Current Ethical Issue in Business
Current Ethical Issue in Business
Angela Fraley, Jill LaLonde, Susan Kunz, Klay Gardiner
PHL 323
Aubrey Weekes
October 17, 2011
Current Ethical Issue in Business Several factors account for the changes in the way business is conducted today. Factors such as increased global competition, economic conditions, technology, electronic commerce, workforce diversity, and ethics have played a significant role in how business is conducted. How a company conducts itself as a business and a corporate citizen is critical to its success. Investment clients of Mr. Madoff operated using both relativistic and entitlement ethics systems. Within the trading business, many organizations exist to monitor and hold traders accountable. The financial system in the economy is not well, which makes this a scary situation thinking that it could happen more. Mr. Madoff did not have the best interest of those he was working with in mind as he just was looking out for himself and making large amounts of money. Ethical business behavior, “behavior that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society” (Trevino & Nelson, 2007, p. 19) is necessary to maintain order and progress within society. The ethical system at work with Bernard Madoffs scheme was an entitlement-based ethics system. Mr. Madoff showed little to no regard for others affected by his actions, yet focused totally on his own best interest. He “ran the business along antediluvian lines: clients and feeder-fund managers were denied online access to their accounts” ("Economist,” 2011). The level of secrecy was irresponsible and deceptive, leaving his clients in the dark about the unethical decisions made. Mr. Madoff’s investment clients operated using both relativistic and entitlement ethics systems. Although many were advised against investing because the suspicions of wrongdoing, few spoke up, going along with the elements of
Angela Fraley, Jill LaLonde, Susan Kunz, Klay Gardiner
PHL 323
Aubrey Weekes
October 17, 2011
Current Ethical Issue in Business Several factors account for the changes in the way business is conducted today. Factors such as increased global competition, economic conditions, technology, electronic commerce, workforce diversity, and ethics have played a significant role in how business is conducted. How a company conducts itself as a business and a corporate citizen is critical to its success. Investment clients of Mr. Madoff operated using both relativistic and entitlement ethics systems. Within the trading business, many organizations exist to monitor and hold traders accountable. The financial system in the economy is not well, which makes this a scary situation thinking that it could happen more. Mr. Madoff did not have the best interest of those he was working with in mind as he just was looking out for himself and making large amounts of money. Ethical business behavior, “behavior that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society” (Trevino & Nelson, 2007, p. 19) is necessary to maintain order and progress within society. The ethical system at work with Bernard Madoffs scheme was an entitlement-based ethics system. Mr. Madoff showed little to no regard for others affected by his actions, yet focused totally on his own best interest. He “ran the business along antediluvian lines: clients and feeder-fund managers were denied online access to their accounts” ("Economist,” 2011). The level of secrecy was irresponsible and deceptive, leaving his clients in the dark about the unethical decisions made. Mr. Madoff’s investment clients operated using both relativistic and entitlement ethics systems. Although many were advised against investing because the suspicions of wrongdoing, few spoke up, going along with the elements of
References: Transparency.org. (n.d.). Policy and Research. Retrieved October 17, 2011, from Transparency International: http://www.transparency.org/policy_research Trevino, L.K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right (4th ed.). Hoboken, NJ: Wiley. Www.economist.com. (2011). Retrieved from http://www.economist.com/node/12818310/print Www.nypost.com. (2011). Retrieved from http://www.nypost.com/p/news/local/bernie_late_payment_kXkQMORJfKETl3H8MiKhnN