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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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More from the Authors
  • The Opioid Settlement and Executive Pay at AmerisourceBergen By: Suraj Srinivasan and Li-Kuan Ni
  • Ginkgo Bioworks vs. Scorpion Capital: The Debate Over Related-Party Revenues By: Aiyesha Dey, Jonas Heese, Suraj Srinivasan and Annelena Lobb
  • Creating and Measuring Purpose at Viega By: Ethan Rouen and Suraj Srinivasan
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