Wells Fargo case study
Case Questions
1. In what ways does this case study demonstrate conflict of interest?
2. In what ways did company culture and compensation at Wells Fargo encourage incentive-based fraud (gaming)?
3. Although Wells Fargo attempted to curb fraudulent activity with an ethics workshop and change in compensation structure, the company continued to find fraudulent accounts being opened by employees. Why do you think this continued to occur? What do you think Wells Fargo could have done to better curb fraudulent activity?
4. Are the low-level employees more to blame, or the managers? Were both in a conflict of interest situation?
5. Many employees admitted that they knew what they were doing was wrong but continued to open fraudulent accounts. Do you think their actions were in any way ethically justifiable? Why or why not? If you were in their position, what would you have done? Losing your job is tough. Losing sleep at night because you knowingly ripped off a customer might be tougher. How would you resolve such a conflict of interest?
