Warren Buffett and Bernie Madoff’s Approach to Business Dealings

Business Ethics
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Business Ethics
Business ethics can be described as the accepted policies and practices that help solve controversial business subjects. Some of the subjects handled under business ethics include insider trading, corporate governance, and discrimination. Business ethics usually provide guidelines for business operations. Law (business ethics) is used to protect consumers and entrepreneurs from exploitation. Additionally, business ethics have a significant impact on the environment and consumers. For example, they increase environmental awareness to investors and organizations. The research paper will discuss business ethic approaches that Warren Buffet and Bernie Madoff use.
Warren Buffet’s Ethical Approach
Typically, Buffet does value investment and does not bother with the market crash. Mainly, he will invest in businesses that will have long-term success. Warren Buffet also focuses on ethical dealings, which makes his business more successful. Since he acquired Berkshire Hathaway, he has had consistent business rules that help grow (Svensson & Wood, 2007). Several aspects of business ethics define Warren Buffet's business approach. Firstly, he uses his businesses to support upcoming entrepreneurs and charity giving. Besides imposing high competition on small businesses, he provides a pathway to building their success (Hagstrom, 2013). Giving to a good cause is phenomenal since it helps support vulnerable families across the globe. Some businesses do not observe the well-being of people when setting business. Buffet’s business approach involves value and protection to the end consumer. Secondly, Warren Buffet does not support insider trading, which is unethical business practice. In most cases, he has been condemning the disastrous insider trading in Wall Street. Thirdly, he made an acquisition that observed the law, which reflects high integrity and transparency.
Bernie Madoff
Bernie Madoff was a financier and a fraudster at the same time. He ran the Ponzi scheme, which frauded investors more than $64 billion, one of the largest fraud schemes in history. The split strike conversion was a strategy that Bernie Madoff used to create his unethical wealth (Svensson & Wood, 2007). The strategy focused on depositing funds in a single bank which was actual trading. However, the redemptions fell during the 2008 market crash, which unveiled his business approaches.
Warren Buffet Versus Bernie Madoff
There is a significant difference between the two entrepreneurs. Firstly, Warren Buffet is a value strategy that involves investing in companies that have long-term success. It is a strategy that he used to grow his company (Hathaway). Contrarily, Bernie M...