Worldcom Essay

behavior from the case. Bernie “Ebbers lead WorldCom through over 60 acquisitions over a period of 15 years.”, which averages one new acquisition per quarter. (http://open.lib.umn.edu) In our reference text, Bernie was described by one WorldCom employee as being “...like a rock star.” (Trevino, L. and Brown, M., 2005, p. 89) The authors go on to state that, “Acquisitions occurred so quickly that there was no time to properly integrate new companies into WorldCom.” (Trevino, L. and Brown, M.,…

For instance, “the rate at which he made acquisitions was so quick that he never gave time for integrating new companies to WorldCom. The act of providing personal loans to the senior executives without documentation and his cost-cutting tales was another, as he became obsessive in keeping down costs, for example he would ban color copies because he deemed them too expensive,…

“an action or event regarded as morally or legally wrong and causing general public outrage.” Enron and WorldCom have certainly caused public outrage through their illegal, immoral, and unethical actions. While each scandal is in itself an expansive episode, they each have similarities and have both impacted the industry in ways that were far unseen by each company. So, who are Enron and WorldCom anyway? Enron was the largest marketer of natural gas and electricity. Based out of Houston, Texas…

behaviors included giving personal loans for people to invest in WorldCom, not keeping an email record of conversations, and doing creative accounting to meet stock projections each quarter (The Role of Leaders in Influencing Unethical Behavior…

Sarbanes-Oxley Act which was a United States federal law. Question One The main reason for the emergence of this Act was the occurrence of scandals that affected very big companies in the United States. The major scandals were Enron scandals and WorldCom scandals. Enron scandal was a problem revealed in the year 2001that…

According to the textbook, Intermediate Accounting by Spiceland chapter one, it said “Audits add credibility to the financial statements, increasing the confidence of those who rely on the information” (page. 16, 2016). After the frauds scandal of WorldCom and other companies, the investors lost their confidence in the accounting department (page.16, 2016). To increase the investors’ confidence one again, Congress created the Sarbanes-Oxley Act of 2002 to prevent future frauds from happening…

scandals did result in changes in legislation that have a positive effect, they were also the cause of losses to people around the world. Some investors still have concerns, and the economy was negatively impacted. This section will explore the Enron, WorldCom, Imclone, HeathSouth,…

For my person to be researching, I am covering Bernard Ebbers. Ebbers committed fraud, and he tried to merge his company with Sprint. This action was brought to the attention of the Department of Justice. Who immediately dashed this possibility. Ebbers company had an investigation with the SEC. Which led to the bankruptcy and to his eviction. Bernard owed $400 million in margin calls. And he convinced the board to lend him that money, so that he wouldn’t have to give up important blocks of the…

Good Business Practice In both the case of Worldcom and Enron both companies met the knowledge and intention portions of defining fraud. Fraud by definition is: “Wrongful or criminal deception intended to result in financial or personal gain.” Yet, finding a clear definition for what constitutes…

himself as a moral and ethical human being by giving back to his community and living modestly, behind the scenes, in the realm of WorldCom and the telecommunications industry, Ebbers was so obsessed with money, revenue, and power, that his ethics and morals curved to display deviant and destructive behavior. Ebbers was lauded as an amazing leader for turning WorldCom into a telecommunications beast. Ebbers driving force appeared to be revenue and power, so maintaining the public perception of…