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The last stakeholder of this scandal are the stockholders who have suffered financial lost in having to pay out millions in the lawsuits filed against Wells Fargo. The stockholders have also lost confidence in the leadership on the organization affecting how and if they will continue to invest and whether they will demand for a leadership change among the board of directors. This scandal not only affect how these investors will spend their money but other investors as well. Scandals of this magnitude as a negative domino effect on how investors and how they will spend their many within the

Corporate fraud is rampant, and it is becoming a part of our culture. We expect to hear about some cheating or embezzlement within the financial world. That should not be the case. However, one would think that after Tyco, Enron, WorldCom, and more recently VW, that business had learned that "cooking the books" or in the case of VW (lie to emission regulators) does not get you a gold medal in the end.

1. Why is Soren Chemical struggling to sell Coracle? In particular, please discuss how the channel structure affects the sales of Coracle.

The Sarbanes-Oxley Act of 2002 was put in place to prevent corporations from committing accounting fraud or corruption. When a corporation manages somehow to get passed all the laws they do anything to keep the corruption going by covering up everything. With this going on the company’s main focus is keep the lies going and firing whoever is in the way. Wells Fargo has stated that they have fire over a hundred thousand people throughout the nation for being a part of the illegal activity in the company. Unfortunately for Wells Fargo employees are coming out from hiding telling their side of the story.

Over the past five years Wells Fargo employees opened 2 million phony accounts for customers without their knowledge. The phony accounts helped employees reach sales goals while leaving customers with monthly charges from the false accounts. Since September when the fraud was discovered Wells Fargo has paid fines, stopped employee incentive initiatives and CEO John Stumpf forfeited his performance pay (Merle). The Consumer Financial Protection Bureau (CFPB) created after the financial crisis issued Wells Fargo the largest fine since its creation in 2011. (Talton). The CFPB hit Wells Fargo with a $185 million fine, the largest in their history and is being scrutinized for being an amount that is easily payable by Wells Fargo and will not be

About 2009, Wells Fargo came up with a plan to dump unwanted bank products on their depositers.They set "sales quotas" on their employees, and if these quota were not met, employees were fired. The bank set up over a half million credit card accounts to unsupecting costomers of their bank. Extra debit cards were issued and costumers money was moved from one account to bogus account that the bank set up. All the time, Wells Fargo collected a fee for these bogous transactions, from their depositors. Wells Fargo CEO John Stumpf assured Senator's that he and other top bosses knew nothing about this mass breach of the bank's code of ethics. He then went on to blame low-level employees. CEO John Stumpf kept blaming his $12-an-hour employees for this bank-run swindle of depositors money. Stumpf had a bunch of $12 dollar an hour and mid-level managers fired to back up his claim. Some of the fired employees aked, "what about all those calls that we made to your "ethics hotline" telling you about this fraud. Elizabeth WARREN has chastised WELLS FARGO'S CEO, saying "You should be criminally investigated". She continues with the following statements during Senate hearings into the matter, here are some

Over the few decades, Wells Fargo had built up a reputation detaching itself from the likes of Wall Street by putting their customers first before money. However, one cannot help but think that Wells Fargo put money before customers as their aggressive sales goals led to the opening of unauthorized accounts without customer knowledge. During this fiasco, which dates back to 2011, Wells Fargo employees had opened as many as 2 million of false accounts in real customer’s names without the proper consent. An integral part of the problem were senior executives and management staff involved. Either they overlooked this growing scandal by turning a blind eye, or partook in it themselves, but both ways there is responsibility to be claimed, and guilt to be measured here.

Even as the scandal broke, Wells Fargo continued to state that they were committed to putting their customers first (Merle, 2016). This was much the same rhetoric as their list of declared ethics statements, such as “be accountable for, and proud of, our conduct and our decisions”, and “comply with the letter and the spirit of the law” (Ferrell, Fraedrich, & Ferrell, L. 2013). In this case, they did neither. If the upper management does not consistently and continually exhibit the leadership insisting on ethical behavior, employees run amok. Another direct conflict with their stated value of “acknowledge and apologize for our mistakes, and learn from our errors so we don’t make them again” was the way in which they accepted responsibility for the fraud, but did not actually admit illegal behavior (CNN Wire, 2016). However, they did reevaluate the decentralized system.

The ethics of the bank requires that there is ethics of integrity. It is supposed to be created through a culture in the bank and it should be one of the banks priorities because this is a business and they gain the profits from the people they serve on daily basis. Even if the bank shall survive this wave of scandal is so difficult now to convince any client to join this Wells Fargo which shall cause them a lot of money. Also all the old customers may start withdrawing and looking for other banks which they feel are more secure when they are keeping the money for them. It is so hurting and distrustful for a banking instead of accruing money in the accounts of their customers what they wells was doing was that it was misusing their money and giving them extra fees.

There was a dismissal of 5,300 employees and $185 million in fines against Wells Fargo (Stewart, 2017). The bank’s pressure-cooker sales environment made a toxic sales culture. Wells Fargo held unrealistic sale quotas to its employees and held policies that drove employees to participate in illegal behaviors to meet unreachable goals. Employees opened millions of unauthorized credit cards and deposit accounts, fees and other charges were racked up, money was transferred from customers’ accounts without their knowledge and their permission, they also created phony email addresses to enroll customers in online banking services, all to hit sale targets and receive bonuses. Employees who called attention to the abusive, fraudulent behaviors were ignored and wrongfully terminated and retaliated

It’s not very uncommon to see headlines of money hunger CEO’s or even a small group of decision making conducting unethical behaviors in their best interests. Generally, those conducting the unethical behaviors have the opportunity to gain from their actions. In the Wells Fargo scandal, this is not the case. This scandal was not acted out at the top, but yet through the front line employees. This scandal was also unusual due to the amount of

With Enron, the responsibility and blame started with Enron’s executives, Kenneth Lay, Jeffrey Skilling, and Andrew Fastow. Their goal was to make Enron into the world’s greatest company. To make this goal a reality, they created a company culture that encouraged “rule breaking” and went so far as to “discourage employees from reporting and investigating ethical lapses and questionable business dealings” (Knapp, 2010, p. 14). They insisted the employees use aggressive and illegal

One Merrill Lynch analyst began to question the numbers and profits that were being produced by Enron and eventually he was fired. Enron invested a lot of money with Merrill Lynch and they didn’t want Enron to stop investing so Merrill Lynch got rid of the employee who question Enron, when in reality they should have listened to him. Merrill Lynch’s decision not to listen to him showed other employees that they better keep quiet with their opinions or their jobs would be on the line. If they listened to him they might have lost the deal with Enron, but in the end they lost it anyway and lost millions along with it. Merrill Lynch’s main focus should have been their employees and their investors, not solely Enron. They should have stuck to their code of conduct and followed their values.

Most of the world has heard of Enron, the American, mega-energy company that “cooked their books” ( ) and cost their investors billions of dollars in lost earnings and retirement funds. While much of the controversy surrounding the Enron scandal focused on the losses of investors, unethical practices of executives and questionable accounting tactics, there were many others within close proximity to the turmoil. It begs the question- who was really at fault and what has been done to prevent it from happening again?

Unfortunately, scandals like Enron are not isolated incidents and the last decade has offered Americans a disheartening perspective with comparable scandals like that of WorldCom and Tyco, Sunbeam, Global Crossing and many more. Companies have a concrete responsibility not just to their investors but to society as a whole to have practices which deter corporate greed and looting and which actively and effectively work to prevent such things from happening. This