Business Ethics Paul Smith
In order to run a successful business, all aspects of the company must work in harmony and focus on their tasks at hand without leaning over the edge and breaking the rules known as business ethics. Ethics are the guidelines and responsibilities businesses have that can help them succeed. In Freeman’s video about stakeholder theory, he explains what mistakes companies can make which cause them to fail, such as becoming too greedy and not following corporate responsibility guidelines. This relates to the article “The slippery slope of getting away with small stuff”, as Bernard Madoff became solely interested in the idea of turning as much profit as he could by illegally running a Ponzi scheme that later led his business to a rapid decline. Madoff started out with small transactions he thought were only small indiscretions, but his illegal behaviour quickly morphed into what became a multi-billion dollar scheme. The eventual collapse of the scheme not only destroyed the business; it ruined the finances of its investors which included individuals, charities, labour union pension funds and universities. Freeman explains that without all parts of a company working together following proper ethics, the company will not be successful. Corporate executives have social responsibilities” to follow, as explained in “The Social Responsibility of Business is to Increase Profits”. In Madoff’s case, he disregarded business ethics and his responsibilities to his investors, and looked for short-term profit which ultimately led his business into ruin. These ethics are what make companies stay on track for success, and disregarding them can have severe consequences.
This article provided ample amounts of information about how breaching the code of ethics can destroy a company. I found it useful as it explained Madoff’s motives as to exactly why he did it without thinking of the negatives.