Outline: Case Study Bernie Madoff
You must use at least one tragic truism about people, one about managers and managing, one about organizations, and one about oversight and accountability. The fifth truism may be from any category of your choice.
Not all of the tragic truisms apply to this scandal. Rush, you will want to use the articles posted on Blackboard to determine which truisms best explain how/why the scandal happened. In other words, use direct quotes and paraphrases from the articles to prove which five (5) tragic truisms best explain this case. Use at least 10 of the 19 articles posted on Blackboard to support Our analysis.
You are welcome to use additional articles as long as you cite them appropriately in text and on the Works Cited page. Deductions Late penalty of 15 percent/30 points per calendar day.
Printed copy is due at the BEGINNING of the Week 6 lecture, which is when the late-penalty clock begins. Failure to include a cover page with your name, your Tat’s name, and your section (up to 6-point deduction). Failure to include one Tragic Truism from each of the four categories (up to 10-point deduction). Failure to use distinct truisms and evidence; allure to minimize repetition of information and/or overuse of articles (up to 30-point deduction).
Thus, reputation and trust are important to pretty much everyone?individuals and organizations. However, individuals do have different values, attributes, and priorities that guide their decisions and behavior.
Taken to an extreme, almost any personal value, attribute, or priority can “cause” an ethical breach (e. G. Risk taking, love of money or status, winning, flexibility, etc. )” (Crews). Word-for-word tragic truism quote with quotation marks and correct citation. ‘ 1 point Copy and paste the applicable subjoins(s); cite with (Crews).
“Don’t assume others are like you. Trust but check” (Crews).
Enter and cite direct quote 1 from an article as evidence to support your analysis. Redbrick Kramer presents a “thesis that human beings are naturally predisposed to trust -it’s in our genes and our childhood learning – and by and large it’s a survival mechanism that has served our species well” (70). Selected quote must directly relate to and effectively support the selected truism.
3 points Paraphrase or summarize the most important information from the above quote in Our own words; insert correct citation. It is in people’s nature to “do the right thing”. However, external influences and selfish motivations can alter this natural instinct.
It is likely that most all with trust others. Therefore, it is important to always deride information to ensure that what appears to be true is true Wording must accurately reflect the the most important information from the above direct quote and be the student’s own words; correct citation inserted.
5 points How does the above evidence explain how/why the Maddox scandal occurred? He understood that people are naturally trusting. Maddox identified a close circle of friends that trusted him, he then used those individuals to connect with their colleagues and trusted friends to expand his group of investors.
Trust was a key component to expand Bernie Madam’s investment group. Student must effectively connect the dots between the article’s information and the tragic truism. Enter and cite direct quote 2 from an article as evidence to support your analysis.
Psychologists refer to confirmation bias when individuals “pay more attention to, and overweight in importance, evidence supporting our hypotheses about the world while nonpaying or discounting discrepancies or evidence to the contrary’ (Kramer 71). Selected quote must directly relate to and effectively support the selected truism. Our own words; insert correct citation. Simply stated that people will see only what they want to see. Individuals often project their own values onto others creating a blindside in relationships (Kramer 71).
Wording must accurately reflect the the most Important information from the above direct quote and be the student’s own words; correct citation inserted. How does the above evidence explain how/why the Maddox scandal occurred? People look at the expanding investment portfolio of their friends and colleagues and used that as evidence to ensure they were making correct investments that were on target.
Student must effectively connect the dots between the article’s information and the tragic truism. Enter and cite direct quote 3 from an article as evidence to support your analysis. ‘He reserves special contempt..
. Their over-the-top greed, he [Maddox] suggests, blinded them to obvious signs of fraud – and, therefore, they deserved their fates” (Henries 2). Selected quote must directly relate to and effectively support he selected truism. [Our own words; insert correct citation. Maddox believes some of his victims deserve their "fates” due to being consumed in greed ( Henries 2).
Wording must How does the above evidence explain how/why the Maddox scandal occurred? It is important to recognize that both parties, Bernie and his investors, are both at fault for allowing this Opinion scheme to go on for so long.
Greed can easily consume people’s desires. Becoming a personal priority and this can create an ethical breach Crews). Student must effectively connect the dots between the article’s information ND the tragic truism. SUBTOTAL 40 points Tragic Truism about Managers and Managing (40 points) Copy and paste your Tragic Truism about Managers and Managing; cite with (Crews).
