Introduction:
Ethics in organizational theory is a topic that is constantly in the limelight due to the various cases of unethical behavior from executive members of different companies. The Enron case saga was one that has yet to get out of people’s mind where chief executive officer (CEO) Jeffrey Skilling who performed numerous fraudulent activities to hide the financial status of the company. Bernard Ebbers, CEO of WorldCom made history in terms of unethical approaches. Today this essay will talk about Ebbers odyssey in WorldCom and the leadership behind the downfall of the company.
1. To what extent were the actions of Bernard Ebbers indicative of leadership, and to what extent did Ebbers display destructive deviant behavior? Provide examples
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With a 6ft 4inch stature and debonair attire, he had a charismatic charm that proved to be irresistible by many to such an extent that they were ready to perform to their best and prove their loyalty toward him (Treviño, L., 2005). They had high respect for him and his simplicity was one of the factors that was attracting people. Year after year he was able to show a drastic increase in the company’s revenue and made WorldCom into a giant through several acquisitions. Some even thought of him as focused and his mindset to reduce costs was a highlight at that time. Before the WorldCom bubble, he was perceived as responsible and highly ethical for his altruistic approaches toward the community (Treviño, L., 2005). At some point, he was even considered a mentor by many. On the other hand, everyone was not keen with his approaches. After every acquisition, many staffs were laid off but simultaneously, he was displaying his wealth procurement through real estate ownerships and farming. The primary focuses were to takeover and merge with other similar entities but less on time allocation for proper integration within the business environment (Treviño, L., 2005). He was spiteful with those who questioned the operations of WorldCom and was very loud with his comments toward few European companies who dared query about the company. …show more content…
As a transformational leader who was for dishonesty, he created a culture within WorldCom for what he supported. He embraced fraud, falsification of numbers, and unethical conspiracy and he dragged his people into following his footstep. As a transactional leader who supported the ‘reward and punishment’ system, his managers and employees fell prey to his goals. If only he used his leadership aspects positively, managers could perform their job effectively and ethically by abiding to his demands to raise the company with transparency and honesty. Using the ‘reward and punishment’ action plan as a method to magnify positive outcomes and eliminate negative features could really establish the culture of WorldCom. His charisma could have had a magnetic effect in attracting people to do what is good and
How he (or his related industries) treated workers. He treated them badly. They were worked excessive hours, but given little wages for their work. They were beaten, forced to work at a dangerous workplace, and faced threatening conditions. How he spent his money?
Many were receptive to his
Because of this, he would gain opportunities to speak about what he wants. This shows that with the opportunity to have power, most men use it for their own
After I talk about both forms of leadership I will discuss each quote that was given on the assignment handout. Lastly, I will discuss the questions that have been provided for us to use. Also, throughout the paper I will have statements or remarks from the reading. From the textbook called ____________________ by Ciulla, there is two quotes that she has put into the textbook which refers back to a key point.
In source E, it had been mentioned what having leadership
He can be a persuasive man due to his good looks and him being young. All he needed in life was his farming and to live happily with his wife. He would freak out when the witch hunt directly affected him did he realize the gravity of his mistake. “A man may think God sleeps, but God sees everything, I know it now.
As a leader of WorldCom, Ebber had the mandate to ensure that all the stakeholders uphold the values and ethics of the company. However it can be noted that he approved the loans of the executive members without putting it in black and white. For transparency, accountability and for future reference sake, there is need to document all the company’s transactions. Fabricating profitable numbers as a way of exaggerating stock prices is a fraudulent and defiant behavior. As a leader, he was supposed to encourage his subordinates to record and make presentations of the actual figures of performance.
Despite the world 's trend toward upholding business ethics, the major corporate scandals in the past decade including the familiar Enron, WorldCom, Tyco, AIG, and Madoff cases along with Toshiba 's disgrace in the recent days, send a clear and consistent message and that is: we are still living in an era of immaturity in ethical awareness. You may be thinking to yourself, "I have a high morale and I know I won 't give in to pressures to do something to make such a scene". While a high morale makes it more likely to act ethically, the problem is in reality when people face scenarios involving ethical issues, often they are not even aware of the ethical implications of their actions and so they think they 're doing the right thing. This is probably mainly because we subconsciously rely on the "ethical efficiency" of our guts to make judgments and internally carry an illusion of morality. Take Dennis Gioia, the Management and Organization Department Chair at PennState University, as an example.
What we realise about him was that he was persuasive with others, always true to himself even in
1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers Knew about the financial statement fraud? What factors support his defense that he did not know about the fraud? Bernie Ebbers Knew about the financial statement fraud because he was the one who encourage others to go into financial fraud because of the stock prices were going down, which was affecting his marginal loan. For that reason, he was trying to sell his stock, but the board of Directors lent him $341 million, along with 2% interest rate.
The first major deal that helped the launch of the company was a deal that was done with computer producer IBM. The initial contact with IBM was when the company was looking for an operating system suitable for its upcoming computer in 1980, but nothing in the market was suitable for the company. This is when Gates adapted existing software to perfectly meet personal computer’s needs that IBM had in mind, and ensured that Microsoft would have the exclusive rights to the licensing and ownership of the software known as 86-DOS (Das, 2010). Upon the successful launch of IBM’s computer, the introduction of such a technology was very successful that the media recognized how Microsoft has been a very helpful factor in the success of the computer’s sales. Bill Gates saw the value of the 86-DOS software and its application on other computers and saw the potential of making a lot of money from licensing the technology to others.
In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .
The life story of Steve Jobs is very attractive in the world; moreover, he was an unconventional leader and help the Apple to be one of the most successful companies in the world. During reading this book, it describes the leadership style of Steve Jobs with personality, strengths, and weaknesses in his story. According to the fundamental concepts of leadership, I can gain the positive leadership skills and avoid to adopt his negative side from this book. The book provides lessons about innovation, character, leadership, and values of Steve Jobs (Isaacson, 2011).
Background WorldCom, once known as one of the most powerful telecommunication organizations of the world, is now studied as a case of a fraudulent company that carried out unethical financial activities to cover its weakening position in the market. After some aggressive investment decisions, the company started to witness huge financial pressure. The management used various forged accounting entries to conceal its weakening position. Cynthia Cooper, Vice President Internal Audit, discovered the unethical activities and raised the issue with the management and relevant departments and received bitter responses. She carried out internal audits in her own capacity with her colleagues and compiled evidence against fraudulent activities.
He was the kind of person that did not waste time worrying about what other people thought of him, he was there to identify the problem and fix it, the smoke and mirrors were not a part of his repertoire. He could easily be described as a colorful character and at the same time envied for his ability to think outside of the box. It was at that point that Apple really took off; their innovation and marketing skills were impeccable to say the least, (Paroutis, et al., 2013). New products were entering the mainstream every four months establishing Apple as the most technologically advanced computer based companies in the world, (Paroutis, et al., 2013). The development of the iPad was a major breakthrough for Apple, (Paroutis, et al., 2013).