The recent Wells Fargo scandal, which cost the bank $185 million in fines and 5,300 employees, is just another example in the long history of big banks and conglomerates exhibiting unethical behavior.
The bank was caught making accounts and illegal sales to thousands of customers without their knowledge. There have been no consequences for these immoral actions beyond the fines and firings that will barely impact the massive company.
At a Senate hearing earlier this month on the scandal, Senator Elizabeth Warren called for the resignation of Wells Fargo CEO John G. Stumpf saying, "You have said repeatedly, 'I am accountable, but what have you done to actually hold yourself accountable? Have you resigned?" As of now, Stumpf has yet to resign.
“This is not new. Corruption and evil are with us like death and taxes,” said Harvard Business School historian Nancy Koehn on Boston Public Radio Wednesday.
Koehn reminded listeners that this type of fraud has been commonplace in the business world going as far back to the rubber barons and beyond. Koehn said that these companies need a strong moral leader to prevent this type of corruption, which Strumpf is not. You need “leadership credibly committing to a moral framework,” she said.