WorldCom

Worldcom Fraud TABLE OF CONTENTS WORLDCOM MISSION STATEMENT..........................................PG. 3 THE ETHICAL PRINCIPLES AND TENETS OF WORLDCOM ............PG. 4 THE BEHAVIOR OF WORLDCOM ADMINISTRATORS ....................PG. 5 WAS CYNTHIA COOPER A HERO?.............................................PG. 6 WHAT WORLDCOM DID NOT RECOGNIZE .................................PG. 7 THE CONCLUSION..................................................................PG. 8 WORKS

Beginning of a Whistleblower Bernie Ebbers, Scott Sullivan, and other members of top management intentionally led Mississippi’s pride and joy, WorldCom, on a 5-quarter charade filled with smoke, mirrors, and much intimidation. They did it hotly pursuing success, monetary gain, and the praise of their fellow statesmen. They did it by abusing work relationships and intimidating employees with promises and threats. Ultimately, they ended up “losing their footing” which caused them and, in turn, others

the complicated fraud, WorldCom fraud was the simplest to commit. WorldCom, now known as MCI and acquired by Verizon Communication since 2006, was founded in 1983 to create a discount long-distance provider. The company grew very rapidly in the 1990s due to several large acquisitions. (Beresford, Katzenbach, & C.B. Rogers, 2003) WorldCom completed 3 mergers in 1998 and one of the merger is largest at that time which is purchasing MCI Communications Inc. for $40 billion. WorldCom also merged with Brooks

Worldcom Question 1. A summary of Worldcom, historical data and background. Worldcom will soon be one of the largest telecommunication companies on the planet. Worldcom has built its global presence through a multitude of financial acquisitions and investments, highly successful product marketing programs, while making business alliances with many of the most successful companies in the technology and telecommunications sector. Worldcom (stock symbol: WCOM), formerly MCI, Worldcom

WorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7, 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing, etc. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times.

Examining a Business Failure: WorldCom WorldCom was one of several large companies that failed because of inadequate organizational leadership, fraud, conspiracy, falsifying documents, and embezzlement. WorldCom has been classified as being “one of the biggest corporate scandals in Unites States history” (Zekany, 2004, p. 101). In 2001, the company’s financial condition began to decline due to the slowing telecommunications industry, which eventually put pressure on the company’s executive

3) Roots of the scandal The roots of the fraud and the role of internal auditors As explained above, the fraud was implemented by the former CEO Bernard Ebbers and commited by his financial director Scott D. Sullivan. The technique used by Worldcom was pretty simple; indeed, he cooked the books by saving pure operating expenses such as maintenance network in capital expenditure instead of expenses in order to hide its decreasing earnings and to maintain the price of Worldcom’s stock. In summary

the Industry Industry Specific Challenges WorldCom was a supplier for long distance phone services to many businesses and residents. It started out as a minor business knows as Long Distance Discount Services (LDDS) that developed into the third biggest telecommunications business in the United States dues to the managing of CEO Bernie Ebbers. There were 85,000 workers at its highest with an existence in more than 65 countries. The loss of MCI/WorldCom was the direct result of the behavior of

Restoring Trust in WorldCom 1. What are the three or four central objectives that Breeden hopes to achieve with the proposals in “Restoring Trust”? Why is reform needed? What are the benefits? What are your concerns regarding the reform? The WorldCom Corporate Monitor, Richard Breeden, believed that in order to correct the ills that faced the company, WorldCom needed to adopt a strong Corporate Governance structure. The central objectives of his proposal “Restoring Trust” included improving

payable and accrued line costs |   | $ 14,739 | WorldCom paid outside service providers to carry some parts of its calls and to carry its customers’ calls on those lines. These costs were fixed monthly payments for the use of lines, regardless of whether the WorldCom or its customers used those lines or not. e- In the case, line costs are capitalized. Capitalized expenditures are booked as assets. In the balance sheet of WorldCom, capitalized line costs must be seen under the transmission