In the late 1990’s, WorldCom was a successful company and leader in the telecommunications world. They had merged with MCI and the company was regarded for being innovative and growth hungry. However, in the midst of all the mergers WorldCom CEO Bernard Ebberly began to mismanage the company. WorldCom was no longer meeting their numbers and it looked like stock prices would fall. Rather than letting this happen, executives at WorldCom doctored the books. CFO Scott Sullivan and auditors used accounting
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WorldCom By Dennis Moberg (Santa Clara University) and Edward Romar (University of Massachusetts-Boston) 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. But none of these other companies had senior executives as colorful and likable as Bernie Ebbers. A Canadian by birth, the 6 foot, 3 inch former basketball coach and Sunday School teacher emerged
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EBF 2 Abstract The following article will discuss the failure of the organization known as WorldCom. It will determine the reason for the fall of the company failure comparing and contrasting what could have been done by management and leadership. The organizational theories that could have predicted the failure of management and the impact of the company’s structure EBF 3 The company knows as WorldCom was one the leading telecommunication giants of its day
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The accounting fraud at WorldCom was the result of corporate supremacy, individual liability, and an ultimate collapse of their system of in-house controls that can all be attributed to greed, manipulation and a lack of accountability for top executives. Bernie Ebbers, at the helm of it all, lacked focus, strategic direction, and led WorldCom with a consistently declining moral compass. It is thought that the ethical turn down of WorldCom’s top executives began with the U.S. Justice Department’s
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expected its employees to abide by. This is the underlying issue that eventually led to the demise and bankruptcy of Worldcom. As a leader, you are expected to lead by example and set your organization up for long term success. When CEO of Worldcom, Bernard Ebbers, was told about an internal effort, from with Worldcom, to create a corporate code of conduct, he stated that the project was a, “colossal waste of time” (Kaplan & Kiron, 2007, p. 3). It’s clear that the organizational culture within Worldcom
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Use the Fraud Triangle and Fraud Scale to critically analyse the actions of Bernie Ebbers and Scott Sullivan during the WorldCom saga/ What does your analysis suggest? Dennis Greer’s fraud triangle is a key framework in analysing the ‘factors that cause someone to commit occupational fraud’ (ACFE-The Fraud Triangle, Association of Certified Fraud, Examiners Available from:http://www.acfe.com/fraud-triangle.aspx [January 2014]). The three elements that make up the model are perceived
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long-distance phone lines at deeply discounted rates. LLDS (Long Distance Discount Services) provided services to those regions where well-established companies, such as MCI and Sprint, had very little presence. At an early stage of the company, Bernard J. Ebbers, was given the charge to run the show. He firmly believed in inorganic growth and focused company’s strategy on acquisitions. Acquiring small long-distance companies with limited geographic service areas and consolidating third-tier long
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Jacob Ms. Biology 2 18 Feb. 2015 Tay-Sachs Disease (TSD) Tay-Sachs disease, acronated as TSD, is a fatal lysosomal storage disease that affects the nervous system of primarily infants. Caused by a buildup of a fatty lipid called gangliosides (GM2), a child will suffer through symptoms such as seizures, blindness, and loss of muscle tone and motor skills until ultimately, the disease causes death. (Board) GM2 needs broken down in order to be discarded of. Hexosaminidase A is the enzyme responsible
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the form of raising capital is the most distinct advantage, this capital can be used by the company to fund research and development alongside capital expenditure. Subsequently this may lead to an increase in market share for the company. 2. Bernard Arnault and LVMH acquired a large position in Hermès shares without anyone knowing. How did they do it and how did they avoid the French regulations requiring disclosure of such positions? LVMH had acquired the position under the radar of the
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Worldcom Fraud Investigation Use the Fraud Triangle and Fraud Scale to critically analyse the actions of Bernie Ebbers and Scott Sullivan during the WorldCom saga/ What does your analysis suggest? Dennis Greer’s fraud triangle is a key framework in analysing the ‘factors that cause someone to commit occupational fraud’ (ACFE-The Fraud Triangle, Association of Certified Fraud, Examiners Available from:http://www.acfe.com/fraud-triangle.aspx [January 2014]). The three elements that
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