Ethical behavior is behavior that a person considers appropriate. A person's moral principles are shaped from birth and develop throughout the person's life. There are many factors that can influence what a person believes, what is right or what is wrong. Some factors are a person's family, religious beliefs, culture, and experiences. In the business world it is of great importance that an employee understands how to act ethically to prevent a company from being sued and receiving criticism from the public while bringing profits to the company. (Mallor, Barnes, Bowers, & Langvardt, 2010) Business ethics is when ethical behavior is applied in a business environment or by a company. Many situations can arise where a person is faced with an ethical dilemma. They must choose between meeting their own personal ethical standards or complying with the ethical standards of their company. In some cases some must choose whether to serve their personal interests or those of the company. In this essay I will examine the financial events surrounding Bernie Madoff and the events surrounding Enron. Bernie Madoff, “a former American stockbroker, investment advisor, non-executive chairman of the NASDAQ stock market, and admitted operator of what has been described as the largest Ponzi scheme in the history of the world.” (Bernard Madoff, 2011, para. 1) Bernie managed to convince investors to give him large sums of money with the promise that they would receive an annual return of between 8% and 12%. Bernie ran a pyramid scheme in which Bernie kept large sums of money for himself, and then used funds from new investors to pay off the ethical behavior analysis that surrounded Bernie Madoff's financial events and the events that surrounded Enron.Works cited Bernard Madoff. (2011, March 19). In Wikipedia, the free encyclopedia. Retrieved March 19, 2011, from http://en.wikipedia.org/w/index.php?title=Bernard_Madoff&oldid=419553385Clark, R. (2008, January 27). How bad business ethics led to the collapse of Enron ethics. Retrieved March 19, 2011, from http://ezinearticles.com/?How-Poor-Business-Ethics-Led-To-The-Collape-Of-Enron-Ethics&id=951763Enron. (2011, March 18). In Wikipedia, the free encyclopedia. Retrieved March 19, 2011, from http://en.wikipedia.org/w/index.php?title=Enron&oldid=419486167Mallor, J.P., Barnes, A., Bowers, T., & Langvardt, A.W. (2010). Business Law: The Ethical, Global, and E-Commerce Environment (14th ed.). New York, NY: McGraw-Hill/Irwin.