According to the case study by Johnson, even the judge in the Madoff case called him "extraordinarily evil " because he destroyed millions of lives with his scheme. Madoff is the example of an unethical leader and the effects they can have on everyone involved. While Madoff's rise to the top of his profession was impressive, his eventual demise stemmed from the lack of ethical dealings, the lack of concern for others and because of his insatiable greed. The purpose of this paper is to analyze the effects of ethical and unethical behavior in today's business environment and the way that these effects have transformed since the Madoff incident. While Madoff used trust and the willingness of consumers to invest their life savings with him, he ended up creating a complete distrust with the American people in many aspects and his actions caused many to question the motives of many corporations. This paper will examine the behaviors that contributed to Madoff's eventual incarceration, while looking at the effects ethical behavior has on the business environment in today's world and ways that corporations are focusing on their social responsibilities and making ethically sound decisions. .
Situational Analysis.
According to businessdictionary.com, a situational analysis is a systematic collection and evaluation of past and present economic, political, social and technological data aimed at (1) identification of internal and external forces that may influence the organizations performance and choice of strategies, and (2) assessment of the organization's current and future strengths, weaknesses, and opportunities. This definition applies to the analysis by focusing on the effects that ethical and unethical behaviors can have in the business environment. Unethical decisions made by organizational leaders can have a catastrophic effect on the entire affected industry.
Internal Environment.