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Vast majority of todays investors choose to forgo some level of social, moral and ethical harms in order

to attain financial returns. Financial interest is one of the major reasons for the investors to indulge in
unethical activities and perusing to a road where they are gambling their careers which may end on a road
where Bernie Madoff is now. This scandal is a demonstration of various ethical issues and shortcomings.
Bernie Madoff and his coconspirators had unpinned the social, professional and ethical obligations for
fattening their pockets; they all were in together part of this ultimate Ponzi scheme. Bernie had an
extravagant experience of investment and hedge fund business, which he utilized to deceive all the related
stakeholders to by overriding law and regulations to earn impossible returns in the form of billion dollars.
He had confidence of his intelligence that no one can catch his integrated and complex exploitation of
loopholes of the system. He and his coconspirators unethically managed to betray and exploit the faith of
stakeholders on them. He was successful in making the investigators fool during all legal proceedings
against him. So its not the big deal to make earn an image but what matters the most is to act ethically and
acknowledging social responsibility even when you have a choice not to do so but what Bernie Madoff
did was he made a choice to earn money fraudulently by deceiving investors.

The perpetrators of this Ponzi scheme was not only Bernie Madoff and this employees but one of his
sibling Peter was equally involved in it as this could not be possible without a third party cooperation.
Many of the participants of this scheme claimed to be innocent because they had not complete knowledge
and understanding about this integrated and complex scheme which was involved in fraudulent activities.
No doubt Bernie was the captain of this ship but he had not been able to continue his journey without
involvement of people having diversified skills and capabilities. So it seems that their claims were just
manipulation for exploiting complexity of scheme to scape goat from the situation as they were all
involved at the price of being upgraded financially. So the biggest selling reason of this scheme was
financial incentives, to get implied willingness of the people involved to cooperate, lead this scheme to
continue so long. Generous financial incentives were rewarded to potential participants. The fact is these
people were free from fear of being caught as they were bribing people when they were about to be
caught and they people who were being bribed were not only employees but family too. People were quiet
in the presence of an effective and well publicized complaint system was a clear evidence of the financial
privileges they had enjoyed .Corporate culture of this firm was lacking the compliance with the
legislation. What this firm lack the most was accepting the responsibility for integrity, professional
competence due care , objectivity and professional business ethics. The foundation of the firm was built
on fradulant principles which were drowned like castle of sand on being exposed.

If I was one of his employees and found out this dilemma relevant to social responsibility and ethical
issues, what I would have done was the complete analysis of the situation skeptically taking in view the
involvement of others in and trying to resolve the scenario utilizing my moral and ethical perspective.
Initially I would have consulted my manager by putting forward to him my reservations and if proved
unfruitful then to concerned superior. It would be my responsibility to consider the effect of this scheme
on investors and analyzed to what extent I am already the part of this scheme and take into account my
social reporting responsibility in the given situation. I could have proceed it with by change blindness,
where overtime actual employees involved in the scheme may not have noticed the unethical practices
that were proceeding around them or that they had a hand in. Meanwhile or after my assessment I would
consider it my moral, professional and ethical obligation to report the fraudulent activity to the SEC and
or other law enforcement authorities handing over them as many facts as possible and offering the details
of how I and others may have played a role without suspecting the real situation. In doing so I would take
legal advice about whistle blower protection and try to secure immunity and another job. From this
scenario I would utilize this exceptional exposure as tangible skill and try to be alert in the future for the
related ethical dilemma.

The whole picture of this scenario would have been different if anyone the participants have behaved
ethically. Bernie Madoff committed crime when he decided to override the legislation and his social and
ethical responsibility by lying to people who trusted him blindly. The motives behind this choice are his
lust for money, power hunger, undue influence and pressure from business partners. His business strategy
and vision were based or parameters far away from all social and ethical responsibilities. Rather than
running on this route if he choose being in compliant to law and being responsible for his ethical
obligations then that would not have happened. His commitment to make high returns with the knowledge
thats its impossible to achieve this behaving ethical ethically and continuous denial of this whole master
planning till the end. Bernie Madoff and his coworkers could have intimated to the relevant authorities
about this fraudulent scheme but they prioritized not to. All of them who participated in the scheme made
a choice to override the law and fill up their account balance. They could have behaved ethically and
protect themselves from such shameful proceedings and results.

So it is quite evident that we may choose to prosper and get exceptional success by overriding rules,
regulations and laws but the truth is integrity, being truthful and transparent to our stakeholders, being
aware of the situation you are in and finding out the right way to proceed in a difficult situation can make
us to move on a road where success can be slow but permanent. Our ethical perspective must include
fundamental principles like integrity ( being obligated to be straight forward and truthful for their
professional commitments and relations), impartiality (without compromising their professional and
business ruling cause of prejudice, undue influence of others and conflict of interest), competence and
due diligence relevant to the field ( to have complete and up-to-date knowledge and skills for reasonable
assurance that stakeholders are provided with high quality services and to act upon thoroughly on
applicable rules, laws and standards while performing professional activities and providing professional
services) professional behavior ( being responsible of complying with legislation and regulations
applicable mandatory and refrain from any act discrediting profession as a whole).

So whatever situation you are in, no matter how complicated picture it portray the important thing is your
urge to stick to basic ethical and moral principles. They bestow us with safeguards, to overcome the
complications and to reduce the risk of being noncompliant, to an acceptable lower level. Whistle
blowing policy is one of the safeguard that is most efficient in the given scenario, which can be used by
any of the participants of the Ponzi scheme at any time. Analyzing the situation and assessing the
significance of threats and utilization of available safeguards at the right time can minimize the risk of
being not only prosecuted but also save us from embarrassment from public, family and professionally.
Today Bernie Madoff is in jail so what did he earn financially means nothing to him, he would spend rest
of his life regretting why did he think of himself above law and the biggest asset of his life i.e. his
extraordinary intelligence has become one of the reason of his disaster. So the aforementioned scandal
embed in itself a remarkable lesson entrepreneurs, business administration students, investors,
businessmen and even for higher level authorities dealing in security regulation ,regarding corporate
social responsibility, corporate ethics, organizational behavior and governance.