A host of large corporations has made national news over the years for unethical

Question

A host of large corporations has made national news over the years for unethical behavior. Using the internet look up a list of corporate accounting scandals over the past two decades and choose the one that interests you the most. In detail, discuss the most detrimental part of the scandal. What impacted the corporation and its public investors the most?

Give the name of your selected company and the CEO at the time of the scandal. Then respond to at least two of your fellow classmates, in a conversational tone, and give additional insight into the company they chose.

Explanation / Answer

Wells Fargo Scandal

It was described as huge huge error of ignoring whistle blowers. Due to bad incentivised programs, more than 5000 sales executives set up 2 million fake accounts of bank's customers in order to meet high pressure internal goal.

This impacted the corporation's financial worthiness, its credit ratings and stock prices dipped huge. Resulted in 185$ million fines. The bank's stock lagged 30% behind peers that time. CEO of the group was Jhon Stumpf who later filed resignation. The company also had data about ethical breaches among the employees that it ignored or misrepresented. According to internal review company knew that 1% of employees had been terminated due to sales integrity violations, but in fact that grossly understated the fact due to high staff turnover.

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