Preview

Ethics and Madoff

Good Essays
Open Document
Open Document
630 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ethics and Madoff
The dilemma presented when faced with a resume containing Bernard Madoff’s firm as a former employer may be complex to some; however, from my point of view, the dilemma may be resolved by using appropriate and effective selection tools. Dismissing a highly qualified candidate based sole on the reputation or legal troubles of a former employer would be unethical, especially since as HR professionals we aspire to be as objective as possible when it comes to selection or hiring decisions. Whether or not I believe the applicant was aware of the illegal activities of the firm is irrelevant, since I cannot prove or know with certainty that this was the case. I would be making unfair assumptions about the candidate. However, I cannot say that I wouldn’t be a little hesitant to consider the applicant, especially if they were a higher level employee at the firm and may have been more likely to be aware of the unethical practices of the firm. If the applicant is highly qualified, meeting the KSAOs necessary to perform the job, and would have made it to the next step of the selection process had it not been for his or her former employer’s reputation, then I would consider the applicant. Since potentially hiring a former employee of any organization with legal troubles or a tarnished image poses several risks, including negatively affecting the reputation of the organization with its stakeholders if he or she turns out to engage in unethical behavior in the future, the use of an array of selection methods would rule out the likelihood that such behavior would occur.
The outcome of selection methods such as assessment tests and effective interviewing techniques would serve as an ethical criterion that could be applied to selection decisions involving applicants with notorious former employers. I would want to administer a personality test or integrity test to assess the applicant’s views on unethical behavior, which may help predict unethical tendencies (Noe, Hollenbeck,

You May Also Find These Documents Helpful

  • Good Essays

    The court must decide--in order to side with the plaintiff-- whether or not the employer improperly checked the qualifications and background before the hire date. In the case of KMS Investments, having a convicted felon who acknowledges that he has been convicted should create the need to adhere to further investigations. KMS failed to properly conduct a proper hire, it acted hastily and allowed an individual with glaring flaws to be put into a position where on sound circumstances would not have taken place.…

    • 549 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In the case of Bernard Madoff, an overview was provided that describes the fraud of the century. As a result of the Ponzi scheme, social attitudes toward the investment industry were lukewarm. I will describe the highlights of the case.…

    • 396 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    MADOFF CASE

    • 341 Words
    • 2 Pages

    Use the understanding of the client and its environment to consider inherent risks, including fraud risk related to financial investments.…

    • 341 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.” Briefly explain the difference between a fraud “condition” and a “fraud risk factors,” and provide examples of each. What fraud conditions and fraud risk factors were apparently present in the Madoff case?…

    • 1261 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Bernie Madoff Essay

    • 203 Words
    • 1 Page

    Bernie Madoff held numerous high profile positions in the stock market community. I would even go as far as to label him as the master of networking. After graduating from Hofstra College, he marries his high school sweetheart, and proceeds to work for his father-in-law’s accounting firm as an investment advisor (Gaviria, Smith, & McCoy, 2009). As Madoff’s trading business grows over the next several years, he joins multiple committees as he begins to fight for regulatory changes in order to make trades easier and more convenient, not to mention he had been in business for decades. This gives Bernie Madoff the persona that he is educated, responsible, and respectable; which leads his to be trusted by many investors. (Ferrell, Fraedrich, &…

    • 203 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Bernard L. Madoff (Bernie) is still making news headlines. He is currently incarcerated for numerous illegal and unethical behaviors. I am going to: Describe three types of illegal business behavior alleged against Bernie and explain how the behavior is illegal or unethical. Name three types of parties who were impacted by the actions of Bernie and how. Describe three business safeguards that may have prevented the harm caused by Bernie. Describe three ways investors might have better protected themselves from risk. Describe three legal actions that possibly may be brought against Bernie under criminal or civil law. And provide an analysis…

    • 1722 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Facts: In November 2008, the parties signed an employment agreement providing that Relator was to serve as the director of the school for the 2008-09 school year. The title of the agreement states the dates July 01/2008-June 30/2009. "The first sentence of the agreement lists the administrative positions to which the agreement applies and states, "This is a general at will agreement."(Ellis vs. BlueSky, 2010). Yet the agreement provides that "[p]ositions will automatically renew for one year after one year of service unless specific actions are taken by the board before April 15th of each year" (Ellis vs. BlueSky, 2010). It defines the work year as 220 days from July 1 to June 30, and provides for proration in terms of a new hire within the financial year.…

