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  • June 2020
  • Case
  • HBS Case Collection

Recovering Trust After Corporate Misconduct at Wells Fargo

By: Suraj Srinivasan and Jonah S. Goldberg
  • Format:Print
  • | Language:English
  • | Pages:29
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Abstract

The case describes widespread misconduct at Wells Fargo Community Bank in the period leading up to 2017 and the company’s subsequent attempts to improve internal controls, company culture, and corporate governance. The case examines the potential causes of large scale customer related fraud in the Community Banking Division and across a range of businesses. The extent and length of time over which these misconduct events took place suggested a company that was fundamentally unable to ensure a compliance culture and customer focus among its employees. The case describes in detail the systems and practices that led to the systematic failures. Faced with withering political and regulatory scrutiny the company embarked upon a series of initiatives to improve systems and structure to prevent such misconduct and improve culture. The case describes these initiatives and the challenges faced in implementing them. The case also focuses on the role of the board in overseeing and improving internal control and corporate culture. The case ends with discussing entry of a new CEO amidst board turnover in March 2020.

Keywords

Corporate Misconduct; Internal Controls; Banks And Banking; Crime And Corruption; Corporate Governance; Organizational Culture; Governance Compliance; Management Systems; Organizational Change And Adaptation; Performance Improvement; Governing And Advisory Boards

Citation

Srinivasan, Suraj, and Jonah S. Goldberg. "Recovering Trust After Corporate Misconduct at Wells Fargo." Harvard Business School Case 120-128, June 2020.
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About The Author

Suraj Srinivasan

Accounting and Management
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    Enterprise Agility at Komerční Banka

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    A Cultural Transformation at Southeastern Grocers

    By: Suraj Srinivasan, Jonah S. Goldberg and Joseph A. Paul
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    Measuring Audit Quality

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More from the Authors
  • Enterprise Agility at Komerční Banka By: Euvin Naidoo, Suraj Srinivasan and Sarah Gulick
  • A Cultural Transformation at Southeastern Grocers By: Suraj Srinivasan, Jonah S. Goldberg and Joseph A. Paul
  • Measuring Audit Quality By: Shivaram Rajgopal, Suraj Srinivasan and Xin Zheng
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