Financial misconduct has come into the spotlight in recent years, causing market regulators to increase the reach and severity of interventions. We show that at times the economic benefits of illicit financial activity outweigh the costs of litigation. We illustrate our argument with data from the US Securities and Exchanges Commission and a case of investment misconduct. From the neoclassical economic paradigm, which follows utilitarian thinking, it is rational to engage in misconduct. Still, the majority of professionals refrain from misconduct, foregoing economic rewards. We suggest financial activity could be reimagined taking into account intrinsic and prosocial motivations. A virtue ethics framework could also be applied, linking financial behavior to the quest for moral excellence and shared flourishing. By going beyond utilitarian thinking and considering alternative models, we offer a fuller account of financial behavior and a better perspective from which to design deterrence methods.

Over time, the satisfaction of needs and the ability to meet them have consistently increased. However, the world of the 21st century is one in which the basic needs of millions of human beings are still not satisfied. Why? To an extent, nonprofit organizations such as charities play essential roles in the needed improvement of this situation. In this regard, the human factor within an organization is key influence in organizational performance and societal impact. Human beings within organizations make decisions based on their own motives, so the ethical values of each person are significantly important. Therefore, it is necessary to use analyze the potential of the human factor in the fourth industrial revolution and to analyze its influence in the previous industrial revolutions. This research was aimed to conduct such analyses for a nonprofit charity. Moreover, the authors of this paper also analyzed the industrial revolution potentials of the charity case study using system dynamics. The relevance of the presented paper was ensured by the aforementioned combination of topics. The results showed how greater impacts, higher expenses, and higher stocks were not necessarily able to quantitatively satisfy food needs in a timely manner if the human factor and global effectiveness and efficiency were not optimized. When these aspects were optimized, our hypothesis was proven, as the models set for further industrial revolutions were shown to provide better results in the satisfaction, efficiency, and economic indicators with a lower financial need; therefore, this model can be used to satisfy other needs of Maslow’s pyramid. In conclusion, this proposed approach empowers welfare organizations to increase their CSR consideration, thus enabling them to use internal mechanisms to secure viability in the pursuit of a high-performance CSR approach.

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