Running head: WORLDCOM FAILURE RESHAPING BUSINESS

WorldCom’s Chief Executive Officer’s Failure of Responsibilities Reshaping the Business Environment
WorldCom’s Chief Executive Officer’s Failure of Responsibilities Reshaping Business Environment Bernie Ebbers’ leadership as Chief Executive Officer for WorldCom created the largest telecommunication bankruptcies and the largest bankruptcy in the corporate world. His unethical decisions to allow false financial reports to continue to be reported as inflated profits, where in reality WorldCom was losing profits while senior management was raping the money vaults. Bernie Ebbers’ action created change not only within the telecommunications world, but also within the views of responsibilities of Chief Executive Officers. In order to understand Mr. Ebbers’ shortcomings as the Chief Executive Officer of WorldCom, the role of Chief Executive Officer must be understood, in addition to basing his role against the ethical standards of today. David Elsum describes the corporate system by having three elements; a company board, a chairman, and a Chief Executive Officer. Chief Executive Officers have a unique role in today’s business. According to David Elsum, the “chief executives are responsible for company effectiveness, efficiency, profitability, and liquidity” (1988). In essence, the Chief Executive Officer should be highly effective to bring change and executing the company’s vision while being efficient with resources in order to increase profits. The board’s primary responsibility is to hire a Chief Executive Officer best suited to grow and lead the company. Once the Chief Executive is appointed, they will either strengthen or weaken the company through the actions they make. It is critical that company boards look at the morals of their candidates to ensure they have a history of making