Nor-for-word tragic truism quote with quotation marks and correct citation.
1 point Copy and paste the applicable subjoins(s); cite with (Crews). [our own words; insert correct citation. Morning must accurately reflect the the most important information from the above direct quote and be the student’s own words; correct citation inserted. How does the above evidence explain how/why the Maddox scandal occurred? And every star employees knew that they could rise only so high” (Bandleader et al 4). {Our own words; insert correct citation.
Selected quote must directly relate to and effectively suppose t art en selected truism. Our own words; insert correct citation. 40 points Tragic Truism about Organizations (40 points) Copy and paste your Tragic Truism about Organize-actions; cite with (Crews). "Some organizations are simply more ethical than other organizations” (Crews). Word-for- Nor tragic truism quote with quotation marks and correct citation. Copy and paste the applicable subjoins(s); cite with (Crews).
An organization’s culture, strategy, and resource allocation strongly impact managers’ and employees’ behavior. 1. Culture a. Leaders a. I.
Ethical a. Ii. Unethical a. Iii. Hypocritical a.
Iv. Silent b. Formal mechanisms b. . Orientation and training b. Ii.
Performance management systems b. Iii. Organizational authority structure b. Iv. Selection systems b. V.
Values and missions statements b. Vi. Policies and codes b. Vii. Decision-making processes Informal mechanisms c.
I. Role models and heroes ii. Norms c. Iii. Rituals :. Iv.
Myths and stories c. V. Language d. Alignment versus misalignment 2. Strategy 3. Resource allocation Crews) ‘Organizations should choose their business partners and contractors carefully.
People and organizations are known by the company they keep. Trust but check. ” (Crews). ‘Then along came Bernie.
There was ‘something about this person, pedigree, and reputation that inspired trust..
. Maddox possessed all the bonfires – the record, the resume, the expertise, and the social connections” (Kramer 69) {Our own words; insert correct citation. Maddox conveyed confidence. He had a rich resume of experience and was well educated, all of these factors positioned him to he public as someone you could trust (Kramer 69). Wording must accurately reflect the the most important information from the above direct quote and be the student’s own words; correct citation inserted.
How does the above evidence explain how/why the Maddox scandal occurred?
Maddox used his background and experiences as confirmation that he was a ushered investor. All of this information was used to build a resume of an attractive, elite individual financial firm. Student must effectively connect the dots between the article’s information and the tragic truism. Leadership experts James Tooled and Warren Bennie caution that trust requires more than honest behaviors from leaders. Rather it takes cultures that reward honesty and punish dishonesty. ” (Galvan 26).
Selected quote must directly relate to and effectively support the selected truism. [Our own words; insert correct citation.
In order to be a cutlets leader, actions alone are not enough a manager must reward practice of good ethics. (Galvan 26). How does the above evidence explain how/why the Maddox scandal occurred? After the news broke about Maddox committing one of the largest Opinion schemes, people old not understand how the employees did not know that their boss was a fraud. Nether BOMBS employees knew the true operations of Madam’s business will forever be debated.
Maddox Investment Securities’ operating structure created a complacent Nor culture and lacked the formal mechanisms off business.
Student must effectively connect the dots between the article’s information and the tragic truism. ‘Maddox purportedly executed a ‘split strike conversion’ strategy… Len basic terms, it’s a collar,’ putting a floor and a ceiling on returns.
A floor on potential losses is created y purchasing a put on a stock. The sale of a call then puts ceiling on the returns. ” (Dodge 18-19). Selected quote must directly relate to and effectively support the selected truism. {Our own words; insert correct citation.
By placing a ceiling and floor on return Maddox created a false sense of security for people’s investment.
Investors felt that Nile there may be a limit on the upside of the return there would not be significant downside (Dodge 18-19). Wording must accurately reflect the the most important information from the above direct quote and be the student’s own words; correct taxation inserted. How does the above evidence explain how/why the Maddox scandal occurred? Closely looking at Bernie Maddox organization structure and strategy. You see the "29 Red Flags” Marshmallows discussed in his memo (Rhea 367).
If Madam’s business strategy Nas thoroughly analyzed one would notice that the numbers really never matched.
However, it was difficult for an investor or outside source to gain additional knowledge on Madam’s investment strategy due to his secrecy. Student must 40 points Tragic Truism about Oversight and Accountability (40 points) Grading Criteria Copy and paste your Tragic Truism about Oversight and Accountability; cite Witt Crews). Stakeholders, including boards of directors, consumers, investors, Insensibleness, auditors, lawyers, and regulatory agencies, are supposed to hold managers and businesses accountable for their decisions and actions.
