Analyzing Ethical Behavior Module 5 Gcu Bus 340
Introduction to Business Law and Ethics
Timothy Riley
Grand Canyon University
Module 5
May 19, 2013
Instructor: Pedro Moreno
Analyzing Ethical Behavior
The Ethical Failure of the corporate G I A N T S In the course of this report, it will show the comparison of the ethical aspect of two well-known corporate giants, Enron and Bernie Madoff. The first subject Bernard Lawrence "Bernie" Madoff, Broker, Investment guru, Financier. Once herald as a financial king, he in his reign overnight turned white collar criminal, which led to a quick and easy demise. Second, Enron Corporation, known for energy and commodities, services, and well known for being a major player in the electricity and natural gas, and communication, pulp and paper company, crumbled to its knees into bankruptcy in the early 2000s. The question is, at the height of both these two companies, what went wrong. Where was the ethical breakdown? The who, what when and the why will be the focus of this report. Bernie Madoff, former chair of NASDAQ, started his parent company on Wall Street Bernie L. Madoff Investment Securities LLC, 1960 it was as the top of its game-bypassing firms who were specialist in the field of finance. Hijacked by Madoff’s firm with their signature OTC…Over the Counter orders with brokers. The company employed family and close friends that comprised of his brother Peter, Managing Director, his niece (peter’s daughter) Shana Madoff, compliance officer and attorney, and his two son’s Mark and Andrew. It was told by Madoff’s sons that their father made damaging statements, and confessed to them that the business was a lie, that it was a Ponzi scheme from the beginning, which led Federal agents to arrest Madoff, and all those involved. Madoff told authorities that the scheme began in 1990, but according to the FBI, it was started early as the 1970s. It has been reported that Madoff’s trial of deceit led his scheme to accumulate as much as $65 billion, with a reported
Timothy Riley
Grand Canyon University
Module 5
May 19, 2013
Instructor: Pedro Moreno
Analyzing Ethical Behavior
The Ethical Failure of the corporate G I A N T S In the course of this report, it will show the comparison of the ethical aspect of two well-known corporate giants, Enron and Bernie Madoff. The first subject Bernard Lawrence "Bernie" Madoff, Broker, Investment guru, Financier. Once herald as a financial king, he in his reign overnight turned white collar criminal, which led to a quick and easy demise. Second, Enron Corporation, known for energy and commodities, services, and well known for being a major player in the electricity and natural gas, and communication, pulp and paper company, crumbled to its knees into bankruptcy in the early 2000s. The question is, at the height of both these two companies, what went wrong. Where was the ethical breakdown? The who, what when and the why will be the focus of this report. Bernie Madoff, former chair of NASDAQ, started his parent company on Wall Street Bernie L. Madoff Investment Securities LLC, 1960 it was as the top of its game-bypassing firms who were specialist in the field of finance. Hijacked by Madoff’s firm with their signature OTC…Over the Counter orders with brokers. The company employed family and close friends that comprised of his brother Peter, Managing Director, his niece (peter’s daughter) Shana Madoff, compliance officer and attorney, and his two son’s Mark and Andrew. It was told by Madoff’s sons that their father made damaging statements, and confessed to them that the business was a lie, that it was a Ponzi scheme from the beginning, which led Federal agents to arrest Madoff, and all those involved. Madoff told authorities that the scheme began in 1990, but according to the FBI, it was started early as the 1970s. It has been reported that Madoff’s trial of deceit led his scheme to accumulate as much as $65 billion, with a reported