David Myers, Worldcom

1778 WordsSep 7, 20138 Pages
Introduction WorldCom was America 's second largest telecom company in 2000 (The WorldCom Accounting Scandal, 2002). Making a modest beginning in the hinterland of Mississippi in 1983 with a meager capital of less than 100,000 USD it reached the pinnacle of corporate success reporting more than USD 39 billion in revenue and USD 150 million in MCAP (The WorldCom Accounting Scandal, 2002). In the process it became 42nd in the Fortune 500 list. Under the leadership of CEO Bernie Ebbers it grew rapidly by means of acquisitions and increased demand for telecom services farther fuelled the growth of WorldCom during the whole of 90s. However on June 25, 2002, WorldCom announced that it had overstated earnings in 2001 and the first quarter of…show more content…
If the WorldCom would have adopted the goal setting theory in their organization, its executive and auditor would have not gone for the unethical accounting practices for the business (Griffin & Moorhead, 2009). Corporate Governance Corporate governance is the set of processes, customs, policies, laws and institutions, which directed, administered and controlled over the corporation (Monks & Minow, 2008). Corporate governance is a way by which a company governs itself for providing the values to their stake holders. The WorldCom did not follow the corporate governance policy. If the WorldCom would have followed the corporate governance it would have not led towards this business failure and company would have not gone for the unethical practices conduct in the organization. Corporate governance would have increased the faith of stakeholders towards the company and company would have survived for long time (Monks & Minow, 2008). Adoption of Ethical Behavior The Ethical Behavior would enhance the performance of the company, because the ethical behavior would creates the good image of the company among the stakeholders. If The WorldCom would have adopted the ethical behavior in the organization it would not have attained bankruptcy in the market. The company acted in unethically to misrepresent the accounts of the company (Salter, 2008). Contribution of Leadership, Management and Organizational Structures Every organization is directed with a particular

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