Worldcom Essay

The case study of WorldCom divulges two issues that led to the collapse of the company, namely unethical leadership and a lack of reporting mechanism – linked to poor communication within the company. Conger and Riggio (2012, p. 58) note that leaders who practice with integrity “treat ethics as “a driving force of an enterprise”. Consequently, the ethics program to be designed and implemented needs to consider the role of leadership and communication to make the ethics program effective. Other considerations

WorldCom was the ultimate success story among telecommunications companies. Bernard Ebbers took the reigns as CEO in 1985 and turned the company into a highly profitable one, at least on the outside. In 2002, Ebbers resigned, WorldCom admitted fraud and the company declared bankruptcy (Noe, Hollenbeck, Gerhart, &Wright 2007). The company was at the heart of one of the biggest accounting frauds seen in the United States. The demise of this telecommunications monster can be accredited to many factors

co-founder of WorldCom. WorldCom was the second largest long distance phone company in the United States now known as MCI, because of the tremendous scandal that led to the company’s bankruptcy (Crawford, 2005). With the grand success of WorldCom, Bernard Ebbers became one of the most powerful American businessman ever to face a criminal trial. In 2005, Ebbers was found guilty of securities fraud, conspiracy, and filing false documents with regulators. With the fraud committed to WorldCom, it led to

Behind Closed Doors at WorldCom: 2001 1. Two General Accounting employees—Dan Renfroe and Angela Walter—made journal entries in the amount of $150 million and $171 million, respectively, without detailed support. It was noted that this was not out of the ordinary at WorldCom. In your opinion, was this a proper accounting practice? Explain. Though this may not be out of the ordinary for WorldCom, this is not a correct accounting practice. The way the entries were made does not comply with the proper

Julie Cihacek Case #1: Cynthia Cooper and WorldCom Internal Auditing September 3rd, 2015 Cynthia Cooper was contemplating over this whole debacle with what was the right decision to make with her discovering “almost four billion dollars in questionable accounting entries”. (Mead) While contemplating something crossed her mind on deciding if she should speak up and become known as a whistleblower, is that her findings could cost WorldCom’s credibility, about seventy thousand employees would lose

the analysis of the case about Accounting Fraud at WorldCom Group member: Weichuan Xu Miao zhou 1. What are the pressures that lead executives and managers to "cook the books?" Firstly, one of the pressure is the company’s goal that was made by the top executive Ebbers. There is an economic recession and the bubble collapse which make the conditions deteriorate in 2012. He thinks that the company should focus on being the NO.1 stock on Wall street rather than the company’s really good operation

WORLDCOM, INC: CORPORATE BOND ISSUANCE Introduction This case raises many interesting questions concerning the record setting issuance of corporate debt by WorldCom, Inc. (“WorldCom”). Both the surprisingly voluminous structure of the proposed issuance and the foreboding macro-economic climate in which it was slated spark concerns over the risk and cost of the move. One of the first questions that must be addressed is whether WorldCom’s timing was appropriate. Next, the company’s choice of

WorldCom, the leading US telecommunications giant, WorldCom during the 1990s was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and steered in the competitive long-distance telephone industry. WorldCom now named MCI, recently emerged in June 2002, Securities and Exchange Commission lawyers filed civil fraud charges against WorldCom for what would later be estimated at over $9 to $11 billion worth of accounting errors. Bernie Ebbers

Introduction : WorldCom, US second biggest telecommunication organization stunned the world by documenting chapter 11 at 21 July 2002. The WorldCom documenting surpassed Enron and turned into the biggest chapter 11 recording in United States history. Because of its fast development, WorldCom is likewise vigorously in the red as they back the organization development with obligation. The breakdown of WorldCom did influence their workers, retailers, the legislature as well as financiers. WorldCom was a multi-billion

Bernie Ebbers, the founder of WorldCom was highly ambitious and aggressive with an entrepreneurial nature. He demonstrated the transformational and charismatic leadership qualities that inspire people and cause them to be loyal followers. These people usually have singleness of purpose and are disciplined. Since most people have a desire to be led, Ebbers filled that need, coupled with the fact that he created tremendous wealth that many executives and employees benefited from. He was charming and