Research Paper On Bernard Madoff

1086 Words5 Pages
His dominant business model was inconsistent with basic ethics and the law. If he decided to abide by the laws and be honest with investors, this would not have happened.
“In most societies, the basic ethical standard is criminal law. We all agree that people should not break the law. But how many times have you heard that old saw, “If it isn’t illegal, it must be ethical”? Ethical behavior is not enforceable law, because criminal law alone cannot encompass all ethical issues and therefore cannot enforce ethical behavior. Yet criminal law—the entirety of the criminal code and its penalties—provides business with an ethical base." (Hannaford, 2009)

Ethics, in its broader sense, deals with human conduct in relation to what is morally good
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However, it should. “Formally defined, ethical behavior is that which is morally accepted as "good" and "right" as opposed to "bad" or "wrong" in a particular setting”. (Sims, 1992, 1992, pp. 505–513). From an individualistic standpoint, did Madoff not act ethically from his individualistic view? One can argue that he has maximized the profits of himself and his stakeholders. Looking at the wider picture, he did not even maximize the profits of the stakeholders, he has stolen their money. Analyzing the main principles of Ethics, it is obvious that what he did, was everything, but…show more content…
However, the more holistic ethical question is, how and why the society failed. How was it possible to continue the Ponzi scheme for such a long time without getting uncovered? Even if he was a genius, it should be discussed which defects of the social and cultural system could lead to this extraordinary long-term fraud.
The high-earning segment set its own “rules, behaviors and attitudes”, white collar crime. “It is thought that those who have risen to the ranks of CEOs, or other decision making positions, have done so according to merit, professionalism, respect, hard work, and ethical behavior.” (Davis, 2009)

In this culture it was not questioned whether there are reasons beyond being a trustful and reliable statesman. Another important role played the middlemen. These “feeders” were closely connected to Madoff and also to big investors. The ethical issue is that they were not independent but associates of some of Madoff’s companies and at the same time working in regulatory institutions such as the SEC. On top of it, they have received extremely high rewards from Madoff and they even had invested heavily their own money. They have set their personal interests – of becoming wealthy – at the highest importance. (Davis,

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