Case Study: Perceived Pressure

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Perceived pressure-
Perceived pressure is present when financial problems which are on the rise that are unable to be solved, thus pushing commit fraud. Adding on, nonfinancial pressures involve producing better financial results than actual performance, intention to top the market / industry.
As such, Bernie Ebbers desired to notch the Wall Street through forging close relationships between Worldcom and the Stock market. Below are the factors that evidently pressured Bernie Ebbers
• Pressure to meet or Beat analyst expectation
“Our goal is not to capture market share or to be global. Our goal is to be the no.1 stock on wall street” as quoted in the case study, Ebbers, the CEO and “the powerful leader” , strongly desired to notch the Stock market on wall street which drove him to greed. Thus, it led committed a financial fraud. It was easy for him to do so as; he was able to pull in members of the stock market. Moreover
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By making use of the currency of the stock market value, Ebber is able to deviate for his personal benefits rather than for the organization. Greed was actually overwhelming within him made the CEO neglect his company’s growth.
It is said that strong internal control is the backbone of the organization. Having said that, Worldcom reflects poor internal controls where the reasons are highlighted below:
- “The two leaders’ fame made it easy to follow their lead without questions”
- “Create a corporate culture in which leaders and managers were not to be questioned or second –guessed”
- “Ebbers made a request to the Board that should have been denied, yet the Board granted approval without
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