Bernie Madoff’s Ponzy Scheme
Research Paper
Bernie Madoff’s Ponzy Scheme
Contemporary Business Ethics
Contemporary Business Ethics
Contemporary Business Ethics
June 16, 2012
Table of Contents
Ethical issues involved……………………………………………………………..3
Relevant facts……………………………………………………………………….4
Fairness to all concerned……………………………………………………………5
Impact on society……………………………………………………………………5
Impact to related industries………………………………………………………….6
Impact to the stakeholders…………………………………………………………...7
Impact to the employees……………………………………………………………..8
Industry image………………………………………………………………………..8
Federal guidelines…………………………………………………………………….9
Personal conscious if involved in a similar situation………………………………..10
References……………………………………………………………………………11
Ethical issues involved
Bernie Madoff superficially demonstrated contradicting immoral character and virtuous ethical values, causing widespread loss of financial assets to credulous victims. As such he gained such a good reputation in the industry that many of his investors had their life savings invested with him. When clients requested to cash in their investments, he would simply pay existing clients with new clients' money. As a result, some of Madoff's investors were divested of their entire life savings. Bernie Madoff failed to obey the laws that are considered the minimum code of conduct to which society has agreed to respect. “Breaking laws means breaking the social contract to which he agreed in becoming a member of society”. In turn this means that society has the right to punish him by revoking the rights granted by it.
If we were to apply utilitarianism theory Madoff did not promote a behavior that maximizes the best for the stakeholders. His need for self-interest superseded the best interests of all other members of society. Indeed, many could argue that he demonstrated classic sociopathic tendencies.
Bernie Madoff’s Ponzy Scheme
Contemporary Business Ethics
Contemporary Business Ethics
Contemporary Business Ethics
June 16, 2012
Table of Contents
Ethical issues involved……………………………………………………………..3
Relevant facts……………………………………………………………………….4
Fairness to all concerned……………………………………………………………5
Impact on society……………………………………………………………………5
Impact to related industries………………………………………………………….6
Impact to the stakeholders…………………………………………………………...7
Impact to the employees……………………………………………………………..8
Industry image………………………………………………………………………..8
Federal guidelines…………………………………………………………………….9
Personal conscious if involved in a similar situation………………………………..10
References……………………………………………………………………………11
Ethical issues involved
Bernie Madoff superficially demonstrated contradicting immoral character and virtuous ethical values, causing widespread loss of financial assets to credulous victims. As such he gained such a good reputation in the industry that many of his investors had their life savings invested with him. When clients requested to cash in their investments, he would simply pay existing clients with new clients' money. As a result, some of Madoff's investors were divested of their entire life savings. Bernie Madoff failed to obey the laws that are considered the minimum code of conduct to which society has agreed to respect. “Breaking laws means breaking the social contract to which he agreed in becoming a member of society”. In turn this means that society has the right to punish him by revoking the rights granted by it.
If we were to apply utilitarianism theory Madoff did not promote a behavior that maximizes the best for the stakeholders. His need for self-interest superseded the best interests of all other members of society. Indeed, many could argue that he demonstrated classic sociopathic tendencies.