Bernie Madoff Business Ethics
In the corporate environment, ethics aids in the ensurance that business will conduct in a trustworthy and respectable manner so clients are treated fairly. However, with the desire and the possible underlying goal to maximizing profits, corporations often are faced with ethical dilemmas, such as Bernard L. Madoff Investment Securities, LLC, which was run by Bernard “Bernie” Madoff.
Madoff orchestrated a ponzi scheme for nearly 18 years by attracting investors, falsifying statements, and through the use of feeder funds. Bernie Madoff was a well …show more content…
He used the “veil of exclusivity” to attract wealthy investors, as it was a symbol of prestige to be a Madoff investor (mag and britan). Additionally, Madoff used the “power of social feedback” to continue to attract affluent investors (movie) to fuel Madoff’s scandal. Early investors told other individuals about the profits of the safe investment, so they began to invest in Madoff. Donald Langevoort stated that Madoff was the least likely person to be a con artist and Gary Weiss claimed he Madoff was beloved on Wall Street (movie). In addition to Madoff’s trustworthy persona and prominent business reputation, he recognized what people wanted and found a way to satisfy it. Madoff offered people a “low risk, high return” deal that people could not refuse (movie). Madoff guaranteed a “steady one percent gain every month,” which constituted to approximately “ten to twelve percent a year, despite market volatility” (movie). The excellent, metronomic returns, as well as security and stability offered by Madoff were seductive to people and did not not originally appear suspicious. Madoff claimed he used a “split-strike strategy, which involved