Worldcom Essay

In today’s society, there are many legal risks that could arise within an organization. Employees could embezzle money from the company, company data may be exposed, or a hacker could enter into the secure company network. All of these situations have legal risks associated to them and the legal risks would cost the company thousands of dollars, which could make the company go out of business. In order to reduce these legal risks, the Sarbanes-Oxley Act was implemented by Congress to help…

It goes without saying that corporations have a huge impact on society, they define the city skylines with their high rise buildings and provide the very products we need for our everyday life. However, the fact remains that corporations exist to be a money making tool for its owners. Many corporations are run based on the theory of shareholder primacy which postulates that the management of a corporation has one duty-to maximise shareholder dividends (Hall et al., 2008). Now, there really isn’t…

The Sarbanes and Oxley Act of 2002 (SOX) was put into place because of outrageous fraud acts that were conducted by U.S. corporations that led to the layoffs of thousands of Americans. Companies were self-auditing therefore creating conflicts that might inflate accounting statements. The executives of the companies were not savvy enough to understand the complex forms to do addition checks on initial reporting. I this report the major topics that will be discussed are Mistakes made by the…

will provide my own perspective. Unethical Organizational Behavior The literature is abundant with examples of unethical decision making and unethical or even illegal behavior in corporate America. Examples of corporate wrong doing such as ENRON, WorldCom and DynCorp are just a few (Jackson, Wood, &…

In school, we learn about the impacts of the Enron and WorldCom scandals but we do not hear too much about other cases. However, after reviewing the case, many of the changes to the generally accepted accounting procedures are a result of frauds. Frauds prompt change to the procedures to prevent these types of…

governance became a very important issue in 2002, with the passing of Sarbanes Oxley Act. It sought to restore public confidence in corporate governance following the collapse of several major companies, due to accounting fraud, such as Enron and Worldcom. Corporate governance continues to be a hot topic today with the rising in corporate ethics. For example, one such issue is whether corporations should take responsibility beyond their direct shareholder interests, to include the communities…

best of people. For example, Walsh and Foss are unethical because they failed to consider the consequences of their actions. Tyco’s scandal under the Kantian approach According to Kant, the person must be treated as ends and not as means. In consequence, the human being must be treated with respect. The human being has a moral value different from the machine. The Kantian approach comes with the principles of “respect for person” as “respect for individual.” According to this theory, the leaders…

Introduction Nortel Network Corporation was a huge Canadian player in telecommunication. It was a part of the telecommunication boom in the 1990's. Like many companies it had a great rise then suddenly it started to fall. There was four huge reasons for the company downfall: governance structure at the board level, executive compensation, ownership structure, and earnings management. (Collins, 2012) The company may have started with some good Samaritans but as it grew more and more the company…

Ethics and Social Responsibility MGT/498 February 26, 2013 Ethics and Social Responsibility Companies, such as Enron and WorldCom brought new awareness of the terms ethics and social responsibility. Thus, corporations are including ethics as part of the company’s strategic planning objectives (Cato Institute, 2013). This writing will assess the role of ethics and social responsibility in developing a corporate strategic plan. Further, the…

19. The company are committed to augmenting shareholder value and conforming with laws and regulations that govern shareholder rights. 20. The company should inform their financial stakeholders about relevant aspects of their business in a rational, precise and appropriate manner and should disclose such information in harmony with applicable law and agreements. 21. The company should keep accurate records of their activities and should observe to confession standards in harmony with applicable…