In reality, legal, auditing, and/or regulatory weaknesses often contribute to ethics scandals. Copy and paste the applicable subjoins(s); cite with (Crews).
"Legal and regulatory penalties must have "teeth” to deter unethical behavior. In other words, harsher gal penalties (or the fear of harsh penalties) are more likely to deter bad behavior” (Crews). "Weightlessness are not treated well by their companies. Companies frequently punish employees who publicize illegal or unethical behavior” (Crews). Harry Marshmallows and his ad hoc team of sleuths spent eight years trying to expose Bernie Maddox as a fraud – but the SEC turned a deaf ear” (Marshmallows 2). Selected quote must directly relate to and effectively support the selected truism.
[Our own words; insert correct citation. Marshmallows spoke to Madam’s fraudulent equines multiple times but no one seemed to listen (Marshmallows 2). Wording must How does the above evidence explain how/why the Maddox scandal occurred? The securities exchange commission walked away from their obligations to regulate and fell victim to Bernie Maddox.
Student must effectively connect the dots between the article’s information and the tragic truism. Ronnie Ambrosial speaks to the performance of the SEC, "l believe that the SEC is totally at Fault.
It was as if [Maddox] was given the red carpet to rob you and the government gave [Maddox] the g[Maddox] did my Job the way the SEC did theirs, I would not have a Job. ” (Dodge 20). Selected quote must directly relate to and effectively Tater the Maddox scandal people and lost confidence in the SEC and this has had major repercussions (Dodge 20).
Wording must accurately reflect the the most important information from the above direct quote and be the student’s own words; correct citation inserted. SEC gave the public a sense of security when it came to their investments.
However after the Maddox scandal people lack the confidence of who to entrust their confidence in their financial portfolio. Student must effectively connect the dots between the article’s information and the tragic truism. ‘After all, the Securities and Exchange Commission had given Maddox a clean bill of health on several occasions since 1992 by not digging deeply into his operations or lust plain neglect. (“The Technology Behind the Scan” 22) Selected quote must directly relate to and effectively support the selected truism. {Our own words; insert correct citation.
On several occasions BOMBS was questioned about its business operations but continued to pass the SEC’s standards (“The Technology Behind the Scan” 22). Wording must accurately reflect the the most important information from the above direct quote and be the student’s own words; Ernie Maddox scandal was overlooked by individuals who are suppose to be very knowledgeable in the financial field, regulatory agencies.
Creating doubt in the American financial market. Student must effectively connect the dots between the 40 points Tragic Truism about ??? (Your Choice) (40 points) Copy and paste your Tragic Truism about ??? ; cite with (Crews). “Talk is cheap; ethics IS mostly about behavior. Typically, people are what they do not what they say.
(Crews). Word-for-word tragic truism quote with quotation marks and correct citation. Copy and paste the applicable truism subjoins(s); cite with (Crews). Decision-making biases also contribute to unethical decisions. 1 .
Personal preferences about gender, age, race, ethnicity, religion, sexual orientation, etc. 2. Halo effect 3. Optimism versus realism 4. Emotions versus facts 5.
Sunk costs 5. Bounded rationality 7. Rationalization ‘Maddox was prominent and respected in the financial community, and the Wall Street Journal reported that family members also had leadership roles in the very roofs that police the financial industry and lobby for favorable regulations, Personal, social relationships play a role, too, in claiming any investors’ suspicions” (“Madam’s Gang” 19).
Selected quote must directly relate to and effectively {Our own words; insert correct citation. Maddox used to seem his leadership role and external roles as additional testimony to his vast experiences. Several of these roles appeared to allow him some monitor any oversight that any external organizations could have on his investment firm (“Madam’s Gang” 19).
Wording must accurately fleet the the most important information from the above direct quote and be the student’s own words; correct citation inserted.
Investors of Bernie Maddox lost the capability to be financially objective. Madam’s leadership roles in external roles further clouded investors ability to see the truth. ‘The role of emotion in financial decision-making: We like to think of ourselves as objectively analyzing the data under the cool light of reason, but far more often than not our emotions are running the show(Madam’s Gang 18). Selected quote must [Our own words; insert correct citation.
People need to be sure to analyze the facts.
