vehicles, and incorrectly charging fees. The bank was also ordered to reimburse customers for more than $2 billion.[footnote]Egan, Matt. \u201cWells Fargo Ordered to Pay $3.7 Billion for \u2018illegal Activity\u2019 Including Unjust Foreclosures and Vehicle Repossessions.\u201d CNN, December 20, 2022. https:\/\/www.cnn.com\/2022\/12\/20\/investing\/wells-fargo-cfpb-foreclosure-fine\/index.html[\/footnote]<\/p>\r\n<p>This misconduct follows another scandal that got a lot of attention in 2016 when it was revealed that managers at the bank pressured employees in meet unrealistic sales goals. This resulted in thousands of employees opening accounts for customers either without permission or under false pretenses, often by creating false records and using customers' information without permission. As a result, Wells Fargo agreed to pay $3 billion to settle all legal liability for the fraudulent activity that happened over a period of 14 years.[footnote]Office of Public Affaris. \u201cWells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer Authorization.\u201d USDOJ, February 21, 2020. https:\/\/www.justice.gov\/opa\/pr\/wells-fargo-agrees-pay-3-billion-resolve-criminal-and-civil-investigations-sales-practices[\/footnote]<\/p>\r\n<p>Scandals like these hurt not just the business' reputation but also its stock price.<\/p>\r\n<\/section>\r\n<section class=\"textbox tryIt\">[ohm2_question height=\"450\" hide_question_numbers=1]3014[\/ohm2_question]<\/section>\r\n<section class=\"textbox linkToLearning\"><strong>PESTLE<\/strong> is an acronym for the Political, Economic, Social, Technological, Legal, and Environmental factors that business must consider. Take a look at a <a href=\"https:\/\/pestleanalysis.com\/examples-of-pestle-analysis\/\">PESTLE analysis for PepsiCo<\/a>.<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li>Identify external forces that affect businesses<\/li>\n<li>Understand how external forces affect businesses<\/li>\n<\/ul>\n<\/section>\n<section class=\"textbox seeExample\">\n<h2>Wells Fargo Fined &#8212; Again!<\/h2>\n<p>The Consumer Financial Protection Bureau fined Wells Fargo $1.7 billion in 2022 for illegal activity that included inaccurately recording loan payments made by customers, wrongfully <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_2781_9167\">foreclosing<\/a> on homes, illegally repossessing vehicles, and incorrectly charging fees. The bank was also ordered to reimburse customers for more than $2 billion.<a class=\"footnote\" title=\"Egan, Matt. \u201cWells Fargo Ordered to Pay $3.7 Billion for \u2018illegal Activity\u2019 Including Unjust Foreclosures and Vehicle Repossessions.\u201d CNN, December 20, 2022. https:\/\/www.cnn.com\/2022\/12\/20\/investing\/wells-fargo-cfpb-foreclosure-fine\/index.html\" id=\"return-footnote-2781-1\" href=\"#footnote-2781-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/p>\n<p>This misconduct follows another scandal that got a lot of attention in 2016 when it was revealed that managers at the bank pressured employees in meet unrealistic sales goals. This resulted in thousands of employees opening accounts for customers either without permission or under false pretenses, often by creating false records and using customers&#8217; information without permission. As a result, Wells Fargo agreed to pay $3 billion to settle all legal liability for the fraudulent activity that happened over a period of 14 years.<a class=\"footnote\" title=\"Office of Public Affaris. \u201cWells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer Authorization.\u201d USDOJ, February 21, 2020. https:\/\/www.justice.gov\/opa\/pr\/wells-fargo-agrees-pay-3-billion-resolve-criminal-and-civil-investigations-sales-practices\" id=\"return-footnote-2781-2\" href=\"#footnote-2781-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/p>\n<p>Scandals like these hurt not just the business&#8217; reputation but also its stock price.<\/p>\n<\/section>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm3014\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=3014&theme=lumen&iframe_resize_id=ohm3014&source=tnh\" width=\"100%\" height=\"450\"><\/iframe><\/section>\n<section class=\"textbox linkToLearning\"><strong>PESTLE<\/strong> is an acronym for the Political, Economic, Social, Technological, Legal, and Environmental factors that business must consider. Take a look at a <a href=\"https:\/\/pestleanalysis.com\/examples-of-pestle-analysis\/\">PESTLE analysis for PepsiCo<\/a>.<\/section>\n<hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-2781-1\">Egan, Matt. \u201cWells Fargo Ordered to Pay $3.7 Billion for \u2018illegal Activity\u2019 Including Unjust Foreclosures and Vehicle Repossessions.\u201d CNN, December 20, 2022. https:\/\/www.cnn.com\/2022\/12\/20\/investing\/wells-fargo-cfpb-foreclosure-fine\/index.html <a href=\"#return-footnote-2781-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-2781-2\">Office of Public Affaris. \u201cWells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer Authorization.\u201d USDOJ, February 21, 2020. https:\/\/www.justice.gov\/opa\/pr\/wells-fargo-agrees-pay-3-billion-resolve-criminal-and-civil-investigations-sales-practices <a href=\"#return-footnote-2781-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><\/ol><\/div><div class=\"glossary\"><span class=\"screen-reader-text\" id=\"definition\">definition<\/span><template id=\"term_2781_9167\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_2781_9167\"><div tabindex=\"-1\"><p>Foreclosure is the legal process a lender like a bank uses to take back a property after the borrower fails to make required loan payments.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><\/div>","protected":false},"author":21,"menu_order":27,"template":"","meta":{"_candela_citation":"[]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":2754,"module-header":"apply_it","content_attributions":[],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2781"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/users\/21"}],"version-history":[{"count":16,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2781\/revisions"}],"predecessor-version":[{"id":9168,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2781\/revisions\/9168"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/2754"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/2781\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/media?parent=2781"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=2781"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=2781"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/introductiontobusiness\/wp-json\/wp\/v2\/license?post=2781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}