Madoff planned on giving out a few million dollar bonus checks two months earlier than scheduled and immediately his two sons questioned where all of the money came from. If I was working for Bernie Madoff and discovered the ethical issue involved, I would think carefully about who this issue involved and how to handle the situation using my moral imagination.
The The unethical actions of bernie madoff will never recover their entire investment, but the experience can hopefully be prevented in the future. This applies perfectly to this case because although Madoff might have thought that he could outsmart everyone it was only a matter of time before he was caught.
Madoff Investment Securities grew famous for its reliable annual returns of 10 percent or more and, by the s, his firm handled up to 5 percent of the trading on the New York Stock Exchange. The scam was one of the most widely covered financial frauds in American history.
When the financial downturn of started to get worse, investors in the company started to withdrawn funds at an accelerating rate. On June 29, Madoff was sentenced to years in prison which was the maximum sentence.
One of the most important aspects the SEC listed was a failure to follow up on inquires related to suspected fraud Hilzenrath Had the research data been reported accurately in the first place, investors would have the ability to make a logical choice when choosing the company to manage their investments.
The Madoff scandal highlighted the highest potential negative outcome when business research ethics are not followed. He promised high returns, knowing that he could not produce it and vehemently denied any wrongdoing up until he was arrested. As you can see Madoff was not interested in doing the right thing at all and because of this he let a lot of people down and caused a lot of unhappiness because of it.
In doing so I would seek whistle blower protection and try to secure immunity and another job. Preferred employees were paid well.
The primary victims of the fraud included individual investors, pension funds, and non-profit organizations. This whole situation could have been avoided if he simply did this the right and honest way the first time around.
During or after this assessment I would consider it my duty to report the fraudulent activity to the SEC and or other law enforcement entities providing them with as many facts as possible and offering the details of how I and others may have played a role.
Eight SEC employees disciplined over failures in Madoff fraud case; none are fired. Companies like this are privately owned, and thus exempt from much of the regulation that public companies face. This could easily be argued but personally I feel that it was not rational at all.
However, there are many things that he can improve on starting with honesty.
For the love of profit, Bernie Madoff and his accomplices created and participated in what can be considered the greatest ponzi scheme in history. Even as the fraud was about to be exposed, Madoff and his cohorts were trying to give money to select employees and family members. He knew what as at stake and what he could lose but he still kept pursuing his business.
This may be caused by change blindness, where overtime actual people involved in the scheme may not have noticed the unethical practices that were going on around them or that they had a hand in.
Bernie Madoff himself took sole responsibility for the crimes and pled guilty to a total of 11 federal felonies.
If he decided to abide by the laws and be honest with investors, this would not have happened. From that point I would use the experience as a learning opportunity and try to identify ethical issues from the onset. This principle can be applied to this particular case by simply asking the question of was what Madoff did rational?
Although other people are suspected to be involved, he was sentenced to a year prison sentence Henriques Those involved in the scheme made a choice to side-step the law and fatten their wallets.
Individualism also states that your top priority should be to maximize your own profit and to make sure that you are put above all else.
Regulating bodies have recognized their shortcomings and can use this as a model to reform existing laws on private wealth management companies. He and the other scheme participants could have volunteered the truth at any point but chose not to. Going back to just himself he was able to accomplish a lot for the company even if it was illegal.
In addition, the case has called for additional regulation and transparency among wealth management companies. Madoff was able to pull in big time clients like Stephen Spielberg and Kevin Bacon.
He went on to say that any action that is not rational cannot in any way be a good act no matter what that act may be. He also has temperance because he knew the whole time what could happen or what could go wrong so he was ready at all times for the worst.
Highly positive results were provided to new potential investors to attract new money to be invested into the firm Henriques Bernie Madoff operated his company, Madoff Investments in an unethical way and this led to severe consequences to stakeholders and society at large which incurred losses amounting to billions of dollars.
Bernie Madoff’s Ponzi scheme became known as, “the largest fraud in Wall Street history,” (Washington).
Madoff’s actions are a clear example of the unethical behavior that occurs in the business world every day%(21). Bernie Madoff Rebecca Freedline Strayer University Business law Bernie Madoff Bernard L. Madoff (Bernie) is still making news headlines. He is currently incarcerated for numerous illegal and unethical behaviors.
Bernie Madoff s unethical behavior affected all of the above. (himself and his family, society at large, and his investors). Business Research Ethics Perhaps the most widely recognized example of unethical business research, Bernie Madoff managed to build a multi-billion dollar investment firm based on skewed research and false financial data.
Disclosure: The Bernie Madoff Case Transparency and Disclosure: The Bernie Madoff Case On the face of it, without referring to Alan Greenspan, I can simply say I think the markets needed more regulation and the banks needed more regulation.Download