preview

Bernard Ebbers Leadership Analysis

Decent Essays
The Analysis of Bernard Ebbers’ Leadership
The company had a culture of exhibiting an aggressive acquisitions established by Ebbers, at whatever price it takes and likely that culture was widely accepted and adopted by the top management of WorldCom. Ebbers was greatly admired and idolized by the employees and close acquaintances, even though the background of the whole process was not precisely clear to the everyone within the collective (Klebe Treviño & Brown, 2005). Consequently, it resulted in uncontrolled use of companies’ stocks to finance the acquisitions of other companies while constantly struggling to keep the stock highly valuable, and undertaking an extreme risk of failure. According to the good business practice, the acquisitions
…show more content…
Instead of following the proper path that traced at the beginning period by hiring the great engineering and accounting potential that could be used to perform the duties ethically to avoid the financial fraud and to use of their accounting skills to perform solvent business activities and rational asset acquiring approach while controlling the liabilities. For example, the company could benefit from the lower profit tax if reported the exact profit and earnings, in order to focus on operations and production rather than focusing on the stock market and stock value. The overstated earnings by more than $9 billion since ‘99 produced higher profit tax, by the realistic reporting and intensive investment in assets at the expense of lower stock price, profit tax could be reduced and used for the liabilities paid off.

References
Klebe Treviño, L., & Brown, M. E. (2005). The Role of Leaders in Influencing Unethical Behavior in the Workplace. In L. Klebe Treviño, & M. E. Brown, Managing Organizational Deviance (pp. 69-96). California: Sage Publications.
Staff, I. (2013, August 21). Solvency. Retrieved from Investopedia:
Get Access