Final Report The Fraud of the Century: The Case of Bernard Madoff
Group No. 5: International Students
巴玉連 98370452 December 2011
We chose Bernard Madoff’s case because we thought that we could relate his case to many unethical behaviors. The analysis can be made on decision making and lack of ethical training which we think is an important topic to focus on this course.
On Dec. 11, 2008, Bernard Lawrence Madoff confessed that his vaunted investment business was all "one big lie," a Ponzi scheme colossal in volume and scope that cost investors $65 billion. Overnight, Madoff became the new poster child for Wall Street gall, greed and …show more content…
Social responsibility is the obligation of an organization to maximize its positive impact on stakeholders and to minimize its negative impact.
The are four levels that we learned in this course.
1. Philanthropic level:
The first level it is called the philanthropic level which it is about “giving back” to society and it includes everyone (customers, investors and shareholders, employees, suppliers, government agencies, communities). He disappointed all of this people including his own family the people he cared the most.
2. Ethical level:
The second level it is the ethical level which refers to abiding by all laws and government regulations, Bernard Madoff wasn’t obeying the law. He knew that the Ponzi scheme it is illegal in many countries and yet, knowing that he still went through with it and he is the only person that could maintain the scheme for such a long time (decades). SEC
3. Legal level:
The Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation. Bernard Madoff knew that the Ponzi scheme it is illegal in the United States of America and still went through it.
4. Economic level:
The objective of this level is to maximize stakeholder wealth and/or value and