Description: Not too many people would have wanted to be in the shoes of Wells Fargo CEO John Stumpf last week as he faced a grilling from US politicians over his bank’s tactics. Employees had been accused of opening customer accounts without their clients’ knowledge in an effort to meet sales targets. In cases, Stumpf conceded, Wells Fargo stole client’s money through unauthorized fees. It has been a costly problem for Mr. Stumpf who has had $41million in stock clawed back by the bank.
Date: September 29, 2016
1) What have you heard about the Wells Fargo ethical issues?
2) If you were an auditor at Wells Fargo, how would these revelations about aggressive sales tactics impact the way you plan for your audit?
3) In Wiley’s Financial Accountng: Tools for Business Decision-Making, each chapter features a case dealing with ethical issues. Do you believe these cases will help students develop ethical frameworks that will stay with them in their business careers?