A few different actions could be beneficial in ensuring that Ponzi schemes like the one perpetrated by Mr. Madoff do not happen in the future. One of these actions is to ensure that professionals and organizations working in the financial sector receive education regarding ethical behaviors and common pitfalls. Ensuring that individuals working in this important industry are ethically competent is important to the health of the nation as ethical issues erode the trust that Americans have in financial services. As America depends on these financial services for its economic output, maintaining this trust is vital. Pohling, Bzdok, Eigenstetter, Stumpf, and Strobel (2016) point out that ethical competence involves not the ability to recognize when an ethical dilemma exists and the ability to identify the correct ethical actions. In addition, ethical competence also involves the ability for the decision-maker to have the courage and ability to withstand criticism and adversity in the face of push-back regarding an ethical-decision (Pohling, Bzdok, Eigenstetter, Stumpf, & Strobel, 2016).
In addition to ensuring that professionals are educated in ethical competence, it is also important for regulatory agencies to provide effective oversight. Many fraudulent and unethical white collar …show more content…
However, over time these seemingly small questionable actions can blossom into a full blown ethical crisis. As Groves and Weirich (2012) wisely point out, rules and regulations cannot always solve the ethical problems present. Often times, the legalistic language of the law itself allows individuals to follow the exact wording of the law while ignoring its true purpose. The ethical decision making process is important in order to avoid this type of behavior, and education regarding critically thinking through ethical decision making may be helpful (Groves & Weirich,
In addition to ensuring that professionals are educated in ethical competence, it is also important for regulatory agencies to provide effective oversight. Many fraudulent and unethical white collar …show more content…
However, over time these seemingly small questionable actions can blossom into a full blown ethical crisis. As Groves and Weirich (2012) wisely point out, rules and regulations cannot always solve the ethical problems present. Often times, the legalistic language of the law itself allows individuals to follow the exact wording of the law while ignoring its true purpose. The ethical decision making process is important in order to avoid this type of behavior, and education regarding critically thinking through ethical decision making may be helpful (Groves & Weirich,