Business ethics and social responsibility are two concepts that go hand in hand for companies in the business environment. Business ethics are the moral principles a company uses to ensure all employees act in an acceptable manner when completing business functions. Social responsibility is typically an ideological theory that governments and the general public hold, believing that businesses should not conduct themselves in a manner counter to cultural or societal norms. To be socially responsible, a firm must take actions that benefit the community.
There are many examples of business failure due to social irresponsibility. One of the most recent examples of unethical behavior is that of Bernard Madoff and his Ponzi scheme.
Bernard …show more content…
His Ponzi scheme is valued up to $65 billion. In March 2009, Madoff was pleaded guilty to eleven felony courts related to a massive Ponzi scheme and is now facing a maximum sentence of 150 years in prison. The reason this has happened is because of the lack of the regulation in the financial markets. Investigators of the Securities and Exchange Commission (SEC) overlooked the problems and missed more than once as Madoff mentions.
The case of Bernard Madoff exposes several ethical issues that exist within American culture. Ethical issues include the following: fraud, cheating, misleading. The most important issue here is how Madoff could engage is such a scheme for so long and no one noticed? The reasons for this financial fraud includes; the irresponsibility of Madoff and his company, consumers' greed for high return and mainly because of the lack of regulation in the financial market. To enhance the regulation, there are two main methods, one is the direct intervention from government and the other is the pressure from various communities and organizations.
One ethical issue involved is how businesses that cater to the highest earning members
There are many examples of business failure due to social irresponsibility. One of the most recent examples of unethical behavior is that of Bernard Madoff and his Ponzi scheme.
Bernard …show more content…
His Ponzi scheme is valued up to $65 billion. In March 2009, Madoff was pleaded guilty to eleven felony courts related to a massive Ponzi scheme and is now facing a maximum sentence of 150 years in prison. The reason this has happened is because of the lack of the regulation in the financial markets. Investigators of the Securities and Exchange Commission (SEC) overlooked the problems and missed more than once as Madoff mentions.
The case of Bernard Madoff exposes several ethical issues that exist within American culture. Ethical issues include the following: fraud, cheating, misleading. The most important issue here is how Madoff could engage is such a scheme for so long and no one noticed? The reasons for this financial fraud includes; the irresponsibility of Madoff and his company, consumers' greed for high return and mainly because of the lack of regulation in the financial market. To enhance the regulation, there are two main methods, one is the direct intervention from government and the other is the pressure from various communities and organizations.
One ethical issue involved is how businesses that cater to the highest earning members