Kaylynne Hill

March 4th, 2024

Module 8 Assignment

1. Why did top managers do nothing to halt the fraudulent sales and incentive progra
m?

Top managers remain silent due to profit pressure and a lack of ethical leadership. Lack of a
culture of ethical conduct at the top coupled with relentless pursuit of unrealistic sales targets led
to an environment where short-term gains overshadowed long-term sustainability. The unethical
culture was perpetuated by managers driven by financial incentives and scared of failure.

2. Why did so many employees ‘go along’ with the sales fraud?

A pervasive fear of job loss and unrealistic sales targets made employees succumb to intense
pressure. Employees felt compelled to meet targets no matter what with aggressive cross-selling
goals and punitive incentive structures. Employees felt compelled to 'go along' with fraudulent
practices in the absence of a supportive work environment and fear of repercussions for non-
compliance.

3. Do you believe these employees knew how much damage they were doing to
customers, the company, and the brand?

Although some employees may have been aware of the potential harm caused by their actions,
the overarching culture at Wells Fargo obscured the true extent of the damage. It is likely that
employees were blinded by the intense focus on reaching sales targets. The corporate leadership
failed to communicate clearly and provide clear ethical guidance, resulting in many employees
not realizing the systemic harm being caused to customers, the brand, and the company.