ANALYZING ETCHICAL BEHAVIOR PAPER Analyzing Ethical Behavior Paper Chad L. Million Grand Canyon University BUS-340 Ethical & Legal Issues in Bus. Glen Germanowski July 25, 2010 Analyzing Ethical Behavior Paper When functioning in the corporate world, it is an essential to include moral ethics. Ethics is also particularly imperative when laboring with financial information. It is very hard to have faith in someone managing plenty of money. Corporations in the past have distorted their financial statements in regulation to look superior to stockholders, without thinking of the penalty that may be a consequence if they get caught.
If a corporation does not encourage good quality ethical conduct within the business, it is difficult to confide in the financial statements. Analyzing Ethical Behavior Paper One of the planet’s largest and greatest -running Ponzi schemes was engineer by the 70-year-old Bernie Madoff. While Enron was also one of the world’s greatest substantial catastrophe, do partially because of its magnitude, as well as of its complication, moderately because the needs to guard the truthfulness of investment markets botched, and especially because of the enormous gluttony and involvement of key contributors.
I strongly believe that the state of affairs surrounding both the Bernie Madoff matter and Enron matter can very well command a more extensive analysis of Commission operations, Moreover, it is my observation that at the conclusion of these analytical efforts, there needs to be more than just the prospective classification of persons who may have engaged in unacceptable conduct or potentially unsuccessful to follow-up properly on grievances, but rather make an effort to present the Commission with tangible and precise recommendations to make certain that the SEC has dequate systems and resources to facilitate it to respond effectively and properly to complaints and detect fraud through its inspections and examinations. Bernie Madoff and Enron knows for every complicated dilemma there is an answer that is simple, clear and wrong, they chose wrong rather than choosing simple or clear when assessors botched, analysts botched, management botched, regulators botched, and creditors/bankers botched. The crossroads of numerous catastrophes transmitted a warning sign of structural problems.
Abruptly, the outcome of misleading financial data resulting from structural failure in the capital markets was not merely a theoretical prospect. Bernie Madoff and Enron the company entity likely did not implement palpable major offenses. Enron and Bernie Madoff misled foreigners and misused its financial state of affairs. Under United State law, misleading misrepresentation is not necessarily a crime. Fraud is a crime, though, but criminal intention to defraud is very complex to confirm.
Both Bernie Madoff and Enron was found guilty of the crime committing, obstruction of justice, for having destroyed potential proof by destroying documents, knowing that such documents could be used in an investigation by the SEC. Precise individuals associated with Bernie Madoff and Enron have been charged with critical crimes, and some Bernie Madoff and Enron officials plead guilty to crimes, including conspiracy to mislead through unfair financial reports.
I believe that Bernie Madoff and Enron had social and ethics responsibility toward their stakeholders do to the fact a conclusion that is not merely sensible for the company but also ethical, they have to bear in mind the ethics of each option, not from individual but a multiplicity of ethical point of view. Their stakeholders’ values include numerous ethical theories; ignoring any one theory will likely cause an incomplete consideration of the issues and may result in unforeseen consequences.
In addition to shareholders having self-assurance in the corporation, partners and suppliers have to be able to trust the corporation. Delicate relationships are established upon trust, as are business associations. Corporations flourish on networking in order to be successful. Employee implementation also gets better while laboring in an ethical environment. If member of staff performance improves, the business will thrive, and as an end result, everyone triumphs.
Bernie Madoff and Enron did not make ethics mandatory within their corporation, therefore trust nor could success be established. When that happens a chain reaction from ethical behavior to non-ethical behavior occurs. Non-ethical behavior is what scorned their corporation and generated bad publicity. Shareholders and corporate partners lose their confidence in the corporation and gave their money, business, and support to similar companies. By being non-ethical lead to their finical failure and the failure of their business.
By not being truthful with the shareholders, financials it is easy to see how the actual companies failed. Corporate partners could not count on the company when it came down to making business decisions. That’s what caused the bad publicity for their company and keep them in the negative attention drawn to their business. Conclusion In conclusion a good lesson is that [when working in the business world, it is a necessity to encompass moral ethics. ](Why Ethics Are Important in Business, Author Archive 2010. ) While learning not to overlook the obvious.
Sometimes the majority persuasive substantiation for something being in the wrong is frequently concealed in clear sight. Steady investment returns between nine/ten percent or higher can’t be authentic, as shown in the two cases of Bernie Madoff and Enron. In the same way as the law of ethics, there is increasing proof in clear sight that our contemporary line of attack to high-stakes laws plan can’t tell us what we need to know in order to compel high ethics improvement. References Why Ethics Are Important in Business. , Author Archive (2010) Retrieved from online source.