The Normalization of Corruption and Wells Fargo's 2 Million False Accounts
Management INK (Forthcoming)
Posted: 7 Dec 2016
Date Written: December 5, 2016
My article on the "Normalization of Corruption" focuses on how that norm is built by individuals, spreads to companies, and then to industries. The headlines about widespread fraud at Wells Fargo follow the same patterns: cheating became the norm at Wells Fargo because of intense pressure from top executives; those top executives deny personal responsibility; and the legal system gives us few options to prosecute them for behavior that is otherwise widespread. Systemic fraud ensues. Wells Fargo created over 2 million unauthorized accounts for customers, charged at least $1.5 million in unwarranted fees for those sham accounts, and over 5,300 employees were involved.
Keywords: behavioral theory, business and government/political economy, law, corporate social responsibility, ethics, corporate culture
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