Position Paper 2: Breaches of Ethics

        If there was a reason for checks and balances, ethical breaches seem like a good one. According to Merriam Webster, ethics is defined as, “the principles of conduct governing an individual or a group”. Ethics are often believed to be what keeps people held to a certain standard. Whether the breach is of personal client information, devious and intentional shortcuts made by companies for their benefits, or a flat-out Ponzi scheme. These sorts of incidents not only stand to damage the credibility of the companies or individuals involved, but also innocent people who find themselves at a loss due to the unethical dealings of others.

        Earlier this year, in May 2021, both Bill and Melinda Gates took to the internet to announce their decision to end their marriage. The pair created nearly identical posts which seemed to be direct and amicable. The two were married for twenty-seven years, before filing for divorce. Just three months after making their intentions public their divorce was finalized. Just weeks after the pair shared their decision to separate, word of the investigation involving Bill Gates and an alleged relationship with a Microsoft employee emerged. 

        Microsoft spokesperson Frank Shaw said, “Microsoft received a concern in the latter half of 2019 that Bill Gates sought to initiate an intimate relationship with a company employee in the year 2000,” in email statements. This concern came from another employee within the company. After having the allegations brought to the forefront the board members of Microsoft began an investigation to get to the bottom of things. By March of 2020 Gates decided to step down as a member of the board, despite having just been re-elected for her position at the top of the year. 

        The board learned that the employee was an engineer for the company, and she did have a sexual relationship with Gates in the year 2000. However, by this time Gates was no longer a board member, but still a founder in the company. Not only was the affair an act of distrust for his marriage but also Microsoft. As a founder and board member for the company, those positions carry a great deal of power more than that of the female engineer as his power could have made her feel pressured into the relationship for fear of losing her job or even prevented from future employment at other companies within the field due to his connections. 

        I am sure that we have all heard the name Bernie Madoff before in one way or another, usually followed by the words “Ponzi scheme”. It was not until I got older and started to read about the crimes that he committed that I got a better understanding of an ethical breach and how they can play out in the media. In 1960 Madoff Investments was founded as a penny stock brokerage by Bernie with financial support from his father-in-law. The company was successful for decades and it was not until 1999 that any suspicions had been raised in regards to possible wrongdoings. 

        In 1999 Harry Markopolos, an investigator for financial fraud and former executive for the securities industry, began looking into the company after he noticed that Madoff Investments was claiming profits that far exceeded the norm for a firm of its nature. He determined that the companies couldn't be bringing in such large profits and believed that fraudulent behavior was involved. As the investigates was underway, Madoff shared with his family the actual nature of the company and what he had been doing. He was later reported to the police by one of his sons. The investigation began and was underway for multiple years. In 2008, Madoff admitted that the company was a Ponzi scheme, he was then sentenced to 150 years in prison. The rest of his family was also investigated but later cleared, though they still issued apologies for all the damage Bernie caused people.

        For companies, trust is a major component so when ethical breaches such as these take place it causes people to trust companies less and less. Being genuine, understanding, and relatable go a long way in this business. As for Bill Gates although he was not stealing funds from the company he was still just as unethical as Madoff because of his position and ranking over his subordinates that he engaged in romantic relationships. Hypothetically speaking we could use his power to blackball are leverage a person’s job over their head should they decide to go against what he wants.  Not to mention he was married at the time of the initial incident with one of his employees.