Name
Class Period
Due date
Chapter 7Individual Extension Activity – Part 2
Overview
Using your Chapter 7 notes (from the second section of the chapter) and the Internet, as required,
answer the following questions. This activity is intended to bring up to date the concepts covered
in the chapter and consider the topics further. Be sure to cite all your sources directly below the
question in which you used that information.
Questions (10 points each)
5) The book mentioned the impact of the ‘long hour’s culture’ here in the US. What impact do you
think longer working hours has on i) individuals, ii) families and iii) businesses?
6) Lawsuits have an impact on various businesses. Find an article about a high profile or
interesting lawsuit involving a business. Provide the URL and summarize the article in 50 words.
7) You learned about the various services provided by employers, include those associated with
family friendly policies and assistance with dependency issues.
a) What do you see as the benefit of employers providing these services?
b) What disadvantage can you see with providing these services?
8) Additional information on environmental concerns
a)
b)
c)
d)
e)
What is the difference between renewable and non renewable resources?
Find a non renewable resources, when is it set to run out?
What renewable resource can replace this?
As an individual, describe 2 things that you can do on a daily basis to help the environment?
Do you do these things currently, explain why or why not?
CORPORATE ETHICS
PRIOR TO VIEWING VIDEO, The Madoff Affair, research and define the following terms.
1. Who is Bernie Madoff?
2. What is a Ponzi scheme?
3. What is a feeder fund?
(For further insight into what a feeder fund is and how feeder funds facilitated
Madoff’s investment practices, study/review the linked article pertaining to Madoff:
http://content.time.com/time/specials/packages/article/0,28804,1971588_1971589_
1971594,00.html )
Name
Class Period
Due date
BusinessEthics – The Madoff Scandal
Video link: 55.01 minutes:
http://video.pbs.org/video/1122731028/
While watching the documentary make notes to answer the following questions.
1. Note examples of unethical and/or illegal behavior discussed in the documentary. For what
was Bernie Madoff charged, arrested and sentenced.
2. Did he act alone or were others involved? If so, who?
3. Who were his clients and what did he promise them?
4. How did Fairfield Greenwich make its money?
a. Is it customary for a feeder fund to be able to keep all client fees?
b. What effect did this fee arrangement with Madoff Securities have on other fund
managers around the world?
5. How did the Fairfield Greenwich fund “take Madoff global”?
6. What was the condition Mr. Madoff imposed on people marketing his investments? Why do you
think he did this?
7. When investors received their statements, what responsibility did they have to review and
understand them? What signs could they have picked up on to alert them to potential
problems?
8. What kind of “due diligence” did the feeder funds, such as Fairfield Greenwich, do? What didn’t
they do? Why are they being sued by their clients?
9. Starting in 2001, whistleblower Harry Markopolos alerted the SEC three times to the likelihood
that Bernard Madoff was running a Ponzi scheme. Why do you think the SEC didn’t act on this
information until 2006?
10. After the SEC cleared Bernard Madoff in its 2006 investigation, Harry Markopolos took his
evidence to The Wall Street Journal, which did not publish it. What reasons can you think of as
to why?
11. To what extent do you think the SEC did or did not do its job?
12. What was the final straw that uncovered the Madoff Ponzi scheme?
Follow up questions – please answer the following after watching the documentary (20
points each)
13. Ultimately, who do you think was responsible for the losses incurred by investors?
14. Do you think the U.S. government should offset the losses incurred by investors with Madoff?
Explain.
15. What actions should the U.S. government take to minimize chances of other Ponzi schemes
taking place?