Creating an inclusive compliance culture

The Wells Fargo Cross-Selling Scandal

For this class-wide discussion, you were encouraged to read a report detailing the deterioration of Wells Fargo's compliance culture, driven by an unhealthy working environment. After reading the report, discuss the following question with your peers in this class-wide discussion forum:

In this Closer Look, we examine the tensions between corporate culture, financial incentives, and employee conduct as illustrated by the Wells Fargo cross-selling scandal. In 2016, Wells Fargo admitted that employees had opened as many as 2 million accounts without customer authorization over a five-year period. We discuss the factors that contributed to the scandal, the repercussions for the bank, and its response.

Question

1) What factors led to the type of compliance culture set by senior management and practised by the employees?