Ethics and Worldcom Essay

663 Words Dec 22nd, 2005 3 Pages
In the case of WorldCom, a national company that began in 1983 and would provide long-distance telephone services, it is hard to determine where the problem begins. The case, as explained in the book, has never really found the core of the problem. We are told that financial reports were falsely created and improper accounting practices were found, but who is to blame? The textbook tells us that several of the former top financial executives pleaded guilty to securities fraud, however they defended themselves to say that they were forced to cover things up by other top officials. As reading through the questions given in class it was hard to completely gather all thoughts into one area. We know that World Com is a for profit …show more content…
I think as a whole the accounting department heads at Worldcom were not organized. It seems as though someone knew what was going on and did nothing about it, or was trying to cover up improper areas with the hopes that the problems would all work themselves out over time. The major corporate governance issues involved the shareholder's rights. Each shareholder has a right to know what is going on within a company at any given time. Worldcom's shareholders were not informed and in the end lost billions of dollars. As far as the corporate culture in this case though, it is not really discussed as to how employees were treated or what the environment was like as a whole, as it was in the Sunbeam case. Rather, it seems as though one situation was cover up by another situation in order to cover up something else with the hopes that someone would not find out. It appears as though loans were taken out to cover up other loans and no one wants to come forward and admit to being the source of the problem, so each person is blaming someone else. In the end by blaming each other it shows me that the organizational culture was apathetic… the investors were not thought of before the bad accounting practices were actually practiced. One even mentions blaming Arthur Anderson and noting that they knew about the bad accounting practices and did not tell, but without truth we may never know the whole story. Overall, in

Related Documents