Ethics in Business

Gillian Hall
Slide Set by , created about 2 years ago

brief overview of ethics in business unit

Gillian Hall
Created by Gillian Hall about 2 years ago
situation ethics
A2 Ethics - Virtue Ethics
Heloise Tudor
Digital Marketing Strategy - The Essentials
Micheal Heffernan
To Kill A Mockingbird Complete Notes
French Tense Endings
James Hoyle
Forms of Business Ownership Quiz
Noah Swanson
Unit 3 Business Studies
Lauren Thrower
Contract Law
AQA Business Unit 1
What is Marketing?
Stephanie Natasha

Slide 1

    Goodwill and Categorical Imperative    -humans are required to do their duties             - not arbitrary    -to determine if something is moral, universalize it      - if the entire world followed this rule, what would it be like?         What if we universalized murder or stealing?             - if you can universalize it, then it's a moral duty    -No special pleading    -Veil of Ignorance             - you must hide identities in a situation in order to                      remove personal bias    -no special treatment or discrimination    - HUMAN SHOULD NOT BE TREATED AS A MEANS TO AN END              - humans=dignity             - objects= value
       -humans should not be sacrificed for the greater good    -humans must not commit suicide    -motive=important             - actions should be motivated by reason, not emotion    -actions must be held to the maxim, or global standard    - if moral humans aren't rewarded in life, then they must be    rewarded in the afterlife             -God=real    -Goodwill: acting out of goodwill is to fulfill your obligations    -Categorical Imperative: a reason to do something whether you    like it or not (you may not want to do something, but it's your    duty    - What is the difference between moral and nonmoral actions?    - nonmoral: acting out of inclination    -moral: acting out of duty

Slide 2

    Theory: Ethics in business is defined by the rules of the business world, not moral world             -Poker example (play the game) Flaws:     - switches back and forth on ideas    - assumes everyone knows the rules of the       game    - business is ethical if it follows the law (not       true)  
    1984: businessman Rolf Kiefer able to tell the "technology park" is shady and they offered too much money in cash 1985:  companies IBI and Imhausen Chemie agree to supply materials to Libya 1985-89: Barbouti sends supplies through Hong Kong and Frankfurt  -Claims he didn't know they were producing weapons at  Pharma 150 (though he bought chemical and machinery, and was the supervisor) -TECHNICALLY didn't break any laws -didn't want to lie nor tell the truth    

Slide 3

    THE PROBLEM: Madoff was running a Ponzi scheme TIMELINE 1960: went into business; worked with father in law, stock trading       -lost money, paid off with own money 70s/80s: Ponzi scheme begins; works with Avellino & Bienes 1990: partner with Fairfield Greenwich (run by Walter Noel and Jeffrey Tucker) 2000: Markopolos (whistleblower) gives memos to SEC 3x 2001: Fairfield Greenwich suspicious, asks about money; Madoff vaguely replies, but doesn't provide real answer 2008: confesses to son, goes public 2009: plead guilty, 150 years in prison  
       -OTHER INFO: -Fairfield Greenwich: feeder fund -didn't take client fees, got extra money -secrecy rule (no mention of name, felt exclusive) -Noel's daughters: married wealthy foreigners -affinity con: connected with people on similarities, hooked them up with deals   DISCREPANCIES AND THE REVEAL:    -returns were too good (10-20% all the time)    -listed investments with companies that weren't taking investors    -only sent hard copies of statements through mail    -17th floor: restricted (suspicious)    

Slide 4

    Madoff cont.
    Due Diligence:    -SEC allegations prompted Tucker to visit Madoff    -gave him cursory glance at records    -Fairfield Greenwich Due Diligence was in Bermuda, couldn't regulate control    
    SEC/WALL STREET:    - possibly paid off, scared to investigate, lazy     FINAL STRAW:    -2008 housing crisis:          - more people wanted to cash out than             invest             - tried to offer exclusive investment opportunities             -couldn't pay investors             -scheme revealed