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
Words: 1456 - Pages: 6
collaboration, and conflict management. WorldCom A training plan would have helped leader, managers, and supervisors of WorldCom, better understand effective communication. The WorldCom failure was in part because of the lack of communication from company leaders. By having a training plan in place for all levels of employees, there would have been a higher standard of professional behavior and guidelines to follow. This may have prevented the accounting fraud and unethical business practices that caused
Words: 1046 - Pages: 5
WorldCom, a Hattiesburg, Mississippi based company began as Long Distance Discount Service Inc. (LDDS). In 1989 through a merger with Advantage Companies Inc., went public. Becoming LDDS WorldCom in 1995 then changed to WorldCom. In 2000, the company suffered serious setback, the industry downturned forcing abandonment of its proposed merger with Sprint. WorldCom’s stock prices declined, the CEO was pressured to cover margin calls from the banks on WorldCom stock that was used to finance other
Words: 302 - Pages: 2
employees. Training can help to educate, raise awareness, and increase short and long-term company profits. WorldCom was a classic example of failed corporate governance, accounting abuses, and plain greed that could have been prevented through appropriate management and employee training. This paper will provide an example of a training plan that could have helped prevent the demise of WorldCom. Developing a Training Plan To increase the effectiveness of employees toward the achievement of business
Words: 1135 - Pages: 5
Ethics in Finance To help demonstrate why ethics in finance is need the falling of WorldCom is used. In the matter of three years WorldCom went from one of the most successful and promising companies to a bankrupted and absorbed company because of upper management lacking ethics. In early 2001 WorldCom expected and thus projected the use of internet to increase and so they made a significant amount of leases to internet and telecom service providers. However, the internet usage did not increase
Words: 481 - Pages: 2
Addressing the Challenges of Groups and Teams University of Phoenix LDR/531 WHO8MBA07 Harold Van Alstyne December 16, 2008 Addressing the Challenges of Groups and Teams Turning a group into a team is one of the biggest challenges faced by most of the organization these days. Two or more people together form a group, but it does not form a team. A group becomes team when you treat them as high level. To turn group into a team there needs to be a set measurable goals, define desired
Words: 1090 - Pages: 5
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. WorldCom achieved its position as a significant player
Words: 626 - Pages: 3
company earnings and filed for bankruptcy. This resulted in jail time and 78 counts of fraud for Andrew Fastow, CFO and 24 years in prison for prior CEO Jeff Skilling. WorldCom had a similar situation, as the expenses as a percentage of their total revenue increased because the growth rate of its earnings dropped. As a result, WorldCom reduced the money it held in reserve by $2.8 billion and moved this money into the revenue line of its financial
Words: 947 - Pages: 4
buying dozens of other companies. It eventually became WorldCom. The company grew rapidly in the 1990s. Among the companies that were bought or merged with WorldCom were Advanced Communications Corp. (1992), Metromedia Communication Corp. (1993), Resurgens Communications Group (1993), IDB Communications Group Inc. (1994), Williams Technology Group, Inc. (1995), and MFS Communications Company (1996), and MCI in 1998. On November 4, 1997, WorldCom and MCI Communications (the second biggest U.S. long-distance
Words: 703 - Pages: 3
maintaining ethical standards within the corporation. This is evident by some of the more recent scandals of Enron and Worldcom. These organizations sacrificed their ethics for the sake of profits. This is why the Sarbanes-Oxley Act of 2002 was instituted. Many situations lead unethical behavior especially in accounting, however, the most promising way of limiting the effects unethical behavior has on the corporate structure is to create an ethics culture that is supported throughout the organization
Words: 810 - Pages: 4
