business ethics

Topics: Ponzi scheme, Bernard Madoff, Fraud Pages: 4 (1436 words) Published: March 4, 2014

In this bright future we have people who thrive for money and will do almost anything they can to receive the large amounts of money that is possible. How far will one person go to make an immense amount of money? Would they go through a Ponzi scheme? A Ponzi scheme is an investment fraud that brings the payment of the purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new targets by promising to invest their funds in opportunities claimed to generate high returns with little or no risk at all. In almost all of the Ponzi schemes, the fraudsters focus on trying to attract new money to make the promised payments to earlier-stage investors and to use for personal expenses, instead of engaging in my valid investment action.

The term Ponzi scheme gets its name from Charles Ponzi, who tricked thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi promised he could provide a 50% return in just 90 days while annual interest rates from bank accounts were just 5%. He quickly switched to using incoming funds to pay off earlier investors. It took him 9 months to get caught for creating this kind of scheme.

There is only one type of person that in my mind would do all of this criminal behavior and hurt thousands of lives by stealing and falsifying their income and that would have to be an Ethical Egoist. They come from the theory of ethical egoism, which is a type of person that acts in their own self-interest. They believe that everyone should limit their own judgments to their own ethical egos. They determine how things should be done while only trying to progress their side or self-interest. These types of people do not care if they hurt anyone if they are making profit. In ethical egoism one is morally required to make them as happy as possible. They have no moral obligations. They don’t care if someone is going to make it through their...

Cited: "Ponzi" Schemes." U.S. Securities and Exchange Commission | Homepage. SEC, n.d. Web. 31 Oct. 2012. .
Jennings, Marianne. Business ethics: case studies and selected readings. 7th ed. Cincinnati: West Educational Pub., 2012. Print.
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