    • 769 Words
    • 4 Pages
    Good Essays
  • Good Essays

    She provides the strengths and weaknesses of various approaches that have been taken previously to examine this phenomenon, and ultimately uses the experimental audit methodology which effectively isolates the effect of a criminal record while observing employer behavior and measuring discrimination in real-life employment settings (943). In her study, two demographically matched pair of individuals posed as entry-level job applicants in real job searches. The testers were given fictional resumes with…

    • 1252 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Bernie Madoff Essay

    • 5930 Words
    • 24 Pages

    8. Strober, D. H. (2009). Catastrophe: The Story of Bernard L. Madoff, the Man Who Swindled the World. Phoenix Books.…

    • 5930 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    Back Ground Checks

    • 628 Words
    • 3 Pages

    John as always you have some very important facts that surround the ethical use of back ground checks for potential employees. You bring to light a very valid point when you discuss how it is necessary for employers to investigate what a candidates character is based on the information that is available through back ground searches. To this end back ground checks can easily find errors in applications such as embellished responsibilities, breaks in employment history as well as criminal history that might have been omitted. You go on to speak about why some candidates are unsuited for some positions based on back ground checks, yet might be still be good enough for other less important jobs that do not require specific clearances. When we speak of a criminal back ground it is clear that these applicants are definitely at a disadvantage when trying to gain viable employment. Many government and private companies require impeccable back ground…

    • 628 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Doctor Ross

    • 435 Words
    • 2 Pages

    In the research paper titled "bad apples, bad cases, bad barrels" the results suggest that which of the following is correlated to unethical behaviour?…

    • 435 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Madoff was a prominent philanthropist who served on boards of nonprofit institutions, many of which trusted his firm with their funds. He also served as the Chairman of the Board of Directors of the Sy Syms School of Business at Yeshiva University and as Treasurer of its Board of Trustees. He was also on the Board of New York City Center, a member of New York City’s Cultural Institutions Group, and on the executive council of the Wall Street division of the UJA Foundation of New York, which did not invest funds with him…

    • 1915 Words
    • 8 Pages
    Better Essays
  • Better Essays

    Madoff's Case

    • 1131 Words
    • 5 Pages

    References: Anantharaman. (2007). How objective is peer review? (Doctoral dissertation, Columbia Business School) Retrieved from https://aaahq.org/audit/midyear/08midyear/papers/43_Anantharaman_HowObjective.pdf…

    • 1131 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Background checks are conducted to obtain a variety of types of information -- criminal records, credit histories, previous residences, job credentials. Some feel that the extent to which the background check should be depends on the position. For example, it makes little sense, on the one hand, to investigate the credit history of an Anthropology professor. On the other hand, failing to investigate the background of a school psychologist thoroughly could expose your institution to legal liability, adverse publicity, and loss of trust within the community. The belief is that you should link the type of check to the actual job responsibilities of each person (Der Werf, 2006). This notion is of great concern and yields the potential for grave disaster, especially in regards to the legal issues concerning colleges and universities.…

    • 6674 Words
    • 27 Pages
    Powerful Essays
  • Better Essays

    Case Study

    • 941 Words
    • 3 Pages

    This case study analysis describes Sam Adams dilemma, whether or not to give a favorable recommendation to the board of directors for his friend and former colleague Bud Wizer. Sam was told by corporate that Bud listed him as a personal and professional reference on his job application. This triggered emotional turmoil in Sam because his friend was allegedly fired for sexual harassment from his last position. Sam’s values and moral standards will be tested during this analysis. Will Sam be loyal to his friend and say yes, or will he be loyal to his company and tell what he thinks he knows? I will use Professor Badaracco framework, questions and test to analyze Sam’s dilemma and provide recommendations for what he may say to the board of directors.…

    • 941 Words
    • 3 Pages
    Better Essays