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Business ethics issues in WorldCom - Essay Example

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Business ethics issues in WorldCom

It is believed that these unethical issues were primarily not checked upon by anyone because the CEO of the company himself was involved in the fraudulent activities. These unethical issues and different management techniques recommended to improve the corporate governance of WorldCom would be outlined in this essay (Backover 2002; Crawford 2005).
There were three major problems with the corporate culture and their style of working. The first one was the way they grew through aggressive acquisition of companies, second was the strategy of senior executive loans and the third and foremost was the way in which they did business which was against the code of corporate governance and had exposed them to threats related to fair and arm’s lengths transactions (Kiron et al 2004; Securities and Exchange Commission 2003)
Business Ethics form an important part of the culture of the businesses. They are very important when it comes to the normal functioning of businesses in this world. The company had made almost 65 acquisitions or mergers in only 6 years. Integrating is a lengthy process, time consuming and a very challenging exercise as there may be people who may resist these changes and create problems. The second aspect is to integrate financially by the use of the generally accepted accounting principles. It is believed generally that because of these practices of integration WorldCom was successfully able to hide its practices. The unethical issues in the company arose when the company started to face problems from the decreasing demand of telecommunications. It is then believed that the senior executives of the company were involved in fraudulent activities. (Kiron et al 2004; Worldcom Website 2010; Securities and Exchange Commission 2003)
The unethical activities at WorldCom were such that the difference between moral good and bad was forgotten. Leaders are important when it comes to the ethics of a company (Mendonca 2001). But here at WorldCom ...Show more


It was in 1995 that this company became known as WorldCom. The company reached its peak when it merged with the MCI to form MCI WorldCom but later in 2000 the merger was…
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Business ethics issues in WorldCom
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