Worldcom Essay

Choice #1: Ethical Business Management Sometimes, in firms, the interest of the stockholders and that of management will diverge and misalign thereby resulting in mismanagement of the business. Such separation leads to what is known in the finance world as an agency problem. Moreover, one of the five principle foundations of finance is principle number five (5) which points out that a conflict of interest will cause this agency problem (Keown, Martin, & Petty, 2014). Presented is an analysis…

different moral code and a definition of right and wrong. In this class we have discussed several companies i.e. individuals who have distorted the vision and ethics of the business they are under,to fit personal agendas. We covered Tyco, Monsanto, Worldcom, and Enron as four of largest business that were under investigation and convicted for fraud, embezzlement, etc. What is ethics in business? Business ethics is a form of applied ethics or professional ethics that examines principles and moral…

history. Klinkhammer (2013), argues that after being a corporate staple in Germany for almost 150 years, “corrupt activities had become cognitively institutionalized within the Siemens culture”. Similarly, the scandals of global companies such as Worldcom and Enron, just a few years prior garnered public attention and forced organizations such as the International Federation of Accountants (IFAC) to focus on the ethical practices of businesses. These are just a few examples of unethical…

addition, Byron is Jesuit priest and economist. This unique mixture makes the content extremely valuable in today’s business world because of its extensive worldview. The period of the turn of the century in many American businesses such as Enron, Worldcom, Arthur Anderson, etc. were driven by unworthy values like self-indulgence, greed and corruption that drove business into unethical territories. The awareness of the dark business period in American economy gives chill even today that impacted…

In the early 2000’s the United States was rocked by several companies, such as: Enron, WorldCom, Tyco and Sunbeam because these companies collaborated with their auditors and provided misleading financial reports to their investors and shareholders. Consequently, the Sarbanes Oxley Act of 2002 was enacted by the U.S. Congress to protect investors from the possibility of fraudulent accounting activities by corporations by mandating strict reforms to improve financial disclosures from corporations…

Economical crisis in US on the early 2000 1-Why it happened? The 1990s was a time of quick mechanical headway in numerous zones, yet it was the commercialization of the Internet that prompted the best development of capital development the nation had ever observed. Albeit cutting edge leading figures, for example, Intel, Cisco, and Oracle were driving the natural development in the innovation area, it was the upstart dotcom organizations that energized money markets surge that started in 1995…

Impact of Sarbanes-Oxley Act Gloria Alvarez Keiser University Accounting Principles I ACG1001 Professor Thorpe October 18, 2015 Impact of Sarbanes-Oxley Act The Act requires all financial reports to comprise an internal control report. This is intended to display that not only are the corporation's financial facts accurate, but the organization has self-assurance in them as satisfactory controls are in place to safety measure economic data. Year-end financial reports must include a valuation…

I will be giving examples of the Ford Pinto scandal, the Jon Burge and other current ethical scandals where organizations and work groups made bad decisions (Pollack, 2017). I will explain whether the elements of Bandura’s moral neutralization was present. Present examples of the Ford Pinto scandal, the Jon Burge scandal, and other current ethical scandals where organizational leaders and/or work groups made bad decisions. Explain whether or not the elements of Bandura’s moral…

Those provisions would have deterred the actions of Scott Sullivan, CFO at WorldCom because they notify upper management about the significance of the financial reporting process. Sullivan capitalized the network lease, which was wrong. According to ASC 840, the network lease must be treated as the operating lease. In reaction…

Consequences of White-Collar Crime White-collar crime is a widespread problem which have resulted in significant financial loss to victims. A few well-known white-collar crime case made headline to aware of the seriousness. They are Enron collapse in 2001, WorldCom financial fraud in 2002, Bernie Madoff Ponzi Scheme in 2008 and Leman Brothers scandal in 2008. These frauds all linked to large amount of money. According to Friedrichs (2009), the financial damage result from white-collar crime in…