WorldCom the Rise and Fall WorldCom began in 1983 during the breakup of AT&T, which enabled competitors to start selling long distance telephone service to individuals and business customers. A group of investors from Hattiesburg, Mississippi decided to start a communications company called Long Distance Discount Services (LDDS). The company lead by Bill Fields leased a local Bell System Wide-Area Telecommunications Service (WATS) line and resold time on the line to businesses. The sophisticated
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For my ethical violation summary, I picked the former CEO of WorldCom, Inc.. WorldCom, Inc. is a U.S based telecommunications company that was at one point in time the second largest long distance phone company in the United States. The CEO of WorldCom was Bernard Ebbers. Bernard Ebbers was from Canada and had quit teaching high school in 1980. Ebbers bought a motel in Mississippi and eventually bought 8 Hampton Inns and Courtyard by Marriott’s. Through investors he met in buying motels, Ebbers
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the last few years. The company that we will look at for examples is WorldCom. WorldCom was one of the companies that led to the creation of the Sarbanes-Oxley Act of 2002. The five questions that we will address in this paper are: 1. Is current business and regulatory environment more conducive to ethical behavior? 2. What impact was done to WorldCom because of the accounting ethical breach? 3. How was WorldCom caught and how they failed to be ethical? 4. What accounts were impacted
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Who is WorldCom? The company began as Long Distance Discount Services, Inc. (LDDS) in 1983, based in Hattiesburg, Mississippi. In 1985, LDDS selected Bernard Ebbers to be its CEO. The company went public in 1989 through a merger with Advantage Companies Inc. The company name was changed to LDDS WorldCom in 1995, and later just WorldCom. The company’s growth under WorldCom was fueled primarily through acquisitions during the 1990s and reached its apex with the acquisition of MCI in 1998. Among
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critical analysis of the 2002 collapse of the WorldCom telecommunications empire as seen through the lens of deontological ethics. This analysis will be accomplished by defining deontological ethics and the Categorical Imperative (CI); by generally establishing what ethical problems were inherent in the WorldCom case; by evaluating the WorldCom model according to a deontological ethics; and finally by using Immanuel Kant’s construct of the CI to assess the WorldCom scenario. For the purposes of this limited
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WorldCom where being talked by lamplight and bundling as Enron is a lot of in topic of accounting fraud. However, the volume of information that can be obtained in Japanese is far less compared with Enron. The fact relevance makes the description of the case a base. WorldCom is a huge telecommunication company that exists in the United States before. The company that Mr. Bernard Ebbers founded in 1983 accomplishes the rapid growth repeating M&A with tremendous force. Long-distance telecom carrier
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and used by creditors to determine whether or not a loan should be granted. The mere fact that these financial statements are important and involves money opens doors for unethical practice and behavior. In the past years companies like Enron and WorldCom have been scandalize for its company’s unethical conduct in accounting. In the wake of numerous corporate scandals the Sarbanes-Oxley Act (SOX) of 2002 was created to protect investors by improving the reliability and accuracy of corporates disclosure
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examination of the business failure of WorldCom Incorporated and also compare and contrast the leadership management and organizational structures and failures. Examining Business Failure 2 Introduction WorldCom was the second largest long distance provider and on July 19, 2002 filed the largest bankruptcy ever in U.S. history with its $41 billion dollar debt load, and more than $107 billion dollars in assets. In 1999 WorldCom’s profits began to decrease when WorldCom reduced budgets on telecom services
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following paper will examine WorldCom and how the business failed. It will also compare and contrast the contributions of leaderships, management and the organizations structures to how the organization failed the way they did. The following paper will examine WorldCom and how the business failed. It will also compare and contrast the contributions of leaderships, management and the organizations structures to how the organization failed the way they did. WorldCom began as a small long distance
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Enron Case: Enron is known for the world’s biggest scandal in the history of American business. In Dec 2001, Enron Corp filed for bankruptcy. The major factors that led to the dissolution of Enron Corporation are the shortfall of business ethics of Enron’s management, accountants, auditors, board of directors and consultants. Off balance sheet arrangements made transactions between Enron and its partners were not clear and transparent. Between 1993 and 2001, Enron created over 3,000 SPEs that
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