America’s biggest bank, Wells Fargo, has been fined $185m after disclosures that 5 300 employees had secretly opened 2m accounts for customers who didn’t ask for them. Wells reacted by firing those who did the deeds (average 377 each). Critics believe it is the CEO and his top team who should have been bulleted because staff were incentivised to act dishonestly by an excessively aggressive sales policy.
You have to wonder when companies like Wells Fargo will realise old style capitalism is dead. Since the Global Financial Crisis in 2008, progressive companies have been adopting business guru Michael Porter’s “Shared Value” business model – where customers, society at large and the business all benefit.