Bernie Madoff: an Issue of Ethics Essay
There are many ethical issues in the world’s news today, some bigger than others, and many that get swept under the rug. One particular ethical issue is at the core of a huge story that has dominated the news for months on end and has lead to more trying times on Wall Street. The story is about Bernie Madoff and the massive effect he and his ponzi scheme had on hundreds of people who trusted him. This paper will discuss the ethical issue underlying the conflict, the damage that resulted from it, and the leadership that acted to counter suit his disaster. Bernie Madoff’s ponzi scheme is sure to go down in history as one of the largest business scandals ever and should make every person stop and make sure …show more content…
It is difficult to comprehend how auditors, Madoff’s business partners, investors and other chair people leading the investing firms that invested through Madoff could have possibly missed or overlooked this scheme. It appears that the people involved in this scheme failed to recognize what was taking place because of their own personal greed, failure to maintain adequate financial records, inexperience, or simply having turned a blind eye to what was taking place. This is a specifically troublesome idea considering that Madoff had many employees that worked closely with him and at his firm. The leadership within Madoff’s firm apparently had a complete management failure, but also important to mention is the leadership from the firms that were the victims of the fraud. For them to have neglected to properly track their principle investments shows that they failed to do their due diligence and as a result allowed themselves to become the subject of millions of dollars in losses for their firms and partners.
Because of the Madoff scheme, many firms are taking a closer look at their organizational board member diversities. This diversity is not simply related to ethnicity or race, but at experience, culture, location of assignments, age and other factors