Wells Fargo was a top earner in the banking industry and was growing quickly at the start of the century with large acquisitions like Wachovia Bank in 2008 (McFarlane, 2022). However, Wells Fargo’s shining castle would topple down as the company became involved in a multitude of scandals, causing its stock to drop billions of dollars in market value (McFarlane, 2022). Wells Fargo’s rap sheet makes for a great case study, questioning the role of corporations in society and a case for ethical corporate responsibility. This analysis will examine Wells Fargo’s corporate culture, understanding why it created the conditions for unethical behavior, why safeguards failed, and how these pitfalls can be avoided. In 2013, the L.A. Times reported on Wells …show more content…
The U.S. Securities and Exchange Commission (2018) also found that Wells Fargo was encouraging customers to improperly trade investment products, which generated large fees for the bank and diminished returns for the customers. Wells Fargo’s new CEO, with only three years in service, stepped down from the position in 2019, and the corporation wisely decided to hire an external candidate to fill the position. What transpired at Wells Fargo is much like what has been documented and said about sustainability goals: the key to meeting sustainability goals is to have leadership that is committed and active in meeting those goals, not just paying lip service because the marketing department says it will generate sales (Russel Reynolds Associates, 2020). The corporate culture at Wells Fargo was one that encouraged increasing profits at any cost, even if it meant deception. This is a culture that was spearheaded by company leadership, a leadership that finds it acceptable to publicly say one thing and do another behind closed doors to pressure employees into doing what goes against their morals and dispose of those who don’t play along with the