Worldcom Essay

former associates as very high energy and charismatic. In his book Telecosm author George Gilder described Ebbers as “one of the most fascinating, improbable, and inspiring in North American business” (Gilder, 2002). Indeed the man that built the Worldcom empire from a humble beginning to a multi-billion dollar company that completed over 70 mergers and acquisitions no doubt was very charismatic and had strong leadership. However, with great leadership comes great responsibility. According to…

(Treviño, Hartman, & Brown, 2000). Ebber’s influential leadership role in creating WorldCom through his vision and innovative nature could consider as indicative leadership. Although, when organizational leader become a reckless risk taker, they can harmfully impact and eventually destroy the long-term vision of the organization, their position, and carrier. When the board members were under tremendous pressure at WorldCom…

Also, he put the power and the authority between his loyal mangers (Trevino & Brown, 2005, P. 92). 3. Identify some theoretical linkages between Ebbers’s leadership style as practiced and the behavior that occurred within WorldCom. According to leadership styles Bernard Ebbers described as Transactional leader. He concerned about his own achievement and his power only he was more pseudo-transformational leader with lack of moral virtue. 4.The law firm report identified Ebbers…

Had Ebbers been transparent in the performance of his duties and visible with his operations at a stage the economics of his business were not sustainable, he probably would have had to declare bankruptcy years before the world saw the end of WorldCom As in the business world, when trading stakes are so high, and once you have lost your reputation, you will most likely never made a comeback, recovered or been able to succeed again. What I would question is that if Ebbers had succeeded in…

Fastow, Enron Corp.’s (Enron) former Chief Financial Officer, in the moments prior to being sentenced to six years in prison for his transgressions. Irrefutably, Enron is perceived by many to be one of the most notorious frauds of the early 2000s. WorldCom, whose insolvency has been deemed to be one of the largest of all time, is another entity that partook in a duplicity that arose from an endeavor to mask a company’s deficit. Although a conceivable generalization, one can avow that in due…

Reform and Investor Protection Act' (in the Senate) and 'Corporate and Auditing Accountability and Responsibility Act' (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX became a law on July 30, 2002 as a reaction to Enron and WorldCom-type accounting scandals. The most important part of this Act is that it provides a new nonprofit company responsible for the inspection and sanction of audit firms; this is "the Public Company Accounting Oversight Board”. SOX led to a greater…

Stock Market From Inside Job, a documentary about the lead up to the stock market crash of 2008, Christine Lagarde said “The financial industry is a service industry. It should serve others before it serves itself.” The year 2008 was a huge scare for the common man in the United States. When the housing market crashed, everyone saw their lives change before their eyes and feared for their future. Stocks went down faster than the speed of light and with time of change heading towards the United…

collapsed which led to the largest bankruptcy in U.S. and a large number of lawsuit due to the violation of federal security laws. After the Enron’s collapse some other companies were investigated and charged by the SEC in 2002 and 2003 which include WorldCom Inc, Xeron Corporation, and Bristol-Myers Squibb.…

committing such fraud to the extent WorldCom defies the definition of morality. Secondly, the public interest; employees should be aware of the obligation to act in a manner that would honour the public; this would mean exonerating any falsities that lie within the company, that they are aware of. Third is the concept of integrity; all responsibilities should be carried out with integrity to maintain public confidence, again, the fraud committed by WorldCom would be falsely gaining public…

Accounting practices were previously less regulated than they are today. The main reason that we have the Sarbanes-Oxley act is due to series of accounting frauds committed by companies such as Enron, Worldcom, and Freddie Mac. These companies knowingly misstated earnings, overinflated assets, or hid debts and mislead stockholders. These practices were unethical because companies knowingly exploited Gray areas in legislation for profit. After the abuse of accounting frauds occurred the…