market / industry. As such, Bernie Ebbers desired to notch the WallStreet through forging close relationships between Worldcom and the Stock market. Below are the factors that evidently pressured Bernie Ebbers • Pressure to meet or Beat analyst expectation “Our goal is not to capture market share or to be global. Our goal is to be the no.1 stock on wall street” as quoted in the case study, Ebbers, the CEO and “the powerful leader” , strongly desired to notch the Stock market on wall street which drove
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
Role of four major players: 1) Role of Betty Vinson: Betty Vinson joined WorldCom as a manager in the international accounting division. She developed a reputation of hardworking, loyal employee and often voluntarily worked extra hours at night, while at home and on vacation. She was soon elevated to senior manager as a result of her good work. In October 2000, Betty Vinson and her colleague Troy Normand were asked by their boss Buford Yates to release $828 million of line accruals into the income
Main culprits There are four main culprits behind the WorldCom accounting scandal, Scott Sullivan, Bernard Ebbers and David Myers and Arthur Andersen. Scott Sullivan is a former chief financial officer in WorldCom. According to the U.S. Securities and Exchange Commission statement, he has engaged in a fraudulent scheme to conceal WorldCom’s poor financial performance (SEC). As a chief financial officer, he fully understood what was happened with the financial statement and the situation that the
Bernard Ebbers appears to have been a charismatic and transformational leader but also an unethical one, and probably a hypocritical one as well. According to the case study prepared by Brown (Treviño et al, 2003), Ebbers was inspired a cult-like devotion among his followers. In fact, the case study cited one of his employees describing him as a "rock star" and said that people "revered him". Ebber 's charisma may have played a role, however, in inducing his employees to join him in pursuing profits
that arises when the entrepreneur dilutes his WorldCom was a tele-commutation company the USA it provided long distance phone services to businesses and personals. WorldCom was established as a small company known as Long distance discount services in 1984 but under the management of Bernie ebbers LLLDS grew to be one to the biggest tele-commutation companies in the whole world. WorldCom had 85000 workers and it operated in more than 65 countries. WorldCom was known to the public that it was a strong
Ethical Dilemma of WorldCom Case Introduction WorldCom recorded the most unethical accounting scandal in the accounting history. The fraud involved two executives by the name Scott Sullivan who was the chief financial officers (CFO) and his colleague David Myers who was the controller in the firm. The two top level employees demanded a fraudulent accounting ploy that involved shifting more than $3.8 billion from the account of operations and recorded them to the capital account. The misconduct made
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
True Independence The responsibilities of Independent Directors include to keep an oversight and report all questionable activities, owe all directors equal degree of respect, protect corporations and shareholders’ interests and bear liabilities in case of ignorance. The true independence of Independent Directors in order to carry out their responsibilities has been compromised to some extent in reality. The following reasons are a contrast between Independent Director’s responsibilities and the lack
Unwillingness of Employees It has been noted throughout this case study that employees of Walmart are unwilling to work and often they get harassed and are left with the option of suing the company, they are unmotivated. To remedy this problem what Walmart can do is invest into training and development programs for